TSX-listed Avesoro Resources, a West African gold producer, has announced the release of its unaudited financial results for the quarter ended 31 March 2018. The company delivered record quarterly revenues of US$91.4 million. This is an increase of 174% on Q4, 2017.
“I am delighted to report that following record quarterly gold production of 68,088 ounces, Avesoro Resources delivered record quarterly revenues of US$91.4 million," comments CEO, Serhan Umurhan.
"This is an increase of 174% on Q4 2017 and represents more than 90% of the full year revenue achieved in 2017.
"On the back of the significantly increased cash flow from our assets, Avesoro Resources has strengthened its balance sheet during the quarter, and reduced net debt by US$17.5 million including a US$10.7 million scheduled debt repayment against the New Liberty project finance facility.
"We remain on track to achieve our 2018 production and cost guidance of 220,000 to 240,000 ounces of gold at an operating cash cost of US$620 to US$660 per ounce and an AISC of US$960 to US$1,000 per ounce.
Additionally, we are progressing well with the New Liberty infill, Ndablama, Youga and Balogo drilling campaigns.
"We look forward to updating the market later in the current quarter on our progress towards increasing the company’s mineral resources and subsequently extending the mine lives at our existing operations through conversion to mineral reserves," adds Umurhan.
Avesoro Resources Q1, 2018
- Record quarterly gold production of 68,088 ounces, an increase of 140% quarter on quarter (“QoQ”)
- Total company revenues increased 174% QoQ to US$91.4 million, with record quarterly gold sales of 68,553 ounces at an average realised gold price of US$1,333 per ounce
- Operating cash costs of US$624 per ounce sold, an improvement of 19% QoQ
- All in sustaining cash costs (“AISC”) of US$914 per ounce sold, an improvement of 24% QoQ
- Company EBITDA margin of 44%, a 33% improvement on the previous quarter, with EBITDA more than trebling QoQ to US$40.2 million
- Strong operating cash flow of US$39.4 million, an increase of over 177% on the previous quarter, with available cash on hand at the end of the quarter of US$23.0 million; and
- Net debt decreased by US$17.5 million to US$106.6 million.