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ACA Acacia Mining Plc

234.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Acacia Mining Plc LSE:ACA London Ordinary Share GB00B61D2N63 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 234.00 234.60 235.40 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

ACACIA MINING PLC 2017 Interim Results

21/07/2017 7:00am

UK Regulatory


 
TIDMACA 
 
21 July 2017 
 
Results for the six months ended 30 June 2017 (Unaudited) 
 
Based on IFRS and expressed in US Dollars (US$) 
 
Acacia Mining plc ("Acacia") reports 2017 interim results 
 
"The first half has posed significant challenges to our operations in Tanzania 
following the introduction of the concentrate export ban in March and I am 
pleased with how we have performed in light of this", said Brad Gordon, Chief 
Executive Officer of Acacia Mining. "It is a complex and fluid situation which 
has led to a significant reduction in our cash balance to US$176 million from 
US$318 million, as a result of being unable to realise US$175 million of 
revenue during the half together with a US$51 million VAT outflow. We continue 
to take steps to preserve long-term shareholder value and have served 
Arbitration notices for our Bulyanhulu and Buzwagi mines and will work to 
achieve a negotiated resolution, which is the preferable outcome for all 
parties. In spite of the challenges we faced, we delivered the highest H1 
production in the history of the Company, with gold production of 428,203 
ounces. AISC for the first six months was US$893 per ounce sold, 5% lower than 
H1 2016, and if we had been able to sell all of the concentrate produced, AISC 
would have been approximately US$800 per ounce. As a result of the impact of 
the ban we are now targeting the lower end of the production guidance range of 
850-900,000 ounces for 2017, but due to strong cost discipline we are leaving 
AISC guidance unchanged." 
 
Operational Highlights 
 
  * H1 Total Recordable Injury Frequency Rate (TRIFR) of 0.40, 49% lower than 
    H1 2016 
  * H1 gold production of 428,203 ounces, 4% higher than H1 2016, with gold 
    sales of 312,438 ounces 
  * H1 AISC1 of US$893 per ounce sold, 5% below H1 2016 and H1 cash costs1 of 
    US$577/oz sold,10% lower than H1 2016 
      + H1 AISC, assuming sales matched production, would have been US$800/oz, 
        which includes a US$18/oz share based payment revaluation credit 
        resulting from the fall in the share price year to date 
  * Q2 gold production of 208,533 ounces, 6% lower than Q2 2016 
  * Q2 gold sales of 127,694 ounces, which includes a reversal of advanced 
    sales of 18,204 ounces of concentrate from Q1 2017 
  * Q2 AISC1 of US$835/oz sold, 10% below Q2 2016 and Q2 cash costs1 of US$577/ 
    oz sold, 3% lower than Q2 2016 
 
Financial Highlights 
 
  * Financial performance was significantly impacted by the ongoing ban on 
    exporting concentrate which resulted in approximately US$175m of lost 
    revenue in the period 
  * H1 Revenue of US$391.7 million, 22% lower than H1 2016 
  * H1 EBITDA1 of US$161.4 million, 13% down from H1 2016 
  * H1 Net earnings of US$62.5 million, equating to US15.3 cents per share 
  * Cash on hand of US$175.9 million as at 30 June 2017, with net cash of 
    US$90.7 million 
  * As a result of the negative cash flow, no interim dividend has been 
    declared, in-line with the cash flow based dividend policy 
 
                                       Three months ended 30 June   Six months ended 30 
                                                                           June 
 
(Unaudited)                                      2017         2016       2017       2016 
 
Gold production (ounces)                      208,533      221,815    428,203    412,025 
 
Gold sold (ounces)                            127,694      216,782    312,438    400,963 
 
Cash cost (US$/ounce)1                            577          595        577        640 
 
AISC (US$/ounce)1                                 835          926        893        941 
 
Net average realised gold price (US$/           1,255        1,258      1,235      1,209 
ounce)1 
 
(in US$'000) 
 
Revenue                                       157,763      284,038    391,664    504,947 
 
EBITDA 1                                       79,222      119,332    161,415    184,882 
 
Adjusted EBITDA1                               83,199      114,088    166,219    180,499 
 
Net earnings/(loss)                            35,716       46,282     62,543    (6,128) 
 
Basic earnings/(loss) per share (EPS)             8.7         11.3       15.3      (1.5) 
(cents) 
 
Adjusted net earnings1                         38,500       40,659     65,906     58,767 
 
Adjusted net earnings per share (AEPS)            9.4          9.9       16.1       14.3 
(cents)1 
 
Cash generated from operating                (23,909)      104,864      1,315    157,096 
activities 
 
Capital expenditure2                           45,628       49,142     92,456     85,172 
 
Cash balance                                  175,886      284,357    175,886    284,357 
 
Total borrowings                               85,200      113,600     85,200    113,600 
 
    1 These are non-IFRS measures. Refer to page 28 for definitions   2 
Excludes non-cash capital adjustments (reclamation asset adjustments) and 
include finance lease purchases and land purchases recognised as long term 
prepayments 
 
Other Developments 
 
Export of metallic mineral concentrates 
 
As previously announced, on 3 March 2017, the Ministry of Energy and Minerals 
of the Tanzanian Government announced a general ban on the export of metallic 
mineral concentrates following a directive made by the President of the United 
Republic of Tanzania in order to promote the creation of a domestic smelting 
industry. Following the directive we ceased all exports of our gold/copper 
concentrate ("concentrate") including the 277 containers that had been approved 
for export prior to the ban which are located in Dar es Salaam at both the port 
and a staging warehouse. 
 
The prevention of exports impacts Bulyanhulu and Buzwagi which produce gold in 
both doré and in concentrate form due to the mineralogy of the ore. North Mara 
is unaffected due to 100% of its production being doré. In the first half of 
2017, concentrate accounted for 36% of group level production, with 64% of 
Buzwagi production and 46% of Bulyanhulu production respectively being 
concentrate. 
 
Acacia has been exporting concentrate from Bulyanhulu since 2001 and from 
Buzwagi since 2010 and has fully declared all associated gold, copper and 
silver revenue. Whilst the proportion of gold in the concentrate is less than 
0.02% it represents approximately 90% of the value of the concentrate, with 
copper representing approximately 10% of the value and silver less than 1%. 
Bulyanhulu and Buzwagi are permitted under their agreements signed with the 
Government of Tanzania to sell their concentrate products to overseas customers 
and to export the concentrate in containers, and have been in full compliance 
with these laws and their export permits. 
 
During the second quarter two Presidential Committees announced their findings 
following investigations into the technical and economic aspects of the 
historic exports of gold/copper concentrates. Acacia fully refutes the 
implausible findings of both committees, which claim that Acacia and its 
predecessor companies have historically significantly under-declared the 
contents of exports of concentrate which has led to an under-declaration of 
taxes of tens of billions of dollars. Following the Committees' announcements, 
the Government commenced various investigations into the allegations of 
undeclared revenue and unpaid taxes. Acacia is fully co-operating with these 
investigations and has provided extensive documentation and information to the 
investigating authorities. In addition, employees in Tanzania have been and 
continue to be interviewed by Government agencies as part of this process. 
Acacia re-iterates that it has declared everything of commercial value that it 
has produced since it started operating in Tanzania and has paid all 
appropriate royalties and taxes on all of the payable minerals that it has 
produced. In addition, Acacia's consolidated accounts and each local company's 
accounts are annually audited to an international standard in accordance with 
IFRS. Acacia has requested copies of the two Presidential Committees' reports 
and called for independent verification of the reported results, but to date 
has not received a response. 
 
As reported at the end of Q1 2017, included in the concentrate shipments 
retained in Dar es Salaam were approximately 18,200 ounces of gold for which we 
received advance payment. As mentioned, there was the possibility that the 
advanced payment would have to be refunded as these shipments did not leave 
Tanzania within the contractual period. During Q2 2017, we repaid approximately 
US$22 million, being the full advance payment received, and have subsequently 
reversed the sale. Should the ban be lifted, these ounces can be sold again 
immediately as all royalties have been paid and export permits were previously 
granted. 
 
We have continued to operate at Bulyanhulu and Buzwagi during the first half 
and continue to stockpile concentrate at each of the sites. This has resulted 
in the build-up of approximately 127,000 ounces of gold contained in unsold 
concentrate. In addition, we have approximately 8.3 million pounds of copper 
and 107,000 ounces of silver contained in the unsold concentrate. If the 
concentrate had been sold, net revenue and cashflow would have increased by 
approximately US$163 million. AISC was impacted on a unit cost basis by the 
concentrate ban, and had we sold all of the ounces produced, AISC for the half 
year would have been approximately US$800 per ounce, and before the impact of 
the share based payment revaluation credit would have been approximately US$818 
per ounce. 
 
In June, the Government of Tanzania and Barrick Gold Corporation ("Barrick") 
agreed to commence discussions with the aim of resolving the current situation. 
Whilst these discussions are yet to commence, we understand that they will do 
so in the near future and that both sides will seek to achieve a timely 
resolution to the dispute. At this stage, Acacia is not participating directly 
in the discussions. Any potential resolution that might be identified as a 
result of the discussions will be subject to approval by Acacia, and the 
Company is working with Barrick to support such discussions. 
 
Acacia's preferred outcome remains for a negotiated settlement with the 
Government, and whilst we see a route to achieving this we believe that it 
makes sense to continue operations at all three of our mines despite the losses 
we are incurring, predominantly at Bulyanhulu. However, given the scale of the 
cash outflows at Bulyanhulu we do not believe that this situation is 
sustainable at that operation beyond the end of the current quarter. In the 
event a decision was made to move Bulyanhulu to temporary care and maintenance, 
Acacia estimates that it would incur approximately US$30 million of upfront 
costs to retrench employees and end contracts in addition to the natural 
unwinding of around two months' worth of accounts payable with minimal gold 
production over the same period. Going forward, monthly costs of US$2-3 million 
would be incurred to maintain the mine in good standing ahead of a future 
re-start, when the mine would then benefit from the initial build-up of 
accounts payable. 
 
Update on legislative changes in Tanzania 
 
On 29th June, three new Parliamentary bills, which recommended significant 
changes to the legal and regulatory framework governing the natural resources 
sector as a whole in Tanzania, were published under a certificate of urgency 
which led to the extension of the Parliamentary session. Post period end, these 
bills were enacted by the Tanzanian Parliament and published in the Country's 
official Government Gazette of new legislation. All of the legislation is now 
in force and some of the terms within the acts are being applied by Tanzanian 
authorities. 
 
The Natural Wealth and Resources (Permanent Sovereignty) Act, No 5 of 2017, the 
Natural Wealth and Resources Contracts (Review and Re-Negotiation of 
Unconscionable Terms) Act, No 6 of 2017 and the Written Laws (Miscellaneous 
Amendments) Act, No 7 of 2017, purport to make a number of changes to the 
operating environment for Tanzania's extractive industries. These changes 
include, among others: 
 
  * the right for the Government of Tanzania (GoT) to renegotiate existing 
    mineral development agreements at its discretion; 
  * the provision to the GoT of a non-dilutable, free-carried interest of no 
    less than 16% in all mining projects; 
  * the right for the GoT to acquire up to 50% of any mining asset commensurate 
    with the value of tax benefits provided to the owner of that asset by the 
    GoT; 
  * removal of the refund of input VAT incurred on production of raw minerals 
    for export; 
  * an increase in the rate of royalties from 4% to 6% on revenues from gold, 
    copper, silver and platinum group metals; 
  * requirements for local beneficiation and procurement; 
  * constraints on the use of off-shore bank accounts; and 
  * a GoT lien over materials extracted from mining operations. 
 
For a more detailed reading of the legislative provisions included in the new 
laws, please see http://www.parliament.go.tz/bills-list. 
 
This legislation is in addition to the recent amendments introduced to the 
Finance Act, which require mining companies to pay a 1% clearance fee 
calculated by reference to the gross value of minerals to the Government in 
order to obtain clearance for export ("Clearing Fee"). It is Acacia's belief 
that a number of the changes contained within the laws will require 
supplementary regulations over the coming months to set out the proposed 
practical implementation of the new laws. At this stage, Acacia is not aware of 
this process having commenced. 
 
Acacia continues to monitor the impact of the new legislation in light of its 
Mineral Development Agreements ("MDAs") with the Government of Tanzania. 
However, to minimise further disruptions to our operations we will, in the 
interim, satisfy the requirements imposed as regards the increased royalty rate 
applicable to metallic minerals such as gold, copper and silver of 6% 
(increased from 4%), in addition to the recently imposed 1% clearing fee on 
exports. These payments are being made under protest, without prejudice to our 
legal rights under the MDAs. 
 
Filing of Notice of Arbitration 
 
Subsequent to period end Acacia announced that it served Notices of Arbitration 
in Tanzania on behalf of Bulyanhulu Gold Mine Limited ("BGML"), the owner of 
the Bulyanhulu mine, and Pangea Minerals Limited ("PML"), the owner of the 
Buzwagi mine. These Notices refer the current disputes between the Government 
of Tanzania and each of BGML and PML to arbitration. This is in accordance with 
the dispute resolution processes agreed by the Government of Tanzania in its 
MDAs with BGML and PML. 
 
The serving of the Notices was necessary to protect the Company, and is 
currently with the Government to respond, but Acacia remains of the view that a 
negotiated resolution is the preferred outcome to the current disputes and the 
Company will continue to work to achieve this. 
 
Minimum local shareholding and listing requirements for mining companies 
 
During the latest Tanzanian Parliamentary session, the legislation impacting 
the ability for foreign investors to buy shares in initial public offers was 
amended, which significantly broadens the potential investor base for future 
offerings. At this stage, other than Acacia's existing cross listing on the Dar 
es Salaam Stock Exchange ("DSE"), no companies in either the Mining or 
Telecommunications sectors have successfully completed a listing on the DSE. 
Acacia supports the attempt to build capital markets in Tanzania and the 
promotion of local ownership and we have engaged with the Capital Markets and 
Security Authority (CMSA), the DSE, the Ministry of Energy and Minerals and all 
other relevant authorities in Tanzania with a view to finding a route forward 
that is both beneficial and practical for all stakeholders. 
 
Contribution to Tanzania 
 
In the first half of 2017, Acacia has paid a total of US$53 million of taxes 
and royalties. This is made up of provisional corporate tax payments year of 
US$17.3 million, royalties of US$18.6 million, payroll taxes of US$11.5 million 
and other taxes of US$5.6 million. In addition, we have also paid US$10 million 
in tax deposits which is recognised as part of other assets. If the gold/copper 
concentrate produced since March was sold during the first half then 
approximately a further US$7 million would have been paid in royalties. We have 
also paid local service levies due on H2 2016 revenues of US$1.6 million during 
the first half and are due to pay a further US$1.2 million in July for H1 2017. 
These amounts are 300% higher than the requirements set out in our MDAs. The 
provisional corporate tax payments have been offset against the indirect tax 
receivable under the existing Memorandum of Settlement ("MOS") entered into 
with the Tanzanian Government. 
 
Over the last 6 months, Acacia's Sustainable Communities (SC) team continued to 
focus on delivering community benefits despite the uncertainties in the 
operating environment. The focus for the first half of the year was to begin 
and/or complete key infrastructural projects which we had committed to the 
communities and also to begin the roll out of the new SC strategy by building 
some of the foundations for implementation. 
 
By end of June 2017, through the Maendeleo Fund, we implemented 6 social 
infrastructure projects with a total value of approximately US$1 million at the 
3 mines sites - some of which began at the end of 2016. The key projects per 
site include: 
 
  * Bulyanhulu: Constructed additional classrooms at Lwabakanga Primary School 
    which has almost 600 students 
  * Buzwagi: Completed the construction of the 2.5km Mwime Chapulwa gravel road 
    to benefit the Mwendakulima, Mwime and Chapulwa villages with a population 
    of over 13,500 people. 
  * North Mara: Completion of the Kerende and Nyamwaga Health Centres which 
    will benefit a population of about 25,000 people in 6 villages. 
 
An additional 10 infrastructural development projects are currently underway 
across all our sites with a value of US$940,000 which include school 
infrastructure, water supply, sanitation and maintenance of community roads. 
Other development projects in the last 6 months include continuing our support 
to 2,700 students with uniforms and books under the CanEducate partnership; 
supporting sports through coaching clinics in partnership with Sunderland 
Football Club and provision of reconstructive surgery for 36 burns and cleft 
lip and palate patients through our partnership with Rafiki Medical Missions. 
 
