JOHANNESBURG (miningweekly.com) – Aim-listed Avocet Mining posted a net loss of $5.48-million for the six months to June 30, compared with a profit of $3.81-million in the first half of 2016.
Revenues fell by 49% year-on-year to $26.40-million, while gold sales halved to 21 377 oz.
The gold miner in April started discussions with creditors regarding the restructure of its subsidiary Société des Mines de Bélahouro (SMB), which operates the Inata gold mine, in Burkina Faso.
This led to a shortage of certain critical supplies, forcing the company to halt production at Inata.
“This reporting period has been dominated by the discussions with certain of the financial and trade creditors of SMB,” the company said in a statement on Monday.
The discussions are still ongoing, with the objective of reaching a consensual restructuring solution.
The major creditors are considering two potential transactions that have been proposed by potential third-party investors.
These transactions are different in terms of structure, potential recovery for the creditors, the impact on the company's shareholders and the post-transaction group structure.
“The major creditors wish to explore each transaction further,” Avocet noted.
The company cautioned that if an agreed proposal is not successfully implemented, SMB will likely enter into insolvency proceedings.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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