Acacia mining gold output up 8%

Acacia Mining plc (Acacia) gold production rose by 8.0 per cent in this year’s first quarter compared to the similar quarter last year, boosted by strong production at North Mara.

The financial statement released shows that the first quarter production was 181,660 ounces higher than 168,375 of same quarter in 2014.

Acacia Mining, Chief Executive Officer, Brad Gordon, said they delivered a steady production which was underpinned by continued strong production at North Mara.

“We saw a marginal increase in all-in sustaining cost (AISC) to 1,117 US dollar per ounce sold compared to the previous quarter, as well as a reduction in our net cash balance, due to the timing of sales,” Mr Gordon said.

He added: “as well as several short term challenges at Bulyanhulu, principally related to the tailings reclaim and equipment availabilities”.

The CEO said they have addressed these issues and continued to implement a range of other operational improvements that will deliver progressive improvement at the mine over the rest of the year.

“We remain on track to achieve our full year production guidance of 750-800koz of gold at AISC of between 1,050 and 1,100 US dollars per ounce, with production continuing to be second half weighted,” Mr Gordon said.

Acacia share price on Wednesday dropped by 0.67 per cent to 7,450/- at Dar es Salaam Stock Exchange, which also reflects the happening of the same in FTSE in London.

The statement shows further that gold sales was 171,415 ounces or 7.0 per cent than of quarter one in 2014, and was 6.0 per cent below production due to the timing of concentrate sales.

The North Mara production for the quarter of 75,614 ounces was 10 per cent higher than the prior year period primarily as a result of higher throughput rates, which exceeded the prior year period by 5 per cent, mainly due to business improvement initiatives in both the mining and milling areas.

The Mara mine gold ounces sold for the quarter of 75,535 ounces were in line with production, and 12 per cent higher than the prior year due to the higher production base.

The Bulyanhulu production for the quarter of 61,718 ounces was 12 per cent higher than the prior year period, as a result of the processing of reclaimed tailings which delivered 3,484 ounces of production, and a 14 per cent increase in tonnes processed from the underground operation.

“This was in part offset by a 2 per cent reduction in grade, primarily due to the processing of lower grade development ore from the Upper East zone and a 5 per cent reduction in recoveries due to underperformance of the elution circuit,” the report of London and Dar es Salaam exchanges listed company said.

In Buzwagi, the statement said the gold production for the quarter-one of 44,328 ounces was in line with same quarter in 2014.

As a result operational improvements made to the process plant over the course of 2014, was in turn offset by the marginally lower grade.
Source: Daily News, reported from Dar es Salaam, Tanzania
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