ACACIA gold mining company has warned
that a weaker shilling could hit its second quarter earnings by reducing
the US dollar value of the taxes it is owed.
The mining company, listed on the London
Stock Exchange and the Dar es Salaam Stock Exchange under the ticker
ACA said if the current weakness of the Tanzanian shilling against the
US dollar prevailed until June 30, it would impact the end-of quarter
revaluation of Tanzanian shilling-denominated indirect tax balances owed
to Tanzania.
“Any accounting loss from the
revaluation... may therefore impact earnings, although it has no
corresponding impact on cash flow for the period,” the company said in a
statement yesterday.
The outstanding Tanzanian
shilling-denominated tax balance owed to the company was worth
approximately $124 million at the beginning of the second quarter.
Since then the shilling has weakened
against the US dollar and the tax balance has to be converted into
dollars for reporting purposes. Acacia said also it expected a small
reduction in its cost base due to the weaker shilling.
About 15-20 per cent of the company’s
costs are denominated in shillings while the bulk of gold sales are in
US dollar or dollar equivalents. Acacia will report its halfyear results
on July 27.
Source: Daily News, reported from Dar es Salaam, Tanzania
0 comments :
Post a Comment