Avocet Mining PLC Annual Report and Accounts 2007
Avocet Mining PLC
7th Floor  
9 Berkeley Street  
London  W1J 8DW
Tel +44 (0) 20 7907 9000 
Fax +44 (0) 20 7907 9019
E-mail avocetmining@avocet.co.uk
www.avocet.co.uk
Annual Report and Accounts 
for the year ended 31 March 2007
Focused on Gold Mining 
in South East Asia
AVM_AR_2007_cover  9/8/07  4:16 pm  Page 1 DIRECTORS AND ADVISERS
Executive directors
J G Henry – Chief Executive Officer
A M Norris – Finance Director
Non-executive directors
N G McNair Scott - Chairman
Sir Richard Brooke Bt.
J F Newman
R A Pilkington
R S Robertson
M J Donoghue
Secretary and registered office
A P McFarlane
7th Floor, 9 Berkeley Street
London W1J 8DW
Registrars and transfer office
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex BN99 6DA
Bankers
Barclays Bank PLC
Macquarie Bank Limited
Nominated adviser
Grant Thornton UK LLP
Stockbrokers
Evolution Securities Limited
Auditors
Grant Thornton UK LLP
Solicitors
Field Fisher Waterhouse
• Turnover up 20% at US$108.2 million
• Pre-tax profit increases 43% to US$22.7 million
• Operating cash flow increases 30% to US$25.8 million
• ZGC sale completed, exceptional profit up to US$20.0 million
• Transaction agreed to buy into 9 Indonesian exploration projects
• Bakan, Indonesian environmental impact study approved, 
new mine in the making
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’03 ’04 ’05 ’06 ’07
Operating cash flow
(US$ million)
Pre-tax profit
(US$ million)
Basic earnings per share
(US cents)
Turnover
(US$ million)
 ’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07
Years ended 31 March
Avocet at a glance 1
Chairman’s statement 2
Chief Executive’s statement 4
The gold market 9
Review of operations 10
Resources and reserves 30
Health, safety and environment 32
Community relations 34
Financial review 36
Current board of directors 
and senior management 41
Report of the directors 44
Report on corporate governance 46
Report on directors’ remuneration 49
Report of the independent auditors 53
Consolidated profit and loss account 54
Consolidated and Company 
balance sheets 55
Consolidated cash flow statement 56
Consolidated statement of total
recognised gains and losses 
and reconciliation of movements 
in equity shareholders’ funds 57
Accounting policies 58
Notes to the financial statements 61
Shareholder information 77
Annual general meeting 78
Notice of meeting 79
CONTENTS
GOLD MINING IN SOUTH EAST ASIA
Avocet Mining PLC  Annual Report and Accounts 2007
Design Mustbethebest Ltd  Printing Dexter Graphics
AVM_AR_2007_cover  9/8/07  4:16 pm  Page 2 Penjom Mine
MALAYSIA
INDONESIA
THAILAND
CAMBODIA
VIETNAM
BRUNEI
PHILIPPINES
LAOS
PAPUA NEW GUINEA
Gold mining operation
Exploration projects
Development projects
North Lanut Mine 
Bakan
1 Avocet Mining PLC  Annual Report and Accounts 2007
“ Avocet is a successful, profitable gold mining company with
existing strengths in Indonesia and Malaysia and a focus on
expansion in South East Asia. It has two operating gold mines
generating strong cash flow, a new mine in the making, a pipeline
of exciting exploration projects, and excellent management teams.
Within five years, Avocet intends to become a mid-tier 
gold producer with a ten year reserve base. 
Of paramount importance are the safety and health of our
employees, excellent community relations and strict adherence 
to environmental compliance, and Avocet recognises its
responsibilities in these critical areas.”
AVOCET AT A GLANCE
  2 Avocet Mining PLC  Annual Report and Accounts 2007
CHAIRMAN’S STATEMENT
Avocet is one of the largest gold producing companies listed on AIM. We have
strengthened management and operational teams. We also have a robust balance
sheet, generate strong profits and cash flows, and have a defined focus on projects
in South East Asia that have the potential to expand resources and gold production
in the region. Following a review in 2006, your board will leverage off these strengths
and deliver capital growth for shareholders. 
Following his appointment last July, our new Chief Executive initiated a full review
of our assets. In November 2006 a decision was taken to sell ZGC in Tajikistan. It was
felt that this would allow the Group to focus on its producing mines in Indonesia and
Malaysia, as well as the expansion of its project portfolio in South East Asia. This
expansion includes the development of the Bakan mine and the recently acquired
Banda properties in Indonesia. Our core strengths and proven track record have 
been in South East Asia and now, following the sale of ZGC, we intend to harness
these strengths to achieve our goals and expand our business in line with our strategy
of developing a ten year reserve base.
THE WAY FORWARD
The completion of the disposal of ZGC on 9 July represents an important milestone 
for Avocet. Recent approval of the environmental impact study for the Bakan project
in Indonesia allows us to proceed with the completion of the feasibility study and
the commencement of a second mine in that country. Having disposed of our interest
in ZGC and the associated problems concerning cash costs and general operational
uncertainty that went with this asset, Avocet is well placed to expand its existing
interests in South East Asia. In addition, the recent acquisition of the Banda properties
highlights the Company’s ability to tap into significant new opportunities in its core
region of South East Asia. This is the first of many initiatives in the region.
GOVERNANCE
In my statement last year I highlighted the appointments of Jonathan Henry as 
Chief Executive Officer, Eric Vesel as Chief Operating Officer and Mike Donoghue 
as Non-executive Director. In February 2007, we welcomed Robbie Robertson to
the board as Non-executive Director. I am pleased to announce that Mike Norris, who
joined the Group as Chief Financial Officer in February 2007 from Anglo American,
has now joined the board as Finance Director. Gordon Toll has retired as a director of
the Company due to other commitments. I thank Gordon for his valuable input over
the last two years and wish him continued success in his business interests.
These changes allow the Company to remain focused on the highest appropriate level
of corporate governance, while strengthening our ability to respond to new challenges
in the areas of production, costs, health, safety and environment, employee and
community welfare and sustainable development.
• Delivery of capital
growth for shareholders
• Further strengthening 
of our Board 3 Avocet Mining PLC  Annual Report and Accounts 2007
THE GOLD MARKET
We have enjoyed continuing high gold prices that have followed the trend
of commodities in general, buoyed by strong global demand and the significant
weakening of the US dollar during 2006. Following final sales in the first quarter of
12,000 ounces into our old US$312/oz hedge position, we have been exposed to spot
prices throughout the year. The collar position we entered into in January 2006 has
reduced to 210,000 ounces with put and call strike prices of US$450/oz and
US$700/oz respectively maturing at a rate of 10,000 ounces per month over the
next 21 months. We continue to monitor the situation to ensure we are well placed
to respond appropriately to changes in the gold price.
OUTLOOK
Our operating performance has seen an improving trend over the last several months,
and we are confident of further production efficiencies and cost savings at Penjom
and North Lanut. In addition, the gold price continues to trade above the average price
received of US$607/oz for the last year. Following the disposal of ZGC, which incurred
operating losses of US$4.2 million last year, we look forward to another year of
increasing profitability.
With a more focused portfolio of operations, the generation of strong cash flow,
a flexible balance sheet, and a strengthened operational team, Avocet remains
confident of being able to grow the Company significantly over the coming years.
PEOPLE
I would like to take this opportunity to recognise the hard work and dedication of all
our employees, and to thank them for their efforts over the past year. I believe they
represent our greatest asset, and I look forward to working with them in the coming
year as Avocet expands its business in South East Asia.
Nigel McNair Scott
10 July 2007
• Continuing high 
gold prices
• Improving trend in
operating performance
• Generating strong 
cash flow
0
100
200
300
400
500
600
700
’06 ’07 
Average realised gold price
(US$/oz)
Years ended 31 March 4 Avocet Mining PLC  Annual Report and Accounts 2007
• Following the sale 
of ZGC, we have a 
clear focus on our 
core business in 
South East Asia
• Strong community and
government relations
• Goal of generating
significant capital
growth for shareholders
CHIEF EXECUTIVE’S
STATEMENT
Following my appointment in July 2006, we have undertaken a review of our various
business units and made changes to the way we run our business and the internal
management of those business units. I am delighted to welcome Mike Norris to
the board as Finance Director, together with a number of other senior appointments,
giving us a much stronger team to expand our business and realise a number of
exciting opportunities. I believe that following the sale of ZGC, we have a clear focus
on our core business which now consists of a pipeline of excellent projects and two
producing mines in South East Asia. Both the people and the projects, combined with
our strong balance sheet, can bring Avocet to new levels in our goal of generating
significant capital growth for shareholders through a combination of organic growth
and strategic acquisitions. We intend to be a leading mid-tier gold producer within
five years. This will come through maximising the returns on existing production,
while seeking new opportunities to generate long term earnings growth.
FOCUS ON SOUTH EAST ASIA
The decision to sell ZGC in November 2006 followed a detailed strategic and
operational review of the business following a number of years of losses and
insufficient progress in addressing certain production and cost challenges at ZGC.
The review concluded that the ZGC assets required significant investment as well
as major management input over many additional years in an area where Avocet had
little strategic advantage. As Avocet has enjoyed success in developing and acquiring
projects in South East Asia, it was decided that the prime strategy would be to focus
on the Company’s geographic strengths. Accordingly, the board decided to dispose of
ZGC and to pursue additional accretive acquisitions in South East Asia. This resulted
in the acquisition of the highly prospective Banda properties in Indonesia.  
The Banda properties represent exploration and mining rights over a combined
land position of 410 square kilometres predominantly located in North Sulawesi,
the location of the Company’s North Lanut mine and Bakan project. These properties
include advanced projects which have been reported as containing combined 
non-JORC compliant resources of 2.2 million ounces of gold. Avocet has already
commenced exploration on two of the prospects. The strong relationships that
Avocet’s management in Indonesia has developed with local communities and local
government, and the Company’s track record in building mines in South East Asia,
mean that the Company is well placed to successfully develop the Banda properties.
The review also precipitated the sale of the dormant Damar project in Malaysia 
where we have realised significant value. We have recently completed this 
transaction and now own an investment of just below 20 per cent in Monument
Mining, a TSX Venture Exchange listed company with plans to develop the Selinsing
mine, located to the south of Damar’s Buffalo Reef prospect. We are also in
discussions with a number of parties concerning the potential divestment of the
Idenburg project in West Papua, Indonesia. “Our employees are the key to our success; 
we continue to hire excellent people to supplement our
existing highly skilled and professional teams.”
5 Avocet Mining PLC  Annual Report and Accounts 2007
OUR PEOPLE ARE WHAT
ALLOWS US TO SUCCEED 6 Avocet Mining PLC  Annual Report and Accounts 2007
• Optimising our strategic
advantage in geographic
territories where we 
have a proven track
record and excellent
management teams
• With a strong 
balance sheet, Avocet 
is well placed to grow 
its business
0
100
200
300
400
500
’06 ’07 ’06 ’07 
Group cash cost 
(US$/oz)
As reported
Excluding ZGC
Years ended 31 March
All these transactions have been facilitated through a new corporate finance team
based in London and demonstrate Avocet’s focus on optimising its strategic advantage
in geographic territories where we have a proven track record and excellent
management teams. The Company will continue to concentrate on both operational
excellence and growth, with care taken to ensure that we remain focused on
continuous performance improvement while aggressively growing our business.
Production ounces and cash costs remain the key performance indicators. We have
taken into account the resources needed to explore fully and eventually exploit the
Banda properties, as well as other sources of growth, both organic and through
acquisitions. With a strong balance sheet and the ability to gear up due to our strong
cash flow, we remain highly flexible in broadening the project pipeline of the business. 
FINANCIAL RESULTS
Group earnings were ahead of expectations. Revenue grew by 20 per cent to
US$108.2 million as a consequence of higher gold prices, while pre-tax profits grew by
43 per cent to US$22.7 million. Earnings also benefited from an exchange gain on the
translation into dollars of funds raised in sterling in May 2006, as well as from interest
on these funds. Earnings per share were up 34 per cent on last year at 13.8 cents. 
PRODUCTION AND UNIT COSTS
Gold production of 178,318 ounces was 14 per cent below the prior year. This was
principally as a result of the decision to increase the size of the Penjom pit to exploit
an increase in resources. This required waste stripping to be prioritised with the result
that the mill was fed from lower grade stockpiles. At North Lanut, unseasonal heavy
rainfall required the mine to conduct some re-engineering of the waste dumps and
storm water ponds for the dump leach, which involved equipment being diverted 
from ore production. At ZGC, production and costs were affected by increased waste
stripping from the high wall of the Jilau open pit. Overall average unit costs were
US$428/oz. Excluding ZGC, the average for Penjom and North Lanut reduces to
US$352/oz compared with US$229/oz for the prior year. This cost increase, while
primarily a reflection of lower gold production, also reflects industry-wide operational
cost increases. The gold industry has seen average cash costs increase from below
US$200/oz at the start of this decade to a reported US$317/oz for 2006 as a
consequence of higher consumable prices, including diesel, steel, tyres, reagents 
and power costs. In Indonesia, the increase in diesel costs was exacerbated by the
cancellation of government-funded fuel subsidies. In Malaysia, cash cost increases
partly reflected the impact of higher gold prices which contributed to a rise in royalties
from US$26/oz in the prior year to US$44/oz in the year to March 2007. The latter also
reflected a full year of higher royalty rates following change in Malaysian legislation 
in January 2006. The Company is committed to reducing unit cash costs to below
industry average, and steps have been made in this direction in the second half of 
the year and the first quarter of the current year. 
CHIEF EXECUTIVE’S STATEMENT (CONTINUED) 7 Avocet Mining PLC  Annual Report and Accounts 2007
• We continue to 
add to our excellent
management teams 
and highly skilled
workforce
0
50
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200
250
300
350
400
Q1 Q2 Q3 Q4
North Lanut cash cost by quarter 
(US$/oz)
2006
2007
Years ended 31 March
At both Penjom and North Lanut, performance in the second half of the year was
significantly improved from the first half. This positive trend has continued into the
first quarter of this financial year. In 2007, efforts to improve production and reduce
unit costs will focus firstly on maximising gold ounces produced. Secondly, capital
investment at Penjom of approximately US$20 million during the current year,
to expand the pit and increase capacity through the processing plant, will help 
in achieving these objectives. At North Lanut, production will also benefit from 
the introduction of contractor Volvo articulated dump trucks capable of operating 
in wet conditions. 
PEOPLE
The buoyant mining industry demand for experienced technical personnel is an
ongoing issue which management continues to address. The Company has and
continues to put the appropriate structures in place to make Avocet a rewarding 
place to work so that any risk of lack of manpower to achieve our goals can be
avoided. We continue to hire excellent people, to supplement our existing highly
skilled and professional teams, as the business expands in South East Asia.
Jonathan Henry
10 July 2007
0
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100
150
200
250
300
350
400
Q1 Q2 Q3 Q4
Penjom cash cost by quarter
(US$/oz)
2006
2007  
Years ended 31 March 8 Avocet Mining PLC  Annual Report and Accounts 2007
Gold price 
US$/oz
US$
index
500
550
600
650
700
750
Trade weighted US dollar exchange rate
Gold price
Apr ‘06 May‘06 Jun ‘06 Jul‘06 Aug ‘06 Sept ‘06 Oct‘06 Nov ‘06 Dec ‘06 Jan ‘07 Feb‘07 Mar ‘07 Apr ‘07 May‘07 Jun ‘07
0.80
0.81
0.82
0.83
0.84
0.85
0.86
0.87
0.88
0.89
0.90
Gold price London AM fix – 1 April 2006 to 30 June 2007 9 Avocet Mining PLC  Annual Report and Accounts 2007
Opposite: Gold pour, Penjom
THE GOLD MARKET
• Gold prices have been
buoyed by investment
fund activity and
weakness of the dollar
• Strong demand for
jewellery in the second
half of the year
Over the last four years, strong global demand has kept prices high for commodities
such as copper, coal and iron ore. By contrast, fabrication demand for gold fell during
2006 to its lowest level since 1991. Despite this, gold prices have remained high,
buoyed by investment fund activity and weakness of the US dollar. 
During 2005, investment activity was the key driver of the increase in the gold price. 
In the year just ended investment activity driven by a weakening US dollar has
continued to be the engine behind strong gold prices, but with buyers and sellers 
more in balance. This has meant that dips during profit-taking and stop loss selling
were generally recouped by subsequent position building.
The price of gold in 2006 broadly followed its traditional inverse relationship with the
US dollar. A number of factors have contributed to the weakness of the dollar, which in
July this year reached a 26 year low against sterling. 
Jewellery demand for gold fell in early 2006 by over 20 per cent as higher prices 
and gold price volatility acted as deterrents for buyers. By the end of the year, demand
recovered somewhat, helped by reduced volatility and the key holiday periods in China
and India for the mid-autumn festival and the revival of the wedding season
respectively. Consumer demand in India and China was also strong in the first quarter
of 2007. Industrial usage of gold increased in the year, especially in the electronics
sector. Further opportunities for gold include its use in catalytic converters as a cheaper
and potentially more efficient alternative to platinum. Sales by central banks were
lower than previously, while mine supply has fallen marginally over the period.
In January 2006 the Group entered into a put and call collar transaction whereby 
it sold European call options over 360,000 ounces with 10,000 ounces exercisable 
per month at a strike price of US$700/oz and purchased European put options at
US$450/oz over the same number of options exercisable each month. The period 
of the collar was thirty six months commencing in April 2006. Up to 30 June 2007,
options over 150,000 ounces have expired without being exercised. As prices have
increased, management has considered a range of actions with regard to a potential
restructuring of the Group’s collar hedge position. Although prices have skirted 
the US$700/oz level, which is the strike price for the Group’s call options, the 
threshold has not been reached. Accordingly, management will continue to 
monitor the situation.
Gold
US$607/oz
Average 
realised 
price
Gold market review 
Years ended 31 March 2003 2004 2005 2006 2007
Spot gold price
(1)
High 382 426 454 584 725
Low 298 320 375 414 587
Average 325 378 414 477 629
Realised price
(2)
327 379 414 437 607
(1)   London AM fix (US$/oz)
(2)   US$/oz price on gold sales after hedging gains and losses (US$/oz) REVIEW OF OPERATIONS –
MINING
Penjom Gold Mine, Malaysia 
BACKGROUND
The Penjom Gold Mine is located in the State of Pahang in the centre of Peninsular
Malaysia and is Malaysia's largest gold producer. Penjom commenced production 
in December 1996. The mine was developed by Avocet Gold Limited, a wholly 
owned subsidiary of Avocet Mining PLC, with the support of the Pahang State
Development Corporation. 
The Penjom deposit was developed from grass roots exploration by the Company 
in the early 1990s. The mine commenced production using conventional gravity 
and carbon-in-leach (CIL) process technology for the recovery of gold. However, 
these systems became ineffective as the ore mined at Penjom became increasingly
carbonaceous and process recovery rates fell below 50 per cent two years after
operations commenced. Penjom successfully solved this problem by developing
unique processing systems which include complex gravity circuits and resin-in-leach
(RIL) technology. Although this intellectual property has not been patented, 
the Company believes it has potential positive uses in other highly carbonaceous 
gold projects globally.
