We turned buyers of Avocet just over 3 weeks ago at the 65p level and following todays interim results that have reassured the market and underscored the strength of the Group’s balance sheet, feel it prudent to book a near 20% profit (ungeared) on this stock to complete the winning string of trades.
Highlights from this mornings results –
2012 SECOND QUARTER HIGHLIGHTS
-- Gold production of 32,917 oz. (Q1 2012: 38,296 oz.) -- Cash costs US$1,006 per oz. (Q1 2012: US$850 per oz.)
Net cash generated by operating activities of US$20.7 million (Q1 2012: US$13.9 million)
-- Average realised gold price of US$1,439 per oz. (Q1 2012: US$1,543 per oz.) -- EBITDA of US$8.7 million (Q1 2012: US$28.1 million) -- Cash of US$80.4 million, with external debt reduced to US$17.0 million