14 January 2019
Acacia Mining
plc
(“Acacia”, “Group” or the
“Company”)
Fourth Quarter
2018 Production Results
“I am pleased to report that we have achieved gold production of
130,581 ounces for the fourth quarter, bringing our total gold
production for the full year to 521,980 ounces. This is
substantially ahead of our initial production guidance for the year
of 435,000 to 475,000 ounces. I am proud of the resilience, hard
work and dedication shown by our people in realising this
achievement despite a challenging operating environment. Over
the last 12 months we have focused on successfully stabilising the
business, including a return to free cash flow generation in Q2,
and I am pleased to report that we end the year with a net cash
balance of US$88 million.” said
Peter Geleta, Interim Chief
Executive Officer.
Gold production for the quarter of 130,581 ounces was slightly
ahead of expectations, although 12% lower than the prior year
mainly due to the transitioning of Buzwagi to a stockpile
processing operation, partly offset by higher gold production at
North Mara and Bulyanhulu. Gold ounces sold for the quarter of
133,460 ounces were slightly higher than production due to the
favourable timing of shipments and draw down of finished gold on
hand.
Full year production of 521,980 ounces was ahead of expectations
for the year, although 32% lower than 2017 due to the transition to
reduced operations at Bulyanhulu and to stockpile processing at
Buzwagi. Gold production in 2018 benefitted from the higher
grade ore received from the Nyabirama open pit at North Mara, the
extended mining of the final cut of the higher grade ore at the
bottom of the pit and switchbacks at Buzwagi combined with the
better than expected performance of the Buzwagi processing plant
with improved throughput and recoveries, and the favourable
performance from tailings processing at Bulyanhulu. Full year gold
sales of 520,380 ounces were broadly in line with production.
At North Mara, gold production for the quarter of 84,079 ounces
was 17% higher than the prior year of 72,018 ounces, mainly driven
by 11% higher head grades due to the higher grade ore received from
the eastern part of the Nyabirama open pit.
Buzwagi gold production of 35,880 ounces for Q4 2018 was 51%
lower than the prior year of 73,604 ounces as a result of the mine
transitioning to primarily a lower grade stockpile processing
operation in 2018 in line with its remaining life of mine plan.
Mining of the final cut of higher grade ore remaining at the bottom
of the pit and switchbacks was largely completed during the
quarter, resulting in slightly higher than expected production.
Bulyanhulu produced 10,622 gold ounces for the quarter, above
the prior year of 2,855 ounces which was negatively impacted by a
drought in the Kahama district, resulting in a temporary halt in
the retreatment of tailings in Q4 2017. All production continued to
be produced from the retreatment of tailings as a result of the
underground mine being placed on reduced operations in late
2017.
The cash balance as at 31 December
2018 amounted to approximately US$130
million, representing an increase of approximately
US$13 million during the quarter and
US$50 million for the year, with net
cash increasing to approximately US$88
million at period end.
Acacia will be releasing its 2018 preliminary results and 2019
guidance at 07:00 GMT on 11 February
and a presentation and webcast will be held for analysts and
investors at 12.00 GMT on the same day. The webcast will be
accessible from http://www.acaciamining.com/ and the details for
the webcast and call are as follows:
Webcast Live Link:
https://www.investis-live.com/acacia-mining/5c349ca4ff46a80a00ed7224/etgt
Conference Call Dial-in:
United Kingdom (Local): 020
3936 2999
All other locations: +44 20 3936 2999
Participant Access Code: 864721
ENQUIRIES
For further information, please visit our website:
http://www.acaciamining.com/ or contact:
Acacia Mining plc |
+44 (0) 207 129 7150 |
Sally Marshak, Head of Investor
Relations and Communications
Camarco |
+44 (0) 20 3757 4980 |
Gordon Poole / Nick Hennis
About Acacia Mining plc
Acacia Mining plc (LSE:ACA) is the UK holding company of the
Acacia Group, Tanzania’s largest gold miner and one of the largest
producers of gold in Africa. The
Acacia Group has three mines, all located in north-west
Tanzania: Bulyanhulu, which is
owned and operated by Bulyanhulu Gold Mine Limited, Buzwagi, which
is owned and operated by Pangea Minerals Limited and North Mara,
which is owned and operated by North Mara Gold Mine Limited.
The Acacia Group also has a portfolio of exploration projects in
Kenya, Burkina Faso and Mali. Acacia is a UK public company
headquartered in London. We are
listed on the Main Market of the London Stock Exchange with a
secondary listing on the Dar es Salaam Stock Exchange. Barrick Gold
Corporation is our majority shareholder. Acacia reports in US
dollars and in accordance with IFRS as adopted by the European
Union, unless otherwise stated in this announcement.
Disclaimer and forward-looking
statements
This report includes “forward-looking statements” that express
or imply expectations of future events or results. Forward-looking
statements are statements that are not historical facts. These
statements include, without limitation, financial projections and
estimates and their underlying assumptions, statements regarding
plans, objectives and expectations with respect to future
production, operations, costs, projects, and statements regarding
future performance. Forward-looking statements are generally
identified by the words “plans,” “expects,” “anticipates,”
“believes,” “intends,” “estimates” and other similar
expressions.
All forward-looking statements involve a number of risks,
uncertainties and other factors, many of which are beyond the
control of Acacia, which could cause actual results and
developments to differ materially from those expressed in, or
implied by, the forward-looking statements contained in this
report. Factors that could cause or contribute to differences
between the actual results, performance and achievements of Acacia
include, but are not limited to, changes or developments in
political, economic or business conditions or national or local
legislation or regulation in countries in which Acacia conducts -
or may in the future conduct - business, industry trends,
competition, fluctuations in the spot and forward price of gold or
certain other commodity prices (such as copper and diesel),
currency fluctuations (including the US dollar, South African rand,
Kenyan shilling and Tanzanian shilling exchange rates), Acacia’s
ability to successfully integrate acquisitions, Acacia’s ability to
recover its reserves or develop new reserves, including its ability
to convert its resources into reserves and its mineral potential
into resources or reserves, and to process its mineral reserves
successfully and in a timely manner, Acacia‘s ability to complete
land acquisitions required to support its mining activities,
operational or technical difficulties which may occur in the
context of mining activities, delays and technical challenges
associated with the completion of projects, risk of trespass, theft
and vandalism, changes in Acacia‘s business strategy including, the
on-going implementation of operational reviews, as well as risks
and hazards associated with the business of mineral exploration,
development, mining and production and risks and factors affecting
the gold mining industry in general. Although Acacia‘s management
believes that the expectations reflected in such forward-looking
statements are reasonable, Acacia cannot give assurances that such
statements will prove to be correct. Accordingly, investors should
not place reliance on forward-looking statements contained in this
report.
Any forward-looking statements in this report only reflect
information available at the time of preparation. Save as required
under the Market Abuse Regulation or otherwise under applicable
law, Acacia explicitly disclaims any obligation or undertaking
publicly to update or revise any forward-looking statements in this
report, whether as a result of new information, future events or
otherwise. Nothing in this report should be construed as a profit
forecast or estimate and no statement made should be interpreted to
mean that Acacia‘s profits or earnings per share for any future
period will necessarily match or exceed the historical published
profits or earnings per share of Acacia.