Years ended 31 March 2003 2004 2005 2006 2007
Production statistics:
Ore and waste mined (tonnes) 14,397,000 13,290,000 14,076,000 19,556,000 18,104,000
Ore processed (tonnes) 523,600 559,200 527,500 573,700 570,100
Average ore head grade (g/t) 7.28 7.73 7.92 7.10 5.67
Process recovery rate 89% 90% 89% 91% 92%
Gold produced (oz) 108,905 124,430 119,850 117,680 95,966
Cash costs (US$/oz):
Mining 120 106 109 141 212
Processing 52 52 57 60 80
Royalties and overheads 32 34 37 41 59
Total cash cost 204 192 203 242 351
OPERATING HIGHLIGHTS
10 Avocet Mining PLC  Annual Report and Accounts 2007
Opposite: Carbon residue in 
resin-in-leach tank
Above: Blast hole sampling 11 Avocet Mining PLC  Annual Report and Accounts 2007
Penjom Life of Mine plan at a gold price of US$600/oz
tonnes grade (g/t) ounces
Forecast at 31 March 2006
(1)
3,511,000 4.95 558,300 
Depleted during the year 570,000 5.67 103,900 
Additions 1,500,000 2.49 119,900 
Forecast at 31 March 2007 4,441,000 4.02 574,300 
Comprising:
Proved and Probable Reserves 3,704,000 3.77 449,300 
Inferred Resources 737,000 5.28 125,000 
(1)  Forecast at 31 March 2006 was based on a gold price of US$450/oz
APPLYING IN-HOUSE
TECHNOLOGY TO OVERCOME
HIGHLY CARBONACEOUS ORE 12 Avocet Mining PLC  Annual Report and Accounts 2007
“The investment in a fleet of new, 
owner operated Renault Kerax trucks has
already brought improvements in productivity 
and cost efficiencies. Altogether, nearly US$20 million
will be invested in Penjom's expansion 
this year, including capacity increases for the mill 
and associated infrastructure."
INVESTING IN PENJOM’S 
LONG TERM FUTURE 13 Avocet Mining PLC  Annual Report and Accounts 2007
OPERATING RESULTS
In April 2007 Penjom produced its one millionth ounce of gold, an important 
milestone for the mine, considering the project’s original feasibility study indicated 
life of mine gold production of 223,000 ounces. Over the last five years, Penjom has
successfully increased its resources and reserves on an annual basis. This trend is
expected to continue. 
The first half of the year was a challenging one due to high stripping and lower 
mined tonnes and grades than in the previous year. At the start of the year, the
Kalampong East pit was near the end of its existing design life. The bottom of the pit
was small and becoming congested with the high number of small contractor trucks
operating within its narrow width. Prior to this, in November 2005, the Company
announced a significant increase in Penjom’s life of mine plan to over half a million
ounces, which resulted in the design of a much larger pit to allow the additional
ounces to be mined. Significant waste stripping was required especially in the first 
half of the year and this, together with congestion at the bottom of the pit, meant 
that ore mined in the first six months was less than half of the amount mined in the
previous year. Over the same period, the grade of ore mined was also 30 per cent
lower. Recoveries in the first half of the year were slightly ahead of the previous year.
The second half saw a significant improvement in mined tonnes and grade, although
lower mill grades continued to reflect the reduced grades mined earlier in the year.
During the second half of the year, Penjom successfully stepped up both mine 
and mill production in order to offset the impact of lower feed grades to the mill, 
and ore mined and milled exceeded the corresponding period in the previous year.
Development was advanced to access ore below the east and west wall cutbacks.
The grade of ore mined exceeded the previous year; however, high grade ore from the
pit was highly carbonaceous and required blending with low grade material to control
carbon levels through the mill. A key factor in the second half improvement was
Penjom’s decision to move to an owner operated haulage fleet. The contractor fleet,
comprising 180 trucks of 13 tonne payload, was gradually reduced to 30 trucks on site
at year end and replaced with 28 new Company owned Renault Kerax units, each with
a nominal payload of 30 tonnes. The Kerax trucks are faster, more fuel efficient and
lower in terms of unit costs per tonne moved in addition to which the reduced traffic
congestion allows the mine to be more productive. Plant recovery in the second half
was maintained at over 90 per cent despite lower head grades and a higher proportion
of carbonaceous ore.
For the year as a whole, gold production of 95,966 ounces was 18 per cent below 
last year. Total tonnes mined at 18.1 million were 7 per cent below last year, and 
ore mined was 30 per cent lower, with mining taking place deeper in the pit. 
Mill throughput was in line with the previous year and recovery at 92 per cent was
higher. However, mill feed grade averaged 5.67 g/t which was 20 per cent lower and
accounted for the drop in production when compared with the previous year. Total
operating costs were affected by increases in consumable prices, especially diesel,
reagents and grinding media. Higher gold prices together with a full year since the
Malaysian government increased royalty rates in January 2006 also meant that royalty
payments were higher. Combined with lower gold production, these factors resulted 
in cash costs for the year increasing from US$242/oz last year to US$351/oz. Efforts 
to reduce unit costs resulted in an improving cost trend through the year, and the
average cost in the second half year was US$328/oz compared to US$370/oz in the
first half. This reflects operating efficiencies in both mine and mill, notably the phasing
out of the high cost contractor haulage fleet.
REVIEW OF OPERATIONS – MINING (CONTINUED)
Opposite: Renault Kerax 
haul trucks
Top: Volvo excavator
Bottom: Pantera 1100 blast 
hole drill rig 14 Avocet Mining PLC  Annual Report and Accounts 2007
IN APRIL 2007 PENJOM
PRODUCED ITS ONE MILLIONTH
OUNCE OF GOLD 
“Penjom reached a major landmark 
in April 2007 when it produced its millionth ounce. 
Together with an additional million ounces in current
resources Avocet has transformed Penjom from a
223,000 ounce reserve at the time the mine was
commissioned in 1995 to a two million ounce orebody
which will continue to grow.” 15 Avocet Mining PLC  Annual Report and Accounts 2007
During 2007 Penjom will undertake a major expansion of its pit and associated
infrastructure as part of its long term strategy to allow the economic exploitation of
additional, but lower grade, reserves. An updated resource for Penjom was announced
in October 2006, highlighting a 15 per cent increase in resources net of depletion. 
A review of options for an optimal pit design led to the further announcement in
December of an increase of 132,900 ounces or 24 per cent to the life of mine forecast.
The revised Proved and Probable Reserve at Penjom is 3.99 million tonnes grading
3.78 g/t Au (484,100 ounces of gold). The latest open pit design includes 0.84 million
tonnes containing 135,600 ounces of gold (5.05 g/t Au average grade) of Inferred
Resources, making a total life of mine forecast of 4.82 million tonnes grading 
4.00 g/t Au containing 619,700 ounces of gold. The open pit reserve has expanded 
in the Manik-Janik area south of the main Kalampong pit, which will result in the
merging of the Kalampong and Manik pits and therefore necessitate the diversion 
of the Jaleh Creek within the Penjom mining leases. Penjom is in the process 
of obtaining the necessary permits. There is room for the reserve to expand further,
especially at depth and to the north of Kalampong. Nevertheless, the underlying
resource requires further definition drilling. This work will commence shortly and form
the basis of next year’s resource and reserve expansion efforts. The new life of mine
plan is lower grade than that reported last year, mainly reflecting additional low grades
to the south. However, some stockpiling will allow the mine to prioritise the higher
grade ore from the pit to the mill. Future mining will continue to select higher grades
for processing, whilst retaining the low grade mineralisation for processing at a later
date. Exploration, including deep drilling, continues at Penjom to the north, south and
at depth of the main pit, where the orebody remains open, with a view to establishing
extensions to the orebody and bringing further resources into the open pit mine plan
or, alternatively, into a future underground mine development.
The resource at Penjom is now approximately one million ounces. As well as
extending the mine life by over 100,000 ounces, the changes in pit design will improve
annual production, by avoiding congestion and by making more mining areas available
to allow consistent mill feed grade and tonnes. Production this year should be
maintained at an annual rate of approximately 100,000 ounces per annum, despite
anticipated lower grades, and cash costs will reduce owing to operating efficiencies.
Work on the expansion is well under way and together with orders for capital items
relating to the mining fleet and plant expansion, Penjom will spend approximately
US$20 million in capital investment this year. The major items in the mine are 
17 additional Kerax trucks, nine CAT 65 tonne excavators, two CAT 972 loaders, 
a CAT D10 dozer, two CAT D7 dozers and a Tamrock Pantera 1500 blast hole drill rig.
An additional, larger mill required for the mill expansion has been purchased and is 
on site. Engineering for the tailings dam expansion is also complete. Foundation
preparation commenced in July and buttress construction is expected to commence 
in August. The expansion of the pit means that the waste-to-ore stripping ratio over the
next few years will exceed the life of mine ratio of 22.5 and the costs associated with
this excess stripping will be deferred and released when the stripping ratio falls below
22.5. Production for the first quarter of this current year was 23,069 ounces at an
estimated cash cost of US$293/oz compared to the corresponding period in the
previous year of 24,613 ounces at US$381/oz.
REVIEW OF OPERATIONS – MINING (CONTINUED)
Opposite: Kalampong pit
Top: Mill cyclone bank 
Middle: Mine planning
Bottom: Penjom shear and 
deep drilling 16 Avocet Mining PLC  Annual Report and Accounts 2007
North Lanut Gold Mine, Indonesia
BACKGROUND
In March 2002 Avocet purchased an 80 per cent interest in an Indonesian company,
now named PT Avocet Bolaang Mongondow (PT ABM). It holds a 6th generation
Contract of Work (CoW) located in the central portion of North Sulawesi in the 
District of Bolaang Mongondow. The North Lanut gold mine is located within the CoW,
which includes exploration and mining rights over approximately 50,000 hectares. 
An Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent.
Following a one year construction period, gold production commenced in October
2004. Exploration activities have continued within the CoW with the Bakan project
being the most significant prospect that has arisen. The Bakan development project 
is discussed on page 22.
OPERATING RESULTS
In May 2007 North Lanut passed five million man hours with no lost time injuries (LTI),
a significant milestone for the operation. Unseasonal rainfall at the North Lanut
operation in early 2006 required the mine to conduct some re-engineering of the
waste dumps and storm water ponds for the dump leach. This work was undertaken
during the first half of the year. During the same period, heavy rainfall hampered
operations with the mine’s haulage fleet unable to operate at full capacity.
Construction of the second stage heap leach pad continued throughout the period.
These factors meant that the amount of ore placed and irrigated on the leach pad in
the first half was 11 per cent below the corresponding period in the previous year.
This was partly compensated by ore grades 8 per cent above the corresponding in
period for the previous year, but recovery was 5 per cent lower. This was in line with
expectations as the mine is increasingly moving from oxide to transitional/sulphide ore
with depth. First half gold production was therefore 9 per cent down on the previous
year. The greater focus on waste last year means that stripping in the coming year 
will be lower.
REVIEW OF OPERATIONS – MINING (CONTINUED)
Years ended 31 March 2005
(1)
2006 2007
Production statistics:
Ore and waste mined (tonnes) 985,250 3,134,400 3,577,000
Ore leached (tonnes) 301,700 1,326,600 1,157,000
Average ore head grade (g/t) 1.45 1.65 1.86
Process recovery rate 63% 75% 69%
Gold produced (oz) 8,852 54,520 48,170
Cash costs (US$/oz):
Mining 274 96 188
Processing 69 39 68
Royalties and overheads 157 66 98
Total cash cost 500 201 354
(1) North Lanut commenced production in October 2004
OPERATING HIGHLIGHTS
Opposite: Leach pad “fluffing” 
with lime
Above: Low grade ore for 
leach pad lining 17 Avocet Mining PLC  Annual Report and Accounts 2007
SECOND STAGE LEACH PAD
CONSTRUCTION 
COMPLETE
North Lanut Life of Mine plan at a gold price of US$600/oz
tonnes grade (g/t) ounces
Forecast at 31 March 2006
(1)
6,266,000 1.39 280,800 
Depleted during the year 1,157,000 1.86 69,300 
Additions 572,000 3.26 59,900 
Forecast at 31 March 2007 5,681,000 1.49 271,400 
Comprising:
Proved and Probable Reserves 4,370,000 1.62 227,400 
Inferred Resources 1,311,000 1.04 44,000 
(1)   Forecast at 31 March 2006 was based on a gold price of US$450/oz 18 Avocet Mining PLC  Annual Report and Accounts 2007
OPTIMISING OPERATIONS
“The introduction of six contractor 
operated articulated dump trucks, which are capable of
operating in very wet conditions, has significantly
increased mining productivity." 19 Avocet Mining PLC  Annual Report and Accounts 2007
The mine made the decision to hire articulated dump trucks for ore and waste
haulage, and a fleet of six contractor Volvo ADT trucks started operation in the first
quarter of 2007. With larger and wider tyres, these trucks are able to operate in 
very wet weather. This helped place more ore on the leach pad in the second half 
of the year which was some 35 per cent higher than in the first half. This was still 
18 per cent below the corresponding period in the previous year, and although grades
were 15 per cent higher than in the second half of the previous year, recoveries were
9 per cent lower. Leach recoveries reduced partly due to a higher proportion of
transitional ore leached in the last quarter. Significantly higher levels of material were
placed on the pad in the final quarter, which has benefited gold production in the first
quarter of the new year. For the year as a whole, gold production of 48,170 ounces
was 12 per cent below the previous year. Total operating costs were affected by the
abolition of government funded fuel subsidies, which significantly increased diesel
prices, while higher amounts of transitional ore leached meant a significant increase 
in the usage of hydrated lime which is used to control the leach alkalinity. Combined
with lower gold production, these factors resulted in cash costs for the year as a
whole increasing from US$201/oz last year to US$354/oz. 
Decreasing recoveries and the higher costs associated with transitional ore mean 
that unit costs will continue to come under pressure. The new haulage fleet will help
by making production more reliable in wet conditions. Drill and blast will benefit from 
a new Tamrock Pantera 1100 blast hole drill received and commissioned on site in
May, and from the use of emulsion explosives anticipated from August. In addition,
the economic benefits of crushing transitional ore are being assessed, with significant
recovery improvements expected; engineering has progressed from conceptual 
to detailed design, and much of the facility can be used at Bakan when mining 
at North Lanut is complete.
Importantly, and despite the heavy rainfall experienced in the year, environmental
compliance was maintained throughout the year. Rehabilitation has been ongoing, with
trees being planted around the new second stage leach pad following its completion
in February and around the waste dump areas. Revegetation minimises erosion 
in newly established dump areas. Sediment ponds are being well maintained with
regular cleaning, which is an important control for sediment loadings to maintain 
water discharge compliance.
Over the coming months, the mine is scheduled to commence development of the
Effendi pit which adjoins the Riska pit currently in production. Design and optimisation
and design of the Effendi pit have been completed and metallurgical testing is well
advanced. Production for the first quarter of this current year was 15,733 ounces 
at an estimated cash cost of US$313/oz compared to the corresponding period in 
the previous year of 10,273 ounces at US$354/oz.
REVIEW OF OPERATIONS – MINING (CONTINUED)
Opposite: Volvo articulated dump truck (ADT)
Top: Lining the leach pad with crushed 
low grade ore
Bottom: Waste dump revegetation 20 Avocet Mining PLC  Annual Report and Accounts 2007
ZGC Gold Mine, Tajikistan 
(discontinued)
BACKGROUND
The Company’s interest in JV Zeravshan LLC (ZGC) was held through its 100 per cent
subsidiary, Commonwealth & British Minerals (UK) Limited (CBM (UK) Limited). 
On 9 July 2007 the Company announced that it had completed the sale of CBM (UK)
Limited and its entire interest in ZGC to a wholly owned subsidiary of Zijin Mining, for 
a cash consideration of US$55.1 million, of which US$10 million is contingent on the
granting of an exploration or mining licence in relation to certain areas of interest located
in the vicinity of the current mining operations. In view of its disposal, ZGC’s resources
and reserves are excluded from this report. 
OPERATING RESULTS
Mining focused on waste stripping in an attempt to gain access to higher grade ore.
Operations were hampered by low equipment availability and by poor drill and blast
performance. Waste tonnes mined were 21 per cent lower than in the previous year
delaying access to the higher grade ore at the bottom of the south wall. 
This reduced ore feed to the mill and dump leach pads, and by the fourth quarter,
most mill feed was supplemented by ore from low grade stockpiles. Mill throughput
was variously constrained by the hardness of the ore feed from Jilau North and failure 
of several SAG mill components throughout the year. Total gold production of 34,182
ounces was 6 per cent below the previous year, with lower tonnes milled accounting
for the decrease. Costs were 12 per cent higher, including diesel, reagents, and
grinding media. Cash costs therefore increased by 18 per cent to US$750/oz.
Production for the first quarter of this current year was 6,925 ounces at an estimated
cash cost of US$983/oz compared to the corresponding period in the previous year of 
10,061 ounces at US$677/oz. 
REVIEW OF OPERATIONS – MINING (CONTINUED)
Years ended 31 March 2003
(1) 
2004 2005 2006 2007
Production statistics:
Ore and waste mined (tonnes) 1,987,000 6,020,000 6,434,200 7,604,000 6.484,000
Ore processed (tonnes) 720,030 1,668,000 1,627,475 1,426,500 1,165,000
Average ore head grade (g/t) 1.22 1.14 0.93 0.87 0.88
Process recovery rate 89% 90% 89% 84% 89%
Gold produced from dump leach (oz) 3,090 4,699
Total gold produced (oz) 25,675 55,500 44,241 36,330 34,182
Cash costs (US$/oz):
Mining 107 120 190 318 386
Processing 84 112 148 185 207
Royalties and overheads 93 90 101 131 157
Total cash cost 284 322 439 634 750
(1) Results for the five months following Avocet’s acquisition of ZGC in November 2002
OPERATING HIGHLIGHTS
Opposite: Geological survey of 
Chore district
Above: Belaz truck hauling waste 
from Jilau pit 21 Avocet Mining PLC  Annual Report and Accounts 2007
2.
"The disposal of ZGC represented the best way 
for Avocet to both maximise the value of its 
investment in ZGC and focus its resources on further
expansion in South East Asia.”
SALE OF ZGC SEEN AS
SUCCESSFUL OUTCOME 
OF STRATEGIC REVIEW 22 Avocet Mining PLC  Annual Report and Accounts 2007
REVIEW OF OPERATIONS –
PROJECTS
Bakan development project, Indonesia
The Bakan project is located in North Sulawesi, Indonesia, some 25 km west of
Avocet’s North Lanut mine, and is within the same CoW owned by the Company’s 
80 per cent subsidiary PT ABM. The Bakan district is the main new exploration
initiative for the Company in the CoW, and one of the key successes of Avocet’s
exploration over the last few years. The project’s characteristics in terms of likely size,
metallurgy and mining are very similar to North Lanut, which de-risks the project and
should allow commissioning to take place quickly. The project is transitioning from
exploration to mine development feasibility. Pre-feasibility is in progress and the 
key environmental approval, or AMDAL, has been received. A feasibility study is 
scheduled to be completed in the third quarter of this year and the mine is expected
to commence production by the end of 2008. In the meantime diamond drilling is
continuing to define the deposit whose main ore zones are Osela in the north east 
and Durian to the south. Other prospective areas are Main Ridge to the west and Villa,
between Main Ridge and Osela.  
In May 2007 Avocet announced that the Inferred Resource at the Durian and Osela
deposits had been upgraded to a Measured, Indicated and Inferred Mineral Resource
through the completion of over 16,500 metres of infill diamond drilling. This Measured,
Indicated and Inferred Resource has a total of 16.87 million tonnes averaging 0.96 g/t
Au containing 519,100 ounces of gold using a cut-off grade of 0.3 g/t Au. The revised
grade model is now being used as the basis of the feasibility study on the project.
Meanwhile exploration efforts have been redirected to the investigation of extensions 
to the known deposits, the assessment of additional mineralisation in the Bakan
district and sterilisation of proposed infrastructure sites. Exploration in support of 
the project is also discussed on page 26.
Subject to the feasibility study, the total cost of the project, including build and
commissioning of a heap leach mine, is expected to be approximately US$25 million.
