Gold miner Acacia Mining maintained strong cost discipline in the financial year ended December 31, achieving an all-in sustaining cost (AISC) of $905/oz, well below the guidance range of $935/oz to $985/oz, interim CEO Peter Geleta said in a statement on Monday.
He added that the company had returned to free cash flow generation in the second quarter of the year and sustained that throughout the second half of the financial year, ending the year with a net cash position of $88-million.
The company’s revenue for the year was, however, 12% lower year-on-year, at $664-million, as a result of the higher average realised gold price having been offset by a lower sales base.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) were also 12% lower year-on-year, at $226-million, as a result of the lower revenue, but partially offset by a $45-million gain on the sale of a noncore royalty.
Adjusted Ebitda of $183-million was 41% lower year-on-year and excluded the sale of the noncore royalty.
Net earnings for the year were $59-million, compared with the net loss of $707-million reported for 2017.
Acacia’s cash balance increased by $50-million to $130-million as a result of the sale of the noncore royalty combined and a strong operational performance.
Acacia produced 521 980 oz of gold for the year, considerably ahead of its initial guidance of 435 000 oz to 475 000 oz.
For 2019, the company expects to produce 500 000 oz to 550 000 oz at an AISC of $860/oz to $920/oz. Cash costs are expected to be between $665/oz and $710/oz.