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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Avocet Mining Plc | LSE:AVM | London | Ordinary Share | GB00BZBVR613 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 13.10 | 11.40 | 14.80 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAVM
RNS Number : 8977L
Avocet Mining PLC
30 April 2015
Annual Report and Accounts 2014
Avocet Mining PLC ("Avocet" or the "Company") has today published its Annual Report and Accounts for the year ended 31 December 2014 on its website - www.avocetmining.com
In compliance with LR9.6.1, a copy of the Annual Report and Accounts will shortly be available for inspection at the Financial Conduct Authority's National Storage Mechanism website: http://www.hemscott.com/nsm.do.
The Annual Report and Accounts will also be mailed to those shareholders who have elected to receive it in hard copy.
The Notice of the Company's Annual General Meeting, which is expected to be held on 19 June 2015, will be sent to shareholders in due course.
Avocet's preliminary results announcement on 28 April 2015 (which is available via the Company's website) included, in addition to the preliminary financial results for the year ended 31 December 2014, information on important events that occurred during the year and their impact on those financial results. That information, together with the information set out in the Appendix below is provided in compliance with the requirements of DTR6.3.5(2)(b). This information is not a substitute for reading the full Annual Report and Accounts for the year ended 31 December 2014.
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining PLC Bell Pottinger J.P. Morgan Cazenove Financial PR Consultants Corporate Broker David Cather, CEO Daniel Thöle Michael Wentworth-Stanley Mike Norris, FD +44 203 709 2570 +44 20 2772 2555 +44 20 7742 4000
NOTES TO EDITORS
Avocet Mining PLC ("Avocet" or the "Company") is an unhedged gold mining and exploration company listed on the London Stock Exchange (ticker: AVM.L) and the Oslo Børs (ticker: AVM.OL). The Company's principal activities are gold mining and exploration in West Africa.
In Burkina Faso the Company owns 90% of the Inata Gold Mine. The Inata Gold Mine poured its first gold in December 2009 and produced 86,037 ounces of gold in 2014. Other assets in Burkina Faso include eight exploration permits surrounding the Inata Gold Mine in the broader Bélahouro region. The most advanced of these projects is Souma, some 20 kilometres from the Inata Gold Mine.
In Guinea, Avocet owns 100% of the Tri-K Project in the north east of the country. Drilling to date has outlined a Mineral Resource of 3.0 million ounces, and in October 2013 the Company announced a maiden Ore Reserve on the oxide portion of the orebody, which is suitable for heap leaching, of 0.5 million ounces. As an alternative, the potential exists to exploit the entire 3.0 million ounce Tri-K orebody via the CIL processing method. The Company announced on 2 April 2015 that an exploitation permit had been awarded for Tri-K.
Appendix
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Avocet group (the "Group") are set out below, together with details of how these are currently mitigated. For further information on how the Group manages risk, see pages 19 to 21 of the Strategic Report within the Annual Report and Accounts.
Risk Comment Business Mitigation Impact ---------------------- ------------------------------- --------------- ------------------------------ Economic risks -------------------------------------------------------------------------------------------------------- Availability The Life of Mine High The Company has put of finance Plan at Inata, as in place cash conservation well as the construction and cost reduction measures of a new mine at at Inata and continues Tri-K in Guinea, performance testing and repayment of with a view to improving the Elliott loans gold recoveries. It are dependent on has also commenced a external financing. programme of drilling and metallurgical test work at Souma to determine the extent to which satellite ore feed from Souma might increase Inata's life of mine and cash flow generation. The Board believes that the activities at Tri-K and Souma should generate value for the Group and should assist the Group in its discussions regarding future financing for Tri-K and for corporate purposes including repaying loans to Elliott. The Company continues to explore options for longer term funding for the remainder of 2015 and beyond. See the disclosures on Going Concern in Note 1 to the Financial Statements for more information. ---------------------- ------------------------------- ------------- -------------------------------- Exposure Avocet realises US Low The Company continually to a strengthening dollars for all of monitors fluctuations in local its gold sales, and in currency rates, and currency reports its results may on occasion purchase rates in US dollars. short term currency hedges (although did The Company is exposed not do so in 2014). to the West African It is Avocet's policy CFA, being the local to minimise the value currency of Burkina of cash held in non-US Faso, in which its dollar currencies where Ecobank loan as well possible, while complying as many of its costs with currency restrictions are denominated. and other obligations of the countries in which it operates. ---------------------- ------------------------------- ------------- -------------------------------- Exposure The Company is exposed, Moderate The Company seeks to to unfavourable both directly and minimise its usage of movements indirectly, to the input materials. It in purchase purchase price of also monitors commodity prices diesel, steel, and prices constantly and of input reagents used in considers whether hedging materials gold production. might be appropriate. No hedging was entered into during 2014. ---------------------- ------------------------------- ------------- -------------------------------- Exposure Avocet is subject Moderate The Company seeks to to increases to increases in the negotiate the best possible in the market prices for rates for all services market services and equipment and products it receives, prices (e.g. mining contractors, taking into account of the drilling, tyres, not only price, but equipment vehicles, etc). service quality and and services reliability. it uses ---------------------- ------------------------------- ------------- -------------------------------- Exposure Avocet's revenue High Avocet maintains a policy to a fall is dependent on the of exposure to the spot in gold market price of gold. gold price however continues prices to review whether a form of hedge might be appropriate. ---------------------- ------------------------------- ------------- -------------------------------- Operational risks ---------------------------------------------------------------------------------------------------------- Reliability The calculation of High Avocet's Mineral Resources of Mineral Mineral Resources and Ore Reserve estimates Resources and Ore Reserves are prepared either and Ore involves significant by in-house staff or Reserves assumptions and estimates by third party consultants that may prove inaccurate, who have considerable including gold price experience and are certified assumptions. by appropriate bodies such as JORC and NI43-101. The Technical Committee is responsible for