West Africa-focused gold producer Avocet Mining expects to enter the FTSE 250 index in the March reshuffle and tap investment from index tracking funds.

The mining company, which moved up to the main market from AIM on Thursday, said tracker funds typically account for about 15-17 percent of the shareholder register for companies included in the FTSE indices.

At a presentation to journalists, Avocet said it estimated that some funds had already invested in the company in anticipation of its inclusion, but that it expects the remaining 10-13 percent to invest nearer the time of the reshuffle.

As a gold producer that pays a dividend, the miner said it also believes income funds will be attracted to the company.

Chief Executive Brett Richards said Avocet expects to produce slightly more than 160,000 ounces of gold this year, although he also noted that costs pressures were continuing with the price of fuel up about 75 percent on a year ago.

Avocet is looking to increase production to about 500,000 ounces within the next few years. It operates one mine in Burkina Faso and has exploration projects there and in Guinea and Mali.

The shares closed up 1.7 percent on Thursday, valuing the miner at about 435 million pounds ($680 million).

Gold Ftse Mali Investment