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Acacia could exceed FY output target following strong Q2

22nd July 2016

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Following a strong second-quarter performance, LSE-listed Acacia Mining expects its production for the full-year to reach or exceed guidance of 750 000 oz to 780 000 oz.

It also expects its full-year all-in sustaining costs (AISC) to come in at the lower end of guidance of $950/oz to $980/oz.

Acacia, which has operations in Tanzania, produced 221 815 oz of gold at an AISC of $926/oz in the quarter ended June 30.

This brought gold production for the first half of this year to 412 025 oz at an AISC of $941/oz.

CEO Brad Gordon on Friday noted that the transition to underground mining at its North Mara mine had continued to deliver ahead of expectations with high grades at the Gokona deposit supporting production of 100 016 oz for the second quarter.

“Bulyanhulu again produced above plan, delivering 78 643 oz, although a planned two-week shaft closure for maintenance in August and a move back towards reserve grade will reduce output in the third quarter,” he added.

Acacia expects production at Buzwagi to increase in future, with grades to increase in each of the next two quarters as mining is reestablished in the main zone of the orebody.

However, smaller contributions are expected from North Mara and Bulyanhulu in the second half of the year, with production at North Mara to normalise below the second-quarter level.

The average grades at Bulyanhulu will be lower in line with reserve grade. This, together with a planned two-week shutdown of the hoisting shaft for refurbishment in August, will lead to production in the third quarter being in line with production in the third quarter of last year.

Production at Bulyanhulu is expected to increase again in the fourth quarter.

Meanwhile, Acacia reported gold sales of 216 782 oz for the second quarter, with sales for the first half of the year reaching 400 963 oz.

The higher gold sales, which were up 13% on that recorded in the first half of last year, pushed revenue for the first half of this year to $505-million.

Acacia posted a $6-million net loss for the six months to June 30, as a result of $70-million of additional tax provisions made in the first quarter of this year.

Adjusted net earnings for the six months were $59-million, compared with $18-million the year before.

Acacia declared a $0.02 a share dividend, up 43% year-on-year.

Canada’s Barrick Gold holds a 63.9% equity interest in Acacia.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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