Durian and Osela obliques
Opposite: Geotechnical drilling
Top: Overlooking the proposed 
leach pad area 
Bottom: Boxes of diamond drill core
Durian Osela
Orange area denotes grades above 2g/t 23 Avocet Mining PLC  Annual Report and Accounts 2007
A MINE IN THE MAKING
“The Bakan project has received approval of its
environmental impact study, and remains 
on schedule to complete its feasibility study in 2007 and
for production to commence by the end of 2008." 24 Avocet Mining PLC  Annual Report and Accounts 2007
REVIEW OF OPERATIONS – 
EXPLORATION
Malaysia
PENJOM
Exploration in the year continued the focus on expanding the resource base around
the Penjom deposit. While this deposit has grown significantly in the last few years,
the potential for further expansions remains high, particularly at depth where it has 
not been possible to evaluate the deposit because of limited drilling capacity. The mine
completed 32,000 metres of drilling during the year, mainly targeting the Manik, Janik
and Jalis areas, which cover the areas of Jaleh Creek diversion that will expand the
Penjom reserve. 
The focus of the Penjom exploration programme continues to be on drilling in and
around areas of potential pit expansion. This is mainly in the north and south, although
there remains potential at depth. 
In total US$2.1 million was spent on exploration in Malaysia. This year’s exploration 
budget is US$3.0 million, with the task of expanding in-pit reserves at Penjom and
generating new drill targets in the area of interest receiving 95 per cent of these
funds. This includes the purchase of a new, more powerful multipurpose drill rig 
and a total drilling budget of 40,000 metres of reverse circulation (RC) drilling and
2,000 metres of deep diamond drilling. The remaining budget will fund a generative
program in East Malaysia where several promising targets been have identified.
DAMAR
During the year the Company took the strategic decision to dispose of the Damar
interests in Pahang State, including the Buffalo Reef tenements. In April 2007 
Avocet announced that it had entered into a Memorandum of Understanding with
Moncoa Corporation (Moncoa), to divest its Damar interests in a deal that combined
the adjoining Buffalo Reef prospect and Selinsing gold mine and allowed the Company
to maximise its value from Buffalo Reef. Avocet has since completed this disposal,
which involves the Company retaining an equity interest of 15 million shares and 
7.5 million share purchase warrants in the acquiring company, whose name has
changed from Moncoa to Monument Mining.
Indonesia
NORTH LANUT
Exploration at North Lanut took a back seat during the year given the priorities 
of establishing a JORC compliant resource base at Bakan. A total of 2,500 metres 
of drilling was completed around the western flank of the Riska pit to evaluate 
the potential for additional ore that may affect the position of the final high wall. 
This drilling identified localised mineralisation, but nothing significant. 
The Company is planning a larger drilling programme of 6,000 metres in the coming
year that will target inferred mineralisation in the lower parts of the Riska and Effendi
deposits. If successful, this drilling will facilitate an expansion of the North Lanut
reserve and mine life. Exploration will also assess geophysical targets at Ayam Hitam
and Ayam Putih, and a geochemical target at Molobog near the Jiko port, which is the
sole remaining significant outcropping gold target in the North Lanut area of interest.
Opposite: Logging and sampling 
diamond drill core, Penjom
Top: Diamond drill rig offsiders,
Indonesia
Bottom: Mapping of structures 
in the Riska pit, North Lanut EXPANDING PENJOM'S
RESOURCE
25 Avocet Mining PLC  Annual Report and Accounts 2007
"Following commissioning of a new, more powerful
multipurpose rig, 40,000 metres of reverse circulation
drilling and 2,000 metres of deep diamond drilling are
planned at Penjom in the next 12 months."  26 Avocet Mining PLC  Annual Report and Accounts 2007
REVIEW OF OPERATIONS – EXPLORATION (CONTINUED)
Exploration will consist of 30 line kilometres of induced polarisation (IP) as well as soil
sampling and trenching. Potential future targets are Tembaga (an IP anomaly with
porphyry characteristics) and East Tobongon (a Riska like target concealed under deep
post-mineralisation cover), although no work is currently planned for these prospects, 
given other priorities in the short term.
In total US$0.3 million was spent on exploration at the Riska pit in the year. This 
year’s exploration budget is US$0.8 million.
BAKAN
The Bakan development project has been the focus of attention for our Sulawesi
exploration team during the year with the completion of 18,500 metres of infill,
resource definition drilling, geological modelling and the expansion of our 
IP geophysical survey coverage. This led to the Measured, Indicated and Inferred
Mineral Resource of 16.87 million tonnes averaging 0.96 g/t Au containing 519,100
ounces of gold in the Durian and Osela deposits using a cut-off grade of 0.3 g/t Au.  
The expansion of the IP survey has led to the discovery of a number of targets to the
southeast of Durian and, more significantly, the Villa prospect, on the northern edge 
of the Bakan valley. This adds to our existing portfolio of untested high-sulphidation
epithermal targets at Main Ridge, Tapagale, Gunung Botak and Camp. Soil sampling
surveys, mapping and trenching are ongoing to evaluate and prioritise the geophysical
targets as the Exploration team supports the development programme with
sterilisation and geotechnical drilling.
Avocet spent US$2.5 million on exploration at Bakan in the year. The Company 
will spend a similar amount this year.
Located just five kilometres south of Bakan, Upper Tobayagan is one of the many
regional targets within the Mongondow CoW that, like Pusian, has received limited
attention over the last couple of years. Scout mapping programmes at Upper
Tobayagan have identified several areas of kaolinite, alunite-silica and silica-alunite
alteration that are similar in style to Bakan. Any success in the Upper Tobayagan 
area will add to the Bakan project resource base. 
BANDA
On 29 June 2007 Avocet announced that it had agreed to acquire a 75 per cent
interest in a portfolio of significant gold properties also mainly located in North
Sulawesi (the Banda properties). The initial consideration for the acquisition is 
712,000 Avocet shares, with additional shares issued upon publication of defined
JORC compliant resources. In total the Banda properties represent exploration and
mining rights over a combined land position of 410 square kilometres. These gold 
and copper properties include more advanced projects which have previously been
reported as containing combined non-JORC compliant resources estimated at 
2.2 million ounces of gold. The properties are all currently at exploration stage but 
the intention is to move a number to the project development stage within a two 
to three year period. Avocet believes significant upside exists on the properties 
and  has recently commenced exploration on two of the prospects. 
Opposite: Exploration team operating 
IP receiver, Bakan
Top: Exploration planning meeting, 
North Lanut
Bottom: Drilling on night shift, Bakan 27 Avocet Mining PLC  Annual Report and Accounts 2007
PIPELINE OF EXCELLENT
EXPLORATION 
PROJECTS
“Our pipeline of exploration projects allows 
the Company to grow organically; we are drilling
multiple projects and are evaluating a number 
of highly prospective targets." The Banda properties comprise:
• a 5th generation CoW in the Gorontalo Province containing four blocks – Pani,
Totopo, Bulangitang and Bulagidun;
• three Kuasa Pertembangan tenements (KP – national mining license) in the
Bolaang Mongondow regency; and 
• two KPs in West Kalimantan, comprising greenfield initiatives at Serantak.
MANGKALUKU, SOUTH SULAWESI
The outcome of trenching work at Mangkaluku in the year was positive, 
with identification of the potential for at least two orogenic quartz lode systems 
similar to the mineralisation at Penjom. Further trenching has been done ahead of
scout drilling which has now commenced with a view to generating a preliminary
resource estimate.
IDENBURG
During the year the Company earned a 51 per cent interest in a joint venture called 
PT. Iriana Mutiara Idenburg (PT IMI). The remaining 49 per cent is held by Indonesian
family controlled business. PT IMI holds a 6th generation CoW located in eastern 
Papua Province in Eastern Indonesia, known as the Idenburg project. Since PT IMI
commenced field investigations in 1995, several high-grade gold prospects have been
identified. The joint venture’s main objective has been to identify gold prospects that
demonstrate the potential to contain mineable resources in one deposit that exceed
500,000 ounces of gold. As part of a review of its portfolio of operations and projects,
Avocet recently took the decision to consider alternatives for the Idenburg project in
order to focus on several opportunities elsewhere in Indonesia, notably the Banda
properties. The Company is currently in discussions with a number of parties.
China 
DYNASTY GOLD CORPORATION
In November 2005 Avocet acquired a 26 per cent interest in Dynasty Gold Corporation
(Dynasty), which is listed on the TSX Venture Exchange in Canada. Dynasty controls 
a large area of prospective ground in Western China. This includes 1,000 square
kilometres at the Hatu tenement on the Qi-2 deposit in Xinjiang Province (Hatu JV),
100 square kilometres at Red Valley in Qinghai Province and 2,000 square kilometres
at Wild Horse in Gansu Province. In 2006 the Company announced a joint venture deal
with Dynasty to earn up to 36 per cent of Dynasty’s interests in Xinjiang Province, and
more particularly the Hatu project, by investing up to US$1.8 million, to bring the
existing resource up to a measured and indicated category, undertake step out drilling
to expand the resources and finalise metallurgical testwork, with a view to moving the
project to feasibility. To date, Avocet has spent US$1.0 million, entitling the Company
to a 27 per cent interest in the project. A total of 1.4 tonnes of samples has been
taken and sent for metallurgical testwork to Avocet's Penjom mine in Malaysia, which
has successfully developed a proprietary process for treating ores of a similar nature
to Qi-2. The results from these samples, which will assist in the optimisation of gold
recovery, are expected later in the year. The investment in Dynasty is viewed as a
strategic step towards potential entry into the Chinese gold mining industry.
28 Avocet Mining PLC  Annual Report and Accounts 2007
REVIEW OF OPERATIONS – EXPLORATION (CONTINUED)
Opposite: River crossing, Palopo
Top: Mapping the Bermol 
outcrop, Idenburg
Middle: Setting up diamond 
drill rig, Idenburg 29 Avocet Mining PLC  Annual Report and Accounts 2007
"Avocet's exploration team has a 
track record of discovering ounces at a cost 
well below the industry average."
DISCOVERING OUNCES
BELOW INDUSTRY 
AVERAGE COST 30 Avocet Mining PLC  Annual Report and Accounts 2007
RESOURCES AND RESERVES
Gross Net Attributable
(1)
Tonnes Grade Metal Tonnes Grade Metal
CATEGORY (g/t Au) (ounces) (g/t Au) (ounces)
ORE RESERVES
Kalampong
Proved 712,000  4.50  102,900  712,000  4.50  102,900  
Probable 971,000  5.41  168,900  971,000  5.41  168,900  
Manik
Proved 392,000  2.91  36,700  392,000  2.91  36,700  
Probable 448,000  4.42  63,600  448,000  4.42  63,600  
Stockpiles
Proved 1,181,000  2.03  77,200  1,181,000  2.03  77,200  
Probable
Reserves Subtotal 3,704,000  3.77  449,300  3,704,000  3.77  449,300  
Depletion since 31 March 2006 570,000  5.67  103,900  
Change from 31 March 2006 1,636,000  (0.92)  155,300  62% (20%) 39% 
MINERAL RESOURCES
(excluding reserves)
Kalampong
Measured 171,000  2.06  11,300  171,000  2.06  11,300  
Indicated 1,522,000  2.61  127,600  1,522,000  2.61  127,600  
Inferred 2,439,000  3.91  306,600  2,439,000  3.91  306,600  
Manik
Measured 86,000  1.34  3,700  86,000  1.34  3,700  
Indicated 187,000  1.38  8,300  187,000  1.38  8,300  
Inferred 493,000  3.98  63,100  493,000  3.98  63,100  
Kurnia
Measured
Indicated
Inferred 77,000  4.73  11,700  77,000  4.73  11,700  
Buffalo Reef
(2)
Measured
Indicated 1,944,000  2.49  155,800  1,944,000  2.49  155,800  
Inferred 568,000  1.62  29,600  568,000  1.62  29,600  
Resources Subtotal 7,487,000  2.98  717,700  7,487,000  2.98  717,700  
Total 11,191,000  3.24  1,167,000  11,191,000  3.24  1,167,000  
Change from 31 March 2006 3,092,000  (0.45)  241,300  36% (12%) 23% 
(1)  Attributable amounts are based on the Company’s 100 per cent interest in Penjom and other resources and reserves
(2)  The Company disposed of its 100 per cent interest in the Buffalo Reef tenements in June 2007
Numbers are net of depletion of material mined during the year
Malaysian Resource and Reserve Summary at 31 March 2007 
(Penjom cut off grade is 0.8 g/t Au; Buffalo Reef cut off grade is 0.5 g/t Au; reserve excludes carbonaceous ore less than 1.3 g/t Au; 
reserves undiluted; pits generated at US$600/oz) 31
Gross Net Attributable
(1)
Tonnes Grade Metal Tonnes Grade Metal
CATEGORY (g/t Au) (ounces) (g/t Au) (ounces)
ORE RESERVES
Riska
Proved 1,089,000  1.19  41,800  871,200  1.19  33,440  
Probable 2,133,000  1.84  126,100  1,706,400  1.84  100,880  
Effendi
Proved
Probable 1,050,000  1.62  54,700  840,000  1.62  43,760  
Stockpiles
Proved 98,000  1.52  4,800  78,400  1.52  3,840  
Probable
Reserves Subtotal 4,370,000  1.62  227,400  3,496,000  1.62  181,920  
Depletion since 31 March 2006 1,157,000  1.86  69,300  
Change from 31 March 2006 1,365,000  (0.13)  63,100  33% (7%) 27% 
MINERAL RESOURCES
(excluding reserves)
Riska
Measured 125,000  1.27  5,100  100,000  1.27  4,080  
Indicated 1,654,000  0.81  43,100  1,323,200  0.81  34,480  
Inferred 4,072,000  1.05  137,500  3,257,600  1.05  110,000  
Effendi
Measured
Indicated 2,463,000  0.79  62,800  1,970,400  0.79  50,240  
Inferred 655,000  0.99  20,800  524,000  0.99  16,640  
Talugon
Measured
Indicated
Inferred 600,000  2.59  50,000  480,000  2.59  40,000
Durian
Measured 3,704,000  1.08  128,600  2,963,200  1.08  102,880  
Indicated 3,573,000  0.84  96,500  2,858,400  0.84  77,200  
Inferred 4,758,000  0.7  111,700  3,806,400  0.73  89,360  
Osela
Measured 1,716,000  1.48  81,600  1,372,800  1.48  65,280  
Indicated 1,326,000  1.17  49,900  1,060,800  1.17  39,920  
Inferred 1,797,000  0.9  50,800  1,437,600  0.88  40,640  
Resources Subtotal 26,443,000  0.99  838,400  21,154,400  0.99  670,720  
Total 30,813,000  1.08  1,065,800  24,650,400  1.08  852,640  
Change from 31 March 2006 17,043,000  (0.18)  507,700  132% (15%) 103% 
(1) Attributable amounts are based on the Company’s 80 per cent interest in the North Lanut mine and Bakan development project
Numbers are net of depletion of material mined during the year
Indonesian Resource and Reserve Summary at 31 March 2007 
(at a cut off grade of 0.3 g/t Au; reserves undiluted; pits generated at US$600/oz)
Avocet Mining PLC  Annual Report and Accounts 2007 32 Avocet Mining PLC  Annual Report and Accounts 2007
Avocet is committed to achieving a safe and healthy working environment throughout
its businesses and the prevention of serious accidents and injuries is top priority. As a
reflection of this commitment, the Company will: 
• seek continuous improvement in its occupational health and safety performance
taking into account evolving community expectations, management practices,
scientific knowledge and technology; 
• comply with all applicable laws, regulations and standards and where adequate
laws do not exist, adopt and apply World Bank standards; 
• involve employees and contractors in the improvement of occupational health and
safety performance; 
• train and hold individual employees accountable for their area of responsibility; 
• manage risk by implementing management systems to identify, assess, monitor
and control hazards and by reviewing performance; and
• communicate openly with employees, government and the community on
occupational health and safety issues, and contribute to the development of
relevant occupational health and safety policy, legislation and regulations.
The Company is mindful of the need to operate responsibly with regard to
environmental matters, and every effort is made to ensure compliance is always 
a top priority. North Lanut remained fully compliant with environmental requirements
during the year, despite unseasonally high rainfall that required the mine to carry out 
re-engineering of the waste dumps and storm water ponds for the dump leach. 
North Lanut was also awarded the Bronze Award for Environmental Excellence
(Mining Industry) and the Silver Award for Safety Excellence (Mining Industry). 
Health, safety and environmental matters are discussed with local management during
every visit by the Group’s executive directors to mine, development or exploration
sites. The Group’s local management will immediately report any employee accident,
breach of health, safety or environmental regulation, or change in local regulations to
the Chief Executive Officer who will immediately inform the board as necessary.
HEALTH, SAFETY AND
ENVIRONMENT
Opposite: Planting for mine rehabilitation, 
North Lanut
Top: Flame retardant clothing used at gold pours
Bottom: Respirators used during metallurgical
sample test work, North Lanut 33 Avocet Mining PLC  Annual Report and Accounts 2007
"Avocet is committed to the well-being of its
employees, its neighbours and the environment in which
it operates. We operate responsibly and ensure that
environmental compliance is always a top priority."
COMMITTED TO SOCIAL
RESPONSIBILITY 34 Avocet Mining PLC  Annual Report and Accounts 2007
Penjom is recognised by Malaysian government agencies as a role model in the
mining industry for safety, environmental, rehabilitation and mining practices. 
Under a Penjom initiative aimed at raising the standard of the local mining industry, 
the Department of Mineral and Geosciences uses the mine as one of two training
centres for its young officers to gain experience in hardrock mining operations. This
commitment extends to student industrial training as well as hosting educational field
studies and visits, and these are seen by Penjom as an important opportunity to
demonstrate to the public the industry’s commitment to safety, health, environment
and rehabilitation matters. Skills development programs for local employees have
successfully nurtured a highly skilled Malaysian workforce, and Penjom supported
local and regional community initiatives during the year. In addition, the mine is an
important employer in the region and made a wider contribution through its
procurement of goods and services from local contractors and suppliers. 
North Lanut has a number of community related initiatives. These include improving
roads and infrastructure near the mine and a community development plan for 
the seven villages in the district through consultation with community appointed
representatives. Other projects during the year included development of clean water
supply systems for a further two villages, construction of communal bath houses 
in three villages and renovation of village government offices and meeting halls.
Technical assistance continued to be provided to agricultural groups and an animal
husbandry program was established in several villages. The mine expanded support 
to underprivileged groups including low income families and several orphanages 
by providing basic foodstuffs and scholastic support where required. A scholarship
program was implemented for school and university students with the latter also
being provided with work experience and on-the-job training. The mine is recognised
by the government, public and media for its rapid assistance during times of hardship.
During the year the mine received a number of recommendations from a local
university under a partnership established to monitor and assess the social and
economic impact of the Company's activities. These recommendations were
incorporated into its ongoing programs.
COMMUNITY RELATIONS
Opposite: Family day, Penjom  
Top: Avocet sponsored orphanage, 
North Lanut
Bottom: Blood donations, Penjom "We are committed to building long lasting relationships
with our local communities and government, based on
respect and understanding."
35 Avocet Mining PLC  Annual Report and Accounts 2007
STRONG COMMUNITY 
AND GOVERNMENT 
RELATIONS 36 Avocet Mining PLC  Annual Report and Accounts 2007
Turnover
Group turnover increased by 20 per cent to US$108.2 million as a result of realised
gold prices 39 per cent higher at US$607/oz, offset by gold sales 15 per cent lower at
177,635 ounces (2006: 207,995 ounces). Penjom gold sales were 19 per cent lower 
at 96,002 ounces (2006: 118,406 ounces) with its average realised price increasing 
45 per cent from US$406/oz to US$590/oz. North Lanut sold 47,740 ounces (2006:
53,526 ounces) at an average realised price of US$627/oz (2006: US$482/oz). ZGC
sold 33,893 ounces (2006: 36,063 ounces) at an average realised price of US$627/oz
(2006: US$470/oz). The Group’s overall realised spot price reduced from US$629/oz 
to US$607/oz as a result of delivering the last remaining 12,000 ounces into an historic
hedge during the first quarter of the year at an average price of US$312/oz. Following
these deliveries this hedge position was completely liquidated.
