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Gold miner Avocet Mining is seeking acquisitions after lifting annual pre-tax profits 43 per cent to US$ 22.7 (£11.35) million.

Asia-focused Avocet’s gold production fell 14 per cent to 178,318 oz in the year to March, chiefly because of changes made to increase future output at the company's Penjom mine in Malaysia. But turnover rose 20 per cent to $108 million, thanks to the rising gold price.

Average production costs reached the high level of $428 an ounce, against today’s $664 market price. That reflected costs at Avocet's ZGC mine in Tajikistan, which was sold during the year for a $230 million exceptional profit, while the average cost for the company's other mines, North Lanut in Indonesia and Penjom, still rose significantly from $229 to $352 an ounce but are on their way down to $300.

Jonathan Henry, who replaced John Catchpole as chief executive officer last year, is pursuing a policy of expansion, including the development of a mine at Bakan and Banda in Indonesia and possible moves in China. He sees costs falling to $300 an ounce or lower and, with cash of $110 million, he says the company looks forward to ‘another year of increasing profitability’.

At 137p, up 4.5p this morning, AIM-quoted Avocet’s shares are recovering from past vicissitudes and are still nearly £1 off last year’s high. They should improve further.

Avocet Mining	AIM	£82.35m	68.25p	-1.75p
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Avocet on the prowl			22/10/2007
Avocet on expansion trail			11/07/2007
Avocet signals profits growth			02/05/2007
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