https://www.miningweekly.com

Acacia warns of possible earnings impact of weak shilling

23rd June 2015

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – If the current weakness of the Tanzanian shilling against the US dollar prevails until June 30, it will impact the end-of-quarter revaluation of Tanzanian shilling-denominated indirect tax balances owed to Tanzania-focused Acacia Mining.

The tax balances were converted to dollars for reporting purposes.

The outstanding Tanzanian shilling-denominated indirect tax balance, both long term and short term, was about $124-million at the beginning of the second quarter and, excluding the impact of currency, had not materially moved during the quarter.

Any accounting loss from the revaluation would be allocated to “other costs” on the company’s profit and loss statement for the period and could, therefore, impact earnings, although it would have no corresponding impact on cash flow for the period, explained Acacia.

The company expected 15% to 20% of its cost base to be denominated in Tanzanian shilling this year.

“Should the exchange rate remain at the current level, the company anticipates a marginal ongoing benefit to reported costs going forward,” it noted.

Acacia would announce its second-quarter and half-year earnings on July 27.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Sweet-Orr
Sweet-Orr

Sweet-Orr, established in 1871, is a global leader in superior protective workwear, known for quality, innovation, and performance.

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.046 0.689s - 110pq - 2rq
Subscribe Now