Gross profit and unit costs
The increase in gross profit to US$22.7 million reflected higher gold prices offset by
cost increases, including higher prices for diesel, reagents and grinding media. These
combined with increased costs of waste stripping at Penjom and ZGC which were
expensed in the year.
Total cash costs at Penjom increased by 45 per cent to US$351/oz, mainly reflecting
the impact of higher stripping as well as lower grades as the mine’s focus on stripping
meant that mill feed was supplemented by ore from low grade stockpiles. Total cash
costs at North Lanut increased by 76 per cent to US$354/oz, reflecting waste dump
and storm water pond engineering work that was expensed last year. Total cash costs
at ZGC increased by 18 per cent to US$750/oz. The Group’s overall cash cost
increased by 43 per cent to US$428/oz.
FINANCIAL REVIEW
Years ended 31 March 2003
(1)
2004 2005 2006
(2)
2007
US$000
Turnover 48,547 68,844 71,060 90,493 108,236
Gross profit 6,788 17,064 18,559 18,182 22,740
Operating profit 4,407 14,304 15,936 14,561 18,143
Pre-tax profit 3,647 15,592 15,803 15,905 22,689
Profit after tax and minority interests 2,157 11,280 11,686 10,819 16,517
Operating cash flow 9,876 23,036 17,092 19,942 25,844
Net cash inflow/(outflow) 2,486 16,012 (11,525) 964 50,147
(1) Figures have been converted from pounds sterling to US dollars at the average exchange rate for the year
(2) Figures have been restated to reflect FRS 20 – Share based payments (FRS  20)
Financial highlights
Operating cash costs
(1)
Total cash costs
(2)
Total  production costs
(3)
Years ended 31 March         2007 2006 2007 2006 2007 2006
US$/oz
Penjom 306 216 351 242 371 280
North Lanut 347 194 354 201 451 280
ZGC 717 608 750 634 764 647
Group 396 279 428 300 468 344
Throughout this report, unit cash costs or cash cost per ounce refer to total cash costs,
including royalties.
(1) Includes all cash costs except royalties
(2) Operating cash costs plus royalties
(3) Total cash costs plus depreciation
  37 Avocet Mining PLC  Annual Report and Accounts 2007
The table below reconciles the Group’s cost of sales to the cash cost per ounce:
Years ended 31 March 2007 2006
US$000
Cost of sales 85,496 72,311
Depreciation and amortisation (7,419) (8,826)
Exploration costs (242) (170)
Stock movement 1,879 1,006
Other adjustments including costs not directly related to production (3,394) (1,864)
Cash costs of production 76,320 62,457
Gold produced (oz) 178,318 208,530
Cash cost per ounce (US$/oz) 428 300
Profit before tax
The Group’s profit before tax increased by 43 per cent from US$15.9 million 
to US$22.7 million. Administrative expenses increased 11 per cent from US$3.3 million
to US$3.6 million, excluding share based payment costs. A charge of US$961,000 was
recognised in the year for share based payments following adoption of FRS  20 in the
year; the prior year has been restated to include a corresponding charge of US$341,000.
The higher amount this year reflects an increase in the number of share options issued
under an approved share incentive scheme due to a higher number of employees
participating as the Group expands its operations. Net interest income of US$4.5 million
includes interest income of US$2.4 million earned on funds raised in sterling in May 2006
to finance the Group’s expanded activities. An exchange gain of US$2.2 million arose on
the sterling funds which appreciated against the US dollar during the year. Subsequent 
to the year end, substantially all sterling funds were converted to US dollars.
Taxation
The Group’s taxation charge increased to US$6.5 million in the current year (2006:
US$5.8 million) analysed as follows:
The charge in respect of ZGC/CBM (UK) Limited reflects profits generated by CBM
(UK) Limited on management and service fees charged to ZGC. The UK corporate
charge is accounted for by the interest income and exchange gain on sterling funds
which meant that the Company generated taxable profits for the first time.  
Years ended 31 March 2007 2006
US$000
Penjom, Malaysia 4,144 4,030
North Lanut, Indonesia 1,471 1,720
ZGC/CBM (UK) Limited, Tajikistan/UK 226 –
Avocet Mining PLC, UK 606 –
6,447 5,750 38 Avocet Mining PLC  Annual Report and Accounts 2007
FINANCIAL REVIEW (CONTINUED)
Deferred Tangible Total capital Deferred Tangible Total capital 
exploration assets expenditure exploration assets expenditure
Years ended 31 March 2007 2007 2007 2006 2006 2006
US$000
Malaysia 2,160 8,116 10,276 1,373 799 2,172
Indonesia 4,638 3,769 8,407 2,553 3,511 6,064
China 1,040 – 1,040 –– –
Tajikistan 1,365 1,364 2,729 1,342 3,849 5,191
UK –1515 –6 6
9,203 13,264 22,467 5,268 8,165 13,433
Cash flow and liquidity
The Group’s operating cash flow increased by 30 per cent to US$25.8 million (2006:
US$19.9 million) reflecting higher gold prices offset by cost increases. The Group’s year
end cash balances increased to US$65.3 million (2006: US$12.9 million) and the Group’s
net current assets increased from US$29.0 million to US$82.2 million principally due to
the issue of shares to institutional investors in May 2006.
Depreciation
The Group’s depreciation charge decreased to US$6.9 million (2006: US$8.5 million),
analysed as follows:
The decrease in depreciation at Penjom reflected a lowering of the rate of amortisation
applied for mine development, following the increase in recoverable ounces included in
the mine’s revised life of mine plan. Lower gold production was also a factor as this
reduced the amount amortised on a unit of production basis.
Capital Expenditure
The Group’s capital expenditure increased to US$22.5 million (2006: US$13.4 million)
analysed as follows:
Capital expenditures in Malaysia included US$4.4 million for new haulage trucks 
at Penjom. In Indonesia, deferred exploration expenditure reflected activity at 
North Lanut, Bakan and Idenburg, while expenditure on tangible assets included
US$1.4 million on the second stage of the heap leach pad at North Lanut. Deferred
exploration in China relates to the Company’s joint venture with Dynasty in relation 
to the Hatu project.
Earnings per share
On the basis of the weighted average number of ordinary shares in issue of
119,543,971 (2006: 105,064,092), earnings per share for the Group increased by 
34 per cent to 13.82 cents (2006 restated: 10.30 cents). The fully diluted earnings 
Years ended 31 March 2007 2006
US$000
Penjom 1,703 3,623
North Lanut 4,703 4,344
ZGC/CBM (UK) Limited 473 497
UK corporate 16 16
6,895 8,480 39 Avocet Mining PLC  Annual Report and Accounts 2007
per share were 13.55 cents (2006 restated: 10.13 cents) based on 121,893,361 shares
(2006: 106,749,575). The increase in the number of shares during the year is accounted
for by the issue of 15,250,000 ordinary shares in May 2006 to institutional investors.
Financial risk management
The Company’s executive directors are responsible for arranging funding and for
managing the commodity price, foreign currency, interest rate, and liquidity risks of 
the Group. Related policies and procedures are reviewed and approved by the board.
The Group’s policies prohibit transactions that are speculative or unrelated to its trading
activities. Instead, the Group seeks to reduce the volatility of its operating cash flows,
and to match the currencies of its borrowings with the currencies of its operating 
cash flows.
Commodity price risk
The Group uses financial instruments for short to medium term hedging of its 
gold production.
On 16 January 2006 the Group entered into a put and call collar transaction 
with Macquarie Bank Limited whereby the Group sold European call options over
360,000 ounces with 10,000 ounces exercisable per month at a strike price of
US$700/oz and purchased European put options at US$450/oz over the same number
of ounces exercisable each month. The period of the collar was thirty six months
commencing on 26 April 2006 and expiring on 27 March 2009. All contracts up to 
30 June 2007 have expired without being exercised, leaving options over 
210,000 ounces unexpired at that date, to the end of the contract.
Foreign currency risk
As a producer of gold, the Group realises US dollars for all of its sales. To mitigate 
the impact of US dollar weakness on operating costs that are not US dollar
denominated, the Group occasionally purchases short-term currency options. 
There were no such purchases during the year. The Group may, from time to time,
hold material cash balances in a currency other than the US dollar with the potential 
for short term foreign exchange exposure. An exchange profit of US$2.2 million 
arose from the sterling money raised which has been converted during the year 
while the US dollar has weakened against sterling.
Interest rate risk
At 31 March 2007 the Group’s only debt related to a US$780,000 (2006 US$1.4 million)
finance lease in Indonesia. All borrowings during the year were at floating rates of
interest. The Group does not currently use financial instruments to hedge its interest 
rate exposure. 
Liquidity risk
The Group’s objectives for managing its liquidity are to ensure that the maturities 
of any debt it may have are not beyond its ability to repay or refinance, and that its
operating subsidiaries have available to them local cash balances and lines of credit
sufficient to fund their working capital needs. The Group has a US$10 million
revolving corporate facility with Macquarie Bank Limited which was undrawn at 
31 March 2007 and a US$5 million overdraft facility with Barclays Bank PLC also
undrawn at the year end. 40 Avocet Mining PLC  Annual Report and Accounts 2007 41 Avocet Mining PLC  Annual Report and Accounts 2007
CURRENT BOARD OF DIRECTORS 
AND SENIOR MANAGEMENT
Executive directors
J G Henry (40) – was appointed Chief Executive Officer in July 2006 having
previously been Finance Director since October 2002. He has held several
positions with Avocet since joining the Company in 1994, including the position 
of General Manager of the Bishop facility in the USA. 
A M Norris  (42) – was appointed Finance Director in July 2007 having previously
been Chief Financial Officer since February 2007. He worked for L.E.K. Consulting, 
a firm of strategic management consultants, before qualifying as a chartered
accountant with Coopers & Lybrand in 1993. He then held a number of senior
financial and operational roles within Rio Tinto plc and Anglo American plc. 
He was Chief Financial Officer at two of Rio’s mines in the US and held the position
of production manager at one of them, an open pit gold mining operation.
Non-executive directors
N G McNair Scott (61) – has been non-executive Chairman of the Company since
its listing on the London Stock Exchange in 1996. He has been Finance Director 
of Helical Bar plc since 1987. Previously he was a director of Johnson Matthey Plc
and held various positions in the Anglo American plc and Charter Consolidated
groups. He had over 25 years direct experience in the mining business before
becoming non-executive Chairman of Avocet. 
Sir Richard Brooke Bt. (68) – became a non-executive director in June 1995. 
He serves on the board of Fidelity Special Values PLC and is chairman of other
investment entities associated with J O Hambro Investment Management Ltd. 
He was previously a director of S G Warburg Group plc, J O Hambro & Company
Limited and a number of publicly quoted investment trusts and other private
companies. He has over 45 years of experience in all aspects of the securities
industry worldwide.
J F Newman (77) – became a non-executive director in February 1996. 
He has been deputy Chairman of Blick plc and Chairman of Galloway Group, 
Rom River Co. Ltd and Hoogovens UK Ltd. He has had a breadth of experience 
in the engineering industry.
R A Pilkington (61) – became a non-executive director in March 1996. He is a
Managing Director of UBS Investment Bank. He is also a director of ASA Limited, 
an investment trust investing principally in the shares of South African gold mining
companies. Following an earlier career with the Anglo American group, he has been
an investment banker in New York for the last 25 years, and has advised some 
of the world’s leading gold mining companies.
Note: Ages are as at 31 March 2007
Executive directors
J G Henry
A M Norris 
Non-executive 
directors
N G McNair Scott
Sir Richard Brooke
J F Newman
R A Pilkington
M J Donoghue
R S Robertson
Company secretary
A P McFarlane 42 Avocet Mining PLC  Annual Report and Accounts 2007
Non-executive directors (continued)
M J Donoghue (58) – became a non-executive director in July 2006. He is a 
mining engineer with over 30 years experience in mining operations and new 
mine developments in Africa, Australia, South East Asia and Europe. Currently he 
is the Executive Chairman of Ormonde Mining plc. Previously he held the position 
of General Manager – Operations of Delta Gold, Sydney, Australia.
R S Robertson (55) – became a non-executive director in February 2007. He is
Chairman of West China Cement Limited and Project Trust. He has over 30 years
experience in extractive industry and was previously Chief Executive of Tarmac 
and Anglo Industrial Minerals.
Company secretary
A P McFarlane (53) – joined Avocet in June 1999 and was appointed Company
Secretary in May 2003. He is a chartered management accountant and previously
was the Chief Accountant for Hardy Oil and Gas plc.
CURRENT BOARD OF DIRECTORS AND 
SENIOR MANAGEMENT (CONTINUED)
Note: Ages are as at 31 March 2007
Jonathan Henry
Mike Norris
Alan McFarlane 43 Avocet Mining PLC  Annual Report and Accounts 2007
Senior management
E Vesel (43) – a mining engineer with management and technical experience in
mining and process plant operations. An experienced expatriate professional for over
20 years; having worked in Namibia, Australia, Papua New Guinea, Indonesia and
Malaysia He joined Avocet in 1997 as Mining Manager and was promoted to General
Manager at Penjom and Country Manager in Malaysia in 2001. In July 2006 he was
appointed Chief Operating Officer after a two year period as Regional Director, 
South East Asia.
P A Flindell (43) – a geologist with over 20 years experience in gold and copper
exploration, resource evaluation and reserve development in South East Asia, Central
Asia and North America. He has played a key role in the discovery and development
of two gold mines in Indonesia, including Avocet’s North Lanut mine. He joined the
Group as Chief Geologist in May 2002 following 12 years with Newmont Mining
Corporation.
M N Omar (42) – holds a mining engineering degree from the Mackay School 
of Mines, University of Nevada-Reno, Nevada, USA, and has 19 years international
experience. Formerly employed by Niugini Mining Ltd. of Australia, he was seconded
to various gold projects in Australia, Chile, Thailand, China and Malaysia. Prior to
joining Avocet, he was General Manager of a heap leach operation in north eastern
Malaysia. With 11 years experience at Penjom, he has headed mining operations 
and later managed the process plant. In 2005, he was appointed General Manager 
at Penjom. 
D P Stuart (42) – a mining engineer with over 20 years experience including 
more than seven years working in Indonesia. Formerly employed by Aurora Gold Ltd
of Australia, he was seconded to several gold projects in Indonesia including the 
Mt Muro gold and silver project in Central Kalimantan and the Toka Tindung project in
North Sulawesi. Previously he was employed in both the Goldfields mining region 
and the Pilbara iron ore mining region of Western Australia. In June 2005 he joined
Avocet as General Manager at North Lanut, becoming Indonesian Country Manager
shortly thereafter. 
Note: Ages are as at 31 March 2007
Eric Vesel Peter Flindell Mohd Nazir Omar Dean Stuart
Senior management
E Vesel
P A Flindell
M N Omar
D P Stuart 44 Avocet Mining PLC  Annual Report and Accounts 2007
REPORT OF THE DIRECTORS
The directors are pleased to present their report together with the audited financial statements of the Company and of the Group
for the year ended 31 March 2007. 
Principal activity and business review
The Group’s principal activity during the year continued to be gold mining, mineral processing and exploration. Further information is
included within the Chairman’s Statement, the Chief Executive’s Statement and the Review of Operations.
Future developments
The Group’s future developments are outlined in the Chairman’s Statement and the Chief Executive’s Statement. 
Company’s listing
The Company’s ordinary shares have traded on London’s Alternative Investment Market (AIM) since 26 July 2002. Previous to that
the Company was listed on the London Stock Exchange main market for listed securities (the Official List). Grant Thornton UK LLP
acts as the Company’s Nominated Adviser (NOMAD). Evolution Securities Limited acts as the Company’s Nominated Broker. 
Results and dividends
The Group made a profit for the financial year, after taxation and minority interests, amounting to US$16,517,000 (2006: restated
US$10,819,000). The financial results are explained in the Chairman’s Statement, the Chief Executive’s Statement and the Financial
Review. The directors do not recommend the payment of a dividend.
Post balance sheet events
Please refer to note 27 to the financial statements.
Key performance indicators 
The Group monitors its key performance indicators (KPIs) on a monthly basis or more frequently, and when KPIs diverge from
expectation, an investigation is carried out and appropriate action taken. The Group’s KPIs for each operation for the year are shown
in the highlights tables within the Review of Operations commencing on page 10.
Principal risks and uncertainties
The Principal risks and uncertainties facing the Group are outlined within the Report on Corporate Governance and the 
Financial Review. 
Directors and their interests in shares
The names of the current directors are shown on pages 41 and 42 details of their interests in the share capital of the Company 
are shown on page 52. Resignations from the board were received from J T Catchpole on 11 July 2006, from J U Rydell on 
26 September 2006 and from G L Toll on 10 July 2007. M J Donoghue was appointed to the board on 11 July 2006 as were 
R S Robertson on 12 February 2007 and A M Norris on 10 July 2007.
N G McNair Scott, J F Newman, Sir Richard Brooke Bt., R A Pilkington, A M Norris and R S Robertson, being eligible, offer
themselves for re-election at the Company’s Annual General Meeting (AGM).
Substantial shareholders
At 19 June 2007 the following had notified the Company of disclosable interests in 3 per cent or more of the nominal value of the
Company’s shares:
Name Shareholding %
Elliott Associates L.P . and Elliott International L.P . 18,693,852 15.47%
Artemis Investment Management Limited 16,615,665 13.75%
AXA S.A. and its group companies 12,121,755 10.03%
Gartmore Investment Limited 8,183,110 6.77%
J P Morgan Asset Management (UK) Limited 6,786,300 5.61%  
N G McNair Scott 6,100,000 5.05%
Black Rock Investment Management (UK) Limited 5,539,617 4.58% 45 Avocet Mining PLC  Annual Report and Accounts 2007
Creditor payments
It is the Group’s policy to agree the terms of payment with suppliers when entering into contracts and to meet its obligations
accordingly. The Group does not follow any specific published code or standard on payment practice. The Company does not have
any trade creditors. 
Donations
As in previous years, no donations were made for political purposes during the year.
Statement of directors’ responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable 
law and regulations. 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to
prepare financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice). The financial statements are required by law to give a true and fair view of the state of affairs of the Company and the Group
and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to:
• select suitable accounting policies and apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will 
continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial
position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act
1985. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
In so far as the directors are aware:
• there is no relevant audit information of which the Company’s auditors are unaware; and
• the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information
and to establish that the auditors are aware of that information.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the
Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
As an AIM listed company, Avocet will prepare its consolidated financial statements for the year ended 31 March 2008 under
International Financial Reporting Standards (IFRS) and will prepare its interim financial statements for the six months ended 
30 September 2007 under IFRS.
Corporate governance
A full report on corporate governance is provided on pages 46 to 48.
Employees
The Company has, and continues to put in place, appropriate structures to make Avocet a rewarding place to work and to retain its
valued employees. The Group’s policy on employee involvement is stated within the Corporate Governance report.
Health, safety and environment
Details of the Group’s activities relating to health, safety and the environment are provided on page 32.
Annual General Meeting 
Details are given on pages 78 to 80 of business to be considered at the AGM.
On behalf of the board
J G Henry
10 July 2007 46 Avocet Mining PLC  Annual Report and Accounts 2007
In July 2005 the Quoted Companies Alliance (QCA) published Corporate Governance Guidelines for AIM Companies. In July 2006
the Company’s board agreed to adopt these guidelines with which it has been in full compliance throughout the year. 
