28/01/2009 - 11:05

Mixed day for WA gold stocks

28/01/2009 - 11:05

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The release of encouraging quarterly reports by Western Australian gold miners has failed to provide direction for the stocks' share price, as a stronger market was offset by a fall in the precious metal's price.

The release of encouraging quarterly reports by Western Australian gold miners has failed to provide direction for the stocks' share price, as a stronger market was offset by a fall in the precious metal's price.

Today Avoca Resources, Allied Gold and Mundo Minerals all released quarterly reports on a day when the S&P/ASX 200 index closed up 1.5 per cent and the spot price of gold in Sydney was $US893.95 per fine ounce, down $US13.65 from the previous day.

Avoca reported that it had produced 27,856 ounces of gold and sold 25,556oz of the precious metal at an average price of $A1187 per ounce from its Higginsville mine in WA.

Avoca's share price dipped to an intraday low of $1.69, before closing at $1.75, a gain of three cents.

At the end of December, Avoca reported that it had just over $4 million cash on hand and $5.23 million in gold bullion.

Meantime, Allied Gold reported a 19 per cent increase in gold production from its Simberi mine in Papua New Guinea from 17,642oz to 20,989oz.

Gold sold was up from 13,251oz to 17,764oz and the average realised gold price increased from $A900/oz to $A1160/oz.

Cash costs were down from $A621/oz to $A597/oz.

Shares in the company closed down two cents to 34c.

Meanwhile, Mundo said development of its Engenho gold project in Brazil was tracking well with monthly ore production exceeding the targeted level of 20,000t.

The company reported that the cash operating cost during December averaged $A764/oz, higher than November's $A650/oz due to lower grade ore being processed.

The average gold price received during the quarter was $A1230/oz.

Engenho delivered a cash operating profit before tax of $1.23 million after depreciation and amortisation.

Mundo has forecast production for the 2009 calendar year to b around 30,000oz.

Shares in Mundo closed up one cent to 19c today.

Meantime shares in Apex Minerals closed nearly 12 per cent lower at 33.5c after coming out of a trading halt.

Late yesterday, the company announced it had raised a total of $24.6 million in new capital through a $19.6 million placement and a $5 million credit facility from major shareholder Mark Creasy.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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