Avocet to sell more Indonesian assets in Q3
Thursday, July 28 2011 - 03:12 AM WIB
In December 2010 Avocet announced that it had signed a binding agreement for the conditional sale of its South East Asian assets to PT Bara Kutai Energi, an affiliate of J & Partners L.P., a private company, for US$200 million. On 24 June 2011, the Company announced it had completed the sale of its main South East Asian assets, including its 100 per cent interest in the Penjom Gold Mine in Malaysia and its 80 per cent interest in PT Avocet Bolaang Mongondow, which owns the North Lanut mine and Bakan project in North Sulawesi, for proceeds of US$170 million.
The North Lanut mine produced 9,709 ounces up until its sale on 24 June 2011, at a cash cost of US$890 per ounce. Mining and leach pad stacking operations were affected by continued rainfall throughout the quarter, as well as by industrial action in April.
Although the majority of Avocet?s South East Asian assets were disposed on 24 June 2011, the Company has yet to complete the divestment of the Doup project in North Sulawesi, Seruyung project in East Kalimantan and Pani exploration project in Gorontalo and will continue to expend minimum amounts on these to comply.
These assets are expected to be sold during Q3 2011, once relevant government approvals have been obtained. The consideration for these assets has been agreed as US$30 million on a debt-free cash-free basis, and is expected to realise a profit on disposal of approximately US$15 million. (end of edited excerpt)
| ? | 2010 | 2011 | ||||
| ? | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
| Production statistics | ||||||
| Ore mined (tonnes) | 415,000 | 295,000 | 305,000 | 341,000 | 298,000 | 251,000 |
| Waste mined (tonnes) | 392,000 | 428,000 | 380,000 | 335,000 | 291,000 | 200,000 |
| Ore and waste mined (tonnes) | 807,000 | 723,000 | 685,000 | 676,000 | 589,000 | 451,000 |
| Ore treated (tonnes) | 265,000 | 267,000 | 368,000 | 400,000 | 366,000 | 236,000 |
| Average ore head grade (g/t Au) | 1.93 | 1.70 | 1.92 | 1.88 | 2.06 | 2.15 |
| Process recovery rate | 69% | 77% | 54% | 53% | 50% | 60% |
| Gold produced (ounces) | 11,370 | 11,184 | 12,311 | 12,715 | 12,148 | 9,709 |
| Cash costs (US$/oz.) | ||||||
| - mining | 330 | 343 | 329 | 383 | 412 | 449 |
| - processing | 155 | 172 | 177 | 186 | 201 | 235 |
| - royalties and overheads | 150 | 163 | 151 | 153 | 146 | 206 |
| Total cash cost | 635 | 678 | 657 | 722 | 759 | 890 |