In addition, Acacia, in partnership with TANESCO, has invested US$2.5 million 
to construct a STATCOM centre at Bulyanhulu that will enhance the quality of 
power supply in the area. The investment will greatly improve the stability of 
the electricity at the Bulyanhulu and Buzwagi mines and will reduce our 
reliance on self-generated diesel power. Residents in the Shinyanga and Geita 
districts around the mines will also benefit from improved quality power supply 
resulting from the commissioning of the STATCOM in July 2017. 
 
During the reporting period, we shared our SC strategy with some of our key 
partners including government officials, development partners and other 
interested parties to increase awareness of the strategy. A database is under 
design to allow us to effectively monitor and evaluate our development efforts 
and it is expected to be completed in Q3 2017. Our future development projects 
will be informed by research and a consulting firm has been contracted to do an 
assessment of opportunities for development in the agricultural and small 
business sectors around our mine sites. Results from this study are expected in 
Q4 2017 and will be used to plan 2018 development initiatives. This study is in 
addition to the education scoping study which was completed in January 2017. 
 
Indirect Taxation update 
 
During the second quarter, Acacia incurred a further US$23 million of VAT 
outflows and received no VAT refunds, which together with the outflow in Q1 
2017 has led to a total VAT outflow in the first half of 2017 of US$51 million. 
The audit of all VAT claims dating back to 2014 undertaken by the Tanzanian 
Revenue Authority and the Ministry of Finance is ongoing, with the focus now 
shifted to the suppliers to which our VAT claims relate, to determine whether 
the corresponding output VAT on their side has been declared. We believe that 
all VAT registered businesses are subject to this audit. As a result, our total 
indirect tax receivables has increased to approximately US$165 million during 
the quarter, of which approximately US$21 million of this is covered by the 
MOS, following the total offset of North Mara corporate tax mentioned above. 
Approximately US$7 million of the receivable is identified as a long term 
receivable, with the balance short term. 
 
As disclosed above, the new legislation included an Amendment to the VAT Act 
2015 so that no input tax credit can be claimed for the exportation of raw 
minerals, with effect from 20 July 2017. Whilst we are seeking further clarity 
on the application of the Amendment to the VAT Act 2015, we expect that we will 
continue to incur outflows related to VAT, notwithstanding exemptions that 
apply under the MDAs. 
 
Board Changes 
 
As previously reported, Peter Tomsett stepped down from the Acacia Board of 
Directors following the 2017 Annual General Meeting. Post period end, 
Ambassador (retd) Juma Mwapachu retired from the Board after six years of 
service as his term of appointment expired. Following these changes, the Acacia 
Board comprise 7 members, including 4 Independent Non-Executive Directors, two 
Non-Executive Directors and one Executive Director. Acacia continues to assess 
the ongoing composition of the Board and will announce a replacement Senior 
Independent Director in due course. 
 
Acacia would like to thank Peter and the Ambassador for their valuable 
commitment and support to the Company during their tenure on the Board and wish 
them all the best for the future. 
 
Dividend 
 
Acacia has a cash flow based dividend policy where we aim to pay a dividend of 
between 15-30% of our operational cash flow after sustaining capital and 
capitalised development but before expansion capital and financing costs. As a 
result of the inability to export concentrates Acacia has experienced negative 
free cash flow in the first half of 2017 and due to the level of uncertainty 
over full year cash flow expectations, the Board of Directors has not 
recommended the payment of an interim dividend. 
 
International Employee Work Permits 
 
During the second quarter Acacia, and a number of its key contractors, 
experienced difficulty when applying for work and residence permits (as both 
are required to work in country) for international workers. This has had a 
particular impact on our underground development contractor at both Bulyanhulu 
and North Mara and led to a reduction in development metres as a result of the 
reduction in available staff. Together with the contractor, Acacia is working 
to resolve this issue with the Tanzanian Ministry of Labour, but expects full 
year development metres at both Bulyanhulu and North Mara to be behind plan. 
 
Outlook 
 
Our three mines continue to produce and sell gold doré whilst stockpiling gold/ 
copper concentrate. As mentioned above, as at 30 June 2017 we have 
approximately 127,000 ounces of gold, 8.3 million pounds of copper and 107,000 
ounces of silver contained within unsold concentrate. We reiterate our group 
production guidance range of between 850,000-900,000 ounces, although are now 
targeting the lower end of this range. This is a result of full year 
expectations at Bulyanhulu being approximately 10% lower than previously 
planned due to lower underground productivities. Despite this, we continue to 
expect full year group all-in sustaining costs of between US$880 - US$920 per 
ounce and cash cost per ounce of between US$580 - US$620 per ounce. Our cost 
guidance is inclusive of the payment of the higher royalties and clearing fee, 
which are currently being paid under protest. In light of ongoing developments 
in Tanzania we continue to assess our capital expenditure and now expect this 
to be between US$180-200 million for the year as we defer non-essential spend. 
We continue to review broader spending across the business to ensure that we 
manage cash outflows whilst we are unable to export 100% of our production. 
 
Key Statistics                                   Three months ended  Six months ended 
                                                       30 June            30 June 
 
(Unaudited)                                          2017       2016      2017    2016 
 
Tonnes mined (thousands of tonnes)                  8,558      9,939    18,039  19,346 
 
Ore tonnes mined (thousands of tonnes)              3,996      2,244     7,212   4,689 
 
Ore tonnes processed (thousands of tonnes)          2,440      2,412     4,860   4,900 
 
Process recovery rate exc. tailings reclaim         93.0%      89.6%     93.2%   92.6% 
(percent) 
 
Head grade exc. tailings reclaim (grams per           3.3        3.7       3.4     3.2 
tonne) 
 
Process recovery rate inc. tailings reclaim         89.3%      88.9%     89.6%   87.7% 
(percent) 
 
Head grade inc. tailings reclaim (grams per           3.0        3.2       3.1     3.0 
tonne) 
 
Gold production (ounces)                          208,533    221,815   428,203 412,025 
 
Gold sold (ounces)                                127,694    216,782   312,438 400,963 
 
Copper production (thousands of pounds)             4,409      4,624     9,065   8,427 
 
Copper sold (thousands of pounds) 3               (1,183)      4,403     1,304   8,084 
 
Cash cost per tonne milled exc. tailings reclaim       34         62        43      60 
(US$/t)1 
 
Cash cost per tonne milled inc. tailings reclaim       30         54        37      52 
(US$/t)1 
 
Per ounce data 
 
     Average spot gold price2                       1,257      1,260     1,238   1,221 
 
     Net average realised gold price1               1,255      1,258     1,235   1,209 
 
     Total cash cost1                                 577        595       577     640 
 
     All-in sustaining cost1                          835        926       893     941 
 
Average realised copper price (US$/lb)               2.56       2.16      2.99    2.13 
 
Financial results 
 
                                     Three months ended 30 June     Six months ended 30 
                                                                           June 
 
(Unaudited, in US$'000 unless                2017           2016         2017       2016 
otherwise stated) 
 
Revenue                                   157,763        284,038      391,664    504,947 
 
Cost of sales                            (94,571)      (183,539)    (243,967)  (355,439) 
 
Gross profit                               63,192        100,499      147,697    149,508 
 
Corporate administration                  (5,878)        (4,469)     (12,520)    (9,771) 
 
Share based payments                       18,209       (15,697)        7,785   (19,635) 
 
Exploration and evaluation costs          (9,372)        (5,199)     (16,150)   (11,150) 
 
Corporate social responsibility           (1,544)        (1,744)      (3,739)    (4,614) 
expenses 
 
Other (charges)/ income                   (8,802)          2,776     (19,617)      2,168 
 
Profit before net finance expense          55,805         76,166      103,456    106,506 
and taxation 
 
Finance income                                946            197        1,543        490 
 
Finance expense                           (3,216)        (2,514)      (5,454)    (5,380) 
 
Profit before taxation                     53,535         73,849       99,545    101,616 
 
Tax expense                              (17,819)       (27,567)     (37,002)  (107,744) 
 
Net profit/(loss) for the period           35,716         46,282       62,543    (6,128) 
 
1 These are non-IFRS financial performance measures with no standard meaning 
under IFRS. Refer to "Non IFRS measures" on page 28 for definitions. 
 
2 Reflect the London PM fix price. 
 
3 Negative sales quantities relate to the reversal of sales recorded during Q1 
2017. 
 
For further information, please visit our website: http://www.acaciamining.com/ 
or contact: 
 
Acacia Mining plc                             +44 (0) 207 129 7150 
 
Brad Gordon, Chief Executive Officer 
 
Andrew Wray, Chief Financial Officer 
 
Giles Blackham, Investor Relations Manager 
 
Camarco                                       +44 (0) 20 3757 4980 
 
Gordon Poole / Billy Clegg / Nick Hennis 
 
About Acacia Mining plc 
 
Acacia Mining plc (LSE:ACA) is Tanzania's largest gold miner and one of the 
largest producers of gold in Africa. We have three producing mines, all located 
in north-west Tanzania: Bulyanhulu, Buzwagi, and North Mara and a portfolio of 
exploration projects in Tanzania, Kenya, Burkina Faso and Mali. 
 
Our approach is focused on strengthening our core pillars; our business, our 
people and our relationships, whilst continuing to invest in our future. Our 
ambition is to create a leading African Company. 
 
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 report. 
 
Conference call 
 
A presentation will be held for analysts and investors on 21 July 2017 at Noon 
London time. 
 
For those unable to attend, an audio webcast of the presentation will be 
available on our website http://www.acaciamining.com/. For those who wish to 
ask questions, the access details for the conference call are as follows: 
 
Participant dial in           +44 20 3059 8125 / +1 724 928 9460 
 
Password:                      Acacia 
 
FORWARD- LOOKING STATEMENTS 
 
This report includes "forward-looking statements" that express or imply 
expectations of future events or results. Forward-looking statements are 
statements that are not historical facts. These statements include, without 
limitation, financial projections and estimates and their underlying 
assumptions, statements regarding plans, objectives and expectations with 
respect to future production, operations, costs, projects, and statements 
regarding future performance. Forward-looking statements are generally 
identified by the words "plans," "expects," "anticipates," "believes," 
"intends," "estimates" and other similar expressions. 
 
All forward-looking statements involve a number of risks, uncertainties and 
other factors, many of which are beyond the control of Acacia, which could 
cause actual results and developments to differ materially from those expressed 
in, or implied by, the forward-looking statements contained in this report. 
Factors that could cause or contribute to differences between the actual 
results, performance and achievements of Acacia include, but are not limited 
to, changes or developments in political, economic or business conditions or 
national or local legislation or regulation in countries in which Acacia 
conducts - or may in the future conduct - business, industry trends, 
competition, fluctuations in the spot and forward price of gold or certain 
other commodity prices (such as copper and diesel), currency fluctuations 
(including the US dollar, South African rand, Kenyan shilling and Tanzanian 
shilling exchange rates), Acacia's ability to successfully integrate 
acquisitions, Acacia's ability to recover its reserves or develop new reserves, 
including its ability to convert its resources into reserves and its mineral 
potential into resources or reserves, and to process its mineral reserves 
successfully and in a timely manner, Acacia's ability to complete land 
acquisitions required to support its mining activities, operational or 
technical difficulties which may occur in the context of mining activities, 
delays and technical challenges associated with the completion of projects, 
risk of trespass, theft and vandalism, changes in Acacia's business strategy 
including, the ongoing implementation of operational reviews, as well as risks 
and hazards associated with the business of mineral exploration, development, 
mining and production and risks and factors affecting the gold mining industry 
in general. Although Acacia's management believes that the expectations 
reflected in such forward-looking statements are reasonable, Acacia cannot give 
assurances that such statements will prove to be correct. Accordingly, 
investors should not place reliance on forward-looking statements contained in 
this report. 
 
Any forward-looking statements in this report only reflect information 
available at the time of preparation. Save as required under the Market Abuse 
Regulation or otherwise under applicable law, Acacia explicitly disclaims any 
obligation or undertaking publicly to update or revise any forward-looking 
statements in this report, whether as a result of new information, future 
events or otherwise. Nothing in this report should be construed as a profit 
forecast or estimate and no statement made should be interpreted to mean that 
Acacia's profits or earnings per share for any future period will necessarily 
match or exceed the historical published profits or earnings per share of 
Acacia. 
 
                                   LSE: ACA 
 
TABLE OF CONTENTS 
 
Interim Operating Review                                                        9 
 
Exploration Review                                                              15 
 
Financial Review                                                                21 
 
Significant judgements in applying accounting policies and key sources of       27 
estimation uncertainty 
 
Non-IFRS measures                                                               28 
 
Risk Review                                                                     32 
 
Condensed Financial Information: 
 
- Consolidated Income Statement and Consolidated Statement of Comprehensive     36/37 
Income 
 
- Consolidated Balance Sheet                                                    38 
 
- Consolidated Statement of Changes in Equity                                   39 
 
- Consolidated Statement of Cash Flows                                          40 
 
- Notes to the Condensed Financial Information                                  41 
 
 
Operating Review 
 
Half Year Review 
 
Despite the uncertainty caused by the operating environment in Tanzania, Acacia 
has continued to record impressive safety results, with a H1 Total Recordable 
Injury Frequency Rate (TRIFR) of 0.40, which is 49% lower than the 
corresponding period in 2016.  This performance is coupled with a decrease in 
the Injury Severity Rate and the number of High Potential Incidents recorded as 
compared to the corresponding period in 2016.  The site management team 
continues to engage and communicate regularly with the workforce on the 
situation in Tanzania and to conduct audits and inspections of all workplaces. 
All operations maintain excellent house-keeping and empower and encourage the 
workforce to stop work if the need requires. 
 
Acacia delivered first half production of 428,203, an increase of 4% year on 
year, while AISC of US$893 per ounce sold and cash cost of US$577 per ounce 
sold were 5% and 10% respectively lower than H1 2016. As a result of the ban on 
the export of gold/copper concentrate, sales ounces trailed production by 
approximately 115,000 ounces. For reference purposes, if H1 sales ounces 
equalled H1 production, AISC would have been approximately US$800 per ounce and 
cash costs would have been approximately US$569 per ounce. 
 
North Mara achieved production of 179,578 ounces for the first half, up 3% from 
H1 2016. This was a result of 2% higher head grade driven by the preferential 
processing of higher grade stockpile ore from the Nyabirama pit; as well as 
continued high grades from the Gokona underground mine albeit slightly lower on 
average than H1 2016, combined with a 1% improvement in recoveries. Gold ounces 
sold of 178,130 ounces were 5% higher than the comparative period and broadly 
in line with production. Ore tonnes from underground mining were 50% higher in 
the first half, due to Gokona underground development being at a more advanced 
stage with access to more stopes compared to H1 2016. AISC of US$736 per ounce 
sold was 2% higher than H1 2016 (US$720) primarily due to slightly higher cash 
costs, higher capitalised development costs and higher sustaining capital 
expenditure offset by the impact of increased sales volumes. 
 
At Buzwagi, gold production of 126,084 ounces was 57% higher than H1 2016, and 
in line with expectations. This was mainly due to a 50% increase in head grade 
driven by higher grade ore mined from the main ore zone at the bottom of the 
open pit in H1 2017. AISC per ounce sold of US$770 was 31% lower than in H1 
2016, mainly driven by the increased production base, lower cash cost and lower 
sustaining capital expenditure, partly offset by the impact of lower sales 
volumes on individual cost items. 
 
Bulyanhulu produced 122,542 gold ounces, 22% lower than the same period in 
2016. This was due to a 25% decrease in ounces produced from underground mining 
over H1 2016, mainly driven by a 16% decrease in throughput due to lower ore 
tonnes mined, together with a 12% decrease in head grade, mainly due to the 
impact of mine sequencing. AISC per ounce sold for the first half of US$1,340 
was 38% higher than H1 2016 (US$970) driven by the impact of lower sales ounces 
on individual cost items, higher cash costs and higher capitalised development 
costs, slightly offset by lower sustaining capital spend. 
 