The board remains accountable to the Company’s shareholders for good corporate governance and continues to strive for the
highest standards.
A summary of matters requiring action/approval by the board is compliant with Appendix A of the QCA published Corporate
Governance Guidelines for AIM Companies.
Board of directors
The Company supports the concept of an effective board leading and controlling the Company. The board is responsible for
approving Company policy and strategy. It meets at least every three months and is supplied with appropriate and timely
information. The directors are free to seek any further information they consider necessary. All directors have access to advice 
from the company secretary and independent professionals at the Company’s expense. Training is available for new directors and
other directors as necessary. A number of the Group’s key strategic and operational decisions are reserved exclusively for the
decision of the board.
The board consists of two executive directors who hold the key operational positions in the Company and six non-executive directors,
who bring a breadth of experience and knowledge, all of whom are independent of management and any business or other relationship
which could interfere with the exercise of their independent judgement. The board’s make up provides a balance whereby the board’s
decision making cannot be dominated by an individual or small group. The Chairman of the board is N G McNair Scott and the
Company’s business has been managed since July 2006 by J G Henry, the Chief Executive Officer. The board has named Sir Richard
Brooke Bt. as the senior independent non-executive director. The board members are profiled on pages 41 and 42.
It is noted that the QCA takes the view that independence of action is likely to be lost the longer a director serves on the board.
The period of nine years has been put forward by the QCA as the time by which independence may be deemed to be
compromised. The directors of the Company take the view that the breadth of experience of the six non-executive directors, 
their knowledge of the Company after a significant period of service, and their detachment from the day-to-day issues within 
the Company provide a sufficiently strong and experienced balance with the executive members of the board.
This breadth of experience, allied to the management information provided by the Company, enables the non-executive board
members to assess and advise the executives on the major risks faced by the Company. In view of this the board continues to
believe that shareholders should regard all the Company’s non-executive directors as independent.
In keeping with the provisions of the QCA the directors of the Company acknowledge that a number of the non-executive 
directors have served for a period that exceeds nine years. Therefore N G McNair Scott, Sir Richard Brooke Bt., J F Newman 
and R A Pilkington continue to offer themselves for re-election to the board on an annual basis. 
Announced changes to the board in the year include the resignations of J T Catchpole and J U Rydell and the election of 
M J Donoghue and R S Robertson. Further changes since the year end have been the appointment of A M Norris as Finance
Director and the resignation of G L Toll. As they were appointed after the last AGM, A M Norris and R S Robertson will stand 
for re-election at the next AGM.  
Board performance
The board conducted a formal process to evaluate its effectiveness and that of the board committees and individual directors. 
Each director’s performance was appraised by the Chairman reflecting input from the other directors: the senior non-executive
director appraised the Chairman’s performance on the same basis. This evaluation process takes place annually and aims to cover
board dynamics, board capability, board process, board structure, corporate governance, strategic clarity and alignment and the
performance of individual directors. 
Board meetings
In addition to ad hoc meetings arranged to discuss particular transactions and events and the AGM, the full board met on 
seven occasions during the year. The Audit committee met on three occasions, the Remuneration committee on three occasions
and the Nomination committee on three occasions. The attendance record of the directors during the year is shown in the 
following table.
REPORT ON CORPORATE GOVERNANCE 47 Avocet Mining PLC  Annual Report and Accounts 2007
Full AuditRemuneration Nomination
board committee    committee committee
J G Henry 7 n/a n/a n/a
A M Norris
(1)
– n/a n/a n/a
G L Toll
(2)
7 n/a n/a n/a
N G McNair Scott 7 3 3 3
Sir Richard Brooke Bt. 7 3 3 3
J F Newman 7 3 3 3
R A Pilkington 7 3 3 3
M J Donoghue
(3)
3 n/a n/a n/a
R S Robertson
(4)
1 1 n/a n/a
(1) A M Norris was appointed to the board as Finance Director on 10 July 2007
(2) G L Toll resigned from the board on 10 July 2007
(3) M J Donoghue was appointed to the board as a non-executive director on 11 July 2006
(4) R S Robertson was appointed to the board as a non-executive director on 12 February 2007
Nomination committee 
The Nomination committee meets at least once per year to select and recommend to the board suitable candidates for both
executive and non-executive appointments to the board. The committee reviewed the annual performance appraisals of all the board
members during the year. The membership of the committee comprises N G McNair Scott (Chairman), Sir Richard Brooke Bt., 
J F Newman and R A Pilkington.
Remuneration committee 
The Remuneration committee reviews the performance of the executive directors and sets the scale and structure of their
remuneration on the basis of their service agreements with due regard to the interests of the shareholders and the performance 
of the Group. The Remuneration committee also makes recommendations to the board concerning employee incentives, including
the allocation of share issues to employees. Directors of the Group are not permitted to participate in discussions or decisions of
the committee concerning their own remuneration. The membership of the committee comprises N G McNair Scott (Chairman), 
Sir Richard Brooke Bt., J F Newman and R A Pilkington. The committee’s report is set out on pages 49 to 52.
Audit committee
The committee is chaired by Sir Richard Brooke Bt. and consists of N G McNair Scott, R S Robertson, J F Newman and R A Pilkington.
The Audit committee meets at least twice a year and provides a forum for reporting by the Company’s external auditors. 
Meetings are also attended, by invitation, by other members of senior management as appropriate. The Audit committee is
responsible for reviewing a wide range of financial matters including the status of the Company as a going concern and the 
half-year and annual financial statements prior to their submission to the board. The Audit committee keeps under review 
whether an internal audit function would add value to the Company, and also the extent of non-audit services supplied by 
the external auditors to the Company.
Service contracts
No director has any service contracts, consultancy agreements or other such arrangements with a notice period in excess of one year.
Going concern
After making enquiries and considering the matters referred to in the financial review and the basis of the financial statements’
preparation, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence
for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
Auditors
A resolution to re-appoint Grant Thornton UK LLP as auditors will be proposed at the AGM.
Non-audit services
The board is satisfied that the provision of non-audit services, including the role of NOMAD, by Grant Thornton UK LLP is
compatible with the general standard of independence for auditors and does not give rise to any conflict of interest. The board 
keeps its non-audit advisers under continual review. 48 Avocet Mining PLC  Annual Report and Accounts 2007
Internal control
The board is responsible for maintaining a sound system of internal control to safeguard shareholders’ investment and the
Company’s assets. Such a system is designed to manage, but not eliminate, the risk of failure to achieve business objectives. 
There are inherent limitations in any control system and, accordingly, even the most effective system can provide only reasonable,
and not absolute, assurance against material misstatement or loss.
In accordance with the guidance of the Turnbull Committee on Internal Control, an ongoing process has been established for
identifying, evaluating and managing risks faced by the Company. This process has been in place throughout the year and to 
the date of approval of these financial statements and includes the following:
• key risks and the impact of these to the Group’s business are reviewed and considered by the directors;
• the board reviews these key risks as part of the budget approval process;
• executive directors visit each operation regularly, when these key risks are reviewed and actions taken as necessary;
• control procedures have been communicated to operations’ management who review local procedures for Group compliance;
• the head office finance function will visit each operation at least twice a year to review local financial controls and compliance
with Group procedures and report to the board; 
• the Group has a comprehensive system for financial reporting. The board approves the annual budget and five year forecast.
Monthly results are reported against budgets and variances analysed. Great importance is placed on the monitoring and control
of cash flows, and cash forecasts are reported to the board on a weekly basis;
• as part of the year end external audit, management have requested the local auditors of each operation, including the head
office in London, to prepare a management letter on their findings on the internal financial controls. This is reported to and
reviewed by the Audit committee;
• the external auditors periodically carry out a review of the head office’s internal financial controls and report to management 
and the Audit committee;
• the board has to approve all long-term currency, commodity and interest rate hedging, along with all capital investment 
projects and debt facilities; and
• the Chairman and the executive directors meet on a regular basis to discuss the management of the Group and review 
any business action risks. Minutes of these meetings are circulated to all members of the board.
Risks and uncertainties
The principal risks facing the Group are those relating to the volatility of the gold market, reliance on the expertise of the key Group
personnel, as well as risks connected with uncertainties of the Indonesian, Malaysian and Chinese political, fiscal and legal systems,
including taxation and currency fluctuations.
Employees
Regular meetings are held with employee representatives to discuss strategies and the financial position of the Group and their
own business units. The Group is committed to provide equal opportunity for individuals in all aspects of employment.
Relations with shareholders
The Company values the views of its shareholders and recognises their interest in the Company’s strategy and performance, 
board membership and quality of management. It therefore holds regular meetings with, and presentations to, its institutional 
and private shareholders to discuss its objectives. The Company also regularly meets, with the help of its brokers, institutions 
that do not currently hold shares in the Company, to inform them of its objectives.
The AGM is used to communicate with institutional and private investors and they are encouraged to participate. The Chairmen 
of the Audit, Remuneration and Nomination committees are available to answer questions. Separate resolutions are proposed on
each issue so that they can be given proper consideration and there is a resolution to approve the Annual Report and Accounts, 
and to approve the report on directors’ remuneration. The Company counts all proxy votes and will indicate the level of proxies
lodged on each resolution, after it has been dealt with by a show of hands.
The Company operates and regularly updates its website (www.avocet.co.uk) with shareholder information. 
The Company has engaged the services of Buchanan Communications to help in its financial public relations strategy.
REPORT ON CORPORATE GOVERNANCE (CONTINUED) 49 Avocet Mining PLC  Annual Report and Accounts 2007
The 2006 Remuneration Report was approved by shareholders at the September 2006 AGM.
The Remuneration committee is chaired by N G McNair Scott. Its other members are Sir Richard Brooke Bt., J F Newman and 
R A Pilkington. All members of the committee are independent non-executive directors. The committee determines an overall
remuneration package for executive directors in order to attract and retain high quality executives.
None of the committee has any personal financial interest in the matters to be decided, other than as shareholders, potential conflicts
of interest arising from cross-directorships, nor any day to day involvement in running the business. The committee consults the
Chief Executive Officer about its proposals and has access to professional advice from inside and outside the Company.
Executive directors’ remuneration
Policy on executive directors’ remuneration
The Company operates within a competitive environment and its performance depends on the individual contributions of the directors
and employees.
Executive remuneration packages are designed to attract, motivate and retain directors of the calibre necessary to manage the Group’s
operations and to reward them for enhancing shareholder value. The performance measurement of the executive directors and the
determination of their annual remuneration package are undertaken by the committee.
The executive directors’ remuneration packages may include:
(i) basic annual salary
(ii) benefits
(iii) pension contributions
(iv) annual cash and share bonus payments
(v) share options
(vi) long term share incentives.
Each executive director’s basic salary and pension contributions are reviewed annually by the committee. In deciding upon
appropriate levels of remuneration the committee has regard to rates of pay for similar jobs in comparable companies as well 
as internal factors such as performance. Executive directors’ basic salaries were last reviewed with effect from 1 July 2007 
and no changes were made. 
The committee establishes the objectives which must be met for a cash and deferred share bonus to be paid. The committee
believes that the award of any annual bonuses should be tied to the interests of the Company’s shareholders and that the principal
measure of those interests is shareholder value. 
The executive directors may participate in share incentive schemes recommended by the Remuneration committee for the Group’s
key employees. 
Share bonus plan
In order to ensure the Company continues to be able to attract and retain high calibre senior management, in July 2006 the
Remuneration committee approved a share bonus plan for executive directors and senior management not on the board. 
The plan operates as follows:
• of the total bonus award 50 per cent is at the discretion of the Remuneration committee, with the remaining 50 per cent 
determined by the Company’s share price performance measured against that of the companies included in the 
FTSE Gold Mines Index (the Index Constituents);
• as shown in the table below, the non-discretionary share awards are made on a sliding scale whereby higher awards are made
when the Company’s shares perform above or within the higher quartiles. Should the shares perform in the lower half of the
index, awards are at the discretion of the Remuneration committee;  
REPORT ON DIRECTORS’ REMUNERATION 50 Avocet Mining PLC  Annual Report and Accounts 2007
Share bonus plan (continued)
Performance vs Index Constituents Share award value as percentage of salary
(1)
Exceeds all Index Constituents up to 200%
Within quartiles:
– first (top) up to 150%
– second up to 100%
– third and fourth awards at discretion of the Remuneration committee
(1) Based on individual criteria for each employee
• bonuses are ordinarily paid in shares, although the Remuneration committee may elect to pay up to 50 per cent of the value of
any award to an individual in cash;
• half of any share awards will be restricted for sale for a period of 12 months should the employee remain in the Company’s
employment for this period of restriction; and 
• the scheme is reviewed by the board on an annual basis. Participation in the plan is at the discretion of the board and currently
comprises the two executive directors as well as the Chief Operating Officer and the Chief Geologist.
Non-executive directors’ remuneration
Chairman’s fees and letter of appointment
It is the Company’s policy that the Chairman should be remunerated on a competitive basis and at a level which reflects his
contribution to the Group, as assessed by the board. He does not participate in the Group’s pension arrangements and a formal letter
of appointment setting out his duties and responsibilities is available for inspection at the Company’s registered office and AGM.
Details of his fees can be found on page 52.
Non-executive directors’ fees and letters of appointment
The board as a whole, with the benefit of independent professional advice, determines non-executive directors’ fees, although non-
executive directors do not vote on any increases of their own fees. Fees are set to reflect the responsibilities and time spent by the
directors on the affairs of the Company. They do not participate in the Group’s pension arrangements. Non-executive directors have
a formal letter of appointment setting out their duties and responsibilities which are available for inspection at the Company’s
registered office and AGM. Details of non-executive directors’ fees are set out on page 52.
Directors’ contracts
Executive directors currently have employment contracts, which may be terminated by the Company with up to one year’s notice.
No other payments are made for compensation for loss of office unless otherwise agreed by the Remuneration committee.
The Chairman and other non-executive directors currently have employment contracts which may be terminated by the Company
with up to one year’s notice. No other payments are made for compensation for loss of office.
Long term employee share awards
The Company has established an offshore Employee Benefit Trust (EBT) and a UK Share Incentive Plan (SIP). These plans were 
set up in order to reward employees for the performance of the Company on a long term basis and to enable the Company to
continue to attract a high calibre of management and operational personnel. Any awards under the EBT and SIP are approved by 
the Remuneration committee and members of the plans must continue in the Company’s employment for at least one year in 
order for the shares to vest. As of 10 July 2007 both plans held a combined total of 1,591,209 shares of the Company which 
have been purchased in the market.
Share option scheme
On occasion, the Remuneration committee considers whether a grant of options should be made under the share option schemes
in place for the Company, and if so, at what level. In arriving at a decision, the committee takes into consideration the personal
performance of each executive as well as remuneration practice for the Company’s peer group.
REPORT ON DIRECTORS’ REMUNERATION (CONTINUED) 51 Avocet Mining PLC  Annual Report and Accounts 2007
Options Options Options Options Exercise Date Expiry
Share options held at exercised granted held at price from date
1 April during during 31 March which
2006 the year the year 2007 exercisable
J G Henry 50,000 50,000 – – 30p 31/03/03 14/10/06
J G Henry 115,000 – – 115,000 25p 20/12/03 20/12/07
J G Henry 215,000 – – 215,000 35.5p 05/02/06 05/02/10
J G Henry 110,000 – – 110,000 72p 27/11/06 27/11/10
J G Henry 263,415 – – 263,415 82p 14/07/08 14/07/12
J G Henry 36,585 – – 36,585 82p 14/07/08 14/07/10
J G Henry – – 500,000 500,000 175.75p 14/07/09 14/07/13
J G Henry – – 500,000 500,000 103.25p 15/11/09 15/11/13
During the year J G Henry exercised 50,000 options at a market price of 195p per share resulting in an unrealised gain of
approximately £82,500. He subsequently sold 20,000 shares at 235p and continues to hold 30,000 of the shares issued following
the exercise of the options.
The options are exercisable between three and seven years of being issued, subject to performance conditions requiring growth 
in the Company’s net assets per share, and returns to shareholders by way of share price increase and dividends being in excess 
of at least half of the companies in the FTSE Gold Mines Index.
A M Norris, who joined the board as Finance Director on 10 July 2007, holds 500,000 options at an exercise price of 103.25p
exercisable from 15 November 2009 to 15 November 2013.
Employee benefit trust 
During the year the Remuneration committee approved the allocation (subject to certain conditions) of 204,294 shares from the
EBT. Of these and previous awards, the following were allocated to directors of the Company with the following vesting dates:
EBT shares EBT shares Release EBT shares Latest date
held at allocated of EBT held at on which 
1 April during the shares to 31 March shares
2006 year director 2007 vest
Executive directors
J G Henry 180,719 67,205 (86,179) 161,745 12/07/09
Non-executive directors
N G McNair Scott 62,023 10,021 (28,571) 43,473 12/07/09
Sir Richard Brooke Bt. 18,580 2,784 (5,714) 15,650 12/07/09
J F Newman 16,007 2,227 (5,714) 12,520 12/07/09
R A Pilkington 16,007 2,227 (5,714) 12,520 12/07/09
All awards to the directors form part of the deferred share bonus payments included in their remuneration packages. All awards 
are made at the recommendation of the Remuneration committee to the trustees of the EBT as the Company does not operate 
a defined bonus plan. During the year no deferred bonus payments were recommended for the executive directors or senior
management by the Remuneration committee in relation to the share bonus plan.
The board reviewed the performance of the non-executive directors and recommend to the trustees the following allocation of EBT
shares as deferred salary consideration after a three year period: N G McNair Scott 10,656 shares, Sir R Brooke Bt. 4,098 shares, 
J F Newman 3,279 shares, M J Donoghue 3,279 shares, R S Robertson 3,279 shares and R A Pilkington 3,279 shares.
The EBT trust held 1,499,179 shares with a market value of £1,881,470 as at 31 March 2007.
Share incentive plan  
The following SIP shares were allocated to directors of the Company with the following vesting dates:
SIP shares SIP shares SIP shares Latest date 
held at allocated held at on which
1 April during 31 March shares
2006 the year 2007 vest
J G Henry 28,296 1,685 29,981 12/07/11
The Company’s share price ranged from a high of 234p to a low of 90.5p during the year with a closing mid price of 125.5p at
31 March 2007. Directors’ emoluments
Salary Benefits Pension Cash bonus Total
2007 2006 2007 2006 2007 2006 2007 2006 2007 2006
US$000
Executive directors:
J T Catchpole
(1)
87 299 9 18 – – – – 96 317
J G Henry 319 187 3 14 25 24 237 – 584 225
G L Toll
(2)
76 107 – – – – – – 76 107
J G Oelofse
(3)
– 250 – – – – – – – 250
Non-executive directors (fees only):
N G McNair Scott 130 116 – – – – – – 130 116
(Chairman)
Sir Richard Brooke Bt. 54 45 – – – – – – 54 45
J F Newman 38 36 – – – – – – 38 36
R A Pilkington 38 36 – – – – – – 38 36
M J Donoghue
(4)
27 – – – – – – – 27 –
R S Robertson
(5)
6 – – – – – – – 6 –
775 1,076 12 32 25 24 237 – 1,049 1,132
(1) J T Catchpole resigned from the board on 11 July 2006; he received US$294,629 during the year as compensation for loss of office in accordance with the terms of his contract
(2) G L Toll resigned from the board on 10 July 2007 
(3) J G Oelofse resigned from the board on 5 April 2005; he received US$250,000 during the prior year as compensation for loss of office in accordance with the terms of his contract
(4) M J Donoghue was appointed to the board on 11 July 2006 as a non-executive director; in addition to the director fees above he received US$58,675 for technical consulting
(5) R S Robertson was appointed to the board on 12 February 2007 as a non-executive director
Excluded from the table above are J U Rydell who resigned from the board on 26 September 2006, and did not receive a fee, and A M Norris, who was appointed 
Finance Director on 10 July 2007 and was not a director during the year.
