West African gold producer Avesoro Resources achieved a 102% quarter-on-quarter increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) to $9.5-million for the first quarter of this year.
Its Ebitda margin also improved to 16%, compared with the 8% margin achieved in the fourth quarter of 2018.
The TSX- and Aim-listed company on Wednesday reported a 4% quarter-on-quarter increase in revenue to $59.9-million for the first quarter, driven by gold sales of 45 810 oz at an average realised price of $1 304/oz.
The company, which operates the New Liberty mine, in Liberia, and the Youga mine, in Burkina Faso, delivered gold output of 45 098 oz for the quarter.
“Although gold production was slightly behind our targeted levels for the quarter, we remain on track to achieve annual production and cost guidance for 2019 and I am pleased to report that both consolidated operating cash costs and all-in sustaining cash costs were reduced during the quarter. This was primarily driven by a 28% reduction in unit mining costs at New Liberty to $1.68/t and by 14% to $1.85/t at Youga," CEO Serhan Umurhan commented.
Consolidated operating cash costs of $911/oz for the first quarter represented a 7% quarter-on-quarter improvement, while the all-in sustaining cost of $1 149/oz represented a 6% quarter-on-quarter improvement.Creamer Media Senior Deputy Editor Online