JOHANNESBURG (miningweekly.com) – TSX- and Aim-listed Avesoro Resources has achieved positive earnings before interest, taxes, depreciation and amortisation (Ebitda) for the second consecutive quarter.
Ebitda reached $900 000 for the quarter ended June 30, after the company achieved positive Ebitda for the first time during the first quarter of the year, when it reported a $17-million improvement on the prior quarter to $500 000.
“I am pleased that the optimisations that we have worked hard to implement at New Liberty have resulted in a second consecutive positive quarter Ebitda,” said Avesoro CEO Serhan Umurhan.
The West African gold producer posted revenue of $19.3-million in the June quarter, a 31% jump on the corresponding quarter the year before and a marginal decline on the first quarter revenue of $19.7-million.
Gold sales of 15 382 oz had been reported during the quarter under review, with an average realised gold price of $1 255/oz, compared with sales of 16 008 oz with an average realised gold price of $1 231/oz in the first quarter.
During the quarter under review, Avesoro recorded cash of $2.8-million and inventory of $15.1-million, along with debt of $107.4-million, which included $15.6-million borrowed from the company’s majority shareholder Avesoro Jersey.
However, following the $15.6-million drawdown, during the quarter, of the $35-million loan facility from Avesoro Jersey, the company had made advanced payments to suppliers to secure lower unit cost pricing and to accelerate the acquisition of capital items that would further increase mining efficiency and process plant throughput, Umurhan commented.
During the quarter to June, Avesoro’s capital expenditure reached $5.4-million, mostly for capitalised stripping costs and upgrades to the process plant.
“The company also continues to consider a range of growth opportunities to deliver on its strategy to become a premier midtier African gold producer, including the potential acquisition of the Youga gold mine and Balogo deposit in Burkina Faso, currently owned by Avesoro Jersey,” Umurhan concluded.