May 10, 2018


10 May 2018

Avesoro Resources Inc.




ENDED MARCH 31, 2018

Avesoro Resources Inc. (“Avesoro” or the “Company”), the TSX and AIM listed West African gold producer, is pleased to announce the release of its unaudited financial results for the quarter ended March 31, 2018 (the “Quarter” or “Q1”).

Q1 2018 Highlights

  • Record quarterly gold production of 68,088 ounces, an increase of 140% quarter on quarter (“QoQ”);
  • Total Company revenues increased 174% QoQ to US$91.4 million, with record quarterly gold sales of 68,553 ounces at an average realised gold price of US$1,333 per ounce;
  • Operating cash costs of US$624 per ounce sold, an improvement of 19% QoQ;
  • All in sustaining cash costs (“AISC”) of US$914 per ounce sold, an improvement of 24% QoQ;
  • Company EBITDA margin of 44%, a 33% improvement on the previous quarter, with EBITDA more than trebling QoQ to US$40.2 million;
  • Strong operating cash flow of US$39.4 million, an increase of over 177% on the previous quarter, with available cash on hand at the end of the Quarter of US$23.0 million; and
  • Net debt decreased by US$17.5 million to US$106.6 million.

Commenting on the Company’s strong quarterly performance, Serhan Umurhan, Chief Executive Officer of Avesoro Resources, said: “I am delighted to report that following record quarterly gold production of 68,088 ounces, the Company delivered record quarterly revenues of US$91.4 million. This is an increase of 174% on Q4 2017 and represents more than 90% of the full year revenue achieved in 2017. On the back of the significantly increased cash flow from our assets, the Company has strengthened its balance sheet during the Quarter, and reduced net debt by US$17.5 million including a US$10.7 million scheduled debt repayment against the New Liberty project finance facility.

We remain on track to achieve our 2018 production and cost guidance of 220,000 to 240,000 ounces of gold at an operating cash cost of US$620 to US$660 per ounce and an AISC of US$960 to US$1,000 per ounce.

Additionally, we are progressing well with the New Liberty infill, Ndablama, Youga and Balogo drilling campaigns. We look forward to updating the market later in the current quarter on our progress towards increasing the Company’s Mineral Resources and subsequently extending the mine lives at our existing operations through conversion to Mineral Reserves”.

Table 1: Consolidated Financial Highlights


Q1 2018

Q4 20171

Q1 2017

Q1 2018 vs Q4 2017

Q1 2018 vs Q1 2017

Gold production, oz






Gold sold, oz






Operating cash costs2, US$/oz sold






All in sustaining costs2, US$/oz sold






Average realised gold price, US$/oz






Revenues, US$m












EBITDA margin2






Cash flow from operations, US$m






Capital spend, US$m






Cash, US$m






Net debt, US$m






1 The Company acquired Youga and Balogo Gold Mines on December 18, 2017. The operations for the thirteen days ended December 31, 2017 are included in the Company’s Q4 2017 results

2 Operating cash costs, AISC, EBITDA and cash, are non-GAAP measures and are defined in the notes section of this announcement

3 EBITDA in previous quarters has been restated to exclude foreign exchange loss/(gains) in EBITDA and adjusted EBITDA, treating the revaluation of financial assets and liabilities as financing items rather than operational items. This has had the effect of reducing Q4 2017 EBITDA by US$0.1m and nil effect on Q1 2017.

Table 2: Key Operational Financial Highlights


Q1 2018

Q4 2017

Q1 2017

Q1 2018 vs Q4 2017

Q1 2018 vs Q1 2017


New Liberty Gold Mine, Liberia

Gold production, oz







Mining cost, US$/t







Processing cost, US$/t







Operating cash costs, US$/oz sold







All in Sustaining Costs, US$/oz sold







Youga and Balogo Gold Mines, Burkina Faso1

Gold production, oz







Mining cost, US$/t







Processing cost, US$/t







Operating cash costs, US$/oz sold







All in Sustaining Costs, US$/oz sold







1 Q1 and Q4 2017 are reported as full quarters of production from the Youga and Balogo Gold Mines. The Company acquired Youga and Balogo Gold Mines on December 18, 2017.

