JOHANNESBURG (miningweekly.com) – Owing to a continued strong performance at its operations, Acacia Mining expects its full-year output to be about 5% higher than the top end of its initially guided 750 000 oz to 780 000 oz gold production forecast.
"Our strong third-quarter operational and financial results represent another significant step forward for Acacia, particularly considering some of the headwinds experienced during the quarter,” CEO Brad Gordon said in a statement on Friday.
The company’s North Mara operations, in the Tarime district, in Tanzania, delivered 112 523 oz at an all-in sustaining cost (AISC) of $655/oz. This more than offset the impact of operational stoppages at Bulyanhulu and the deferred access to higher grades at Buzwagi, both in the country's Shinyanga region.
Group AISC for the quarter, of $998/oz, which included $97/oz in share-based valuation charges, was 16% lower year-on-year. “We have also increased our net cash position by a further $32-million to $203-million, which means we have close to doubled our net cash already in 2016,” Gordon added.
The company’s overall gold production of 204 726 oz for the quarter was 25% higher year-on-year, while gold sales rose by 24% year-on-year to 206 488 oz.
Meanwhile, Acacia earned revenue of $285-million in the quarter under review, up 48% from the third quarter of 2015, owing to higher gold sales and net realised gold price.
Its earnings before interest, taxes, depreciation and amortisation rose to $125-million, $104-million higher than the year-ago comparative period, despite the $20-million share-based valuation charges.