ACACIA MINING PROFIT UP AS GOLD PRICES RISE

Acacia Mining profit in the first half of 2016 has soared as gold prices and sales surged while operating costs fell.

The gold mining company, which operates three mines in Tanzania, said in a statement its earnings before interest, tax, depreciation and amortisation for the six months to June 30 rose 91 per cent to 184.9 million US dollars, helped by lower costs and higher gold sales.

The gold miner, said it was now expecting to deliver at or above the upper end of the full year production guidance of 750,000 - 780,000 ounces and at the lower end of all in sustaining costs of 950-980 US dollars per ounce.

Revenue rose 58.2m US dollars to 504.9m US dollars due to a 13 per cent increase in gold sales volumes combined with a 1 per cent increase in the average realised gold price to 1,209 US dollar. The increase in sales ounces was due to the higher production base, Acacia said.

“As we move into the second half of 2016, we expect a step up in production at Buzwagi with grade increasing each quarter until the end of the year as mining is re-established in the main zone of the ore body,” the company said.

“At North Mara and Bulyanhulu we expect smaller contributions in the second half with North Mara quarterly production normalising below the Q2 2016 level.” “At Bulyanhulu we will see a lowering of the average grade mined to in line with the reserve grade.

This, together with a planned two week shutdown of the hoisting shaft for refurbishment in August, will lead to Q3 2016 being in line with Q3 2015 before increasing again in Q4.”

“Looking further forward we continue to look to optimise our portfolio and are focused on value enhancing brownfields extensions at Bulyanhulu and North Mara, as well as assessing our options at Buzwagi.

We continue to invest in our high quality exploration portfolio and believe it holds the potential to host our next mine.”

Daily News