Total tonnes mined during the first half amounted to 18.0 million tonnes, 7% 
lower than H1 2016, mainly as a result of a 48% decrease in total waste tonnes 
mined at Buzwagi as the open pit will conclude later this year. Ore tonnes 
mined of 7.2 million tonnes were 54% higher than H1 2016 driven predominantly 
by increased ore tonnes from Buzwagi as a result of improved access to ore 
zones in the final stage of the open pit in H1 2017. 
 
Ore tonnes processed amounted to 4.9 million tonnes, slightly lower than H1 
2016. Lower run of mine tonnes at Bulyanhulu and lower throughput at North Mara 
was partly offset by higher reprocessed tailing throughput at Bulyanhulu. 
 
Head grade for the period (excluding tailings retreatment) of 3.4g/t was 6% 
higher than in H1 2016 (3.2g/t) primarily driven by a 50% higher head grade at 
Buzwagi as a result of higher grade ore mined. 
 
Cash costs of US$577 per ounce sold for the year to date were 10% lower than in 
H1 2016, primarily due to: 
 
  * Higher production base (US$23/oz); 
  * Increased investment in ore stockpiles, mainly at Buzwagi (US$33/oz); 
  * Lower consumable costs (US$18/oz) mainly driven by improved consumable unit 
    costing and usage optimisation; 
  * Increased capitalised mining, mainly driven by increased capitalised 
    stripping at North Mara relating to the Nyabirama Cut 4 cutback (US$17/oz); 
    and 
  * Lower sales related costs due to lower sales volumes caused by the 
    concentrate ban (US$34/oz) 
 
This was offset by 
 
  * Lower co-product revenue in the form of copper concentrates (US$46/oz); and 
  * Increased contracted services costs mainly relating to development and 
    drilling contracts (US$23/oz). 
 
Included in cost of sales and ultimately cash cost for the first half, is a 
credit of approximately US$63.6 million (US$204/oz) relating to the build-up in 
finished gold inventory due to concentrate sales delays, which largely offsets 
the impact of the reduction in sales ounces in the cash cost per ounce sold 
calculation. 
 
All-in sustaining cost of US$893 per ounce sold for the first half was 5% lower 
than H1 2016, despite the lag in sales against production. This was driven by 
the lower cash costs (US$64/oz) as well as a credit relating to share based 
payment revaluation driven by the approximate 33% reduction in the Acacia share 
price (US$25/oz), partly offset by the impact of lower sales volumes on 
individual cost items (US$85/oz) and higher capitalised development costs at 
both North Mara and Bulyanhulu (US$16/oz). 
 
If our sales ounces equalled production, AISC for the first half would have 
been approximately US$800 per ounce sold, compared to US$916 per ounce sold on 
the same basis in H1 2016, a decrease of 13%, and excluding the impact of 
non-cash share based payment revaluation credits would have been approximately 
US$819. 
 
Cash from operating activities of US$1.3 million compared negatively to the 
inflow of US$157.1 from H1 2016. The inability to export our concentrate has 
had a negative impact on operating cash flow of approximately US$163 million. 
Working capital outflows mainly relating to increases in supplies inventory and 
indirect tax receivables further impacted cash generated from operating 
activities. 
 
Capital expenditure amounted to US$92.5 million compared to US$85.2 million in 
H1 2016. Capital expenditure primarily comprised of capitalised development and 
stripping (US$64.3 million), investment in mobile equipment and component 
change-outs at both North Mara and Bulyanhulu (US$6.6 million), investment in 
fixed equipment and mining infrastructure mainly at Bulyanhulu (US$4.6 
million), and land purchases at North Mara (US$1.2 million). 
 
Second Quarter Review 
 
Acacia recorded 5 Lost Time Injuries during the quarter with 3 at Bulyanhulu, 1 
at North Mara and 1 with Discovery in Kenya, a decrease of 37% on the same 
period in 2016. Two of the injured were Acacia employees, whilst three were 
contractor employees. Of the 9 Medically Treated Incidents in Q2 2017, all were 
contractor employees, which is a focal point in Q3 2017. Q2 Total Recordable 
Injury Frequency Rate (TRIFR) of 0.51 was 38% lower than the corresponding 
period in 2016. 
 
Production for Q2 2017 amounted to 208,533 ounces, a decrease of 6% on the same 
period in 2016. 
 
North Mara produced 83,110 ounces in Q2 2017, 17% lower than in Q2 2016 and a 
13% decrease from Q1 2017, driven by lower head grades compared to Q2 2016, 
mainly as a result of lower mine grades year on year. Total open pit tonnes 
mined decreased by 5% from Q2 2016 driven by lower waste mined in the Nyabirama 
pit while total ore tonnes mined increased by 18% compared to the same period. 
Ore tonnes from underground mining of 162kt were 91% higher in Q2 2017, due to 
Gokona underground development being at an advanced stage with access to more 
stopes compared to Q2 2016. Cash cost per ounce sold of US$476 was 25% higher 
than in Q2 2016, primarily driven by the lower production base, lower 
capitalised development costs mainly due to lower waste stripping at the 
Nyabirama pit and higher direct mining costs driven by higher labour, fuel and 
consumables cost. AISC of US$758 per ounce sold was 7% higher than in Q2 2016 
due to a lower production base and higher cash costs, partly offset by lower 
capitalised development costs and a decrease in sustaining capital expenditure. 
 
At Buzwagi, gold production for the quarter of 66,228 ounces was 53% higher 
than Q2 2016, and 11% ahead of Q1 2017. Total tonnes mined decreased by 22% 
from Q2 2016 while ore tonnes mined were more than double compared to the prior 
quarter due to the focus of mining at the bottom of the pit which contains more 
ore tonnes. Cash cost per ounce sold of US$705 was 26% lower than Q2 2016 
mainly due to lower direct mining costs driven by lower consumable and external 
services costs, lower sales related costs due to lower sales volumes combined 
with the impact of the higher production base partly offset by lower co-product 
revenue. AISC of US$762 per ounce sold was 25% lower than Q2 2016, primarily 
due to lower cash cost combined with a credit relating to share based payment 
valuations, partially offset by the effect of lower sales volumes on the 
individual cost items. 
 
Bulyanhulu produced 59,196 ounces, 25% lower than the same period in Q2 2016 
and 6% lower than Q1 2017. Ounces produced from underground mining amounted to 
50,340 ounces, a 28% decrease on Q2 2016 mainly due to lower ore tonnes 
received from underground combined with a 10% decrease in grade, while ounces 
produced from the reprocessing of tailings amounted to 8,856 ounces, an 
increase of 6%. Lower mining tonnes of 203,000 tonnes were mainly due to lower 
productivities as well as inaccessibility of certain stopes. AISC amounted to 
US$1,558 per ounce sold for the quarter, 63% higher than in Q2 2016 and 3% 
lower than Q1 2016, mainly driven by the lower production base and the effect 
of lower sales volumes on the individual cost items combined with higher cash 
costs for the quarter. 
 
Total tonnes mined during the quarter amounted to 8.6 million tonnes, 14% lower 
than Q2 2016 while total ore tonnes mined of 4.0 million tonnes exceeded the 
comparative period by 78%. This was mainly due to increased ore tonnes from 
North Mara and Buzwagi. 
 
Total tonnes processed amounted to 2.4 million tonnes, broadly in line with Q2 
2016, with head grade for the quarter (excluding tailings retreatment) of 3.3g/ 
t was 11% lower than Q2 2016 (3.7g/t) due to lower grades at North Mara and 
Bulyanhulu. 
 
Capital expenditure for the quarter amounted to US$45.6 million compared to 
US$49.1 million in Q2 2016, a decrease of 7%. Capital expenditure primarily 
comprised capitalised development (US$30.5 million), expansion capital relating 
to capitalised drilling at North Mara (US$3.5 million), investment in fixed 
equipment and mining infrastructure (US$5.4 million) and investment in mobile 
equipment and component change-out costs (US$4.0 million). 
 
Mine Site Review 
 
Bulyanhulu 
 
Key statistics 
 
                                        Three months ended 30         Six months ended 30 
                                                 June                        June 
 
(Unaudited)                                     2017       2016            2017      2016 
 
Key operational information: 
 
Ounces produced                oz             59,196     78,643         122,542   157,069 
 
Ounces sold                    oz             27,409     78,271          81,214   150,719 
 
Cash cost per ounce sold1      US$/oz            813        662             795       661 
 
AISC per ounce sold1           US$/oz          1,558        958           1,340       970 
 
Copper production              Klbs            1,313      1,710           2,811     3,527 
 
Copper sold2                   Klbs            (357)      1,574             599     3,154 
 
Run-of-mine: 
 
Underground ore tonnes hoisted Kt                204        236             409       479 
 
Ore milled                     Kt                202        250             423       502 
 
Head grade                     g/t               8.6        9.6             8.5       9.7 
 
Mill recovery                  %               89.9%      90.8%           90.7%     89.3% 
 
Ounces produced                oz             50,340     70,307         104,596   140,083 
 
Cash cost per tonne milled1    US$/t              91        185             133       180 
 
Reprocessed tailings: 
 
Ore milled                     Kt                410        402             823       780 
 
Head grade                     g/t               1.4        1.4             1.4       1.5 
 
Mill recovery                  %               46.9%      45.6%           47.2%     45.9% 
 
Ounces produced                oz              8,856      8,336          17,946    16,986 
 
Capital Expenditure 
 
 - Sustaining capital          US$             4,387      4,421           8,599    11,506 
                               ('000) 
 
 - Capitalised development     US$            14,984     15,270          31,054    28,438 
                               ('000) 
 
 - Expansionary capital        US$               504        559             982       753 
                               ('000) 
 
                                              19,875     20,250          40,635    40,697 
 
 - Non-cash reclamation asset  US$             (851)      5,723             191     9,937 
adjustments                    ('000) 
 
Total capital expenditure      US$            19,024     25,973          40,826    50,634 
                               ('000) 
 
1These are non-IFRS financial performance measures with no standard meaning 
under IFRS. Refer to 'Non-IFRS measures" on page 28 for definitions. 
 
2Negative sales quantities relate to the reversal of sales recorded during Q1 
2017. 
 
Operating performance 
 
Gold production for the first half of 122,542 ounces was 22% lower than the 
same period in 2016. This was due to a 25% decrease in ounces produced from 
underground mining over H1 2016, driven by a 16% decrease in throughput and a 
12% reduction in head grade During H1 2017, we increasingly experienced lower 
underground productivities which impacted both tonnes mined and head grades. 
Whilst we expect improvement on both measures in the second half, full year 
output is expected to be approximately 10% lower than previously planned. 
Production from the reprocessing of tailings saw an increase of 6% against H1 
2016 due to an increase in throughput and recoveries, which was partially 
offset by slightly lower grades. 
 
Production during the quarter comprised of 24,911 ounces of gold in concentrate 
and 34,285 ounces of gold in doré, amounting to a total of 55,699 ounces of 
gold in concentrate and 66,843 ounces of gold in doré for the first half of 
2017. 
 
Gold sold for the year to date amounted to 81,214 ounces, 46% lower than H1 
2016 and 34% lower than production, mainly as a result of the inability to 
export concentrate from early March combined with the lower production base. 
Sales ounces for the quarter also included a negative sales adjustment of 7,480 
ounces due to reversals made for concentrate shipments previously sold but 
subsequently reversed due to the concentrate not being able to leave port. 
 
Copper production of 2.8 million pounds for the year to date compared 
negatively to the comparative period by 20%, mainly as a result of lower copper 
grades. Copper sold was 81% lower than H1 2016, primarily due to the lack of 
exports of concentrate combined with lower copper production. Negative copper 
sales pounds for the quarter in the main relate to 342,273 pounds of copper 
concentrate, previously recorded as sales, but subsequently reversed due to the 
current export ban on mineral concentrates. 
 
Cash costs of US$795 per ounce sold were 20% higher than H1 2016 (US$661), 
mainly due to the lower production base (US$189/oz), increased contracted 
services costs (US$76/oz) driven by increased mine development costs and lower 
co-product revenue (US$67/oz). This was partly offset by lower sales related 
costs due to lower sales volumes (US$92/oz), lower consumable costs due to 
optimised usage and improved unit costs (US$35/oz) and lower maintenance costs 
(US$34/oz). 
 
AISC per ounce sold for the first half of US$1,340 was 38% higher than H1 2016 
(US$970) driven by the impact of lower sales ounces on individual cost items 
($264/oz), higher cash cost as explained above (US$134/oz) and higher 
capitalised development costs ($32/oz), slightly offset by lower sustaining 
capital spend ($36/oz). Should we have been able to sell all ounces produced, 
AISC would have been approximately US$1,140 per ounce. 
 
Capital expenditure for the first half before reclamation adjustments amounted 
to US$40.6 million, slightly lower than H1 2016 (US$40.7 million). This is the 
result of lower sustaining capital expenditure offset by higher capitalised 
development. Capital expenditure mainly consisted of capitalised underground 
development costs (US$31.1 million), investment in mobile equipment and 
component change-outs (US$2.9 million) and investment in fixed equipment and 
mining infrastructure including the West fan upgrade and underground 
ventilation raise boring (US$2.9 million). 
 
Buzwagi 
 
Key statistics 
 
                                        Three months ended 30          Six months ended 
                                                 June                      30 June 
 
(Unaudited)                                     2017       2016            2017     2016 
 
Key operational information: 
 
Ounces produced                oz             66,228     43,156         126,084   80,219 
 
Ounces sold                    oz             15,895     42,971          53,094   80,404 
 
Cash cost per ounce sold1      US$/oz            705        948             697    1,052 
 
AISC per ounce sold1           US$/oz            762      1,019             770    1,124 
 
Copper production              Klbs            3,095      2,915           6,253    4,900 
 
Copper sold2                   Klbs            (826)      2,829             705    4,929 
 
Mining information: 
 
Tonnes mined                   Kt              4,297      5,497           9,564   11,423 
 
Ore tonnes mined               Kt              2,898      1,302           4,951    2,605 
 
Processing information: 
 
Ore milled                     Kt              1,119      1,054           2,195    2,182 
 
Head grade                     g/t               1.9        1.3             1.8      1.2 
 
Mill recovery                  %               96.6%      94.8%           96,7%    94.6% 
 
Cash cost per tonne milled1    US$/t              10         39              17       39 
 
Capital Expenditure 
 
 - Sustaining capital          US$               724      1,081             865    2,231 
                               ('000) 
 
 - Capitalised development     US$                 -          -               -        - 
                               ('000) 
 
                                                 724      1,081             865    2,231 
 
 - Non-cash reclamation asset  US$                79      1,586             (1)    3,007 
adjustments                    ('000) 
 
Total capital expenditure      US$               803      2,667             864    5,238 
                               ('000) 
 
1These are non-IFRS financial performance measures with no standard meaning 
under IFRS. Refer to "Non-IFRS measures" on page 28 for definitions. 
 
2Negative sales quantities relate to the reversal of sales recorded during Q1 
2017. 
 
Operating performance 
 
Gold production for the first half of 126,084 ounces was 57% higher than the 
comparative period in 2016 mainly due to a 50% increase in grade as a result of 
higher grade ore mined from the main ore zone at the bottom of the stage 3 pit 
in H1 2017 compared to the focus on waste movement in the first half of 2016 in 
order to mine the stage 3 pushback. This was further assisted by a 2% increase 
in mill recoveries due to improved mill availability and improved milling 
rates. 
 
Production during the quarter was comprised of 40,210 ounces of gold in 
concentrate and 26,027 ounces of gold in doré, amounting to a total of 80,202 
ounces gold in concentrate and 45,882 ounces gold in doré for the first half of 
the year. 
 
Gold sold for the year to date amounted to 53,094 ounces, 34% lower than H1 
2016 and 58% lower than production, a direct result of the inability to export 
concentrate from early March 2017 slightly offset by a higher production base 
compared to the comparative period. Sales ounces for the quarter also included 
a negative sales adjustment of 10,724 ounces due to reversals made for 
concentrate shipments previously sold but subsequently reversed due to the 
concentrate not being able to leave port. 
 
Copper production of 6.3 million pounds for the year to date was 28% higher 
than the comparative period mainly due to increased copper grades. Copper sold 
was 86% lower than H1 2016, primarily due to the lack of mineral concentrate 
exports. Negative copper sales pounds for the quarter in the main relate to 
781,423 pounds of copper concentrate, previously recorded as sales, but 
subsequently reversed due to the current export ban on mineral concentrates. 
 
