Avesoro Resources Company Profile

Avesoro Resources

BUILDING A PREMIER MID-TIER AFRICAN GOLD PRODUCER
Company Exposure

Gold

Company Listing

Avesoro Resources

Stock Code

AIM/TSX:ASO

Company Overview



Avesoro Resources is a TSX and AIM listed gold producer and developer that operates three gold mines in West Africa. Avesoro is the seventh largest UK listed gold producer, with a 2018 gold production guidance of 220-240koz at a cash cost of US$620 – US$660 per ounce.

The Company’s assets include the New Liberty Gold Mine in Liberia and the Youga and Balogo Gold Mines in Burkina Faso. The group has a P&P Mineral Reserve base of 18.8Mt containing 1.36 Million ounces of gold grading 2.3g/t Au.

Avesoro has a US$25m 171,000 metre exploration programme for 2018 with 14 drill rigs currently active, focused on resource definition and conversion to expand reserves and extend its mine lives.

Investment Highlights

Key Differentiators

  • Proven low cost operator with ability to turn around non-performing assets
  • Proven in-house mine build capability
  • Rapid growth to date with appetite to continue at pace

Q1 2018 Highlights

  • Record gold production of 68,088 oz
  • Operating cash cost of US$624/oz (-19% QoQ)
  • AISC of US$914/oz (-24% QoQ)
  • Revenues of US$91.4 million (+174% QoQ)
  • EBITDA of US$40.2 million (+265% QoQ)
  • Operating cash flow of US$39.4 million (+177% on Q4 2017)
  • Reduction in net debt of US$17.5 million to US$106.6 million (-14% on Q4 2017)

2018 Outlook

  • 220 – 240 koz gold production
  • Cash cost US$620–660/oz
  • AISC US$960 – 1,000/oz (reducing in subsequent years)
  • Strong cashflow & debt reduction
  • Targeted exploration programme focused on resource conversion and extending mine lives
  • Further high impact acquisitions
Live Financials

Latest Announcements

Share Price Performance

Team

Mehmet Nazif Günal – Non-Executive Chairman & Director
Serhan Umurhan – Chief Executive Officer & Director
Geoff Eyre – Chief Financial Officer & Director
David Netherway – Non-Executive Director
Jean-Guy Martin – Non-Executive Director
Loudon Owen – Non-Executive Director

Major Shareholders

Avesoro Jersey – 72.9%
Lombard Odier Asset Management – 5.03%
Richard Griffiths and Controlled Undertakings – 4.9%

Projects Overview


LIBERIA
  • New Liberty Gold Mine – (Production)
  • Ndablama – (Exploration)
BURKINA FASO
  • Youga Gold Mine – (Production)
  • Balogo Gold Mine – (Production)
  • Ouaré – (Exploration)

 

* The Kokoya Gold Mine is owned by Avesoro Jersey, the 72.9% shareholder of Avesoro Resources

LIBERIA – New Liberty Gold Mine

  • Liberia’s first and largest commercial gold mine
  • Conventional gravity & CIL processing
  • High grade open pit Proven and Probable Mineral Reserve estimate of 7.4 million tonnes grading 3.03 g/t for 717,000 contained ounces of gold
  • Production: 110,000-120,000 oz forecast for 2018
  • Average LOM operating cash costs of US$659/oz and all in sustaining cash costs of US$749oz
  • Management team focused on delivering profitable cash flow from New Liberty

 

Ndablama
  • 35km north east of New Liberty
  • Located within 13km gold corridor, with 10 identified targets
  • Indicated Resource of 7.6Mt grading 1.6g/t Au (containing 386koz of gold)
  • Inferred Mineral Resource of 9.6Mt grading 1.7g/t Au (containing 515koz of gold)

LIBERIA – 2018 Exploration Programme
  • Focus for the remainder of 2018 is at Ndablama, Silver Hills & Matambo Corridor
  • At Ndablama a 15,000m infill drilling programme is well progressed with 4 rigs onsite
  • A 17,000m programme is planned at Silver Hills and on the Matambo Corridor
BURKINA FASO Youga & Balogo Gold Mines

  • Located in the “Centre-Sud” region of Burkina Faso adjacent to the border with Ghana
  • Acquired in December 2017
  • Strong cash flow generative assets
    • Combined Probable Mineral Reserves of 9.32Mt with 513Koz of gold grading 1.71g/t
    • Combined Measured and Indicated Mineral Resource of 16.64Mt with 924.2Koz of gold grading 1.73g/t and combined Inferred Mineral Resource of 13Mt with 685Koz of gold grading 1.7g/t
  • Production: 110,000-120,000 oz forecast for 2018
2018 Exploration Programme
  • 139,000m drilling budgeted for 2018:
    • Youga: 45,500m, strike extension of Gassore and along strike southeast of the A2NE pit
    • Balogo: 29,000m, targeting down dip extensions in the main Balogo pit and nearby along strike discoveries
    • Ouaré: 65,000m, infill drilling programme targeting an upgrade of resources to reserves and testing new targets within licence

Contact Details

WEBSITE: www.avesoro.com

EMAIL: nick.smith@avesoro.com

PHONE: +44 (0)20 3405 9160

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