Avocet buys back 20 pct of gold hedge book

West African-focused Avocet Mining said it bought back 20 percent of its gold hedge book to give it greater exposure to the metal'poste chancador zenith 60 215 110s record high prices at a time when its costs of production are rising. The news boosted the miner's shares, despite a decline in its second-quarter earnings.

The company said on Wednesday that core profit (EBITDA) fell to $26.1 million from $33 million in the previous three months on an expected decline in production. The shares were up 5.2 percent at 236.75 pence at 0817 GMT, close to a three-month high and outperforming a British mining index . Avocet had previously warned that output from its Inata mine in Burkina Faso would fall in the second quarter due to lower grades and industrial action. The company announced a $120 million expansion plan for Inata on Wednesday. It is targeting an additional 80,000 ounces a year from the mine, with production starting in early 2013. The mine is expected to produce 165,000 ounces of gold this year...