WHO IS IT? Avesoro Resources is an AIM-listed gold miner with deposits in the African nations Liberia and Cameroon.
Formerly known as Aureus Mining, it changed its name in 2016 following a string of operational and financial problems.
WHAT’S THE LATEST? Avesoro has just reported record production at its New Liberty mine in Liberia in the first quarter, while its site in Burkina Faso has also beaten production estimates.
First-quarter output of 68,088 ounces of gold means the company is on course to meet its full-year target of 220,000 to 240,000 ounces of the precious metal.
WHO BACKS IT? Names most familiar to British investors will be Lombard Odier Asset Management and Miton Asset Management, which own roughly 6.3 per cent of the shares between them.
WHY YOU SHOULD INVEST Analysts believe Avesoro has all of the ingredients to have a strong 2018 after putting aside the operational issues that dogged it in the past.
Russ Mould, investment director at AJ Bell, said: ‘There can be few more interesting sights for small-cap investors than a company that makes its first profit and starts to generate cash, and West Africa-based gold miner Avesoro Resources looks poised to make just such a breakthrough in 2018.’
AND WHY YOU SHOULDN’T Despite its rapid growth, Avesoro remains a high-risk punt.
Mould said: ‘Any drop in the gold price would be a major handicap to profit growth forecasts – and the management still has to prove that its operational problems are in the past.
‘But if production comes through as expected, or gold’s price starts to motor, it could offer some big rewards.’