Total tonnes mined of 9.6 million tonnes were 16% lower than H1 2016, primarily 
due to the focus of mining at the bottom of the pit in H1 which contains more 
ore tonnes compared to waste movement during H1 2016 resulting in 90% higher 
ore tonnes mined during the first half of 2017. 
 
Cash costs for the first half of US$697 per ounce sold were significantly lower 
than H1 2016 (US$1,052/oz), primarily driven by the impact of the higher 
production base (US$315/oz), lower sales related cost due to lower sales 
volumes (US$88/oz), lower consumable spend due to lower unit costs and 
optimisation of usage (US$115/oz). This was partly offset by lower co-product 
revenue in the form of copper concentrates (US$177/oz). As a result of the 
significant inventory credit resulting from the lack of sales, cash cost per 
tonne milled of US$17 per tonne was significantly lower than the previous 
period. 
 
AISC per ounce sold of US$770 was 31% lower than the H1 2016. This was mainly 
driven by lower cash costs as explained above (US$354/oz). Should we have been 
able to sell all ounces produced, AISC would have been approximately US$589 per 
ounce. 
 
Capital expenditure before reclamation adjustments of US$0.9 million was 61% 
lower than H1 2016 (US$2.2 million). Capital expenditure for the year to date 
consisted of the corrosion treatment of the process plant and investment in 
tailings storage facility. 
 
North Mara 
 
Key statistics 
 
                                        Three months ended 30         Six months ended 30 
                                                 June                        June 
 
(Unaudited)                                     2017       2016            2017      2016 
 
Key operational information: 
 
Ounces produced                oz             83,110    100,016         179,578   174,737 
 
Ounces sold                    oz             84,390     95,540         178,130   169,840 
 
Cash cost per ounce sold1      US$/oz            476        382             441       427 
 
AISC per ounce sold1           US$/oz            758        707             736       720 
 
Open pit: 
 
Tonnes mined                   Kt              3,896      4,120           7,750     7,234 
 
Ore tonnes mined               Kt                733        620           1,536     1,395 
 
Mine grade                     g/t               1.7        2.1             1.8       1.8 
 
Underground: 
 
Ore tonnes trammed             Kt                162         85             316       210 
 
Mine grade                     g/t               8.4       13.8             9.0      11.9 
 
Processing information: 
 
Ore milled                     Kt                709        705           1,419     1,436 
 
Head grade                     g/t               4.0        4.8             4.3       4.1 
 
Mill recovery                  %               92.3%      92.3%           92.5%     91.4% 
 
Cash cost per tonne milled1    US$/t              57         52              55        50 
 
Capital Expenditure 
 
 - Sustaining capital2         US$             5,921      7,703          12,177    10,081 
                               ('000) 
 
 - Capitalised development     US$            15,485     19,396          33,282    31,051 
                               ('000) 
 
 - Expansionary capital        US$             2,953        372           4,489       458 
                               ('000) 
 
                                              24,359     27,471          49,948    41,590 
 
 - Non-cash reclamation asset  US$             (180)      3,075            (56)     6,252 
adjustments                    ('000) 
 
Total capital expenditure      US$            24,179     30,546          49,892    47,842 
                               ('000) 
 
1These are non-IFRS financial performance measures with no standard meaning 
under IFRS. Refer to 'Non-IFRS measures" on page 28 for definitions. 
 
2 Includes land purchases recognised as long term prepayments 
 
Operating performance 
 
Gold production for the first half of 179,578 ounces was slightly higher than 
in H1 2016. This was a result of 5% higher head grade driven by the 
preferential processing of higher grade ore from the Nyabirama pit as well as 
continued high grades from the Gokona underground mine, combined with a 1% 
improvement in recoveries. Gold ounces sold for the year of 178,130 ounces were 
5% higher than the comparative period and broadly in line with production. 
 
Ore tonnes from underground mining were 50% higher in the first half, due to 
Gokona underground development providing access to more stopes compared to H1 
2016.  Cemented Aggregate Fill (CAF) continues to be placed in primary stopes, 
though further work is required on the plant to ensure that forecast fill 
volumes can be maintained. 
 
Cash costs of US$441 per ounce sold were 3% higher than H1 2016 (US$427/oz), 
mainly driven by higher direct mining costs due to increased labour, fuel and 
consumable costs (US$52/oz), partly offset by higher capitalised development 
cost (US$23/oz) and the higher production base (US$9/oz). 
 
AISC of US$736 per ounce sold was 2% higher than H1 2016 (US$720/oz) primarily 
due to higher cash costs (US$14/oz), higher capitalised development costs 
(US$13/oz) and higher sustaining capital expenditure (US$12/oz) offset by the 
impact of increased sales volumes (US$14/oz). 
 
Capital expenditure for the year before reclamation adjustments of US$49.9 
million was 20% higher than in H1 2016 (US$41.6 million). Key capital 
expenditure include capitalised stripping costs (US$25.9 million), capitalised 
underground development costs (US$7.4 million), capitalised drilling 
expenditure (US$4.5 million) and investment in mobile equipment and component 
change-outs (US$3.7 million). In addition, US$1.2 million was spent on land 
acquisitions primarily around the Nyabirama open pit. Land acquisition costs 
are included in capital expenditure above as they are included in AISC but are 
treated as long term prepayments on the balance sheet. 
 
Exploration Review 
 
Brownfield Exploration 
 
Tanzania 
 
Significant brownfield programmes and budgets were approved for 2017 for North 
Mara to undertake surface and underground drilling activities at Gokona, 
Nyabirama, and Nyabigena. Underground drilling also continues on the Reef 2 
series at Bulyanhulu to increase confidence in the resources and reserves in 
the Reef 2 Central area. 
 
North Mara 
 
Gokona Underground 
 
A total of 55 holes for 7,593 metres of extension and infill drilling were 
completed at Gokona underground during H1 2017. Significant drilling activity 
during H1 was focused on delineating the western extension of the "Golden 
Banana" (East Zone) lode mineralisation between the Gokona Fault and the 
completed Gokona open pit. Several wide and high grade intercepts were returned 
from this drill programme extending the previously modelled mineralisation 
including: 
 
  * UGKD00320         33.0m @ 38.2 g/t Au from 36m 
  * UGKD00321         31.0m @ 14.7 g/t Au from 31m 
  * UGKD00323         24.8m @ 133.5 g/t Au from 35m 
  * UKGC_00299      29.1m @ 10.1g/t Au from 83m 
  * UGKD_00303      26.0m @ 40.8g/t Au from 110m 
  * UKGC_00308      23.0m @ 42.7g/t Au from 121m 
 
Additionally, several high grade intercepts were returned adjacent to the 
Gokona Fault on the east side of the fault extending the previously modelled 
mineralisation in this area, including: 
 
  * UGKD_00113*     10.0m @ 10.4 g/t Au from 32m 
  * UKGC_00251*     25.0m @ 7.00g/t Au from 36m 
  * UGKD_00107*     24.0m @ 12.5g/t Au from 31m 
  * UKGC_00262*     19.4m @ 64.7g/t Au from 37m incl. 2m @ 453g/t Au from 45m 
  * UKGC_00260*     9.0m @ 59.9g/t Au from 46m incl. 3m @ 204g/t Au from 49m 
 
Note: * delineates results previously released in Q1 report 
 
In the second half of 2017, underground diamond core drilling will continue to 
test the deeper fault offset extension of the Gokona East mineralisation, test 
continuity of higher grade mineralisation beneath the existing open pit and 
immediately west of the Gokona Fault, commence drilling of the Gokona Central 
area below the open pit, and continue grade control drilling of Gokona West. 
The results from this drilling will be incorporated as part of the updating of 
the Mineral Resource Model in order to deliver increased confidence, additional 
mining areas in the upper part of the deposit; and confirm and define targets 
for on-going extensional diamond drilling. The planned programme will comprise 
of approximately 75,000 metres of drilling over the next two years, with 
approximately 45,000 metres to be drilled in 2017. 
 
Nyabirama 
 
The second stage of the surface diamond core drilling programme adjacent to the 
Nyabirama pit was completed in March, and a subsequent programme of infill 
drilling to approximately 50m drill spacing commenced and was ongoing at the 
end of H1 2017. A total of 22 holes for 12,985 metres were completed during H1 
2017. This drilling has been successful in delineating the down-dip and 
down-plunge extension of higher grade quartz-vein lode structures to a vertical 
depth of approximately 950m below surface and approximately 800m down-plunge to 
the south-west of the current open pit. 
 
Better results received during H1 included: 
 
  * NBD0147             3.0m @ 5.1 g/t Au from 397m, and 
                                 4.0m @ 9.1 g/t Au from 428m 
  * NBD0149A           3.0m @ 66.6 g/t Au from 873m incl. 1m @ 198g/t Au from 
    874m, and 
                                 5.0m @ 4.8 g/t Au from 890m 
  * NBD0152              6.0m @ 51.9 g/t Au from 592m incl. 1m @ 280g/t Au from 
    594m 
  * NBD0154              5.0m @ 4.5 g/t Au from 511m, 
                                  4.0m @ 4.6g/t Au from 537m, and 
                                  3.0m @ 6.5g/t Au from 546m 
  * NBD0157              4.0m @ 10.8g/t Au from 264m, 
                                  4.0m @ 26.7g/t Au from 325m, and 
                                  7.0m @ 9.50g/t Au from 464m 
  * NBD0158              11.5m @ 26.5g/t Au from 272m 
  * NBD0160              4.0m @ 4.30g/t Au from 149m, and 
                                  3.0m @ 13.1g/t Au from 230m 
 
The results of the infill programme will be incorporated into a Mineral 
Resource model to form the basis for further study on a potential underground 
development to further test the system and enable underground production by the 
time of the completion of the open pit in 2021. 
 
Nyabigena 
 
A total of 8 holes for 3,955 metres of the planned programme of approximately 
10,000m of surface diamond core drilling were completed during the first half 
of 2017 at Nyabigena. This programme was designed to test the continuity of 
mineralisation and structural framework below the existing open pit. Initial 
results returned broad zones of low grade gold mineralisation with narrow 
restricted higher grade zones, but also confirmed some of the interpreted 
structural offsets. The programme was suspended in the latter part of H1 to 
focus on surface drilling in higher priority areas and reduce overall site 
expenditure. The drilling results will be incorporated into an updated 
geological model and Mineral Resource estimate in due course. 
 
Bulyanhulu 
 
Reef 2 Central 
 
Underground diamond core drilling in H1 2017 was primarily focused on infill 
drilling of Reef 2 to increase the level of confidence in the Mineral Resource, 
and testing the Reef 1 structure in areas where limited to no historic drill 
testing has been undertaken. A total of 117 underground diamond drill core 
holes were completed for 30,412 metres during H1 2017, testing both the Reef 1 
and Reef 2 structures. 
 
In order to increase the understanding of the Reef 2 series of veins, tighter 
spaced definition drilling (50m x 50m grid) commenced in 2016 from existing 
underground development platforms in the "Reef 2m Central" area. The drilling 
coverage tested an area of approximately 570m vertical and 600m in strike 
length. 
 
Based on the results received to date the Reef 2m Central vein is displaying 
good continuity and has extended the mineralisation a further 100m vertically, 
and a further 150m in strike. There is a notable average grade increase of 
approximately 25% for the drilled area. Implications from all the drilling to 
date is that the overall tonnes in the resource may go down slightly but there 
is an overall grade increase and subsequent ounce increase. 
 
Definition drilling will continue in H2 2017 across the Reef 2m Central in 
order to define the economic limits along strike and confirming the lower 
vertical limit. Better results during the period, all true width, include: 
 
  * UX3980- 744        3.99m @ 54.0g/t Au 
  * UX3980- 734        5.22m @ 17.1g/t Au 
  * UX3980- 769        3.44m @ 23.7g/t Au 
  * UX3980- 729        2.86m @ 23.1g/t Au 
  * UX4130- 322        3.16m @ 36.6g/t Au 
  * UX4130- 324        3.80m @ 15.8g/t Au 
 
Greenfield Exploration 
 
Kenya 
 
West Kenya Project 
 
During H1 2017, we announced the maiden NI 43-101 compliant Inferred Mineral 
Resource Estimate (MRE) on the Liranda Corridor, within our West Kenya Project. 
The Inferred MRE of 3.46 million tonnes at 12.1 grams per tonne for 1.31 
million ounces is primarily located on three main zones of mineralisation at 
the Acacia prospect. The gold mineralisation at Acacia is associated with shear 
zones ranging in width from 0.5 metres to 10 metres (averaging 3 metres true 
width, dependent on the zone), hosted by a mafic volcanic sequence. The strike 
lengths of the explored sections of the main mineralised zones at Acacia vary 
between 200m and 600m and the resource is currently defined down to a vertical 
depth of 750m with the structures open down plunge. 
 
In addition, we identified mineralised zones on the Bushiangala prospect, 
approximately one kilometre away from the Acacia prospect, but at this stage 
this material remains unclassified due to drill density and the need to further 
understand the controls on the mineralisation and its continuity. Recent 
results from the Bushiangala prospect include: 3.0m @ 14.0 g/t Au from 386m, 
1.0m @ 18.4 g/t Au from 389m and 5.0m @ 4.13 g/t Au from 304m. Based on the 
work undertaken up to February 2017, the current scale of the mineralisation at 
Bushiangala is between 0.60Mt and 1.60Mt at a grade between 6.0g/t Au and 10.0g 
/t Au, for a metal target of between 190,000 ounces and 300,000 ounces of 
contained gold. A key element of the 2017 drilling programmes at Bushiangala is 
to both move this existing target mineralisation into the Inferred Resource 
category and to expand the scale of the targeted mineralisation. 
 
During H1 2017, a total of 68 diamond holes were completed or were underway at 
period end for 33,420 metres, with seven diamond core drill rigs drilling on 
various prospects. Current drilling on the Acacia prospect is targeting a 
significant expansion to the resource through testing up and down plunge 
extensions, as well as, infill drilling in areas of structural complexity and 
areas that previously returned lower grade results. 
 
Drilling during H1 continued to intersect significant high grade results, 
however at the end of June we had approximately 23 holes with assays pending 
due to the need to send samples to South Africa rather than to Tanzania, due to 
impact of the current export ban. As a result, the majority of the results 
received during the period are from the first quarter, although visible gold 
has been seen in 8 of the 23 holes with assays pending. Better results received 
during H1 are: 
 
  * LCD0128* - 4.0m @ 33.9g/t Au from 302m, 4.2m @ 19.0g/t Au from 552m, and 
    2.5m @ 76.7g/t Au from 577m, 
  * LCD0130* - 3.1m @ 14.1 g/t Au from 197m, 
  * LCD0132* - 1.3m @ 65.6g/t Au from 301m and 4.7m @ 14.0g/t Au 
    from              446.5m, 
  * LCD0133* - 0.5m @ 97.2g/t Au from 585.5m and 3.3m @ 10.9g/t Au from 753.7m, 
  * LCD0135* - 3.3m @ 33.0g/t Au from 664.9m and 0.5m @ 25.0g/t Au from 687m, 
  * LCD0138* - 1.0m @ 26.0g/t Au from 200m and 2m @ 22.6g/t Au from 214m, 
  * LCD0146* - 2.5m @ 28.5g/t Au from 270.7m, 
  * LCD0150* - 1.8m @ 7.56g/t Au from 457.2m and 6.0m @ 6.40g/t Au from 558m, 
  * LCD0152* - 6.8m @ 12.7g/t Au from 211.7m, 
  * LCD0155 - 1.0m @ 18.4g/t Au from 389m and 1.0m @ 9.44 g/t Au from 399.2m, 
  * LCD0156 - 3.0m @ 9.32g/t Au from 1067.9m, 
  * LCD0160 - 3.0m @ 14.0g/t Au from 386m. 
 
Note: * - holes reported during Q1 2017 
 
The current drill programme consists of approximately 48,000 metres of diamond 
core drilling, planned to be completed during Q3 2017, with the objective of 
increasing the Acacia Prospect Inferred resource, producing an initial Inferred 
resource on the Bushiangala Prospect, and testing nearby prospects east of the 
Acacia Prospect, namely the Shigokho and Shibunane Prospects. We are targeting 
a significant increase in the resource to 2 million ounces prior to the end of 
2017. We also plan to commence a scoping study looking at the potential for an 
underground mining operation during H2 2017. 
 
