Loss to date: 26.7% Orig­i­nal en­try point: Buy at 2.7p,


IT’S NOT BEEN the best start to our trade on gold miner Avesoro Re­sources (ASO:AIM) thanks to down­graded full year pro­duc­tion guid­ance weigh­ing on the share price.

How­ever, we orig­i­nally said in­vestors must be pa­tient and that near-term re­sults wouldn’t be out­stand­ing as the com­pany was still mak­ing im­prove­ments to its New Lib­erty mine in Liberia.

We’re now at a turn­ing point. First, a new mine plan in­creases fore­cast pro­duc­tion to an av­er­age of 149,000 ounces per year over the next four years, driv­ing bet­ter cash flow.

Sec­ond, Avesoro has firmed up ac­qui­si­tion plans for two mines in Burk­ina Faso. The Youga and Bal­ogo mines are fore­cast to pro­duce 110,000 ounces of gold in 2017. Those mines plus New Lib­erty are ex­pected to pro­duce 230,000 ounces of gold in 2018.

Youga and Bal­ogo are be­ing ac­quired from 73.5% share­holder Avesoro Hold­ings, a Turk­ish busi­ness which used to be called MNG Gold. The lat­ter bailed out Avesoro (pre­vi­ously called Au­reus


it en­coun­tered FTSE ALL SHARE fi­nan­cial and op­er­a­tional prob­lems in New Lib­erty’s early days as a pro­duc­ing mine. 3.00 2.80 2.60 2.40 2.20 2.00 1.80 1.60 1.40 2016 2017

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