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Tanzania: Acacia posts impressive 3rd quarter results

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The group achieved gold production for the third quarter of 136,640 ounces, 29% lower than Q3 2017 (191,203 ounces), which was primarily attributable to the move to reduced operations at Bulyanhulu and to stockpile processing at Buzwagi.

 

Acacia has posted impressive results in its third quarter and projected a possibility of exceeding the upper end of its full year.

According to a statement from the firm, the group achieved gold production for the third quarter of 136,640 ounces, 29% lower than Q3 2017 (191,203 ounces), which was primarily attributable to the move to reduced operations at Bulyanhulu and to stockpile processing at Buzwagi.

“We are very pleased to report a strong operational performance for the year to date, delivering 391,000 gold ounces in the nine months to the end of September 2018. As a result, we expect to exceed the upper end of our full year production guidance range of 435,000 to 475,000 ounces and are now targeting production to be marginally in excess of 500,000 ounces for the full year,” said Peter Geleta, Interim Chief Executive Officer.

The firm owns three mines, all located in north-west Tanzania: Bulyanhulu, Buzwagi, and North Mara and a portfolio of exploration projects in Kenya, Burkina Faso and Mali.

This was partly offset by higher gold production at North Mara driven by higher head grades. Production, for the quarter the statement adds, exceeded management expectations due to strong production performances across all three sites. Gold sold for the quarter of 135,875 ounces was broadly in line with production.

North Mara achieved gold production of 89,287 ounces for the quarter, 24% higher than Q3 2017 (72,011 ounces).  This was mainly due to 21% higher head grades compared to Q3 2017, driven by higher grade ore received from the eastern part of the Nyabirama open pit.

At Buzwagi, gold production of 36,460 ounces for Q3 2018 was 47% lower than in Q3 2017 (69,097 ounces), as a result of the mine transitioning to a lower grade stockpile processing operation in line with its remaining  life of mine plan. The final cut of higher grade ore remaining at the bottom of the pit was mined during the quarter, resulting in slightly higher than expected production.

Bulyanhulu produced 10,893 gold ounces for the quarter, 78% below Q3 2017 (50,094 ounces). During the quarter all production continued to be produced from the retreatment of tailings as a result of the underground mine being placed on reduced operations in late 2017.

The cash balance as at 30 September 2018 amounted to approximately US$117 million, broadly flat on the prior quarter. Net cash increased by US$11 million during the quarter to approximately US$74 million at period end which also included a loan repayment of US$14 million during the quarter.

Acacia will be releasing its third quarter results at 07:00 BST on 19 October and a conference call will be held for analysts and investors on the same day.

Acacia is a UK public company headquartered in London. We are listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange. Barrick Gold Corporation is our majority shareholder. Acacia reports in US dollars and in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement.

Source: The Exchange

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