Burkina Faso 
 
During H1 2017 we continued to explore our properties in the highly prospective 
Houndé Belt in southwest Burkina Faso. Acacia currently has four joint ventures 
and an interest in over 2,700km2 of prospective greenstone belt. Acacia 
manages all of the joint ventures. A major component of H1 2017 work 
programmes, apart from drilling, was to review the structural architecture of 
land holding and complete a target generation exercise using airborne 
aeromagnetic and radiometric data and ground IP geophysical data where 
available; these target generation layers are now being used with our surface 
geochemical data layers to develop priority drilling targets, and to date we 
have delineated more than 65 targets warranting follow-up by either mapping or 
reconnaissance drilling. 
 
South Houndé Joint Venture - current ownership 50%, next stage earn-in to 70% 
 
At the South Houndé JV project we continued field-based exploration activities 
focused both on resource extensions to the Tankoro Resource and regional 
exploration programmes searching for new discoveries. Acacia has taken over 
management of the South Houndé JV and all field activities as of 1st January. 
During H1 2017 work continued to focus on the Tankoro Resource area (MM and MC 
Zones), the Tankoro Corridor prospects (Tankoro SW, Guy, Phantom and Phantom 
East) and regional targets (Ouangoro, Tyikoro, Poyo/Werienkera and Bini West). 
A total of 462 Aircore (AC) holes were drilled for a total of 26,957 metres and 
18 RC/Diamond holes were drilled for a total of 5,740m. In addition to this, 
rock chips (180) and termite mound (97) samples were collected on regional 
targets. 
 
Tankoro - MM and MC Zones 
 
During H1 we continued a programme of drilling to test the down-plunge 
extensions of higher grade gold mineralisation related interpreted cross 
structures at the MM and MC Zones within the Tankoro resource. A "results 
based" phased strategy has been adopted "cycling" the rig between the 
Chewbacca, Yoda, Anakine and Jabba zones within the MM and MC parallel 
mineralised zones.  All holes drilled to date have intersected the targeted 
porphyries and cross structures, however, in the majority of cases the 
high-grade shoots are either lower grade than expected, or of shorter strike 
extend that expected. The best potential at this stage appears to be depth 
extensions on the MC Zone where drilling has identified multiple mineralised 
porphyries and gold mineralisation in the surrounding intercalated sediments. 
 
Better results from MM and MC Zone included: 
 
  * FRC1070 - 11.35m @ 3.50g/t Au from 397.5m including 6.5m @ 5.02g/t Au 
  * FRC1071 - 4.1m @ 3.35g/t Au from 511.6m including 1.5m @ 8.28g/t Au 
  * FRC1072 - 3.65m @ 3.01g/t Au from 533.2m including 1.1m @ 7.38g/t Au 
  * FRC1075 - 6.86m @ 6.83g/t Au from 173.15m including 2m @ 18.8g/t Au, and 
    3.35m @ 8.17g/t Au from 236.5m 
  * FRC1076 - 3.2m @ 22.5g/t Au from 231m 
 
The current phase of diamond core and RC drilling continues to target 
interpreted high grade domains associated with cross-structures and is applying 
the learnings from the initial holes. Results from more recent drilling are 
pending and expected to be received during early H2 2017. 
 
Tankoro Corridor - Phantom, Phantom East, Guy and Southwest Extensions 
 
RC and diamond core drilling on the Tankoro Corridor targeting the northeast 
extension of the mineralised system at the Phantom and Phantom East prospects 
was ongoing at the end of H1, with potential mineralised zones, associated with 
sericite-pyrite-arsenopyrite alteration, observed in holes from both prospects. 
We also completed a single diamond hole at the Guy Prospect, with the hole 
cutting approximately 40m of sericite-carbonate+/-sulphide alteration and 
varying intensity of quartz veining. In the far south west of the Tankoro 
Corridor we also commenced a programme of regional Aircore drilling following 
up large areas of gold-in-soil geochemistry associated with IP chargeability 
anomalies. At the end of the period, assay results for the various Tankoro 
Corridor programmes were still pending due to a backlog of more than one month 
in the Burkina Faso assay lab. Results are expected to be received throughout 
Q3 2017. 
 
Ouangoro Anomaly 
 
Aircore drilling commenced at the beginning of February on the Ouagoro Anomaly 
with the plan to drill 19 regional 1km spaced traverses across a 15-20 
kilometre x 4 kilometre zone of semi-continuous gold-in-soil anomalism along 
several interpreted NNE-trending linear geophysical features. To date 10 
traverses have been drilled for 11,490 metres, with results for first eight 
traverses being received at period-end. Positive results have been returned 
from all traverses including better results of: 
 
  * 20m @ 0.67g/t Au from 28m (including 2m @ 3.09g/t Au), 
  * 8m @ 0.86g/t from surface (including 2m @ 2.32g/t Au), 
  * 18m @ 0.61g/t Au from 6m (including 4m @ 1.69g/t Au), 
  * 2m @ 1.80g/t Au from 22m, 
  * 6m @ 1.04g/t Au from 78m, 
  * 4m @ 1.34g/t Au from 30m, 
  * 12m @ 1.73g/t Au from 42m 
 
Gold mineralisation and anomalism in drill chips, and observed in artisanal 
workings, is typically associated with quartz veins in sheared siltstone and 
sandstone units intruded by interpreted quartz-feldspar porphyries, with 
fresher drill chips show carbonate and silica-sericite alteration. Regionally 
the anomalous gold zones intersected in Aircore drilling occur on interpreted 
020-trending shear zones. It is anticipated that infill Aircore drilling (200m 
and 400m spaced lines) will be completed as phase 2 of the programme during H2 
2017 and H1 2018, once all results are received and interpreted. 
 
Central Houndé Joint Venture - current ownership 51%, next stage earn-in to 80% 
 
Surface geochemical sampling undertaken over the past 24 months has identified 
several very encouraging zones of gold anomalism coincident with the 
interpreted NE-trending Legue-Bongui structural corridor, including an 8km x 
2km anomalous gold zone. Additional interpretative work has identified 35 
targets associated with mapped alteration, artisanal sites, mineralised rock 
chips and/or pathfinder geochemistry (arsenic, molybdenum etc) warranting 
follow-up. 
 
Work during the H1 included mapping and lithological sampling, infill soil 
sampling, multi-element analysis, RC drilling and a structural interpretation 
using all available datasets. During the half, a total of 596 soil samples and 
43 rock chips were collected. During the mapping a number of west-north west 
trending mineralised structures were identified in the Legue NW Corridor, and 
rock chips taken along these structures returned a number of significant 
results. In total 21 of 49 rock chip samples returned assays >0.1g/t up to 
77.4g/t gold, including assays of 5.95g/t, 19.1g/t, 28.1g/t, 62.8g/t and 77.4g/ 
t. The anomalous rock chip samples are associated with shear mafic volcanic 
rocks and boudinaged quartz vein zones. RC drilling in the Legue NW Corridor to 
test these anomalous rock chip zones commenced early June and at the end of H1 
a total of 9 RC holes for a total of 1,421 metres had been completed. Once all 
results have been received and this phase of the drilling programme has been 
completed we will assess what is required for phase 2 of the programme. 
 
Pinarello & Konkolikan Joint Venture (Canyon Resources Limited) - current 
ownership 75%, potential to earn 100% 
 
Surface geochemical sampling undertaken over the past 2 years has identified 
several very encouraging zones of gold anomalism coincident with the 
interpreted structural corridors, magnetic features and surface IP geophysical 
anomalies. During the quarter we completed a structural targeting exercise, 
reviewed the surface gold anomalies from soil sampling, and undertook 
multi-element geochemical analysis, using a portable XRF, of all samples from 
the regional soil sampling programmes. As a result of this targeting exercise 
we delineated 28 targets across the Pinarello project area, and we commenced 
field validation, geological mapping and further surface sampling programmes on 
priority target areas. 
 
We continue to follow up the previous season's surface geochemical and Aircore 
drilling programs at Pinarello. A total of 421 Aircore holes for an aggregate 
of 23,089 metres were completed on the Tankoro Corridor SW extension, Gaghny, 
Tangalobe, Dafala and Dopala prospects. More significant results from 2016 / 
2017 Aircore drilling campaigns were followed up with 37 RC holes for an 
aggregate of 5,803 metres. While not all results are available yet, results 
received to date are mixed with only a small number of significant gold 
intercepts warranting further follow-up. 
 
Results from Aircore drilling along the Tangaloble and Tankoro Corridors is 
considered positive with better results of: 3m @ 0.77g/t from 29m; 3m @ 0.72g/t 
Au from 5m; 4m @ 1.64g/t Au from 49m; 2m @ 6.0g/t Au from 57m; 6.0m @ 1.18 g/t 
Au from 14.0m, including 2.0m @ 3.09 g/t Au from 14.0m; 4m @ 0.68g/t Au from 
20m, and 8m @ 0.52g/t Au from 14m mostly associated with quartz veins, oxidised 
sulphides and haematite. 
 
Results from RC drilling at Gaghny and Tangalobe returned a number of anomalous 
intercepts associated with sericite-fuchsite-carbonate altered sediments and 
quartz veins-sericite-heamatite altered sediments respectively. Better 
intercepts include: 2.0m @ 0.61g/t Au from 99m and 1m @ 3.07g/t Au from 106m; 
1m @ 3.24 g/t Au from 92m; 13.0m @ 1.06 g/t Au from 136m and 5.0 m @ 0.68 g/t 
Au from 141m; 1m @ 4.85 g/t Au from 1m and 10m @ 0.44 g/t Au from 52m. 
 
Acacia has now earned 75% equity in the project and we have therefore entered 
the contributory/dilution phase of the JV agreement. Canyon Resources, our 
joint venture partner has elected to dilute, and the current programmes will 
increase Acacia's equity to approximately 89%. Programmes for H2 2017 include 
RC drilling, Aircore drilling, geological mapping, prospect reviews, further 
infill soil sampling and trenching. 
 
Frontier JV - earning 100% through option payments 
 
Regional regolith and geological mapping has been completed for both licences. 
A regional 800m x 400m reconnaissance BLEG soil sampling programme, combined 
with termite mound, rock chip and quartz lag sampling programmes has been 
completed. This work has identified a number of significant large scale 
gold-in-soil anomalies (soils up to 3g/t Au). A 200m x 200m infill commenced 
but has yet to be completed. A total of 6,035 soil, 44 rock chip and 1,043 
termite samples were collected during H1 2017. In addition to this a detailed 
structural magnetic interpretation and targeting exercise has been completed. 
This interpretation integrated geological and regolith mapping, Landsat, Aster 
and recently acquired high resolution airborne magnetic and radiometric data. A 
number of high quality targets have been selected for reconnaissance Aircore 
drilling. During H2 2017 work will comprise data collation and interpretation, 
infill soils sampling, multi-element work and reconnaissance Aircore drilling 
of high priority coincident geochemical and structural/magnetic targets. 
 
Mali 
 
In Mali we continued to delineate surface gold-in-soil anomalies, already 
defined in late 2016, through mapping and surface IP geophysical surveys, and 
commenced drilling programmes on the resultant targets. At the same time, we 
continued to build our land position in the Senegal-Mali Shear Zone (SMSZ) with 
a the grant of a further two land packages, one under joint venture (Bou Bou) 
and the other 100% Acacia (Gourbassi), Acacia now holds 5 exploration permits 
covering 191km2 on the SMSZ. 
 
Tintinba - Bane Project - earning 95% through option payments 
 
The Tintinba-Bane Project consists of three permits covering approximately 
150km2. These properties are located within the Kénéiba Inlier of Western Mali, 
along the world class Senegal-Mali-Shear-Zone (SMSZ), which hosts more than 50 
million ounces of gold endowment. During the half, a ground-based gradient 
array induced polarisation geophysical survey was completed (31 line km) and 
interpreted. Results from IP, soils, drilling and mapped and interpreted 
geology have been used to refine existing and define new targets for drill 
testing. At least 25 targets with co-incident IP chargeability, resistivity, 
and surface gold-in-soil anomalism have been identified. 
 
RC drilling commenced in mid-March 2017 aimed at testing around 18 targets in 
total with single drill fences to test for gold mineralisation and to 
understand the geology and alteration of each target in order to rank these 
targets moving forward. A total of 54 RC holes for 7,260 metres and 2 diamond 
drill holes for 206 metres were drilled. Drilling to date can be considered 
very positive as 5 of the 9 gold anomalies where results have been received 
have returned positive gold. Assay results are still pending for a number of 
drill traverses, but better higher grade results returned to date include; 4m @ 
18.7g/t and 4m @ 5.62g/t, and regionally significant drill results returning 
broad zones of gold anomalism include; 13m @ 1.11g/t, 15m @ 0.50g/t, 13m @ 
0.50g/t, 25m @ 0.45g/t including 7m @ 1.01g/t, 17m @ 0.71g/t and 19m @ 0.55g/t. 
 
Given the discovery history of several >3Moz deposits in the SMSZ, these 
results and the associated alteration on essentially single RC fences, across 
large-scale gold-in-soil anomalies can be considered very significant and 
warrant follow-up drilling. 
 
Bourdala JV - earning 100% through option payments 
 
The Boudala JV is a joint venture with a local company over the Bou Bou licence 
located approximately 15km from the centroid of the Tintinba JV further to the 
south. The property is located within the central portion of the 
Kedougou-Kenieba Inlier and just to the east of the highly prospective 
Senegal-Mali Shear Zone. Acacia can earn up to 100% of the project through a 
series of staged payments over a period of 36 months. 
 
During H1 2017, six RC holes for 800 metres were completed across the Boubou 
Artisanal Prospect on the Bourdala JV licence. These returned highly anomalous 
results including: BORC005: 64m @ 0.23g/t from 10m, BORC004: 26m @ 0.31g/t from 
72m and 26m @ 0.58g/t from 104m. These results are encouraging given that the 
results occur in consecutive holes on the drill traverse and define a 50 metre 
wide zone of gold anomalism, within a 2km long artisanal site, and hole BORC005 
ended in mineralisation. 
 
Gourbassi Est - 100% 
 
During H1 2017, the Gourbassi Est convention was signed and arête for the 
licence was received. The licence is located immediately west of the Tintinba/ 
Bane Project in the central Senegal Mali Shear Zone area of the 
Kedougou-Kenieba Inlier. The property is located to the west of the SMSZ in an 
area dominated by footway splays to the SMSZ. The programme for H2 2017 is to 
review the historic data and complete mapping and surface sampling programmes. 
Dependent on results of this first pass work we would complete RC and/or 
diamond core drilling during H1 2017. 
 
Tanzania 
 
Nyanzaga Joint Venture 
 
During the period, OreCorp Limited published the results of the Pre-Feasibility 
Study ("PFS") on the Nyanzaga Project. The PFS, led by Lycopodium Minerals Pty 
Ltd of Perth, Western Australia, delivered an optimal development scenario of a 
4Mtpa concurrent open pit ("OP") and underground ("UG") operation for 
pre-production capital costs estimate of US$287M, which includes a US$33M 
contingency. The concurrent mining schedule significantly reduced the low grade 
stockpiling scenario considered in the Scoping Study and increased the OP 
contained ounces and life of mine ("LOM") average mineralised material grade 
processed from 1.9 g/t gold in the Scoping Study to 2.0 g/t (+5%). Based on the 
PFS, the Project is expected to deliver an average gold production of 213koz 
per annum over a 12 year LOM, peaking at 249koz in Year 3 and totalling 
approximately 2.56Moz of gold produced over the LOM. The AISC and AIC are 
estimated to be US$838/oz and US$858/oz respectively over the LOM. Acacia and 
OreCorp have agreed the scope of the Definitive Feasibility Study ("DFS") and 
this commenced in the second quarter. 
 
OreCorp and Acacia continue to review and seek advice on the impact of the new 
legislation in Tanzania on the Nyanzaga Project. OreCorp has published an 
analysis of their preliminary view of the impact of the legislation which can 
be found on their website (www.orecorp.com.au) and indicates that the 
legislation may potentially have an adverse effect on the Nyanzaga Project. We 
note that regulations, which will assist the understanding of the 
implementation of the legislation, are not yet available and will be reviewed 
once they are. 
 