Benefits include medical allowances. 
Pension contributions represent payments into the directors’ personal pension plans, which are money purchase schemes.
The directors and their beneficial interests in shares of the company are as follows:
Ordinary shares of 25p each
At 31 March 2007 At 31 March 2006
or date of or date of
appointment appointment
if later if later
J G Henry 500,010 333,831
N G McNair Scott 6,100,000 5,806,833
Sir Richard Brooke Bt. 68,214 62,500
J F Newman 59,314 53,600
R A Pilkington 204,214 198,500
M J Donoghue 32,000 32,000
R S Robertson 30,000 30.000
A M Norris – –
Interests beneficially held by directors’ wives included 
in the above are as follows:
N G McNair Scott 34,563 32,730
Sir Richard Brooke Bt. 2,500 2,500
The SIP held a total of 92,030 shares at 30 June 2007. These shares are held in the name of N G McNair Scott who is one of three
trustees of the SIP. He has no beneficial interest in the shares held by the SIP . Of the 6,100,000 shares held by N G McNair Scott,
190,000 are held in the Avocet Charitable Trust, in which N G McNair Scott has no beneficial interest. 
There were no changes to the directors’ shareholdings up to 10 July 2007.
52 Avocet Mining PLC  Annual Report and Accounts 2007
REPORT ON DIRECTORS’ REMUNERATION (CONTINUED) We have audited the Group and parent Company financial statements (the financial statements) of Avocet Mining PLC for the year
ended 31 March 2007 which comprise the Consolidated Profit and Loss Account, the Consolidated and Company Balance Sheets, the
Consolidated Cash Flow Statement, the Consolidated Statement of Total Recognised Gains and Losses, the Reconciliation of
Movements in Equity Shareholders' Funds, the Accounting Policies and Notes 1 to 27. These financial statements have been prepared
under the accounting policies set out therein.  
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an
auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with United Kingdom 
law and Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of 
Directors’ Responsibilities. 
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair
view and are properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the
information given in the Report of the Directors is consistent with the financial statements. The information given in the Report 
of the Directors includes that specific information presented in the Chairman's Statement, Chief Executive’s Statement, Review
of Operations, Financial Review, Report on Corporate Governance, the Health, Safety and Environment section, and Notes to the
Financial Statements that are cross referred from the sections of the Report of the Directors on Principal Activity and Business
Review, Future Developments, Results and Dividends, Post Balance Sheet Events, Key Performance Indicators, Principal Risks 
and Uncertainties, Corporate Governance, Employees and Health, Safety and Environment.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the
information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other
transactions is not disclosed. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements.
This other information comprises only the Chairman’s Statement, the Chief Executive’s Statement, the Gold Market, the Review of
Operations, the Financial Review, the Report of the Directors, the Report on Corporate Governance and the Report on Directors’
Remuneration. We consider the implications for our report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant estimates and judgments made by the directors in the preparation 
of the financial statements, and of whether the accounting policies are appropriate to the Group’s and Company’s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement,
whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements.
Opinion
In our opinion:
• the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of
the state of the Group’s and the Company’s affairs at 31 March 2007 and of the Group’s profit for the year then ended;
• the financial statements have been properly prepared in accordance with the Companies Act 1985; and
• the information given in the Report of the Directors is consistent with the financial statements.
GRANT THORNTON UK LLP
Registered Auditors
Chartered Accountants
London
10 July 2007
53
REPORT OF THE INDEPENDENT AUDITORS TO THE
MEMBERS OF AVOCET MINING PLC
For the year ended 31 March 2007
Avocet Mining PLC  Annual Report and Accounts 2007
  54 Avocet Mining PLC  Annual Report and Accounts 2007
2007 2006
note restated
(1)
US$000 US$000
Turnover 1
Continuing operations 86,818 73,360
Discontinued operations
(2)
21,418 17,133
108,236 90,493
Cost of sales (85,496) (72,311)
Gross profit 22,740 18,182
Administrative expenses (3,636) (3,280)
Share based payments 26 (961) (341)
Total administrative expenses (4,597) (3,621)
Operating profit/(loss)
Continuing operations 22,337 21,418
Discontinued operations
(2)
(4,194) (6,857)
Operating profit 18,143 14,561
Profit on disposal of fixed asset investments 3 – 1,423
Net interest and similar charges 4 4,546 (79)
Profit on ordinary activities before taxation 2 22,689 15,905
Tax on profit on ordinary activities 5 (6,447) (5,750)
Profit on ordinary activities after taxation 16,242 10,155
Equity minority interest 275 664
Profit for the financial year retained 17 16,517 10,819
Basic earnings per share 6 13.82c 10.30c
Diluted earnings per share 6 13.55c 10.13c
(1)
As set out in the accounting policies, the prior year financial statements have been restated for the Group’s adoption 
during the year of FRS 20 – Share based payments
(2)
Discontinued operations represent the results of Commonwealth & British Minerals (UK) Limited (CBM (UK) Limited) and 
JV Zeravshan LLC (ZGC) which were disposed of post year end, as set out in note 27
The accompanying accounting policies and notes form an integral part of these financial statements
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2007 Group Company
note 2007 2006 2007 2006
US$000 US$000 US$000 US$000
Fixed assets
Positive goodwill 7 4,888 4,395 – –
Negative goodwill 7 (1,347) (1,424) – –
3,541 2,971 – –
Deferred exploration 7 12,224 6,521 4,365 1,671
Tangible assets 8 47,297 37,670 20 21
Investments 9 1,937 1,937 47,976 37,468
64,999 49,099 52,361 39,160
Current assets
Stocks 10 26,421 23,783 – –
Debtors due within one year 11 6,303 3,073 8,203 7,432
Debtors due after more than one year 11 2,053 1,773 21,506 11,291
Cash at bank and in hand 23 65,299 12,918 52,891 2,687
100,076 41,547 82,600 21,410
Creditors: amounts falling due in less than one year 12 (17,869) (12,526) (5,458) (2,891)
Net current assets 82,207 29,021 77,142 18,519
Total assets less current liabilities 147,206 78,120 129,503 57,679
Creditors: amounts falling due after more than one year 13 (138) (793) – –
Provisions for liabilities 14 (8,051) (6,748) (3,267) (3,369)
139,017 70,579 126,236 54,310
Capital and reserves
Called up share capital 15 9,867 8,445 9,867 8,445
Share premium account 16 52,834 133 52,834 133
Other reserves 16 17,909 17,909 10,258 –
Investment in own shares 18 (2,130) (732) (2,130) (732)
Investment in treasury shares 19 (1,426) – (1,426) –
Profit and loss account 17 61,240 43,826 56,833 46,464
Equity shareholders’ funds 138,294 69,581 126,236 54,310
Equity minority interests 723 998 – –
139,017 70,579 126,326 54,310
These financial statements were approved and signed on behalf of the board of directors on 10 July 2007.
N G McNair Scott
J G Henry
The accompanying accounting policies and notes form an integral part of these financial statements.
55
CONSOLIDATED AND COMPANY BALANCE SHEETS
As at 31 March 2007
Avocet Mining PLC  Annual Report and Accounts 2007 note 2007 2006
US$000 US$000
Net cash inflow from operating activities 21 25,844 19,942
Returns on investment and servicing of finance
Interest received 2,424 228
Interest paid (112) (181)
Net cash inflow from returns on investment and servicing of finance 2,312 47
Taxation (4,669) (6,254)
Capital expenditure and financial investment
Purchase of tangible fixed assets (13,264) (6,365)
Deferred exploration costs (9,203) (5,268)
Net cash outflow from capital expenditure and financial investment (22,467) (11,633)
Acquisitions and disposals
Sale of investments 3 – 1,423
Purchase of investments 9 – (1,937)
Deferred consideration 14 (1,196) (812)
Net cash outflow from acquisitions and disposals (1,196) (1,326)
Financing
Proceeds from issue of ordinary shares 15,16 56,733 935
Costs of issue of ordinary shares 16 (2,610) –
Investment in own shares 18 (1,794) (307)
Investment in treasury shares 19 (1,426) –
Capital repayments on finance leases 22,23 (580) (440)
Net cash inflow from financing 50,323 188
Increase in cash 22,23 50,147 964
The accompanying accounting policies and notes form an integral part of these financial statements. 
56 Avocet Mining PLC  Annual Report and Accounts 2007
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2007 57
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED
GAINS AND LOSSES AND RECONCILIATION OF
MOVEMENTS IN EQUITY SHAREHOLDERS’ FUNDS 
For the year ended 31 March 2007
Avocet Mining PLC  Annual Report and Accounts 2007
2007 2006
note restated
US$000 US$000
Consolidated statement of total recognised gains and losses
Profit for the financial year 16,517 10,819
Exchange translation adjustments (64) 159
Total recognised gains and losses 16,453 10,978
Reconciliation of movements in equity shareholders’ funds
Total recognised gains and losses 16,453 10,978
New capital subscribed (net of costs) 15,16 54,123 935
Investment in own shares 18 (1,398) (19)
Share based payments 26 961 341
Investments in treasury shares 19 (1,426) –
Net change in equity shareholders’ funds 68,713 12,235
Opening equity shareholders’ funds 69,581 57,346
Closing equity shareholders’ funds 138,294 69,581
The accompanying accounting policies and notes form an integral part of these financial statements.  Basis of accounting
The financial statements are drawn up under the historical cost convention, and in accordance with the Companies Act 1985 and
applicable UK accounting standards (United Kingdom Generally Accepted Accounting Practice). 
The principal accounting policies of the Group have been reviewed and remain unchanged from the previous year except 
as noted below.
The Group has applied the requirements of FRS 20 – Share based payments (FRS 20), in accordance with transitional provisions, 
to all equity instruments granted after 7 November 2002 that had not vested as of 1 April 2006. As a result, certain amounts have been
restated as at 31 March 2006 and for the year then ended. The consolidated Profit and Loss Account for 2006 has been restated to
include a share based charge of US$341,000, reducing the profit before tax for the year from US$16,246,000 to $15,905,000; there 
was no impact on the net assets or cash inflow.
Basis of consolidation
The Group financial statements consolidate those of the Company and of its subsidiary undertakings for the year ended 31 March 2007,
using the acquisition accounting method. On acquisition of a subsidiary, all of the subsidiary’s assets and liabilities which exist at the date
of acquisition are recorded at their fair values reflecting their condition on that date. The results of subsidiary undertakings acquired are
included from the date of acquisition. In the event of the sale of a subsidiary, the subsidiary results are consolidated up to the date of
completion of the sale. Profits or losses on intra Group transactions are eliminated in full. 
Turnover
Turnover is the total amount receivable by the Group for goods supplied, excluding VAT and trade discounts. Turnover is recognised when
confirmation of the gold refined has been received from the purchaser.
Fixed assets
Deferred exploration costs
All costs associated with mineral exploration including those incurred through joint venture projects are capitalised within intangible
fixed assets pending determination of the feasibility of the project. Costs incurred include specific administrative expenses. If an
exploration project is deemed to be economically viable based on feasibility studies, the related expenditures are transferred to
tangible fixed assets and amortised over the estimated life of the ore reserves on a unit of production basis. Where a project is
abandoned or is considered to be no longer economically viable, the related costs are written off.
Goodwill
Goodwill is the difference between the consideration paid and fair value of assets and liabilities acquired, and is capitalised as an
intangible asset and amortised over the useful economic life of the assets acquired. Negative goodwill is written back to the profit
and loss account to match the recovery of the non-monetary assets acquired.
Tangible fixed assets
Tangible fixed assets are recorded at cost less depreciation and any provision for impairment. Depreciation is based upon annual
rates using the straight line method so that the cost less residual value of the asset is written off over its estimated useful
economic lives as follows:
Buildings 8.33%
Office equipment 10–33% 
Vehicles 25–33%
Mining and plant equipment is depreciated over the shorter of its estimated useful economic life or the life of the mine. Mining property
for mines in production, including pre-stripping costs, is written off on a unit of production basis over the life of the mine. 
58 Avocet Mining PLC  Annual Report and Accounts 2007
ACCOUNTING POLICIES
For the year ended 31 March 2007 Employee Benefit Trust and Share Incentive Plan 
Shares in Avocet Mining PLC owned by the employee benefit trust (EBT) and share incentive plan (SIP) are stated at cost and
deducted from reserves. 
Treasury shares
The Company may from time to time purchase its own shares and hold them as treasury shares either for employee or future
commitments. Treasury shares are stated at cost and are deducted from reserves.
Capitalised interest
Interest on borrowings to finance expenditure on tangible fixed assets under development is capitalised and depreciated with the other
costs of the relevant asset. 
Deferred tax
Deferred tax is recognised on all timing differences where the transactions or events that give the Group an obligation to pay more tax in
the future, or a right to pay less tax in the future, have occurred by the balance sheet date. Deferred tax is measured using rates of tax
that have been enacted or substantially enacted by the balance sheet date.
Investments
Investments are included at cost less amounts written off.
Stocks
Mine stores and finished goods are valued at the lower of cost, less provision for obsolescence, and net realisable value. Work in
progress consists of ore in stockpiles and is valued at the lower of cost and net realisable value.
Retirement benefits
Defined benefit pension scheme
The only defined benefit pension scheme administered by the Group relates to a former US subsidiary undertaking which is no longer
part of the Group. Accordingly full provision has been made for outstanding post retirement benefits. The provision has been calculated
using independent actuarial methods and assumptions. 
Mine closure costs
Mining operations are generally required to restore mine and processing sites at the end of their producing lives to a condition
acceptable to the relevant authorities and consistent with the Group’s environmental policies. Provisions in the accounts are made when
obligations arise and can be quantified.
Stripping costs
Stripping costs are the costs of removing overburden to expose ore. Stripping costs incurred prior to the commencement of production
are deferred and amortised on a unit of production basis. Stripping costs incurred during the production phase are deferred to the extent
that the waste to ore stripping ratio exceeds the average life of mine stripping ratio. All amounts deferred are subject to the directors’
review of recoverability.
Leased assets
Assets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in creditors. The assets are
depreciated over their useful economic lives. The interest element of leasing payments is charged to the profit and loss account over the
period of the lease. Finance leases are identified as being those that transfer the substantial risks and rewards of ownership. All other
leases are regarded as operating leases and the payments made under them are charged to the profit and loss account on a straight line
basis over the lease term.
59 Avocet Mining PLC  Annual Report and Accounts 2007 60 Avocet Mining PLC  Annual Report and Accounts 2007
Foreign currencies
The Group’s financial statements have been reported in US dollars as the dollar is considered to be the Group’s functional currency.
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities
in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. The financial statements of foreign
subsidiary undertakings are translated at the rate of exchange ruling at the balance sheet date. Exchange differences arising from the
retranslation of the opening net investment in subsidiary undertakings are taken directly to reserves. All other exchange differences are
dealt with through the profit and loss account.
Financial derivatives
It is not the Group’s policy to speculate with the use of derivatives. In respect of any contracts employed to hedge the future sale
of gold, any gain or loss is taken to profit and loss account when realised either by the physical delivery of gold or the closure of 
the contract. 
Minority interests
Where losses in subsidiary undertakings attributable to a minority result in its interest being one in net liabilities rather than net assets,
the Group makes a provision to the extent that it has any commercial or legal obligation to provide finance that may not be recoverable 
in respect of the accumulated losses attributable to the minority interest.
Share based payments
All share based payments granted after 7 November 2002 that had not vested by 1 April 2006, are recognised in the financial
statements. All goods and services received in exchange for the grant of any share based payment are measured at their fair
values. Where employees are rewarded using share based payments, the fair values of employees’ services are determined
indirectly by reference to the fair value of the instrument granted to the employee. This fair value is appraised at the grant date 
and excludes the impact of non-market vesting conditions.
The expense is allocated over the vesting period based on the best available estimate of the number of share options expected to
vest. Estimates are revised subsequently if there is any indication that the number of share options expected to vest differs from
previous estimates. Any cumulative adjustment prior to vesting is recognised in the current year. No adjustment is made to any
expense recognised in prior years if share options that have vested are not exercised.
Upon exercise of the share options, the proceeds received net of costs are credited to the share capital and share premium
accounts. The fair value has been arrived at by a third party using a Monte Carlo simulation model to take into account the market
based performance criteria. The key inputs to the model are disclosed in note 26.
ACCOUNTING POLICIES (CONTINUED)
For the year ended 31 March 2007 61
1. Segmental information
Turnover by origin, profit before tax and net assets are derived from the Group’s principal activity of gold mining, mineral 
processing and exploration.
Geographical analysis Turnover by origin Profit before tax Net assets
2007 2006 2007 2006 2007 2006
restated
US$000 US$000 US$000 US$000 US$000 US$000
United Kingdom – – 4,208 3,568 54,489 3,139
Malaysia 56,751 47,249 16,511 11,168 30,626 22,787
Indonesia 30,067 26,111 6,562 8,026 25,773 19,973
Tajikistan (discontinued) 21,418 17,133 (4,592) (6,857) 28,129 24,680
108,236 90,493 22,689 15,905 139,017 70,579
Included in the United Kingdom geographic analysis are net liabilities of a former US subsidiary totalling US$429,000 
(2006: US$429,000). Net assets of the United Kingdom exclude intercompany investments and balances.
2. Profit on ordinary activities before taxation
The profit is stated after charging/(crediting): 2007 2006
US$000 US$000
Auditors’ remuneration:
– audit – Company and Group 75 65
Non-audit services:
– the auditing of accounts of associates of the Company pursuant to legislation 189 174
– other services relating to taxation 20 18
– all other services – Nominated Adviser (NOMAD) 28 27
Release of provisions against costs incurred – (2,106)
Depreciation of owned tangible fixed assets 6,410 8,033
Depreciation of leased tangible assets 485 447
Amortisation of goodwill 524 346
Operating lease charges 95 90
Group
Staff and directors: 2007 2006
Number Number
The average number of employees, including directors, was as follows:
Management and administration 11 10
Mining, processing and exploration staff 2,149 1,992
2,160 2,002
2007 2006
US$000 US$000
Employment costs of staff including directors comprised:
Wages and salaries (including contract staff) 12,899 11,836
Social security costs 913 885
Pension contributions 915 795
14,727 13,516
Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2007 2. Profit on ordinary activities before taxation (continued)
Employment cost of staff including directors – geographic analysis: 2007 2006
US$000 US$000
Malaysia 5,671 5,324
Indonesia 2,026 1,452
Tajikistan 4,559 4,448
UK 2,471 2,292
14,727 13,516
Company
Staff and directors: 2007 2006
Number Number
The average number of employees, including directors, was as follows:
Management and administration 8 7
8 7
The employment costs of staff including directors comprised: 2007 2006
US$000 US$000
Wages and salaries (including contract staff) 1,526 1,406
Social security costs 147 182
Pension contributions 43 41
1,716 1,629
Details of directors’ remuneration, including their beneficial interests in the share capital and share options of the Company, 
are shown in the Report on Directors’ Remuneration on pages 49 to 52.
3. Profit on disposal of fixed asset investments
In the year ended 31 March 2006 the Company exercised 500,000 warrants at C$0.11 that it held in Primary Metals Inc. (PMI), 
a Canadian company listed on the TSX Venture Exchange. It sold the shares resulting in a net profit after costs of US$1,423,000 in the
prior year. The warrants were part of the agreement entered into at the time of the sale of the majority of the Group’s tungsten assets
to PMI in September 2002. The Company currently holds a balance of 500,000 warrants exercisable at C$0.125 until April 2008. 
The market value of the PMI shares at 31 March 2007 was C$2.40 per share.
