Acacia Mining (ACA)


Acacia revenues up

Acacia Mining's revenues rose to $234m in the first quarter - 6% up on a year ago as increased production from North Mara and a 6% increase in gold price offset the impact of lower revenue from gold/copper concentrate sales.

EBITDA rose by 25% to $82m, mainly due to higher revenues and lower direct mining costs.

The group posted net earnings of $27m (US6.5 cents per share) compared with a $52m loss in Q1 2016 and up 48% from Q1 2016 on an adjusted basis.

Gold production totalled 219,670 ounces, 15% higher than a year ago, and gold sales of 184,744 ounces were in line with Q1 2016, but 34,926 ounces lower than production primarily as a result of the Tanzanian government's directive stopping the export of metallic mineral concentrate.

Chief executive Brad Gordon said: "At an operational level Acacia had a very strong start to the year, with production of 219,670 ounces delivered from our mines and the declaration of a 1.3Moz maiden high grade resource in Kenya.

"North Mara delivered strong production of 96,468 ounces, and it was pleasing to see the significant step up at Buzwagi to 59,856 ounces in the quarter whilst, as expected, Bulyanhulu had a slower start to the year with production of 63,346 ounces.

"All-in sustaining cost per ounce sold (AISC) was impacted by sales being almost 35,000 ounces lower than production primarily due to the restriction on the export of metallic mineral concentrates, but still amounted to US$934 per ounce sold (US$877 per ounce prior to the impact of share-based payment valuations), 3% lower than Q1 2016.

"As announced previously, we continue to engage with the Tanzanian government in order to be able to resume the export of gold/copper concentrate which has been halted since 3rd March and accounts for approximately 30% of group revenues.

"Whilst these engagements are ongoing our mines continue to operate as normal and are stockpiling the gold/copper concentrate that has been produced.

"As a result, at this stage there is no change to guidance for the year."

At 9:07am: (LON:ACA) Acacia Mining Plc share price was -18.85p at 436.85p