Avocet Mining

HOLD

10/05/2010 Robert Tyerman

Avocet Mining has confirmed it is talking to ‘potentially interested parties’ about selling its South East Asian gold mines.

AIM-quoted Avocet, whose long-standing chief executive Jonathan Henry announced his resignation last week, says the talks remain as yet ‘at a very preliminary stage’. The company insists speculation it has already concluded a $250m (£163m) sale of Penjom in Malaysia and North Lanut in Indonesia to part of Indonesian politician-turned-tycoon Yusuf Merukh’s PT Merukh Enterprises is ‘incorrect’.

PT Lebong Tandai, the Merukh division in question, holds 20% of North Lanut, which, together with Penjom, produced more than 107,000 oz of gold in the year to March. Avocet has lately been focusing market attention onto its Inata project in the West African state of Burkina Faso, where it is hoping to double gold production to 200,000 oz a year.

Highlighted by Growth Company Investor last year at 73.75p, Avocet shares have now reached 129p. Hold on for now.

Tags: AIM, Boardroom moves, Commodities, Deals & contracts

Sector: Mining

Companies: Avocet Mining

Market cap: £252m

PE Forecast: 8.4

Share price: 129p