Gold mine quadruples sales

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The Independent Online

Vatukoula, a gold miner that is listed on the Alternative Investment Market, is expected to announce a near doubling of its sales tomorrow.

For the second quarter of its financial year to the end of February, it is likely to announce that it sold more than 15,000 oz of gold. In the previous three months, it sold 8,826 oz.

The increase means that the Vatukoula mine in Fiji will have made net earnings of around £4.6m for the quarter, up from less than £1.3m in its first quarter.

The company is led by its chief executive, David Paxton, a former mining sector analyst. David Lenigas, the executive chairman of the Lonrho African investment empire, is a director.

Ultimately, the company aims to produce at least 100,000 oz a year at its Fijian mine as the result of a major drilling and redevelopment programme.

Vatukoula's shares closed at 2.2p on Friday, down 3.93 per cent on the start of the day's trading. The company is valued at more than £80m.