Analyst and Investor Call

The company will be hosting a conference call and webcast for investors and analysts on May 10, 2018 at 08:00 EST / 13:00 BST

The access details for the conference call are as follows:


Phone Type

Phone Number

United Kingdom


0800 358 9473

United Kingdom, Local


+44 333 300 0804

United States


+1 855 857 0686

United States, Local


+1 631 913 1422



+1 416 216 4189

Canada, Local


+1 844 747 9618

Password: 61146140#

Webcast URL:

Financial Statements and MD&A

The Financial Statements are appended to this announcement, whilst both the Financial Statements and the accompanying Management Discussion and Analysis are available for review at the Company’s website, and on


Non-GAAP Financial Measures: The Company has included certain non-GAAP financial measures in this press release, including operating cash costs and all-in sustaining costs (“AISC”) per ounce of gold sold. These non-GAAP financial measures do not have any standardised meaning. Accordingly, these financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards (“IFRS”).

Operating cash costs and AISC are a common financial performance measure in the mining industry but have no standard definition under IFRS. Operating cash costs are reflective of the cost of production. AISC include operating cash costs, net-smelter royalty, corporate costs, sustaining capital expenditure, sustaining exploration expenditure and capitalised stripping costs. The Company reports cash costs on an ounces of gold sold basis.

The Company calculates EBITDA as net profit or loss for the period excluding finance costs, income tax expense and depreciation. EBITDA does not have a standardised meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes and the effects of changes in working capital balances and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.

Other companies may calculate these measures differently and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Contact Information

Avesoro Resources Inc.

Geoff Eyre / Nick Smith

Tel: +44(0) 20 3405 9160



(Financial PR / IR)

Gordon Poole / Nick Hennis

Tel: +44(0) 20 3757 4980


(Nominated Adviser and Joint Broker)

Christopher Raggett / Scott Mathieson / Emily Morris

Tel: +44(0) 20 7220 0500


(Joint Broker)

Matthew Armitt / Sara MacGrath / Charlotte Sutcliffe

Tel: +44(0) 20 3207 7800

Hannam & Partners (Advisory) LLP

(Joint Broker)

Rupert Fane / Ingo Hofmaier / Ernest Bell

Tel: +44(0) 20 7907 8500

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates three gold mines across West Africa and is listed on the Toronto Stock Exchange (“TSX”) and the AIM market operated by the London Stock Exchange (“AIM”). The Company’s assets include the New Liberty Gold Mine in Liberia (the “New Liberty Gold Mine” or “New Liberty”) and the Youga and Balogo Gold mines in Burkina Faso (“Youga” and “Balogo”).

New Liberty has an estimated proven and probable mineral reserve of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an estimated measured and indicated mineral resource of 9.6Mt with 985,000 ounces of gold grading 3.2g/t and an estimated inferred mineral resource of 6.4Mt with 620,000 ounces of gold grading 3.0g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in an NI 43-101 compliant Technical Report dated November 1, 2017 and entitled “New Liberty Gold Mine, Bea Mountain Mining Licence Southern Block, Liberia, West Africa” and is available on SEDAR at

Youga and Balogo have a combined estimated proven and probable mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t and a combined estimated indicated mineral resource of 16.05Mt with 801,600 ounces of gold grading 1.55g/t and a combined inferred mineral resource of 13Mt with 655,000 ounces of gold grading 1.57g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in two NI 43-101 compliant Technical Reports, dated June 16, 2017 entitled “Mineral Resource and Mineral Reserve Update for the Balogo Project” and dated June 19, 2017 and entitled “Mineral Resource and Mineral Reserve Update for the Youga and Ouaré Projects” and are available on SEDAR at

For more information, please visit

Qualified Persons

The Company’s Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr.Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of global experience in exploration, mining and mine development and is a “Qualified Person” as defined in National Instrument 43 -101 “Standards of Disclosure for Mineral Projects” of the Canadian Securities Administrators and has reviewed and approved this press release. Mr. Pryor has verified the underlying technical data disclosed in this press release.

Forward Looking Statements

Certain information contained in this press release constitutes forward looking information or forward looking statements with the meaning of applicable securities laws. This information or statements may relate to future events, facts, or circumstances or the Company’s future financial or operating performance or other future events or circumstances. All information other than historical fact is forward looking information and involves known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results, performance, events or circumstances expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “should”, “believe”, “target”, “predict” and “potential”. No assurance can be given that this information will prove to be correct and such forward looking information included in this press release should not be unduly relied upon. Forward looking information and statements speaks only as of the date of this press release.