ensuring the appropriate controls are in place to provide assurance that Mineral Resources and Ore Reserve estimates are appropriately prepared. ---------------------- ------------------------------- ------------- ---------------------------------- Exposure The Company is exposed Moderate Avocet's operational to mining to a number of risks teams regularly monitor hazards and hazards typically mining risks, and report associated with mining to the Technical Committee, - e.g. pit wall failure, which is responsible, adverse weather, on behalf of the Board, and mechanical breakdowns. for ensuring appropriate measures are in place for anticipating, and responding to, such matters. ---------------------- ------------------------------- ------------- ---------------------------------- Country risks ---------------------------------------------------------------------------------------------------------- Exposure In addition to political/social High Avocet is committed to changes risks, Avocet is exposed to acting in partnership in fiscal to changes in the with all stakeholders, and regulatory mining, labour and including the governments regime tax codes in Burkina and communities of Faso and Guinea, which the countries in which may result in a more it operates. It regularly challenging, or costly, meets government ministers operating environment. to discuss fiscal and regulatory matters and to ensure the Company and its shareholders' interests are well represented. -------------------- --------------------------------- --------------- -------------------------------- Exposure Avocet's assets are Moderate The Board closely monitors to political located in Burkina the political and social and social Faso and in Guinea, situations in the countries risks and the Company is in which it operates, in Burkina therefore exposed drawing on internal Faso to any adverse changes and external advisors. and Guinea in the political and social situations in those countries. -------------------- --------------------------------- --------------- -------------------------------- Other risks -------------------------------------------------------------------------------------------------------- Finance Many of Avocet's assets High The Company is in risk at Inata are secured regular contact with in favour of Ecobank. all of its financiers, The Company is therefore including Ecobank reliant on meeting and Elliott. Although its loan obligations the gold price and with Ecobank in order operating performance to avoid the risk have made meeting of this security being debt commitments difficult enforced. In addition, during 2014, Avocet the Company has an recognises the support unpaid obligation it has received from to Elliott, which its debt providers, must be repaid or and continues to focus renegotiated. on maintaining a strong relationship of trust. In addition, the Inata mine has a number The management of of trade creditors the Inata mine remain whose balances are in regular contact overdue, including with suppliers, who critical suppliers. have been supportive There is a risk that and understanding one or more of these of the issues faced might withhold supplies to date, and the difficulties or initiate legal going forward. The action, which in turn message communicated might lead to the to all creditors of inability of the mine the mine that the to continue to operate. continued operation of Inata will lead to the maximum repayment of outstanding debts. ---------------------- ------------------------------- --------------- ------------------------------ Portfolio Since the sale of Moderate It is the Company's risk of Avocet's South East policy to pursue growth having Asian assets, the opportunities through a single Company has been reliant organic means (in operating on a single revenue Guinea, as well as asset generating asset in through expansion Inata. Any factors in Burkina Faso), that affect production as well as reviewing at the Inata will acquisition opportunities consequently have which can be shown a significant impact to be value accretive. on Group results. ---------------------- ------------------------------- --------------- ------------------------------ Licence Avocet holds a number Moderate Avocet maintains good administration of exploration and relations with the mining licences. These appropriate authorities licences normally and management are include conditions responsible for ensuring for ongoing operation conditions are adhered (e.g. minimum expenditure to and renewal applications levels) and require submitted in good periodic renewal. order. Renewals are not normally guaranteed. ---------------------- ------------------------------- --------------- ------------------------------ Litigation Avocet is the subject Moderate As explained in note of legal action initiated (with 31, the courts in by its former partner low Indonesia have to in Indonesia, with probability) date accepted Avocet's regard to the sale claim that the Indonesian of various South East courts do not have Asia entities in 2011. jurisdiction over the dispute. PT LT has appealed this ruling, but the Company is confident that all the actions taken in respect of the transaction have been in accordance with prevailing rules and regulations and there are no grounds for any such legal action. ---------------------- ------------------------------- --------------- ------------------------------
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report, the Remuneration Report, and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company and group for that period. In preparing these financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently; -- make judgements and accounting estimates that are reasonable and prudent;
-- state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained in the financial statements; and
-- prepare financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements and the Remuneration Report comply with the Companies Act 2006 and Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors confirm that:
-- so far as each Director is aware, there is no relevant audit information of which the Company's auditors are unaware; and
-- the Directors have taken all steps that they ought to have taken as Directors to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The Directors are responsible for preparing the Annual Report in accordance with applicable law and regulations. Having taken advice from the Audit Committee, the Directors consider the Annual Report and the financial statements, taken as a whole, provide the information necessary to assess the Company's performance, business model and strategy and is fair, balanced and understandable.
The Directors believe that the Annual Report and accounts taken as a whole are fair, balanced and understandable, and confirm that the narrative sections of the Annual Report are consistent with the financial statements, and accurately reflect the Company's performance.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
To the best of my knowledge:
-- the Group financial statements, prepared in accordance with IFRSs as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
-- the Annual Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
David Cather
Chief Executive Officer
This information is provided by RNS
The company news service from the London Stock Exchange
END
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