Acacia Mining’s 1st quarter 2018 production is low but expected. Performing against all odds, its 1st quarter results have demonstrated the company’s resilience attaining an admirable gold output of 120,981 ounces.
Its performance across the Group sets the embattled gold miner “…in good stead to deliver against our set full year guidance of 435,000-475,000 ounces,” said Peter Geleta, Interim Chief Executive Officer.
“All three of our operations delivered in line with their respective mine plans and we were pleased to record an increase in our cash balance to US$107 million, driven by the sale of a non-core royalty that completed in January 2018, which helped to further stabilise our balance sheet,” he added.
Low But Expected
Group gold production for the quarter was in line with expectations at 120,981 ounces even though it was a massive 55% decrease compared to the 219,620 ounces produced in the first quarter of 2017.
The lower output was expected primarily driven by the move to reduce operations at Bulyanhulu and to stockpile processing at Buzwagi.
Gold ounces sold for the quarter of 116,955 ounces were slightly below gold produced for the quarter as a result of the timing of shipments. At North Mara, gold production for the quarter of 76,769 ounces was, as expected, 20% lower than Q1 2017’s strong, grade-driven performance of 96,468 ounces.
This was primarily due to lower head grade, driven by the underground mine grade of 7.0 grams per tonne being 28% lower than the prior year period as a result of mining taking place in the lower-grade west zone of the Gokona Underground.
Similarly, at Buzwagi, gold production of 35,685 ounces for this first quarter was 41% lower than in the 2017 first quarter 59,856 ounces. Here the low output is as a result of production now being derived from lower grade ore stockpiles due to the effective completion of the open pit.
At Bulyanhulu, gold production for the quarter was a low 8,527 ounces compared to the 2017 63,346 ounces produced in the first quarter, that is an 87% plunge in output.
Here, the free fall drop in production is due to reduced operations since late 2017 and th recorded output is from retreatment of tailings.
The cash balance as of 31 March 2018 amounted to approximately US$107 million and increased by US$26 million during the quarter, with net cash increasing by US$40 million to approximately US$50 million at period end.
During the quarter we repaid a further US$14 million of the CIL debt facility and received US$45 million from the sale of a non-core royalty, announced in December 2017.
Acacia will be releasing its first quarter results at 07:00 BST on 19 April and a conference call will be held for analysts and investors at 08:30 BST on the same day.
The access details for the conference call are as follows: Participant dial in: 020 3936 2999 Password: 88 94 64 2 LSE:ACA www.acaciamining.com ENQUIRIES For further information, please visit our website: or contact: Acacia Mining plc +44 (0) 20 7129 7150 Giles Blackham, Head of Investor Relations Camarco +44 (0) 20 3757 4980 Gordon Poole / Nick Hennis
About Acacia Mining plc
Acacia Mining plc (LSE: ACA) is a UK public company headquartered in London. We are listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange.
Barrick Gold Corporation is the majority shareholder.
It is Tanzania’s largest gold miner and one of the largest producers of gold in Africa.
It operates three mines, all located in north-west Tanzania: Bulyanhulu, Buzwagi, and North Mara and a portfolio of exploration projects in Kenya, Burkina Faso and Mali.
Acacia reports in US dollars and in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement.
Acacia Mining would have investors know; This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of Acacia in any jurisdiction.
And that; The announcement includes “forward-looking statements” that express or imply expectations of future events or results as opposed to historical facts.
These statements include, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, projects, and statements regarding future performance.