avo posts loss even as higginsville grows

MINING NEWS

Avoca posts loss even as Higginsville grows
Kate Haycock
Monday, 16 March 2009

DESPITE its Higginsville gold project ramping up to produce 49,662 ounces of gold in the last six months of 2008, Avoca Resources posted a loss of $A14.6 million for the same period.

The company sold 45,322oz of gold from the Higginsville project in Western Australia at an average price of $A1102 per ounce during the half year, with total revenue hitting $50 million.

The Perth based company’s $14.6 million loss was mainly due to mining costs, coming in at $40 million, while depreciation and amortisation costs came to $18.3 million.

Earlier this month Avoca raised $28.9 million to finance a paste-fill plant, expected to cost around $15 million, and for future working capital.

Before this, the miner had only $4.05 million cash on hand at the end of the quarter and total debt of $66.8 million.

Avoca poured its first gold bar at Higginsville on July 8 last year, and shares in the company were last trading at $1.67, up 1.5c on Friday, but fell back 1c this morning.

MiningNews.net was unable to contact a representative of Avoca at the time of publication.