Acacia Mining talks of 'resilience' as gold production falls
Acacia Mining
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16:45 16/09/19
Acacia Mining issued its second quarter production results on Friday, reporting that group gold production fell 36% year-on-year to 133,778 ounces, primarily as a result of the move to reduced operations at Bulyanhulu, and to stockpile processing at Buzwagi.
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The London-listed firm said gold ounces sold for the quarter totalled 134,090, which was slightly above gold produced for the quarter as a result of the timing of shipments.
At North Mara, gold production rose 3% to 85,920 ounces, mainly due to 4% higher head grades compared to the second quarter of 2017, driven by higher grades from Gokona Underground.
It said that at Buzwagi, gold production plunged 44% to 37,415 ounces, as a result of production now being derived solely from lower grade ore stockpiles due to the effective completion of the open pit.
At Bulyanhulu, all gold production continued to be from the retreatment of tailings as a result of the move to reduced operations at the mine in late 2017.
As a result, gold production for the quarter amounted to 10,443 ounces, 82% below overall production in the second quarter of 2017, but 18% higher than production from tailings retreatment in that period.
The company’s cash balance as at 30 June amounted to $120m and increased by $13m during the quarter, with net cash increasing to approximately $63m at period end.
“We are pleased to report another strong operating performance in the second quarter, delivering group production of 133,778 ounces which led to an increase in the group’s cash balance of $13m to $120m”, said interim chief executive officer Peter Geleta.
“In achieving first half production of 254,759 ounces we are on track to achieve the top end of our guidance range of 435,000-475,000 ounces for 2018 and continue to demonstrate the resilience that we have built within our business.”