UPDATE 1-Avocet cuts FY production outlook after tough 2nd qtr
* 2012 gold production now seen at 135,000-140,000 oz
* Cash-cost outlook raised to $1,000-$1,050 per oz
* Shares plunge 37 pct, hit more than 2-year low
June 29 (Reuters) - Gold miner Avocet Mining Plc cut its production outlook for the full year citing equipment availability issues and lower recoveries and processing rates at its Inata mine in Burkina Faso.
Shares in the company lost about a third of their value on the news.
The West Africa-focused company now expects 2012 gold production to be between 135,000 and 140,000 ounces, down from 160,000 ounces it originally forecast.
"We have had a difficult second quarter (which is ending on June 30) in 2012, with issues related to equipment availability continuing to affect mining rates and capacity," Chief Executive Brett Richards said.
Avocet raised its cash-cost outlook to a range of $1,000 to $1,050 per ounce from $800 to $850 per ounce.
The company also lowered its 2013 production outlook to between 150,000 and 160,000 ounces, from its previous expectation of 160,000 ounces.
"With no production growth expected until 2014 at the earliest, Avocet will be hard-pressed to win round investors after this significant setback," Rob Broke of Westhouse Securities said. "It is a surprise and obviously very disappointing."
The company's shares have fallen 18 percent since the beginning of this year. They hit a more than two-year low of 95.2 pence on Friday on the London Stock Exchange. (Reporting by Brenton Cordeiro in Bangalore; Editing by Maju Samuel)
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