Acacia posts $197m FY net loss

JOHANNESBURG (miningweekly.com) – Tanzania-focused gold miner Acacia Mining has posted a $197-million net loss for 2015, on the back of a $189-million impairment charge over its Buzwagi mine.

The impairment charge followed a review of the carrying value of the miner’s assets, in light of the lower gold price.

Acacia further reported that it achieved all-in sustaining costs (AISC) of $1 112/oz and sales of 721 203 oz.

“This was another year of transformation for Acacia as we continued to transition our company into a low-cost producer,” CEO Brad Gordon said.

The company, which ended 2015 with $223-million of cash on the balance sheet, expected its cost-saving initiatives to add cash to the balance sheet this year.

The miner progressed its Bulyanhulu mine to a mechanised operation during 2015, as well as successfully transitioned its North Mara mine into a combined openpit and underground operation.

This contributed to the 2% year-on-year increase in production to 731 912 oz – the company’s third consecutive yearly increase in production.

“We continue to have one of the strongest balance sheets in the sector and, as a result of this and expected improvements in production, costs and cash flow generation in the year ahead, the board recommended maintaining the final dividend in line with 2014 at $2.80 a share,” said Gordon.

He added that the company would continue to seek to enhance its portfolio through expanding its exploration portfolio in Burkina Faso, while making its first entry into Mali.

“We believe that exploration is a significant driver of value for the business over the long term and now is the time to invest, which is a contrarian view to many in the market.

“We also had a successful year within our existing exploration portfolio, as the drilling programmes in West Kenya identified exciting potential across the Liranda Corridor, and we announced in December that we had intercepted multiple lenses of high grade mineralisation which will be followed up in 2016,” he stated.