Financial Review 
 
The impact of the gold/copper concentrate export ban is evident in our 
financial performance, and most notably in cash flow generation. However, in an 
effort to minimising the impact, we have further increased our focus on cost 
control and capital allocation. The key aspects of our financial performance 
over the first half of 2017 is summarised below, and should be read in 
conjunction with the consolidated condensed interim financial information: 
 
  * Revenue of US$391.7 million was US$113.3 million lower than H1 2016 driven 
    by the 22% decrease in sales volumes mainly as a result of our inability to 
    sell gold/copper concentrate which deferred approximately US$175 million in 
    gross revenue. 
  * Cash costs decreased to US$577 per ounce sold in the first half of 2017 
    from US$640 per ounce sold in H1 2016, driven by the higher production 
    base, lower sales related costs, higher capitalisation of development costs 
    and lower consumables costs, partly offset by lower co-product revenue and 
    increased contracted services costs. 
  * AISC at US$893 per ounce sold was 5% lower than in H1 2016 (US$941 per 
    ounce sold), mainly due to lower cash costs and non-cash share based 
    payment revaluation credits, partly offset by lower sales volumes despite 
    the higher production base. 
  * As a result of the above and in combination with higher exploration 
    charges, EBITDA decreased by 13% to US$161.4 million. 
  * Lower tax expense of US$37.0 million compared to the prior year expense of 
    US$107.7 million. The current year charge is driven by year to date 
    profitability mainly from North Mara, while the prior year expense included 
    the recognition of US$70 million of tax provisions relating to prior year 
    tax disputes. 
  * As a result of the above, net earnings amounted to US$62.5 million, 
    compared to a loss of US$6.1 million in H1 2016. 
 
  * Adjusted net earnings of US$65.9 million were US$7.1 million higher than H1 
    2016. Adjusted earnings per share amounted to US16.1 cents, up from US14.3 
    cents in H1 2016. 
      + Operational cash flow of US$1.3 million decreased from H1 2016, 
        primarily as a result lower revenue as discussed above, unfavourable 
        working capital outflows due to a build-up of gold inventory and 
        supplies, an increase in indirect taxes receivable, and payments of 
        US$26.7 million relating to prepaid and provisional corporate tax. 
 
The following review provides a detailed analysis of our consolidated results 
for 6 months ended 30 June 2017 and the main factors affecting financial 
performance. It should be read in conjunction with the unaudited consolidated 
financial information and accompanying notes on pages 36 to 58, which have been 
prepared in accordance with International Financial Reporting Standards as 
adopted for use in the European Union ("IFRS"). 
 
Revenue 
 
Revenue for H1 2017 of US$391.7 million was US$113.3 million lower than H1 2016 
due to a 22% decrease in gold sales volumes from Bulyanhulu and Buzwagi (88,525 
ounces) offset by a 5% increase in sales ounces from North Mara and a 2% 
increase in the average net realised gold price from US$1,209 per ounce sold in 
H1 2016 to US$1,235 in H1 2017. 
 
The decrease in revenue during the first half of 2017 was primarily driven by 
the ban on export of mineral concentrates which also resulted in a negative 
sales adjustment of 18,204 ounces, approximately US$22.0 million in revenues, 
due to reversals made for concentrate shipments sold in Q1 2017 due to the 
concentrate not being able to leave port. 
 
The net realised gold price for the year to date of US$1,235/oz was US$3/oz 
lower than the average market price of US$1,238/oz due to the timing of sales. 
There were no realised losses related to gold hedges during H1 2017. 
 
Included in total revenue is co-product revenue of US$5.8 million for the 2017 
year to date, 71% lower than the prior period (US$20.3 million), this as a 
result of the lack of concentrate sales from early March 2017. The 2017 half 
year average realised copper price of US$2.99 per pound compared favourably to 
that of H1 2016 (US$2.13 per pound), and was mainly driven by the higher market 
price for copper. The benefit of a higher copper price is however not reflected 
in H1 2017 revenues due to a 83% decrease in copper sales volumes. Included in 
co-product revenue is a negative sales adjustment of 1.1 million copper pounds, 
approximately US$3.0 million in revenues, due to reversals made for concentrate 
shipments sold in Q1 2017 but subsequently reversed due to the concentrate not 
being able to leave port. 
 
The impact of the ban during the first half of the year has meant that we have 
approximately 127,000 ounces of gold contained in unsold concentrate. In 
addition, we have approximately 8.3 million pounds of copper and 107,000 ounces 
of silver contained in unsold concentrate. If these have been sold, gross 
revenue and cashflow would have increased by approximately US$175 million. 
 
Cost of sales 
 
Cost of sales was US$244.0 million for H1 2016, representing a decrease of 31% 
on the prior year period (US$355.4 million). The key aspects impacting the cost 
of sales for the year include an 32% reduction in direct mining costs, 
primarily driven by higher capitalised mining costs including a credit of 
approximately US$63.3 million relating to a build-up of finished gold ounces, 
combined with lower depreciation and amortisation costs as a result of the 
lower production base at Bulyanhulu, lower sales related cost due to lower 
sales volumes and minimal realised losses on economic hedges due to majority of 
options reaching their settlement date during 2016. 
 
The table below provides a breakdown of cost of sales: 
 
                                   Three months ended 30 June       Six months ended 30 
(US$'000)                                                                  June 
 
(Unaudited)                                   2017        2016        2017          2016 
 
Cost of Sales 
 
Direct mining costs                         61,527     118,535     160,310       234,436 
 
Third party smelting and refining            1,417       6,782       6,738        13,639 
fees 
 
Realised losses on economic hedges             170       2,539         278         6,454 
 
Royalty expense                              8,040      12,517      18,682        22,534 
 
Depreciation and amortisation*              23,417      43,166      57,959        78,376 
 
Total                                       94,571     183,539     243,967       355,439 
 
* Depreciation and amortisation includes credits relating to the depreciation 
component of the cost of inventory build-up of US$12.8 million for Q2 2017 (Q2 
2016: US$0.9 million) and US$15.8 million for H1 2017 (H1 2016: US$5.7 
million). 
 
A detailed breakdown of direct mining expenses is shown in the table below: 
 
                                      Three months ended 30 June    Six months ended 30 
(US$'000)                                                                   June 
 
(Unaudited)                                    2017         2016         2017       2016 
 
Direct mining costs 
 
Labour                                       23,859       21,728       47,261     43,789 
 
Energy and fuel                              21,161       21,387       44,604     41,875 
 
Consumables                                  22,262       26,482       47,168     52,939 
 
Maintenance                                  26,357       27,494       52,123     53,735 
 
Contracted services                          33,483       33,829       69,497     62,383 
 
General administration costs                 21,788       22,362       42,309     43,085 
 
Gross direct mining costs                   148,910      153,282      302,962    297,806 
 
Capitalised mining costs                   (87,383)     (34,747)    (142,652)   (63,370) 
 
Total direct mining costs                    61,527      118,535      160,310    234,436 
 
Gross direct mining costs of US$303.0 million for H1 2017 were 2% higher than 
H1 2016 (US$297.8 million). The overall increase was driven by the following: 
 
  * An 11% increase in contracted services mainly at Bulyanhulu due to higher 
    costs associated to underground drilling combined with higher underground 
    metres drilled, increased service cost for power generation and contractors 
    employed as part of various mine projects; 
  * An 8% increase in labour cost, mainly as a result of production bonuses 
    paid out at North Mara and Buzwagi; and 
  * A 7% increase in energy and fuel expenses driven by higher tonnes mined at 
    North Mara resulting in higher costs relating to fuel and lubricants. 
 
This was offset by: 
 
  * A 11% decrease in consumables costs mainly at Buzwagi due to lower reagents 
    and chemicals costs as a result of lower cyanide usage, lower grinding 
    media costs driven by the optimised usage of grinding balls, lower 
    explosives costs driven by improved blasting practice combined with lower 
    processing consumables used at Bulyanhulu driven by lower tonnes processed 
    as well as efficient usage of reagents; and 
  * A 3% decrease in maintenance costs mainly at Bulyanhulu due to reduced 
    maintenance activity and changes to the maintenance schedules showing 
    continued benefits from planned maintenance activities. 
 
Capitalised direct mining costs, consisting of capitalised development costs 
and investment in inventory is made up as follows: 
 
                                       Three months ended 30 June    Six months ended 30 
(US$'000)                                                                    June 
 
(Unaudited)                                     2017         2016         2017       2016 
 
Capitalised direct mining 
costs 
 
Capitalised development                     (25,962)     (30,210)     (56,530)   (51,369) 
costs 
 
Investment in inventory                     (61,420)      (4,537)     (86,122)   (12,001) 
 
Total capitalised direct                    (87,382)     (34,747)    (142,652)   (63,370) 
mining costs 
 
Capitalised development costs were 125% higher than H1 2016, primarily driven 
by a build-up of concentrates in gold ounces at Bulyanhulu and Buzwagi 
resulting in an investment in inventory of US$86.1 million. The increase in 
capitalised development cost mainly relate to higher gross direct mining cost 
at North Mara resulting in 10% higher capitalised development during H1 2017. 
 
Central costs 
 
Total central costs amounted to US$4.7 million for H1 2017, a 84% decrease on 
H1 2016 (US$29.4 million) mainly driven by a non-cash share based payment 
revaluation credit as a result of the lower share price and share price 
performance compared to 2016, specifically when compared to our peers and the 
global mining index, impacting on the valuation of future share-based payment 
liabilities to employees. Acacia's share price decreased by approximately 31% 
compared to December 2016. This was partly offset by a 28% increase in 
corporate administration costs as a result of higher legal and consulting fees 
paid, slightly offset by lower labour cost across all offices during H1 2017. 
 
                                     Three months ended 30 June      Six months ended 30 
(US$'000)                                                                    June 
 
(Unaudited)                                   2017         2016        2017           2016 
 
Corporate administration                     5,878        4,469      12,520          9,771 
 
Share-based payments                      (18,209)       15,697     (7,785)         19,635 
 
Total central costs                         12,331       20,166       4,735         29,406 
 
Exploration and evaluation costs 
 
Exploration and evaluation costs of US$16.2 million were incurred in H1 2017, 
45% higher than the US$11.2 million spent in H1 2016. The key focus areas for 
the half year were greenfield exploration programmes in West Kenya amounting to 
US$8.0 million and greenfield exploration programmes in West Africa amounting 
to US$7.2 million. 
 
Corporate social responsibility expenses 
 
Corporate social responsibility costs incurred for H1 2017 amounted to US$3.7 
million compared to the prior year of US$4.6 million. Corporate social 
responsibility overheads and central initiatives in H1 2017 amounted to US$2.3 
million and was higher compared to US$2.1 million in H1 2016. General community 
projects funded from the Acacia Maendeleo Fund amounted to US$1.4 million, 
which was US$1.2 million lower than in H1 2016, driven by the timing of 
projects starting. 
 
Other charges 
 
Other charges in H1 2017 amounted to US$19.6 million, compared to an income of 
US$2.2 million in H1 2016. The main contributors include foreign exchange 
losses of US$4.6 million, legal costs of US$4.6 million mainly relating to 
legal representation on historical court cases, retrenchment costs of US$3.3 
million and Acacia's ongoing programme of zero cost collar contracts to 
mitigate the negative impact of copper, rand and fuel market volatility, which 
resulted in a mark-to-market revaluation loss of US$2.4 million (as these 
arrangements do not qualify for hedge accounting these unrealised gains are 
recorded through profit and loss). The charges were partly offset by income of 
US$1.8 million generated through the sale of a mineral royalty previously held 
by Acacia. 
 
Finance expense and income 
 
Finance expense of US$5.5 million for H1 2017 was in line with H1 2016 (US$5.4 
million). The key components were borrowing costs relating to the Bulyanhulu 
CIL facility (US$1.6 million) which were lower than the prior year due to a 
lower outstanding facility following repayments, lower accretion expenses of 
US$1.7 million relating to the discounting of the environmental reclamation 
liability and US$1.5 million relating to the servicing of the US$150 million 
undrawn revolving credit facility. Other costs include bank charges and 
interest on finance leases. 
 
Finance income relates predominantly to interest charged on non-current 
receivables and interest received on money market funds. Refer to note 8 of the 
condensed financial information for details. 
 
Taxation matters 
 
The total income tax charge was US$37.0 million compared to the prior year 
expense of US$107.7 million. The current tax charge of US$31.8 million (H1 
2016: US$64.4 million) was predominantly made up of current year income tax for 
North Mara, driven by year to date profitability, in combination with deferred 
tax charges of US$5.2 million (2016: US$43.3 million) which reflects movements 
in temporary differences. The tax expense for H1 2016 of US$107.7 million 
included US$69.9 million relating to tax provisions raised for historical tax 
disputes. The effective tax rate in H1 2017 amounted to 37% compared to 106% in 
H1 2016. 
 
During H1 2017, we made provisional corporate tax payments of US$17.3 million 
relating to North Mara, which is based on the pro rata portion of North Mara's 
expected full year profitability. These provisional corporate tax payments have 
been offset against the indirect tax receivable covered under the Memorandum of 
Settlement entered into with the Tanzanian Government in 2011, and as a result, 
were not paid in cash. In addition, during H1 2017 we have also made a prepaid 
tax payment of US$9.5 million relating to a advance payment on a dispute raised 
on claimed historical North Mara taxes, which was paid in cash. 
 
Net earnings and earnings per share 
 
As a result of the factors discussed above, net earnings for H1 2017 were 
US$62.5 million, against the prior year loss of US$6.1 million. 
 
Earnings per share for H1 2017 amounted to US15.3 cents, an increase of US16.8 
cents from the prior year loss per share of US1.5 cents. The increase was 
driven by the higher earnings, with no change in the underlying issued shares. 
 
Adjusted net earnings and adjusted earnings per share 
 
Adjusted net earnings for the first half was US$65.9 million compared to 
US$58.8 million in H1 2016. Net earnings in the periods as described above have 
been adjusted for the impact of items such as prior year tax provisions, 
discounting of indirect tax receivables, restructuring costs, insurance 
proceeds as well as legal settlements. Refer to page 30 for reconciliation 
between net profit and adjusted net earnings. 
 
Adjusted earnings per share for H1 2017 amounted to US16.1 cents, an increase 
of US1.8 cents from H1 2016 adjusted earnings per share of US14.3 cents. 
 
Financial position 
 
Acacia had cash and cash equivalents on hand of US$175.9 million as at 30 June 
2017 (US$317.8 million as at 31 December 2016). The Group's cash and cash 
equivalents are with counterparties whom the Group considers to have an 
appropriate credit rating. Location of credit risk is determined by physical 
location of the bank branch or counterparty. Investments are held mainly in 
United States dollars, with cash and cash equivalents in other foreign 
currencies maintained for operational requirements. 
 
During 2013, a US$142 million facility ("Facility") was put in place to fund 
the bulk of the costs of the construction of the Bulyanhulu tailings 
retreatment project ("Project"). The Facility is collateralised by the Project, 
and has a term of seven years with a spread over Libor of 250 basis points. The 
seven year Facility is repayable in equal instalments (bi-annual) over the term 
of the Facility, after a two year repayment holiday period. The interest rate 
has been fixed at 3.6% through the use of an interest rate swap. The full 
facility of US$142 million was drawn in 2013. During 2017, the 4th repayment 
amounting to US$14.2 million in total was made. At 30 June 2017, the 
outstanding capital balance is US$85.2 million (30 June 2016: US$113.6 
million). 
 
The above complements the existing undrawn revolving credit facility of US$150 
million, which runs until November 2019. 
 
The net book value of property, plant and equipment increased from US$1.41 
billion as at 30 June 2016 to US$1.47 billion as at 30 June 2017. The main 
capital expenditure drivers have been explained above, and have been offset by 
depreciation charges of US$69.7 million. Refer to note 12 to the condensed 
financial information for further details. 
 
The current portion of inventories increased from US$195.7 million as at 30 
June 2016 to US$280.7 million as at 30 June 2017. This was mainly due to an 
increase of US$83.6 million relating to finished goods. Total gold ounces on 
hand of 138,113 ounces as at 30 June 2017 comprised 126,931 ounces of gold in 
concentrate and 11,202 ounces of gold in doré. 
 
