WEST Africa-focused Avocet Mining saw its shares tumble to near record lows yesterday, after a weak gold price outweighed on-track gold production in the first quarter.
At 7.30am, Avocet shares were trading down more than 10 per cent at 15p.
The London-listed gold miner said it produced 30,481 ounces at its Inata mine in Burkina Faso in the quarter, marginally down from 30,909 in the previous quarter, at a cash cost of $1,169 (£753) per ounce, down from the last three months of 2012. It confirmed its full-year guidance of 135,000 ounces.
“Although production was seven per cent above our estimate and cash costs were seven per cent below our forecast, the company... remains in a challenging position with all-in costs estimated to be above the peer group average at $1,400/oz in 2013,” Canaccord analyst Tim Dudley said in a note.
That compares to a current spot gold price around $1,455.
In the first quarter, cash outflow from operating activities hit $15.4m.
Avocet, which has several projects in Burkina Faso and Guinea, saw its shares tumble earlier this year and was forced to battle to stabilise its finances this quarter after cutting the reserves estimate at its sole operating mine, Inata.
Shares closed at 15.25p.