ASX-listed Avesoro Resources has announced the release of its unaudited financial results for the quarter ended September 30, 2018 and nine months ended September 30, 2018.
"I am pleased to report that Avesoro produced 47 koz in the quarter taking year to date production to 175,496 oz," comments Avesoro CEO, Serhan Umurhan.
"We continue to generate solid revenues with strong EBITDA margins and remain on track to deliver our FY18 production guidance of 220-240 koz Au.
"Q3 2018 gold production was 22% lower than Q2 2018 in line with a scheduled reduction in mined grade at Youga due to a reduction in high-grade ore production from the Balogo pit and temporary mining of low-grade oxide material at Gassoré, where historical artisanal mining has depleted the near surface (<25m) oxide zone.
"Mining at Gassoré has now reached fresh rock and run of mine grade is increasing towards the reserve grade of 3.99 g/t as anticipated.
"Q3 total material moved of 9.78 Mt was in-line with that achieved in Q2, reflecting our continued underlying improvements in productivity despite rainfall in Burkina Faso being three times the historic average.
"At New Liberty, quarter on quarter ore production increased by 21 kt, run of mine grade remained stable and waste tonnes were unchanged.
"The wet season did however reduce our ability to fully utilise the larger New Liberty mining fleet during the quarter which, combined with an increase in drill and blast costs and fuel prices resulted in higher unit mining costs than in the previous quarters of 2018.
"In Q4 we expect both mining rates, unit costs and grade to improve at New Liberty, and for this to continue through 2019."
"During the quarter, cash costs increased to $877/oz and the AISC to $1,155/oz due to lower production at Youga and a temporary increase in unit mining costs at New Liberty which added approximately US$100/oz to these numbers. Importantly, for the full year we remain on track to deliver guided production and all-in sustaining costs per ounce.
"However, full year cash costs are now expected to be 10-20% higher than the previous guidance primarily due to higher mining costs at New Liberty due to mining fleet utilisation being lower than planned.
"Exploration continues across the portfolio where we target an additional 1Moz to our current mineral reserves.
"The US$25 million budget includes assaying, engineering studies, resource modelling and the independent technical reports and is a discretionary investment which we believe is already adding significant shareholder value with updated NI 43-101 reports for both New Liberty and Youga expected early next year.”