Avocet up on getting gold back - Mining Journal (subscription)

Shares in West Africa-focused Avocet Mining shot up this week after a judge in Burkina Faso capital Ouagadougou lifted the seizure on a gold shipment, taking the company to the top of this week’s London and Johannesburg-listed market risers.

The company, which has a 90% stake in Inata gold mine owner Société des Mines de Bélahourou (SMB), has risen 58.25% in a week.

Bailiffs had seized the shipment of 1,400 ounces on October 7, acting on behalf of ex-SMB employees who were laid off following an illegal strike in December 2014 and are claiming unpaid benefits.

SMB had suspended operations at Inata pending the outcome of the court hearing but expects to be back in production later this week.

Avocet said yesterday the company would continue to explore solutions to resolve the ongoing US$3.4 million legal claim made by ex-employees. It said it was taking steps to recover the seized gold and reinstate normal shipments from Inata, which produced 74,755oz of gold in 2015.

Papua Mining and Chaarat Gold Holdings also enjoyed huge gains this week, up 46.25% and 43.45%, respectively.

Papua appointed new board members last week and Chaarat, which last month rejected an offer for its gold deposit in the Kyrgyz Republic, also recently successfully completed a block trade of 11.67 million shares.

Markets were up in the air today awaiting the outcome of the US presidential election, however Metal Bulletin is bullish on prices overall whatever the outcome.

“Regardless of who wins, once the dust settles after the election we would expect gold prices to remain well supported and for prices to work higher,” MB said yesterday.

Bloomberg reported bullion for immediate delivery dropped in early Asian trade to its lowest level since October 28 of $1,268.30/oz before recovering to $1,277.03 later in the morning.