DESCRIPTION: Avion Gold Corp. is a Canadian-based gold company focused in West Africa. The company currently holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 oz. produced; 2010 production is estimated at 75,000 oz.–85,000 oz. In addition, a new, 1,670 km2 exploration property in Burkina Faso is expected to return good results from an ongoing drill program. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Shares of Avion clawed back after plummeting on Thursday on disappointing Q2 results. Higher-than-expected operating cash and non-cash expenses eroded reported net income (-$0.2M, -$0.0/share) and cash flow from operations ($6.7M, $0.02/share—before non-cash working capital) relative to Canaccord Genuity estimates ($0.03 EPS and $0.04 CFPS). In particular, a large non-cash, stock-based compensation charge of US$3.8M took a heavy toll on Avion's bottom line. However, on a positive note, the company continues to guide for cash costs of between US$600 and US$550/oz. in the third and fourth quarters (compared with US$596/oz. in Q2), which suggests that on a relative per-ounce basis, operating costs could still come down in the H210.
Also, more importantly, it remains on track to meet its stated production guidance of 75–85 Koz. Au. Moreover, Canaccord Genuity Senior Mining Analyst Eric Zaunscherb continues to expect the company to ramp up towards +200 Koz./year in 2012 and onwards, bringing Avion into junior producer territory and an expected rerating in its P/NAV multiple along with it. . .judged on par with junior producers (given its expected growth in production to +200 Koz./year by 2012), Avion is a significantly undervalued asset. Considering also the recent and expected M&A activity in West Africa, Zaunscherb recommends building a position and capitalizing on share price weakness as he believes that Avion is also an attractive potential takeover target."
The Gold Report Interview with David Skarica (08/23/10)
"Avion Gold [is one of] these companies that have real resources and that will go into production. . .Avion is the old Nevsun Resources property in Mali. . .Because of their management and their geologists, Avion is running this mine in Mali a lot more efficiently and a lot more profitably than Nevsun did. Avion has pulled back from $0.80 to the mid-$50s, and it looks like it's going to consolidate down there for a while. They have cash flow now because they produced over 8,700 ounces of gold in July. Plus, there is the possibility of more value coming from their exploration projects."
View Entire Article: David Skarica: Economic "Water Torture" Coming to U.S.
The Gold Report Interview with Stan Bharti (08/11/10)
"Avion is a producer in Mali, West Africa. . .[the mine] should produce 75,000–80,000 ounces this year. Next year [the company] expect[s] to double that number, so Avion's potential is very good."
View Entire Article: Stan Bharti: Hard Assets Heyday
Paolo Lostritto, Wellington West Capital Markets
(05/13/10)
"Potential open-pittable resource near Tabakoto could add to production. Two high-grade zones within ~140m of surface (open-pit potential) and open at depth with possible fault offsets along strike just 2 km south of the Tabakoto pit. Open-pit production would ease transition to underground mining. Resource estimate by end of Q2, potential production decision Q3, open-pit permitting initiated; extension of O/P mining would ease transition to U/G ops. . .Maintaining Buy recommendation and $0.80/share target price."
The Gold Report Interview with Gissen & Berol (04/21/10)
"A company that we're invested in that is in production, and has been increasing production, is Avion Resources. Avion is operating projects in Mali, West Africa. It acquired a project from Nevsun Resources a couple of years ago at pennies on the dollar. . .Avion has brought their project into production and is increasing production. It continues to drill and has acquired some additional land and additional projects. It's a company that we've been invested in for the past couple of years. It has done extremely well, both as a company on their business plan and as a stock."
View Entire Article: Gissen & Berol: Focusing on Capital Appreciation
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