Total indirect tax receivables increased from US$136.4 million as at 31 
December 2016 to US$165.5 million as at 30 June 2017. The increase was mainly 
due to no VAT refunds received as a result of ongoing audits by the Tanzanian 
Revenue Authority on submitted VAT returns. Our gross increase in receivables, 
before the corporate tax prepayment offset, amounted to approximately US$47 
million. This was partly offset by corporate tax prepayments of US$17.3 million 
and revaluation losses with the net increase in receivables being US$29.1 
million. 
 
The net deferred tax position was a liability of US$156.8 million as at 30 June 
2016 compared to the liability of US$152.1 million as at 31 December 2016. This 
was mainly as a result of temporary difference at Buzwagi during the current 
period. 
 
Net assets increased from US$1.86 billion as at 31 December 2016 to US$1.90 
billion as at 30 June 2017. The increase reflects the current year income of 
US$62.5 million and the payment of the final 2016 dividend of US$34.4 million. 
 
Cash flow generation and capital management 
 
Cash flow 
 
(US$000)                         Three months ended 30 June        Six months ended 30 
                                                                          June 
 
(Unaudited)                                2017           2016          2017       2016 
 
Cash (used in)/ generated from         (23,909)        104,864         1,315    157,096 
operating activities 
 
Cash used in investing                 (47,250)       (46,347)      (94,786)   (80,272) 
activities 
 
Cash used in financing                 (34,447)       (11,490)      (48,585)   (25,690) 
activities 
 
(Decrease)/ increase in cash          (105,606)         47,027     (142,056)     51,134 
 
Foreign exchange difference on               50           (99)           151       (45) 
cash 
 
Opening cash balance                    281,442        237,429       317,791    233,268 
 
Closing cash balance                    175,886        284,357       175,886    284,357 
 
Cash flow from operating activities was US$1.3 million for H1 2017, a decrease 
of US$155.8 million from H1 2016 (US$157.1 million). The decrease relates to 
unfavourable working capital outflows of US$159.7 million compared to outflows 
of US$16.3 million in H1 2016, provisional income tax paid of US$17.3 million 
and a US$9.5 million corporate tax dispute deposit included in other current 
assets, compared to total tax payments of US$10 million in H1 2016 combined 
with the impact of lower operating profit mainly due to lost margins on lower 
gold sales volumes (US$10.7 million). This was offset by the impact of lower 
non-cash expenses of US$8.2 million which include unrealised gains on 
derivatives of US$2.4 million and foreign exchange differences of US$4.6 
million. 
 
The working capital outflow relates to a net increase in inventories on hand of 
US$113.2 million driven by the higher production base and lower sales volumes, 
and a net increase in indirect tax receivables on a cash basis of approximately 
US$30.0 million. 
 
Cash flow used in investing activities was US$94.8 million for H1 2017, an 
increase of 18% when compared to H1 2016 (US$80.3 million), driven by higher 
capitalised development at both North Mara and Bulyanhulu, partly offset by 
lower sustaining capital expenditure at Bulyanhulu and Buzwagi. 
 
A breakdown of total capital and other investing capital activities for 2017 is 
provided below: 
 
(US$'000)                                                Six months ended 30 June 
 
(Unaudited)                                                      2017             2016 
 
Sustaining capital                                           (30,204)         (21,906) 
 
Capitalised development                                      (64,337)         (59,489) 
 
Expansionary capital                                          (5,523)          (1,211) 
 
Total cash capital                                          (100,064)         (82,606) 
 
Non-current asset movement1                                     5,278            2,334 
 
Cash used in investing activities                            (94,786)         (80,272) 
 
Capital expenditure reconciliation: 
 
Total cash capital                                            100,064           82,606 
 
Land purchases                                                  1,247            2,824 
 
Movement in capital accruals                                  (8,855)            (258) 
 
Capital expenditure                                            92,456           85,172 
 
Land purchases classified as long term                        (1,247)          (2,824) 
prepayments 
 
Non-cash rehabilitation asset                                     134           19,196 
adjustment 
 
Total capital expenditure per segment                          91,343          101,544 
note 
 
1 Non-current asset movements relates to the movement in Tanzania government 
receivables, other long term assets and the sale of a mineral royalty. 
 
Sustaining capital 
 
Sustaining capital expenditure includes investment in mobile equipment and 
component change-outs (US$6.6 million), investment in fixed equipment and 
mining infrastructure including the West fan upgrade and underground 
ventilation raise boring at Bulyanhulu (US$9.7 million) and other sustaining 
capital expenditure across sites of US$13.9 million. During the first half, 
capital accruals from December 2016 of US$8.9 million were paid. 
 
Capitalised development 
 
Capitalised development includes North Mara capitalised stripping costs 
(US$25.9 million) and capitalised underground development (US$7.4 million) and 
Bulyanhulu capitalised underground development costs (US$31.1 million). 
 
Expansionary capital 
 
Expansionary capital expenditure consisted mainly of capitalised expansion 
drilling at North Mara (US$4.5 million) and Bulyanhulu (US$1.0 million). 
 
Non-cash capital 
 
Non-cash capital was a negative US$8.8 million and consisted mainly of a 
decrease in capital accruals (US$8.9 million) and reclamation asset adjustments 
(US$0.1 million). The reclamation adjustments were driven by changes in US risk 
free rates driving changes in discount rates and closure costs assumptions. 
 
Other investing capital 
 
During H1 2017 North Mara incurred land purchases totalling US$1.2 million (H1 
2016: US$2.8 million). 
 
Cash flow used in financing activities for H1 2017 of US$48.6 million, an 
increase of US$22.9 million from US$25.7 million in H1 2016. The outflow 
relates to payment of the final 2016 dividend of US$34.4 million and the 
payment of the 4th instalment of the borrowings related to the Bulyanhulu CIL 
facility totalling US$14.2 million. 
 
Dividend 
 
The final 2016 dividend of US8.4 cents per share was paid to shareholders on 25 
May 2017. The Board of Directors have not recommended an interim dividend for 
2017 as a result of the negative free cashflow generation over H1 2017, in line 
with our dividend policy. 
 
Significant judgements in applying accounting policies and key sources of 
estimation uncertainty 
 
Many of the amounts included in the condensed consolidated financial 
information require management to make judgements and/or estimates. These 
judgements and estimates are continuously evaluated and are based on 
management's experience and best knowledge of the relevant facts and 
circumstances, but actual results may differ from the amounts included in the 
condensed consolidated financial information included in this release. 
Information about such judgements and estimation is included in the accounting 
policies and/or notes to the consolidated financial statements, and the key 
areas are summarised below. 
 
Areas of judgement and key sources of estimation uncertainty that have the most 
significant effect on the amounts recognised in the condensed consolidated 
financial statements include: 
 
  * Estimates of the quantities of proven and probable gold and copper 
    reserves; 
  * Estimates included within the life-of-mine planning such as the timing and 
    viability of processing of long term stockpiles; 
  * The capitalisation of production stripping costs; 
 
  * The capitalisation of exploration and evaluation expenditures; 
  * Review of goodwill, tangible and intangible assets' carrying value, the 
    determination of whether a trigger for an impairment review exist, whether 
    these assets are impaired and the measurement of impairment charges or 
    reversals, and also includes the judgement of reversal of any previously 
    recorded impairment charges; 
  * The estimated fair values of cash generating units for impairment tests, 
    including estimates of future costs to produce proven and probable 
    reserves, future commodity prices, foreign exchange rates and discount 
    rates; 
  * The estimated useful lives of tangible and long-lived assets and the 
    measurement of depreciation expense; 
  * Recognition of a provision for environmental rehabilitation and the 
    estimation of the rehabilitation costs and timing of expenditure; 
  * Whether to recognise a liability for loss contingencies and the amount of 
    any such provision; 
  * Whether to recognise a provision for accounts receivable, and in particular 
    the indirect tax receivables from the Tanzanian Government, a provision for 
    obsolescence on consumables inventory and the impact of discounting the 
    non-current element of the indirect tax receivable; 
  * Recognition of deferred income tax assets, amounts recorded for uncertain 
    tax positions, the measurement of income tax expense and indirect taxes; 
  * Determination of the cost incurred in the productive process of ore 
    stockpiles, gold in process, gold doré/bullion and concentrate, as well as 
    the associated net realisable value and the split between the long term and 
    short term portions; 
  * Determination of fair value of derivative instruments; and 
  * Determination of fair value of share options and cash-settled share-based 
    payments. 
 
Non-IFRS Measures 
 
Acacia has identified certain measures in this report that are not measures 
defined under IFRS. Non-IFRS financial measures disclosed by management are 
provided as additional information to investors in order to provide them with 
an alternative method for assessing Acacia's financial condition and operating 
results, and reflects more relevant measures for the industry in which Acacia 
operates. These measures are not in accordance with, or a substitute for, IFRS, 
and may be different from or inconsistent with non-IFRS financial measures used 
by other companies. These measures are explained further below. 
 
Net average realised gold price per ounce sold is a non-IFRS financial measure 
which excludes from gold revenue: 
 
- Unrealised gains and losses on non-hedge derivative contracts; and 
 
- Export duties 
 
It also includes realised gains and losses on gold hedge contracts reported as 
part of cost of sales. 
 
Net average realised gold price per ounce sold have been calculated as follow: 
 
(US$000)                            Three months ended 30 June     Six months ended 30 
                                                                          June 
 
(Unaudited)                                     2017       2016         2017       2016 
 
Gold revenue                                 160,231    272,728      385,859    484,614 
 
Less: Realised gold hedge losses                   -          -            -          - 
 
Net gold revenue                             160,231    272,728      385,859    484,614 
 
Gold sold (ounces)                           127,694    216,782      312,438    400,963 
 
Net average realised gold price                1,255      1,258        1,235      1,209 
(US$/ounce) 
 
Cash cost per ounce sold is a non-IFRS financial measure. Cash costs include 
all costs absorbed into inventory, as well as royalties, and production taxes, 
and exclude capitalised production stripping costs, inventory purchase 
accounting adjustments, unrealised gains/losses from non-hedge currency and 
commodity contracts, depreciation and amortisation and corporate social 
responsibility charges. Cash cost is calculated net of co-product revenue. Cash 
cost per ounce sold is calculated by dividing the aggregate of these costs by 
total ounces sold. 
 
The presentation of these statistics in this manner allows Acacia to monitor 
and manage those factors that impact production costs on a monthly basis. Cash 
costs and cash cost per ounce sold are calculated on a consistent basis for the 
periods presented. 
 
The table below provides a reconciliation between cost of sales and total cash 
cost to calculate the cash cost per ounce sold. 
 
                                         Three months ended 30      Six months ended 30 
(US$'000)                                        June                       June 
 
(Unaudited)                                      2017      2016         2017        2016 
 
Total cost of sales                            94,571   183,539      243,967     355,439 
 
Deduct: depreciation and                     (23,417)  (43,166)     (57,959)    (78,376) 
amortisation* 
 
Deduct: Co-product revenue                      2,468  (11,309)      (5,805)    (20,333) 
 
Total cash cost                                73,622   129,064      180,203     256,730 
 
Total ounces sold                             127,694   216,782      312,438     400,963 
 
Total cash cost per ounce                         577       595          577         640 
sold 
 
* Depreciation and amortisation includes the depreciation component of the cost 
of inventory sold 
 
All-in sustaining cost (AISC) is a non-IFRS financial measure. The measure is 
in accordance with the World Gold Council's guidance issued in June 2013. It is 
calculated by taking cash cost per ounce sold and adding corporate 
administration costs, share-based payments, reclamation and remediation costs 
for operating mines, corporate social responsibility expenses, mine exploration 
and study costs, realised gains and/or losses on operating hedges, capitalised 
stripping and underground development costs and sustaining capital expenditure. 
This is then divided by the total ounces sold. A reconciliation between cash 
cost per ounce sold and AISC for the key business segments is presented below: 
 
(Unaudited)          Three months ended 30 June 2017        Three months ended 30 June 2016 
 
(US$/oz sold)       Bulyanhulu  North   Buzwagi  Group*   Bulyanhulu  North   Buzwagi  Group* 
                                 Mara                                  Mara 
 
Cash cost per              813    476       705     577          662    382       948     595 
ounce sold 
 
Corporate                   44     21        81      46           16     17        23      21 
administration 
 
Share based               (38)   (13)      (78)   (143)           15      8        14      72 
payments 
 
Rehabilitation              23     10        11      13            8      9         2       7 
 
CSR expenses                 9     10       (3)      12            7      7         6       8 
 
Capitalised                547    184         -     239          195    203         -     160 
development 
 
Sustaining capital         160     70        46      91           55     81        26      63 
 
Total AISC               1,558    758       762     835          958    707     1,019     926 
 
* The group total includes a credit of US$95/oz of unallocated corporate 
related costs in Q2 2017, and a cost of US$66/oz in Q2 2016. 
 
(Unaudited)            Six months ended 30 June 2017        Six months ended 30 June 2016 
 
(US$/oz sold)        Bulyanhulu  North Buzwagi  Group*    Bulyanhulu   North Buzwagi  Group* 
                                  Mara                                  Mara 
 
Cash cost per ounce         795    441     697     577           661     427   1,052     640 
sold 
 
Corporate                    36     23      48      40            21      24      25      24 
administration 
 
Share based payments        (4)    (2)     (6)    (25)            11       7      11      49 
 
Rehabilitation               16     10       7      11             7       9       3       7 
 
CSR expenses                  8      8       7      12             5      11       7      12 
 
Capitalised                 382    187       -     206           189     183       0     148 
development 
 
Sustaining capital          107     69      17      72            76      59      26      61 
 
Total AISC                1,340    736     770     893           970     720   1,124     941 
 
* The group total includes a credit of US$5/oz of unallocated corporate related 
costs in H1 2017, and a cost of US$46/oz in H1 2016. 
 
AISC is intended to provide additional information on the total sustaining cost 
for each ounce sold, taking into account expenditure incurred in addition to 
direct mining costs and selling costs. 
 
Cash cost per tonne milled is a non-IFRS financial measure. Cash costs include 
all costs absorbed into inventory, as well as royalties, co-product credits, 
and production taxes, and exclude capitalised production stripping costs, 
inventory purchase accounting adjustments, unrealised gains/losses from 
non-hedge currency and commodity contracts, depreciation and amortisation and 
corporate social responsibility charges. Cash cost is calculated net of 
co-product revenue. Cash cost per tonne milled is calculated by dividing the 
aggregate of these costs by total tonnes milled. 
 
EBITDA is a non-IFRS financial measure. Acacia calculates EBITDA as net profit 
or loss for the period excluding: 
 
  * Income tax expense; 
  * Finance expense; 
  * Finance income; 
  * Depreciation and amortisation; and 
  * Impairment charges of goodwill and other long-lived assets. 
 
EBITDA is intended to provide additional information to investors and analysts. 
It does not have any standardised meaning prescribed by IFRS and should not be 
considered in isolation or as a substitute for measures of performance prepared 
in accordance with IFRS. EBITDA excludes the impact of cash costs of financing 
activities and taxes, and the effects of changes in operating working capital 
balances, and therefore is not necessarily indicative of operating profit or 
cash flow from operations as determined under IFRS. Other companies may 
calculate EBITDA differently. 
 
A reconciliation between net profit for the period and EBITDA is presented 
below: 
 
(US$000)                           Three months ended 30 June     Six months ended 30 
                                                                         June 
 
(Unaudited)                                 2017         2016          2017        2016 
 
Net profit/(loss) for the period          35,716       46,282        62,543     (6,128) 
 
Plus income tax expense/(credit)          17,819       27,567        37,002     107,744 
 
Plus depreciation and amortisation        23,417       43,166        57,959      78,376 
 
Plus finance expense                       3,216        2,514         5,454       5,380 
 
Less finance income                        (946)        (197)       (1,543)       (490) 
 
EBITDA                                    79,222      119,332       161,415     184,882 
 
*Depreciation and amortisation includes the depreciation component of the cost 
of inventory sold. 
 
Adjusted EBITDA is a non-IFRS financial measure. It is calculated by excluding 
one-off costs or credits relating to non-routine transactions from EBITDA. It 
excludes other credits and charges that, individually or in aggregate, if of a 
similar type, are of a nature or size that requires explanation in order to 
provide additional insight into the underlying business performance. EBITDA is 
adjusted for items (a) to (c) as contained in the reconciliation to adjusted 
net earnings below. 
 