4. Net interest and similar charges
2007 2006
US$000 US$000
Bank/loan interest payable – (85)
Finance charges payable under finance leases (112) (96)
Exchange gains/(losses) 2,234 (125)
2,122 (306)
Bank interest receivable 2,424 227
4,546 (79)
The current year exchange gain arose on funds raised in sterling in May 2006, which appreciated against the US dollar 
during the year. 
The exchange rate of the US dollar to the pound sterling at 31 March 2007 was US$1.96 compared with a rate of 
US$1.87 at 31 March 2006.
62 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 March 2007 5. Taxation
2007 2006
US$000 US$000
UK corporation tax 1,382 –
Overseas tax 4,505 4,198
5,887 4,198
Deferred tax 560 1,552
6,447 5,750
Factors affecting the current tax charge for the year: 2007 2006
restated
US$000 US$000
Profit on ordinary activities before tax 22,689 15,905
Profit on ordinary activities multiplied by the UK standard rate of 
corporation tax 30 per cent (2006: 30 per cent) 6,807 4,772
Expenses not deductible for tax purposes 377 258
Depreciation (less than)/in excess of capital allowances (190) 240
Tax losses utilised in year (1,861) (243)
Tax relief for employee share issues (601) (972)
Increase in foreign tax credit 579 657
Other short term timing differences 776 (514)
Current tax charge for the year 5,887 4,198
Deferred tax
Deferred tax is provided in full at the rate of 30 per cent (2006: 30 per cent) on the net movement in deferred tax liabilities and 
assets, analysed as follows:
Group Company
2007 2006 2007 2006
US$000 US$000 US$000 US$000
Deferred tax liability:
Accelerated capital allowances 1,544 543 – –
Other short term timing differences 1,907 1,720 – –
3,451 2,263 – –
Deferred tax asset:
Short term timing differences (628) – (628) –
2,823 2,263 (628) –
6. Earnings per ordinary share
The calculation is based on profits of US$16,517,000 (2006: US$10,819,000) and on a weighted average number of shares 
in issue of 119,543,971 (2006: 105,064,092). 
The fully diluted calculation of earnings per share is based on profits of US$16,517,000 (2006: US$10,819,000) and a weighted average
number of 121,893,361 shares (2006: 106,749,575 shares).
63 Avocet Mining PLC  Annual Report and Accounts 2007 64 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 March 2007
7. Intangible fixed assets
Group Positive Negative Deferred
goodwill goodwill exploration
US$000 US$000 US$000
Cost
At 1 April 2006 4,930 (1,533) 6,521
Transfer to tangible assets – – (3,258)
Additions 1,094 – 9,203
Amounts written off – – (242)
At 31 March 2007 6,024 (1,533) 12,224
Amortisation
At 1 April 2006 535 (109) –
Charge/(credit) for the year 601 (77) –
At 31 March 2007 1,136 (186) –
Net book value at 31 March 2007 4,888 (1,347) 12,224
Net book value at 31 March 2006 4,395 (1,424) 6,521
In March 2002 the Group acquired an 80 per cent interest in PT Avocet Bolaang Mongondow. This acquisition included a deferred
consideration payable of a 4 per cent royalty on revenues from the first 500,000 ounces of gold produced. As the mine is now 
in operation, the directors have included in goodwill their best estimate of contingent consideration at a discounted value of
US$5,275,000 (2006: US$4,181,000) which will be re-assessed in future years and then reviewed annually for impairment. The addition 
in the current year results from the directors’ re-assessment based on the life of mine future production at a US$600/oz gold price
(2006: US$450/oz).
Deferred 
Company exploration
costs
US$000
Cost
At 1 April 2006 1,671
Additions 2,694
Write off –
At 31 March 2007 4,365
Amortisation
At 1 April 2006 –
Charge for the year –
At 31 March 2007 –
Net book value at 31 March 2007 4,365
Net book value at 31 March 2006 1,671
The additions in the year and balance at 31 March 2007 represent exploration expenditures on the Idenburg joint venture 
in Papua, Indonesia and on the Hatu project in China. 8. Tangible fixed assets
Group Office 
Mining properties and plant equipment
Malaysia Indonesia Tajikistan Total UK Total
US$000 US$000 US$000 US$000 US$000 US$000
Cost
At 1 April 2006 54,788 20,919 16,123 91,830 206 92,036
Transfer from intangible assets 1,813 310 1,135 3,258 – 3,258
Additions 8,116 3,769 1,364 13,249 15 13,264
At 31 March 2007 64,717 24,998 18,622 108,337 221 108,558
Depreciation
At 1 April 2006 45,862 4,782 3,537 54,181 185 54,366
Charge for the year 1,703 4,703 473 6,879 16 6,895
At 31 March 2007 47,565 9,485 4,010 61,060 201 61,261
Net book value at 31 March 2007 17,152 15,513 14,612 47,277 20 47,297
Net book value at 31 March 2006 8,926 16,137 12,586 37,649 21 37,670
Life of mine recoverable ounces 
used in depreciation calculation
for the years ended 31 March:
– 2007 487,996 204,386 1,181,532
–2006 346,500 231,100 829,224
Interest capitalised and included within the cost of mining properties and plant totals US$251,000 (2006: US$251,000). 
Plant machinery and vehicles with a net book value of US$1,783,000 (2006: US$1,783,000) have been purchased under 
finance leases and depreciation of US$485,000 (2006: US$447,000) has been charged in the year.
The office equipment disclosed above relates solely to the fixed assets of the Company.
65 Avocet Mining PLC  Annual Report and Accounts 2007 66 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 March 2007
9. Investments
Group Company
Subsidiary
undertakings 
Shares and shares
US$000 US$000
Cost
At 1 April 2006 1,937 53,732
Additions – 36,008
Write-off – (6,232)
At 31 March 2007 1,937 83,508
Provisions
At 1 April 2006 – (16,264)
Impairment provision in the year – (19,268)
At 31 March 2007 – (35,532)
Net book value at 31 March 2007 1,937 47,976
Net book value at 31 March 2006 1,937 37,468
The Group’s investment results from the acquisition of shares in Dynasty Gold Corporation (Dynasty), a company listed on the 
TSX Venture Exchange in Canada. Avocet currently holds 26.9 per cent of Dynasty which is accounted for as an investment 
as the Group has less than 20 per cent of the board voting rights and does not have a significant influence. The market value 
of the Dynasty shares at 31 March 2007 was C$0.33 per share.
The Company’s investment additions for the year include an investment of US$250,000 in PT Avocet Mining Services, 
a wholly owned Indonesian service company subsidiary, and an investment of US$35,758,000 in CBM (UK) Limited 
(formerly Commonwealth & British Minerals plc) representing 9,000,000 shares transferred to the Company from 
Commonwealth & British Minerals Limited, a Bermudan corporation. 
The Company’s investment write-off for the year represents a US$6,232,000 write-off against its 100% investment in 
Commonwealth & British Minerals Limited on its liquidation as part of a restructuring of the Group. The impairment provision 
of US$19,268,000 followed the disposal of CBM (UK) Limited on 9 July 2007.
During the year the principal trading subsidiaries of the Group were as shown below.
Country of Class Percentage
registration or of share of
Nature of incorporation capital ordinary share
business & operation held capital held by
Company Group
Avocet Gold Limited Gold trading, England Ordinary – 100%
exploration & mining & Wales
Specific Resources Sdn. Bhd. Gold exploration & Malaysia Ordinary – 100%
mining contractor
PT Avocet Bolaang Mongondow Gold trading, Indonesia Ordinary 80% 80%
exploration & mining
JV Zeravshan LLC Gold trading, Tajikistan Ordinary – 75%
(discontinued) exploration & mining
All subsidiary undertakings have been consolidated in the Group financial statements.  67
10.Stocks
Group Company
2007 2006 2007 2006
US$000 US$000 US$000 US$000
Consumables 10,455 9,696 – –
Work in progress 8,003 8,195 – –
Finished goods 7,963 5,892 – –
26,421 23,783 – –
Group
Geographic analysis: 2007 2006
US$000 US$000
Malaysia 8,708 8,707
Indonesia 4,817 3,611
Tajikistan (discontinued) 12,896 11,465
26,421 23,783
11.Debtors
Group Company
2007 2006 2007 2006
US$000 US$000 US$000 US$000
(a) Due within one year
Trade debtors – 87 – –
Amounts owed by Group undertakings – – 7,681 6,336
Other debtors 4,224 1,700 44 928
Prepayments 2,079 1,286 478 168
6,303 3,073 8,203 7,432
Group other debtors include US$1.0 million (2006: US$0.2 million) related to Tajikistan. Group prepayments include 
US$0.7 million (2006: US$0.8 million) related to Tajikistan. The Group’s Tajikistan operations were disposed of on 9 July 2007.
Group Company
2007 2006 2007 2006
US$000 US$000 US$000 US$000
(b) Due after more than one year
Amounts owed by Group undertakings – – 20,878 11,291
Deferred stripping (Malaysia) 1,425 1,773 – –
Deferred tax 628 – 628 –
2,053 1,773 21,506 11,291
Amounts owed to the Company by Group undertakings include borrowings by CBM (UK) Limited under the terms of a loan 
agreement; CBM (UK) Limited was disposed of on 9 July 2007.
Avocet Mining PLC  Annual Report and Accounts 2007 12.Creditors: amounts falling due in less than one year
Group Company
2007 2006 2007 2006
US$000 US$000 US$000 US$000
Finance lease obligations 642 567 – –
Trade creditors 9,365 5,972 – –
Corporation tax 1,727 705 1,047 –
Other taxes and social security 552 348 55 31
Other creditors 1,772 1,049 1,711 1,056
Accruals and deferred income 3,811 3,885 2,645 1,804
17,869 12,526 5,458 2,891
Group trade creditors – geographic analysis:
Group
2007 2006
US$000 US$000
Malaysia 4,900 3,906
Indonesia 2,360 746
Tajikistan (discontinued) 2,105 1,320
9,365 5,972
13.Creditors: amounts falling due after more than one year
Group Company
2007 2006 2007 2006
US$000 US$000 US$000 US$000
Finance lease obligations 138 793 – –
Obligations under finance leases at 31 March 2007
Group Company
2007 2006 2007 2006
US$000 US$000 US$000 US$000
Within one year 642 567 – –
Within two to five years 138 793 – –
780 1,360 – –
68 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 March 2007 69
14.Provisions for liabilities
Post
Deferred Employment Deferred retirement 
consideration benefits tax benefits Total
US$000 US$000 US$000 US$000 US$000
At April 2006 3,369 686 2,263 430 6,748
Provisions made during the year 1,094 217 1,188 – 2,499
Utilised during the year (1,196) – – – (1,196)
At 31 March 2007 3,267 903 3,451 430 8,051
Deferred consideration, which is the only provision appearing in the parent Company’s accounts, arose on the acquisition of 
PT ABM (see note 7).
Indonesian employment benefits represent a provision for employee termination benefits required by the Indonesian 
Manpower Law.
The provision for post retirement benefits represents the directors’ best estimate of costs following the closure of a 
US subsidiary no longer owned by the Group. The valuation used for this disclosure has been based on the most recent 
actuarial valuation as at 1 January 2007. 
The main assumptions used by the actuary were:
2007 2006
Rate of increase for pensions in payment 0.0% 0.0%
Discount rate 6.0% 6.0%
Inflation 3.0% 3.0%
The assets in the scheme and the expected long-term rate of return were:
2007 2006
Rate of Rate of
return Value return Value
US$ US$
Cash -13.7% 61,614 -14.4% 61,431
Present value of scheme liabilities (477,225) (480,066)
Deficit in the scheme 415,611 418,635
The above deficit has been fully provided for.
The negative rates of return in the current and prior years arose as a result of paying the pension trust fees and independent actuarial 
valuation from the pension trust fund.
Avocet Mining PLC  Annual Report and Accounts 2007 15.Share capital
2007 2006
Number US$000 Number US$000
Authorised:
Ordinary shares of 5p 400,000,000 36,756 400,000,000 36,756
Allotted, called up and fully paid:
At 1 April 106,276,530 8,445 104,366,530 41,389
Issued during the year 15,300,000 1,422 1,910,000 737
Cancel and extinguish 20p on each 25p share –– – (33,681)
At 31 March 121,576,530 9,867 106,276,530 8,445
A reduction of the par value of the Company’s authorised and issued ordinary shares from 25p per share to 5p per share 
together with a reduction of capital was approved by shareholders on 11 November 2005. On 7 December 2005 the reduction 
of capital and cancellation of share premium account were sanctioned by the High Court.
On 15 May 2006 the Company issued 15,250,000 shares to institutional investors at a price of 200p per ordinary share.
During the year the Company allotted 50,000 ordinary 5p shares by way of exercise of options (exercised at a price of 30p). 
16.Reserves
Group Merger Acquisition
reserve reserve Total
US$000 US$000 US$000
At 1 April 2006 19,901 (1,992) 17,909
Arising during the year –– –
At 31 March 2007 19,901 (1,992) 17,909
The acquisition reserve arose on an acquisition from the issuing of 14 million ordinary shares of the Company on 12 November 2002 
at the market price of 16p per share compared to the nominal value of 25p. The reserve was created following independent 
legal advice.
Company Company
reserve
US$000
At 1 April 2006 –
Arising on liquidation 29,526
Released against impairment in the year (19,268)
At 31 March 2007 10,258
The Company reserve arose from a gain of US$35,758,000 on the transfer of 9,000,000 ordinary shares of 10p each in CBM (UK) 
Limited from Commonwealth & British Minerals Limited to the Company on 15 May 2006, offset by a US$6,232,000 write-off of 
the Company’s investment in Commonwealth & British Minerals Limited on its liquidation and an impairment of US$19,268,000 
against the investment in CBM (UK) Limited.         
70 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 March 2007 Company and Group Share premium
US$000
At 1 April 2006 133
Arising on shares issued in the year 52,701
At 31 March 2007 52,834
The amount arising on shares issued in the year is after deducting costs of issue of shares of US$2,610,000.
17.Profit and loss account
Group Company
US$000 US$000
At 1 April 2006 43,826 46,464
Impairment provision released from reserves (see note 16) – 19,268
Share based payments 961 961
Exchange differences (64) –
Retained profit/(loss) for the year 16,517 (9,860)
At 31 March 2007 61,240 56,833
The Company has taken advantage of Section 230 of the Companies Act 1985 in electing not to publish its own 
profit and loss account.
18.Investment in own shares
Group Company
US$000 US$000
At 1 April 2006 732 732
Purchased from the market 1,794 1,794
Released during the year (396) (396)
At 31 March 2007 2,130 2,130
During the year the Group’s EBT purchased 1,000,000 shares at 94.5p for a total value of US$1,794,000.
The Company has an investment in its own shares through the EBT and an SIP. The EBT and SIP were formed, by means 
of deeds, to act as employees’ share schemes within the meaning of Section 743 of the Companies Act 1985. The EBT and SIP
have been set up to encourage and facilitate the holding of shares in the Company by, or for the benefit of, employees 
of the Group. 
Any awards under the EBT and SIP are approved by the Remuneration committee and proposed to the trustees. Members of the
plans must continue in the Company’s employment for at least one year in order for the shares to vest. The Group contributed
US$1,794,000 in the year to the EBT for this purpose. Costs associated with the management of the EBT and SIP are dealt with
in the Company’s profit and loss account. The trustees of the EBT have absolute discretion, acting within the terms of the trust
deed, to dispose of the shares owned by the EBT.
At 10 July 2007 the plans held a combined total of 1,591,209 shares of the Company purchased in the market.
71 Avocet Mining PLC  Annual Report and Accounts 2007 19.Investment in treasury shares
Group Company
US$000 US$000
At 1 April 2006 ––
Purchased from the market 1,426 1,426
At 31 March 2007 1,426 1,426
On 15 November 2006 the Company purchased 712,000 of its own shares at an average price of 105.34p per share for 
a total value of US$1,426,000.
20.Capital commitments
Group
2007 2006
US$000 US$000
Contracted but not provided for – –
21.Net cash inflow from operating activities
Group
2007 2006
restated
US$000 US$000
Operating profit 18,143 14,561
Depreciation and amortisation 7,419 8,826
Share based payments 961 341
Movement in provisions 217 (627)
Deferred exploration written off 242 170
Increase in stocks (2,638) (4,220)
(Increase)/decrease in debtors (2,882) 1,230
Increase/(decrease) in creditors 4,382 (339)
Net cash inflow from operating activities 25,844 19,942
22.Reconciliation of net cash flow to movement in net funds
Group
2007 2006
US$000 US$000
Increase in cash in the year 50,147 964
Cash outflow from finance leases 580 440
Change in net funds arising from cash flows 50,727 1,404
New finance leases – (1,800)
Effect of foreign exchange movements 2,234 (125)
Movement in net funds in the year 52,961 (521)
Net funds at 1 April 11,558 12,079
Net funds at 31 March 64,519 11,558
72 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 March 2007 73
23.Analysis of changes in net funds
At 1 April Exchange At 31 March
2006 Cash flow differences 2007
US$000 US$000 US$000 US$000
Cash at bank and in hand 12,918 50,147 2,234 65,299
Obligations under finance leases (1,360) 580 – (780)
11,558 50,727 2,234 64,519
24.Operating lease commitments
At 31 March 2007 and 31 March 2006, the Group was committed to making the following payments in the next year in respect of 
operating leases.
Land and buildings Total
US$000 US$000
Leases which expire: 
within two to five years 90 90
25.Derivatives and other financial instruments
For the purposes of the following disclosures, short term debtors and creditors have been excluded as permitted under FRS 13. 
At 31 March 2007 the Group had an un-drawn US$10 million corporate facility with Macquarie Bank Limited maturing 
31 March 2008 with an interest rate of 2.75 per cent over LIBOR and an un-drawn US$5 million overdraft facility with 
Barclays Bank PLC renewable annually with an interest rate of 1.75 per cent over the bank’s base rate.
The Group’s objectives, policies and strategies in respect of derivatives and other financial instruments are discussed on page 39.
In January 2006 the Group entered into a put and call collar transaction with Macquarie Bank Limited whereby it sold European
call options over 360,000 ounces with 10,000 ounces exercisable per month at a strike price of US$700/oz and purchased
European put options at US$450/oz over the same number of options exercisable each month. The period of the collar was 
thirty six months commencing in April 2006. During the year the gold price remained within the collar price range of US$450/oz 
to US$700/oz and therefore options over 120,000 ounces expired, leaving options over 240,000 ounces, with a fair value liability 
at 31 March 2007 of US$9.6 million, based on the spot gold price of US$658/oz at that date. All puts and calls in the period 
up to 30 June 2007 have expired, leaving options over 210,000 ounces with a fair value liability of US$6.4 million at that date.
As the Group’s financial assets and liabilities are of a relatively short-term nature, their fair value is not considered to be materially
different from their book value.
Cash balances are placed on short term bank deposit.
Avocet Mining PLC  Annual Report and Accounts 2007 74 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 31 March 2007
26.Share based payments
The Company has a share option scheme for certain key employees (including directors). Details of the share option scheme have
been given in the Report on Directors' Remuneration on pages 49 to 52. 
