Acacia’s top official steps down

Gold miner, Acacia Mining Plc said its chief operating officer, Michelle Ash, would leave the company immediately, barely five months after assuming the role.

The move comes a month after Acacia Mining cut its full-year gold production forecast and raised its cost guidance. 

Ash will be replaced by group chief executive, Brad Gordon who indicated the company will reassess the situation as regards to any potential replacement early next year.

“I would like to express my thanks to Michelle for her contribution to Acacia over the past two years and wish her all the best for the future,” said Gordon. 

“I will again take direct responsibility for the operations given that our number one priority is achieving the planned improvement in performance in the fourth quarter.”

The gold mining company said last month that it swung to net loss in the third quarter of this year compared with the same period a year ago due to lower output and higher costs. 

It reported net loss of 13 million US dollars in the three months to September 30 compared with net profit of 28 million US dollars in the same quarter a year before.

This reflected 20 per cent drop in revenue to 193 million US dollars after gold output fell 14 per cent to 163,888 troy ounces and gold sales dropped 6 per cent to 167,116 ounces.

It however reaffirmed its revised full-year gold output and cost guidance as it redoubles its efforts to remove costs from its business in a bid to return to free cash generation.

The mining firm announced few days later that it planned to trim its working force and cut salaries to its seniors executives as it struggles to weather the storm on falling global gold prices.

Mr Gordon said in a newsletter that redundancies and wage cut were among difficult decisions made by executive leadership team to cut down on rising operational cost, so as to overcome challenges brought about by global gold prices slump.

“This is the most difficult decision but we expect that there will have to be redundancies and these will need to happen this year”. “We will not be awarding wage and salary increases at the end of the year.

Our business can simply not afford it. Senior Executives and myself will be taking 10 per cent pay cut,” he said in the newsletter.
Source: Daily News, reported from Dar es Salaam, Tanzania

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