Acacia Mining remains on track to achieve the upper-end of its 2018 gold production guidance range of 435 000 oz to 475 000 oz, after delivering 254 759 oz of gold during the first half of the year.
While second-quarter production dropped 36% year-on-year, owing to reduced operations at Bulyanhulu and the stockpiling of processing at Buzwagi, the company reported a good start to the year.
“We are pleased to report another strong operating performance in the second quarter, delivering group production of 133 778 oz, which led to an increase in the group’s cash balance of $13-million to $120-million,” Acacia interim CEO Peter Geleta said in an update to shareholders on Friday.
Second-quarter gold sales of 134 090 oz were slightly above gold produced owing to the timing of shipments.
The company reported 3% higher gold production of 85 920 oz from its North Mara operations, while production at Buzwagi fell 44% year-on-year to 37 415 oz for the second quarter of the year.
At Bulyanhulu, gold production for the quarter amounted to 10 443 oz, 82% below the second quarter of 2017’s overall production result, but 18% higher year-on-year than production from tailings retreatment.
Acacia’s cash balance as at June 30, amounted to $120-million, an increase of $13-million during the quarter, with net cash increasing to about $63-million by the end of the quarter.
Acacia’s parent company Barrick Gold Corporation remains in talks with the Tanzanian government to conclude a proposed framework agreement.
Barrick initiated the talks with the Tanzanian government after it banned the export of unprocessed minerals, including from Acacia’s operations, in March 2017.
Acacia has scaled back its operations in the country amid the dispute.