Details of the number of share options and the weighted average exercise price (WAEP) outstanding during the year are as follows:
2007 WAEP 2006 WAEP
Number £000 Number £000
Outstanding at the beginning of the year 3,289,000 0.73 3,349,000 0.43
Granted during the year 3,600,000 1.26 2,100,000 0.82
Exercised during the year 50,000 0.30 1,910,000 0.28
Forfeited during the year 312,000 – 250,000 0.98
Expired during the year – – – –
Outstanding at the year end 6,527,000 1.00 3,289,000 0.73
Exercisable at the year end 1,039,000 0.45 620,000 0.32
The fair value of options granted after 7 November 2002 but not vested at 1 April 2006 has been arrived at by a third party using 
a Monte Carlo simulation model to take into account the market based performance criteria. The assumptions are as follows:
Vesting Date of Expected Risk-free Share price Volatility of Volatility of Fair value Number
Date of grant period (yrs) vesting life (yrs) rate at grant (£) share price index (£) outstanding
05/02/2003 3 05/02/2006 5 4.07% 0.35 55.85% 35.37% 0.16 530,000 
27/11/2003 3 27/11/2006 5 5.02% 0.71 50.35% 32.70% 0.30 319,000 
24/11/2004 3 24/11/2007 5 4.62% 0.98 48.31% 29.38% 0.40 250,000 
14/07/2005 3 14/07/2008 5 4.25% 0.80 48.57% 28.09% 0.32 1,788,000 
14/07/2006 3 14/07/2009 5 4.72% 1.72 50.26% 27.88% 0.70 950,000  
07/09/2006 3 07/09/2009 5 4.76% 1.72 50.56% 28.02% 0.72 150,000 
15/11/2006 3 15/11/2009 5 4.83% 1.03 53.57% 28.12% 0.45 2,350,000 
Expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous 
five years. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of 
non-transferability, exercise restrictions and behavioural considerations.
The Group recognised total expenses of US$961,000 (2006: US$341,000) related to equity-settled share based payment
transactions during the year.
27.Post balance sheet events
Disposal of CBM (UK) Limited and ZGC
On 29 June 2007 the Company announced that it had signed a binding agreement for the sale of CBM (UK) Limited and its entire
interest in ZGC to a wholly owned subsidiary of Zijin Mining (Zijin), for a cash consideration of US$55.1 million, of which 
US$10 million was deferred and contingent. The announcement stated that completion was subject to Chinese government
approval. On 9 July 2007 the Company announced that it had completed the sale, following approval by the Chinese government.
The decision to sell ZGC followed a change in the Company’s senior management team who initiated a detailed strategic and
operational review of the business in September 2006 following slow progress in addressing certain production and cost
challenges in Tajikistan. The board concluded that the sale of ZGC to Zijin represented the best way for Avocet to both maximise
the value of its investment in ZGC and to focus its resources on further expansion in South East Asia.   CBM (UK) Limited and ZGC will be deconsolidated with effect from 30 June 2007, being the closest accounting month end 
to the completion date for which accounts for the companies were available. For the purpose of understanding what the Group’s
consolidated financial statements would have looked like without ZGC, the following table shows the Group’s pro forma results 
for the year as they would have been had ZGC been deconsolidated throughout the year. No adjustment has been made 
to reflect additional interest that would have been earned on the sale proceeds had a sale taken place on 1 April 2006.
Excluding
As reported ZGC ZGC
Pro forma Group profit and loss account 2007 2007 2007
US$000 US$000 US$000
Turnover 108,236 21,418 86,818
Cost of sales (85,496) (25,612) (59,884)
Gross profit/(loss) 22,740 (4,194) 26,934
Total administrative expenses (4,597) – (4,597)
Operating profit/(loss) 18,143 (4,194) 22,337
Net interest and similar charges 4,546 (398) 4,944
Profit/(loss) on ordinary activities before taxation 22,689 (4,592) 27,281
Tax on profit or loss on ordinary activities (6,447) (226) (6,221)
Profit/(loss) on ordinary activities after taxation 16,242 (4,818) 21,060
Equity minority interest 275 1,293 (1,018)
Profit/(loss) for the financial year retained 16,517 (3,525) 20,042
Basic earnings/(loss) per share 13.82c (2.95c) 16.77c
Diluted earnings/(loss) per share 13.55c (2.89c) 16.44c
Adjustment 
to exclude Excluding
As reported ZGC ZGC
Pro forma Group cash flow statement 2007 2007 2007
US$000 US$000 US$000
Net cash inflow/(outflow) from operating activities 25,844 (8,952) 34,792
Capital expenditures (22,467) (2,730) (19,737)
75 Avocet Mining PLC  Annual Report and Accounts 2007 27.Post balance sheet events (continued)
Adjustment
to exclude Excluding
As reported ZGC ZGC
Pro forma Group balance sheet 2007 2007 2007
US$000 US$000 US$000
Fixed assets 64,999 (14,489) 50,510
Current assets 100,076 (14,954) 85,122
Net current assets 82,207 (12,617) 69,590
Total assets less current liabilities 147,206 (27,106) 120,100
Shareholders’ funds 139,017 (27,106) 111,911
The above pro forma balance sheet does not take account of the US$41.0 million estimated net sale proceeds from the sale.
After taking these into account, the Group’s pro forma shareholders’ funds would have been US$152.9 million, an increase 
of US$13.9 million or 10 per cent over shareholders’ funds as reported.
Disposal of Damar Consolidated Exploration Sdn. Bhd.
In March 2007 the Company announced that it had entered into a Memorandum of Understanding with Moncoa Corporation
(Moncoa), to divest a wholly owned Malaysian subsidiary, Damar Consolidated Exploration Sdn. Bhd. This deal was completed 
on 26 June 2007. Under the terms of the transaction, Avocet retains an equity interest of 15 million shares and 7.5 million
warrants in the acquiring company, whose name has changed from Moncoa to Monument Mining.
Acquisition of the Banda properties
The Company announced on 29 June 2007 that it had agreed to acquire a majority interest in a portfolio of significant gold
properties in Indonesia (the Banda properties). The initial consideration for the acquisition is 712,000 Avocet shares, with additional
shares to be issued upon publication of defined JORC compliant resources. In total, the Banda properties represent exploration
and mining rights over a combined land position of 410 square kilometres predominantly located in North Sulawesi, the location 
of the Company’s North Lanut mine. These gold and copper properties include more advanced projects which have previously
been reported as containing combined non-JORC compliant resources estimated at 2.2 million ounces of gold.
76 Avocet Mining PLC  Annual Report and Accounts 2007
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 77 Avocet Mining PLC  Annual Report and Accounts 2007
SHAREHOLDER INFORMATION
Avocet Mining PLC ordinary shares are listed on the Alternative Investment Market of the London Stock Exchange. 
The Company’s Nominated Broker is Evolution Securities Limited and the Company’s Nominated Adviser (NOMAD) 
is Grant Thornton UK LLP .
Avocet Mining PLC has a web site (www.avocet.co.uk) on which press releases and background information on the Company 
and some of its operations can be found. 
The share price is quoted on a daily basis in the Financial Times and The Daily Telegraph. Shares may be bought or sold through 
a stockbroker who is a member of the London Stock Exchange.
Market makers in the shares of the Company are Merrill Lynch & Co, Inc., Arbuthnot Securities Limited, Shore Capital Stockbrokers
Limited, Collins Stewart Limited, Evolution Securities Limited, Ambrian Partners Limited and Winterflood Securities Limited.
Historical share prices
Quarter ending: High, £ Low, £
30 June 2006 2.34 1.35
30 September 2006 1.95 0.90
31 December 2006 1.19 0.90
31 March 2007 1.29 0.90
30 June 2007 1.40 1.15
Closing price: £
31 March 2007 1.26
Number of shares in issue:
31 March 2006 106,276,530
31 March 2007 120,864,530
30 June 2007 120,864,530
During the year 15,250,000 shares were issued to institutional investors by way of a private placement on 10 May 2006, 
50,000 shares were issued by way of the exercise of share options and 712,000 shares were purchased as treasury shares. 
Unsolicited mail
Avocet Mining PLC is aware that some shareholders have had occasion to complain that outside organisations, for their own purposes, have used information obtained from 
the Company’s share registers. Avocet Mining PLC, like other companies, cannot by law refuse to supply such information provided that the organisation concerned pays the
appropriate statutory fee. If you are in the UK and wish to stop receiving unsolicited mail then you should register with The Mailing Preference Service by letter, telephone 
or through their website.
The Mailing Preference Service:  DMA House  70 Margaret Street  London W1W 8SS
Complaints Department: 020 7291 3321
www.mpsonline.org.uk
Share price 31 March 2002 – 30 June 2007
Jun 01
Sept 02
Dec 02
Mar 03
Jun 03
Sept 03
Dec 03
Mar 04
Jun 04
Sept 04
Dec 04
Mar 05
Jun 05
Sept 05
Dec 05
Mar 06
Jun 06
Sept 06
Dec 06
Mar 07
Junr 07
0
50
100
150
200
250 ANNUAL GENERAL MEETING (AGM)
General authorities to allot relevant securities
It is proposed to renew the general authority previously granted to the directors to allot relevant securities. Resolution 6 would give
the directors authority until the end of the 2008 AGM to allot additional shares up to an aggregate nominal amount of £2,024,249
representing 33.3 per cent of the ordinary shares of the Company in issue as at 10 July 2007. The directors have no present
intention to exercise this authority.
It is further proposed, in Resolution 7, to give the directors authority, until the end of the 2008 AGM, to allot additional shares equalling
up to 100 per cent of the current issued share capital of the Company, in connection with an acquisition. The allotment of any greater
number of shares would amount to a reverse takeover, requiring a separate shareholder approval. Once again, the directors have no
present intention to exercise this authority, but your board believes that it is in the best interests of shareholders for the directors to be in
a position to respond swiftly to any opportunities which might arise.
Disapplication of pre-emption rights
Section 89 of the Companies Act 1985 gives holders of equity securities, with limited but important exceptions, certain rights of 
pre-emption on the issue for cash of new equity securities. Your board believes that it is in the best interests of shareholders that,
as in previous years, the directors should have limited authority to allot some part of the Company’s authorised but unissued
equity share capital for cash without first having to offer such shares to existing shareholders. It is proposed that this authority will
expire at the end of the 2008 AGM. The authority proposed in Resolution 8 will relate to allotments in respect of issues by way of
rights (where difficulties arise in offering shares to certain overseas shareholders and in relation to fractional entitlements) and to
allotments (other than in respect of rights issues) of equity securities having an aggregate nominal amount not exceeding
£303,941 being five per cent of the issued equity share capital of the Company as at 10 July 2007.
Purchase of own shares
Resolution 9 would give the directors authority until the end of the 2008 AGM to purchase up to 15 per cent of its own shares in
the market at a price not less than the nominal value of the shares and not exceeding 105 per cent of the average of the middle
market quotations for the ordinary shares of the Company for the five days prior to the date of purchase. If this authority is
exercised, the shares purchased by the Company will be cancelled, held in treasury or a combination of both, as the directors
consider appropriate at the time.
78 Avocet Mining PLC  Annual Report and Accounts 2007 79 Avocet Mining PLC  Annual Report and Accounts 2007
NOTICE OF MEETING
Notice is hereby given that the AGM of Avocet Mining PLC will be held at the Holiday Inn Mayfair, 3 Berkeley Street, London W1 
on 27 September 2007 at 3pm for the following purposes:
Ordinary Business
1. To receive the Company’s accounts and reports of the directors and auditors for the year ended 31 March 2007.
2. To receive and approve the Directors’ Remuneration Report for the year ended 31 March 2007.
3. To re-elect the following as directors (as separate resolutions):
(a) N G McNair Scott
(b) Sir Richard Brooke Bt.
(c) J F Newman
(d) R A Pilkington
The above directors offer themselves for re-election in accordance with the provisions of the Quoted Companies Alliance
published Corporate Governance Guidelines for AIM Companies. N G McNair Scott and Sir Richard Brooke Bt. also retire 
by rotation in accordance with the Company’s Articles of Association.
4. To re-elect the following as director (as separate resolutions):
(a) A M Norris
(b) R S Robertson
A M Norris and R S Robertson, who were appointed after the last AGM of the Company, stand for their first year of election 
in accordance with the Company’s Articles of Association.
5. To re-appoint Grant Thornton UK LLP of Grant Thornton House, Melton Street, Euston Square, London NW1 2EP as auditors 
of the Company until the AGM of the Company to be held in 2008 at a remuneration to be agreed with the board of directors.
Special Business
To consider, and if thought fit, pass the following resolutions which will be proposed, as to resolutions 6 and 7 as ordinary resolutions
and, as to resolutions 8 and 9, as special resolutions.
Ordinary Resolutions
6. That, in substitution for any existing authority under section 80 of the Companies Act 1985 (the Act), the directors be and are hereby
generally and unconditionally authorised for the purposes of that section to exercise all the powers of the Company to allot relevant
securities (within the meaning of that section) up to a maximum aggregate nominal amount of £2,024,249, such authority 
to expire at the end of the next AGM, save that the Company may before such expiry make an offer or agreement which would or
might require relevant securities to be allotted after such expiry and the directors may allot relevant securities pursuant to any such
offer or agreement as if such authority had not expired. 
7. That, in addition to the authority granted by Resolution 6 above, the directors be and are hereby generally and unconditionally
authorised for the purposes of section 80 of the Act to exercise all the powers of the Company to allot relevant securities (within 
the meaning of that section) up to a maximum aggregate nominal amount of £6,078,826 in connection with an arrangement
providing for the allotment of relevant securities on terms that the whole or part of the consideration for the securities allotted is to
be provided by the transfer to the Company (or the cancellation) of all or some of the securities in another company or of all or some 
of the assets and liabilities of another company, such authority to expire at the end of the next AGM save that the Company may
before such expiry make an offer or agreement which would or might require relevant securities to be allotted after such expiry 
and the directors may allot relevant securities pursuant to any such offer or agreement as if such authority had not expired. 80 Avocet Mining PLC  Annual Report and Accounts 2007
Special Resolutions
8. That, subject to the passing of Resolution 6 above, in accordance with section 95(1) of the Act, and in substitution for any
existing authorities under that section, the directors are given power until the end of the next AGM to allot equity securities (as
defined in section 94(2) to 94(3A) of the Act) for cash pursuant to the authority conferred on the directors for the purposes of
section 80 of the Act by the passing of Resolution 6 above as if section 89(1) of the Act did not apply to such allotment and the
directors shall be entitled to make at any time prior to the expiry of the power thereby conferred any offer or agreement which
would or might require equity securities to be allotted after the expiry of such power; provided that such authority shall be
limited to:
(a) the allotment (other than pursuant to paragraph (b) below) of equity securities up to an aggregate nominal amount of £303,941;
and
(b) the allotment of equity securities in connection with an issue to ordinary shareholders in the Company in proportion (as nearly 
as may be) to the respective numbers of ordinary shares each then held by them, subject only to such exclusions or other
arrangements as the directors may deem necessary or expedient to deal with fractional entitlements or legal or practical
problems under the laws of any territory or the requirements of any regulatory body or stock exchange. 
This power applies in relation to a sale of shares which is an allotment of equity securities by virtue of section 94(3A) of the 
Act as if in the first paragraph of this Resolution the words “subject to the passing of Resolution 6 above,” and “pursuant 
to the authority conferred on the directors for the purposes of section 80 of the Act by the passing of Resolution 6 above”,
were omitted.
9. That the Company be and is hereby generally and unconditionally authorised for the purpose of section 166 of the Act to make
market purchases (within the meaning of section 163(3) of the Act 1985) of ordinary shares of the Company on such terms and
in such manner as the directors shall determine, provided that:
(a) the maximum number of shares hereby authorised to be acquired shall be 18,236,480 ordinary shares;
(b) the minimum price which shall be paid for each share will be its nominal value and the maximum price shall be an amount equal
to 105 per cent of the average of the middle market quotations for the ordinary shares of the Company (derived from the
London Stock Exchange Alternative Investment Market) for the five business days prior to the date of purchase; and
(c) the authority hereby given shall expire at the conclusion of the next AGM of the Company save that the Company may make 
a purchase of ordinary shares under such authority after such date if the contract of purchase for the same was entered into
before such date.
Dated 10 July 2007
By order of the board
A P McFarlane
Secretary
Registered Office:
7th Floor, 9 Berkeley Street
London W1J 8DW
Notes
A member entitled to attend and vote at the meeting convened by this Notice is entitled to appoint a proxy to attend and vote on a poll in his place. A proxy need not be a
member of the Company. To be valid, the Form of Proxy must be duly executed and deposited with the Company’s registrars not later than 48 hours before the time of the
meeting. Completion and return of a Form of Proxy will not prevent a member from attending and voting if he/she so wishes.
Pursuant to regulation 41 of the Uncertified Securities Regulations 2001, the Company specifies that only those shareholders registered in the Company’s register of members
at 6.00 p.m. on 25 September 2007 shall be entitled to attend or vote at the AGM in respect of the number of shares registered in their name at that time. Changes to entries
on the register after 6.00 p.m. on 25 September 2007 will be disregarded in determining the rights of any person to attend or vote at the meeting.
Copies of service contracts of the directors with the Company and any subsidiaries with a notice period of one year or more or with provisions for predetermined compensation
on termination of an amount which equals or exceeds one year’s salary and benefits in kind are available for inspection at the registered office during normal business hours and
at the AGM for at least 15 minutes prior to and during the meeting.
NOTICE OF MEETING (CONTINUED) DIRECTORS AND ADVISERS
Executive directors
J G Henry – Chief Executive Officer
A M Norris – Finance Director
Non-executive directors
N G McNair Scott - Chairman
Sir Richard Brooke Bt.
J F Newman
R A Pilkington
R S Robertson
M J Donoghue
Secretary and registered office
A P McFarlane
7th Floor, 9 Berkeley Street
London W1J 8DW
Registrars and transfer office
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex BN99 6DA
Bankers
Barclays Bank PLC
Macquarie Bank Limited
Nominated adviser
Grant Thornton UK LLP
Stockbrokers
Evolution Securities Limited
Auditors
Grant Thornton UK LLP
Solicitors
Field Fisher Waterhouse
• Turnover up 20% at US$108.2 million
• Pre-tax profit increases 43% to US$22.7 million
• Operating cash flow increases 30% to US$25.8 million
• ZGC sale completed, exceptional profit up to US$20.0 million
• Transaction agreed to buy into 9 Indonesian exploration projects
• Bakan, Indonesian environmental impact study approved, 
new mine in the making
0
20
40
60
80
100
120
0
5
10
15
20
25
0
3
6
9
12
15
0
5
10
15
20
25
30
’03 ’04 ’05 ’06 ’07
Operating cash flow
(US$ million)
Pre-tax profit
(US$ million)
Basic earnings per share
(US cents)
Turnover
(US$ million)
 ’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07
Years ended 31 March
Avocet at a glance 1
Chairman’s statement 2
Chief Executive’s statement 4
The gold market 9
Review of operations 10
Resources and reserves 30
Health, safety and environment 32
Community relations 34
Financial review 36
Current board of directors 
and senior management 41
Report of the directors 44
Report on corporate governance 46
Report on directors’ remuneration 49
Report of the independent auditors 53
Consolidated profit and loss account 54
Consolidated and Company 
balance sheets 55
Consolidated cash flow statement 56
Consolidated statement of total
recognised gains and losses 
and reconciliation of movements 
in equity shareholders’ funds 57
Accounting policies 58
Notes to the financial statements 61
Shareholder information 77
Annual general meeting 78
Notice of meeting 79
CONTENTS
GOLD MINING IN SOUTH EAST ASIA
Avocet Mining PLC  Annual Report and Accounts 2007
Design Mustbethebest Ltd  Printing Dexter Graphics
AVM_AR_2007_cover  9/8/07  4:16 pm  Page 2 Avocet Mining PLC Annual Report and Accounts 2007
Avocet Mining PLC
7th Floor  
9 Berkeley Street  
London  W1J 8DW
Tel +44 (0) 20 7907 9000 
Fax +44 (0) 20 7907 9019
E-mail avocetmining@avocet.co.uk
www.avocet.co.uk
Annual Report and Accounts 
for the year ended 31 March 2007
Focused on Gold Mining 
in South East Asia
AVM_AR_2007_cover  9/8/07  4:16 pm  Page 1