Australian Stocks Australia Stock Market
Australian Stocks Avoca Resources Ltd (AVO)
Avoca Resources Ltd (AVO) is a gold producer focused on becoming the next Australian mid-tier gold mining company, and is currently one of the hot stocks in the ASX 200.
AVOs base operation is its Higginsville Gold Project in Western Australia, which contains the Trident Underground Mine, AVOs trump card.
Higginsville is an emerging new gold belt, and AVO is the most active company operating in this area. The region has also provided for a string of impressive resources upgrades for AVO, as recently as last month.
AVO posted a net profit of $34.6 million for its December half, remarkably spun from a loss in the previous years half, whilst 1H10 revenue doubled, impressing the market.
AVOs strength comes from its lucrative resource base. The company recently yet again upgraded the Higginsville mining reserve, this time to 803,000 ounces of gold.
The Higginsville reserve has increased 38% from the previously published 763,000 ounces.
AVOs takeover of Dioro Exploration is a massive boon for the company: the combined group will have annual production of +280K oz, two 1.2Mtpa plants, +1.2M oz in reserves and +3.7M oz in resources.
AVO will now also have access to the largest tenement holding and complete treatment coverage of Australias richest gold belt, the 150km Kalgoorlie to Norseman belt.
Though gold prices have slipped slightly in the last few weeks, the majority of analysts are forecasting a climb for gold next week and generally into the future on concerns the global economic recovery may slow.
The Australia stock market price for AVO has surged from approximately $1.50 to a high of almost $3.00 since February 2010, maintain a strong up trend. about the author