Avion Gold Corp AVGCF

Q1 cash cost per ounce of $886

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• For the first quarter, the company produced approximately 15,716 ounces at a cash cost per ounce of $886. The cash costs were negatively affected by a previously announced slump in the Segala pit which delayed access to the planned higher-grade ore. This situation was temporary and has now been rectified. Avion Gold is forecasting substantially lower costs for the rest of the year and anticipates averaging $650 per ounce for the remaining three quarters of the year. Cash costs do not include royalties.
• During the first quarter, the company sold 17,298 ounces of gold at an average realized price of $1,123 per ounce, higher than the average London fix $1,109 over the period.
• Avion Gold had a net loss of $545,740 (zero cent per share, diluted) for the quarter ended March 31, 2010, compared with a net loss of $1,241,360 (loss of one cent per share) for the quarter ended March 31, 2009.
• Gold revenue for the first quarter ended March 31, 2010, was $19.4-million compared with nil for the comparable quarter last year.
• Operating cash flow before the working capital adjustment for the first quarter ended March 31, 2010, was $5.6-million.
• Net working capital as at March 31, 2009, was $20.5-million (including cash and cash equivalents of $8.3-million).
• Avion announced a 100-per-cent increase in the measured and indicated resources and a 38-per-cent increase in grade in the Segala Main deposit.