Forward looking statements or information in this press release include, among other things, statements relating to reducing the Company’s operating costs, statements regarding the expected operational and financial performance of each of the foregoing for the Company’s New Liberty, Youga and Balogo mines and statements relating to the Company’s exploration campaign and aims to increase its Mineral Resource and Reserve inventory and mine lives.

In making the forward looking information or statements contained in this press release, assumptions have been made regarding, among other things: general business, economic and mining industry conditions; interest rates and foreign exchange rates; the continuing accuracy of Mineral Resource and Reserve estimates; geological and metallurgical conditions (including with respect to the size, grade and recoverability of Mineral Resources and Reserves) and cost estimates on which the Mineral Resource and Reserve estimates are based; the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; market competition; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obligations and planned activities and that unforeseen events do not impact the ability of the Company to use existing funds to fund future plans and projects as currently contemplated; the stability and predictability of the political environments and legal and regulatory frameworks including with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities; that contractual counterparties perform as agreed; and the ability of the Company to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet its demand.

Actual results could differ materially from those anticipated in the forward looking information or statements contained in this press release as a result of risks and uncertainties (both foreseen and unforeseen), and should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether or not such results will be achieved. These risks and uncertainties include the risks normally incidental to exploration and development of mineral projects and the conduct of mining operations (including exploration failure, cost overruns or increases, and operational difficulties resulting from plant or equipment failure, among others); the inability of the Company to obtain required financing when needed and/or on acceptable terms or at all; risks related to operating in West Africa, including potentially more limited infrastructure and/or less developed legal and regulatory regimes; health risks associated with the mining workforce in West Africa; risks related to the Company’s title to its mineral properties; the risk of adverse changes in commodity prices; the risk that the Company’s exploration for and development of mineral deposits may not be successful; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the legal and regulatory frameworks in jurisdictions where the Company operates, including adverse or arbitrary changes in applicable laws or regulations or in their enforcement; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company’s operations; that Mineral Resource and Reserve estimates are only estimates and actual metal produced may be less than estimated in a Mineral Resource or Reserve estimate; the risk that the Company will be unable to delineate additional Mineral Resources; risks related to environmental regulations and cost of compliance, as well as costs associated with possible breaches of such regulations; uncertainties in the interpretation of results from drilling; risks related to the tax residency of the Company; the possibility that future exploration, development or mining results will not be consistent with expectations; the risk of delays in construction resulting from, among others, the failure to obtain materials in a timely manner or on a delayed schedule; inflation pressures which may increase the cost of production or of consumables beyond what is estimated in studies and forecasts; changes in exchange and interest rates; risks related to the activities of artisanal miners, whose activities could delay or hinder exploration or mining operations; the risk that third parties to contracts may not perform as contracted or may breach their agreements; the risk that plant, equipment or labour may not be available at a reasonable cost or at all, or cease to be available, or in the case of labour, may undertake strike or other labour actions; the inability to attract and retain key management and personnel; and the risk of political uncertainty, terrorism, civil strife, or war in the jurisdictions in which the Company operates, or in neighbouring jurisdictions which could impact on the Company’s exploration, development and operating activities.

This press release also contains Mineral Resource and Mineral Reserve estimates. Information relating to Mineral Resource and Mineral Reserve contained in this press release is considered forward looking information in nature, as such estimates are estimates only, and that involve the implied assessment of the amount of minerals that may be economically extracted in a given area based on certain judgments and assumptions made by qualified persons, including the future economic viability of the deposit based on, among other things, future estimates of commodity prices. Such estimates are expressions of judgment and opinion based on the knowledge, mining experience, analysis of drilling results and industry practices of the qualified persons making the estimate. Valid estimates made at a given time may significantly change when new information becomes available, and may have to change as a result of numerous factors, including changes in the prevailing price of gold. By their nature, Mineral Resource and Mineral Reserve estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such Mineral Resource and Mineral Reserve estimates are inaccurate or are reduced in the future (including through changes in grade or tonnage), this could have a material adverse impact on the Company and its operating and financial performance. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.

Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, the Company cannot provide assurance that actual results or performance will be consistent with these forward-looking statements. The forward looking information and statements included in this press release are expressly qualified by this cautionary statement and are made only as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.