EBIT is a non-IFRS financial measure and reflects EBITDA adjusted for 
depreciation and amortisation and goodwill impairment charges. 
 
Adjusted net earnings is a non-IFRS financial measure. It is calculated by 
excluding certain costs or credits relating to non-routine transactions from 
net profit attributed to owners of the parent. It includes other credit and 
charges that, individually or in aggregate, if of a similar type, are of a 
nature or size that requires explanation in order to provide additional insight 
into the underlying business performance. 
 
Adjusted net earnings and adjusted earnings per share have been calculated as 
follows: 
 
(US$000)                           Three months ended 30 June     Six months ended 30 
                                                                         June 
 
 
(Unaudited)                                 2017         2016          2017        2016 
 
Net earnings/(loss)                       35,716       46,282        62,543     (6,128) 
 
Adjusted for: 
 
Restructuring cost (a)                     2,477        1,264         3,304       2,125 
 
Discounting of indirect taxes (b)              -      (6,508)             -     (6,508) 
 
One-off legal settlements (c)              1,500            -         1,500           - 
 
Prior year tax positions                       -            -             -      69,916 
recognised 1 
 
Tax impact of the above                  (1,193)        (379)       (1,441)       (638) 
 
Adjusted net earnings                     38,500       40,659        65,906      58,767 
 
1 For the Six months ended 30 June 2016, US$69.9 million represents a provision 
raised for the implied impact of an adverse tax ruling made by the Tanzanian 
Court of Appeal with respect to historical tax assessments of Bulyanhulu. As 
reported in Q1 2016, the impact of the ruling was calculated for Bulyanhulu and 
extrapolated to North Mara and Tulawaka as well and covers results up to the 
end of 2015. On a site basis, US$35.1 million was raised for Bulyanhulu, 
US$30.4 million for North Mara and US$4.4 million for Tulawaka. 
 
Adjusted net earnings per share is a non-IFRS financial measure and is 
calculated by dividing adjusted net earnings by the weighted average number of 
Ordinary Shares in issue. 
 
Free cash flow is a non-IFRS measure and represents the change in cash and cash 
equivalents in a given period. 
 
Net cash is a non-IFRS measure. It is calculated by deducting total borrowings 
from cash and cash equivalents. 
 
Mining statistical information 
 
The following describes certain line items used in the Acacia Group's 
discussion of key performance indicators: 
 
  * Open pit material mined - measures in tonnes the total amount of open pit 
    ore and waste mined. 
  * Underground ore tonnes hoisted - measures in tonnes the total amount of 
    underground ore mined and hoisted. 
  * Underground ore tonnes trammed - measures in tonnes the total amount of 
    underground ore mined and trammed. 
  * Total tonnes mined includes open pit material plus underground ore tonnes 
    hoisted. 
  * Strip ratio - measures the ratio of waste?to?ore for open pit material 
    mined. 
  * Ore milled - measures in tonnes the amount of ore material processed 
    through the mill. 
  * Head grade - measures the metal content of mined ore going into a mill for 
    processing. 
  * Milled recovery - measures the proportion of valuable metal physically 
    recovered in the processing of ore. It is generally stated as a percentage 
    of the metal recovered compared to the total metal originally present. 
 
Risk Review 
 
We have made a number of further developments in the identification and 
management of our risk profile over the course of H1 2017. Where appropriate, 
risk ratings have been reviewed against risk management controls and other 
mitigating factors. Our principal risks continue to fall within four broad 
categories: strategic risks, financial risks, external risks and operational 
risks. Whilst the overall makeup of our principal risks has not significantly 
changed from that published in the 2016 Annual Report, there have been changes 
in certain risk profiles. Developments such as the ban on the export of gold/ 
copper concentrate and the recent enacting of Tanzanian legislation relating to 
the legal and regulatory framework governing the natural resources sector have 
resulted in increases to the impact rating of certain risks. 
 
As a result of our mid-year assessment, at this stage we believe it appropriate 
to include a new risk as a principal risk for the remainder of 2017 relating to 
cyber security. The likelihood of this risk has increased in the light of the 
increase in cybersecurity related incidents on a global level and the potential 
impact that a cyber security incident could have on the availability and 
integrity of our information technology infrastructure. 
 
As a result of the risk review outlined above, we view our principal risks for 
the remainder of 2017 as relating to the following: 
 
*               Political, legal and regulatory developments 
 
*               Security, trespass and vandalism 
 
*               Single country risk 
 
*               Implementation of enhanced operational systems 
 
*               Safety risks relating to mining operations 
 
*               Equipment effectiveness 
 
*               Environmental hazards and rehabilitation 
 
*               Continuity of power supply 
 
*               Significant changes to commodity prices 
 
*               Cyber security 
 
Further details as regards our Principal Risks and Uncertainties and risk 
assessments conducted in respect thereof will be provided as part of the 2017 
Annual Report and Accounts. 
 
Directors' Responsibility Statement 
 
The Directors confirm that, to the best of their knowledge, the condensed 
consolidated interim financial information has been prepared in accordance with 
IAS 34 as adopted by the European Union. The half-year management report 
includes a fair review of the information required by DTR 4.2.7R and DTR 
4.2.8R, namely: 
 
  * an indication of important events that have occurred during the first six 
    months of the financial year and their impact on the condensed consolidated 
    interim financial information, and a description of the principal risks and 
    uncertainties for the remaining six months of the financial year; and 
  * material related-party transactions in the first six months of the 
    financial year and any material changes in the related party transactions 
    described in the last Annual Report. 
 
The Directors of Acacia Mining plc are listed in the Acacia Mining plc Annual 
Report for 31 December 2016, save for Mr Peter Tomsett and Ambassador Juma 
Mwapachu. A list of current Directors is maintained on the Acacia Mining plc 
Group website: www.acaciamining.com. 
 
On behalf of the Board 
 
Brad Gordon, Chief Executive Officer          Kelvin Dushnisky, Chairman 
 
Independent review report to Acacia Mining plc 
 
Report on the condensed consolidated interim financial information 
 
Our conclusion 
 
We have reviewed Acacia Mining plc's condensed consolidated interim financial 
information (the "interim financial statements") in the interim results of 
Acacia Mining plc for the 6 month period ended 30 June 2017. Based on our 
review, nothing has come to our attention that causes us to believe that the 
interim financial statements are not prepared, in all material respects, in 
accordance with International Accounting Standard 34, 'Interim Financial 
Reporting', as adopted by the European Union and the Disclosure Guidance and 
Transparency Rules sourcebook of the United Kingdom's Financial Conduct 
Authority. 
 
Emphasis of Matter - Impact of mineral concentrate export ban and legislative 
changes in Tanzania 
 
In forming our conclusion on the interim financial statements, which is not 
modified, we have considered the adequacy of the disclosures made in note 2 to 
the Interim financial statements and additional commentary within the Interim 
announcement concerning the ongoing mineral concentrate export ban and 
legislative changes in Tanzania. With regards to a potential negotiated 
settlement of the matter, it is too early to reliably estimate how a resolution 
could impact the Group's financial position, assets, liabilities and future 
cash flows. As a consequence, these conditions, along with the other matters 
explained in note 2 to the interim financial statements, indicate the existence 
of a material uncertainty which may cast significant doubt about the company's 
ability to continue as a going concern. The interim financial statements do not 
include the adjustments that would result if the company was unable to continue 
as a going concern. 
 
What we have reviewed 
 
The interim financial statements comprise: 
 
  * the consolidated balance sheet as at 30 June 2017; 
  * the consolidated income statement and consolidated statement of 
    comprehensive income for the period then ended; 
  * the consolidated statement of cash flows for the period then ended; 
  * the consolidated statement of changes in equity for the period then ended; 
    and 
  * the explanatory notes to the interim financial statements. 
 
The interim financial statements included in the interim results have been 
prepared in accordance with International Accounting Standard 34, 'Interim 
Financial Reporting', as adopted by the European Union and the Disclosure 
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial 
Conduct Authority. 
 
As disclosed in note 2 to the interim financial statements, the financial 
reporting framework that has been applied in the preparation of the full annual 
financial statements of the Group is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European Union. 
 
Responsibilities for the interim financial statements and the review 
 
Our responsibilities and those of the directors 
 
The interim results, including the interim financial statements, is the 
responsibility of, and has been approved by, the directors. The directors are 
responsible for preparing the interim results in accordance with the Disclosure 
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial 
Conduct Authority. 
 
Our responsibility is to express a conclusion on the interim financial 
statements in the interim results based on our review. This report, including 
the conclusion, has been prepared for and only for the company for the purpose 
of complying with the Disclosure Guidance and Transparency Rules sourcebook of 
the United Kingdom's Financial Conduct Authority and for no other purpose.  We 
do not, in giving this conclusion, accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown or into whose 
hands it may come save where expressly agreed by our prior consent in writing. 
 
What a review of interim financial statements involves 
 
We conducted our review in accordance with International Standard on Review 
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information 
Performed by the Independent Auditor of the Entity' issued by the Auditing 
Practices Board for use in the United Kingdom. A review of interim financial 
information consists of making enquiries, primarily of persons responsible for 
financial and accounting matters, and applying analytical and other review 
procedures. 
 
A review is substantially less in scope than an audit conducted in accordance 
with International Standards on Auditing (UK) and, consequently, does not 
enable us to obtain assurance that we would become aware of all significant 
matters that might be identified in an audit. Accordingly, we do not express an 
audit opinion. 
 
We have read the other information contained in the interim results and 
considered whether it contains any apparent misstatements or material 
inconsistencies with the information in the interim financial statements. 
 
PricewaterhouseCoopers LLP 
 
Chartered Accountants 
 
London 
 
21 July 2017 
 
 a. The maintenance and integrity of the Acacia Mining plc website is the 
    responsibility of the directors; the work carried out by the auditors does 
    not involve consideration of these matters and, accordingly, the auditors 
    accept no responsibility for any changes that may have occurred to the 
    interim financial statements since they were initially presented on the 
    website. 
 b. Legislation in the United Kingdom governing the preparation and 
    dissemination of financial statements may differ from legislation in other 
    jurisdictions. 
 
Condensed Financial Information 
 
Consolidated income statement 
 
                                                 For the six months ended  For the year 
                                                         30 June             ended 31 
                                                                             December 
 
                                                 (Unaudited) (Unaudited)    (Audited) 
 
(US$'000)                                  Notes        2017         2016           2016 
 
Revenue                                              391,664      504,947      1,053,532 
 
Cost of sales                                      (243,967)    (355,439)      (727,080) 
 
Gross profit                                         147,697      149,508        326,452 
 
Corporate administration                            (12,520)      (9,771)       (21,895) 
 
Share-based payments                                   7,785     (19,635)       (29,929) 
 
Exploration and evaluation costs                    (16,150)     (11,150)       (24,020) 
 
Corporate social responsibility expenses             (3,739)      (4,614)       (10,665) 
 
Other (charges)/income                       7      (19,617)        2,168         11,649 
 
Profit/ (loss) before net finance expense            103,456      106,506        251,592 
and taxation 
 
Finance income                               8         1,543          490          1,512 
 
Finance expense                              8       (5,454)      (5,380)       (11,047) 
 
Profit/ (loss) before taxation                        99,545      101,616        242,057 
 
Tax expense                                  9      (37,002)    (107,744)      (147,113) 
 
Net (loss)/ profit for the period                     62,543      (6,128)         94,944 
 
(Loss)/ earnings per share (cents): 
 
Basic (loss)/ earnings per share (cents)    10          15.3        (1.5)           23.2 
 
Diluted (loss)/ earnings per share (cents)  10          15.2        (1.5)           23.1 
 
The notes on pages 41 to 58 are an integral part of this financial information. 
 
Consolidated statement of comprehensive income 
 
                                                 For the six months ended   For the year 
                                                         30 June                ended 31 
                                                                                December 
 
                                                 (Unaudited)   (Unaudited)     (Audited) 
 
(US$'000)                                               2017          2016          2016 
 
Net (loss)/ profit for the period                     62,543       (6,128)        94,944 
 
Other comprehensive income: 
 
Items that may be subsequently reclassified 
to profit or loss: 
 
Changes in fair value of cash flow hedges                 52       (1,226)             7 
 
Total comprehensive (loss)/ income for the            62,595       (7,354)        94,951 
period 
 
 
The notes on pages 41 to 58 are an integral part of this financial information. 
 
Consolidated balance sheet                                        As at       As at      As at 
                                                                30 June     30 June         31 
                                                            (Unaudited) (Unaudited)   December 
                                                                                     (Audited) 
 
(US$'000)                                            Notes         2017        2016       2016 
 
ASSETS 
 
Non-current assets 
 
Goodwill and intangible assets                                  216,190     211,190    216,190 
 
Property, plant and equipment                         12      1,465,309   1,414,194  1,443,176 
 
Deferred tax assets                                               3,208      11,416      8,431 
 
Non-current portion of inventory                      14        115,775      87,050     98,936 
 
Derivative financial instruments                      13            770         129        821 
 
Other assets                                                     58,474     118,197     63,297 
 
                                                              1,859,726   1,842,176  1,830,851 
 
Current assets 
 
Inventories                                           14        280,692     195,657    184,313 
 
Trade and other receivables                                      12,039      20,119     18,830 
 
Derivative financial instruments                      13            601           9      1,343 
 
Other current assets                                  15        190,868      86,230    149,518 
 
Cash and cash equivalents                                       175,886     284,357    317,791 
 
                                                                660,086     586,372    671,795 
 
Total assets                                                  2,519,812   2,428,548  2,502,646 
 
EQUITY AND LIABILITIES 
 
Share capital and share premium                                 929,199     929,199    929,199 
 
Other reserves                                                  961,912     839,505    933,696 
 
Total owners' equity                                          1,891,111   1,768,704  1,862,895 
 
Total equity                                                  1,891,111   1,768,704  1,862,895 
 
 
Non-current liabilities 
 
Borrowings                                            16         56,800      85,200     71,000 
 
Deferred tax liabilities                                        148,341     138,751    148,390 
 
Derivative financial instruments                      13          1,068         588         30 
 
Provisions                                                      147,314     147,676    145,722 
 
Other non-current liabilities                                     4,778      10,063     15,699 
 
                                                                358,301     382,278    380,841 
 
Current liabilities 
 
Trade and other payables                                        228,942     211,852    222,543 
 
Borrowings                                            16         28,400      28,400     28,400 
 
Derivative financial instruments                      13          1,114      10,973        584 
 
Provisions                                                        9,336       1,566      7,235 
 
Other current liabilities                                         2,608      24,775        148 
 
                                                                270,400     277,566    258,910 
 
Total liabilities                                               628,701     659,844    639,751 
 
Total equity and liabilities                                  2,519,812   2,428,548  2,502,646 
 
The notes on pages 41 to 58 are an integral part of this financial information. 
 
Consolidated statement of changes in equity 
 
                                       Notes   Share     Share          Other   Cash flow 
                                             capital   premium  distributable     hedging 
                                                                      reserve     reserve 
 
(US$'000) 
 
Balance at 31 December 2015                   62,097   867,102      1,368,713         552 
(Audited) 
 
Total comprehensive loss for the                   -         -              -     (1,226) 
period 
 
Dividends to equity holders of the                 -         -              -           - 
Company 
 
Share option grants                                -         -              -           - 
 
Balance at 30 June 2016 (Unaudited)           62,097   867,102      1,368,713       (674) 
 
Total comprehensive income for the                 -         -              -       1,233 
period 
 
Share option grants                                -         -              -           - 
 
Dividends to equity holders of the                 -         -              -           - 
Company 
 
Balance at 31 December 2016                   62,097   867,102      1,368,713         559 
(Audited) 
 
Total comprehensive loss for the                   -         -              -          52 
period 
 
Dividends to equity holders of the        11       -         -              -           - 
Company 
 
Share option grants 
 
Balance at 30 June 2017 (Unaudited)           62,097   867,102      1,368,713         611 
 
 
 
                                      Share   Accumulated     Total  Total non-     Total 
                                     option        losses   owners' controlling    equity 
                                    reserve                  equity   interests 
 
(US$'000) 
 
Balance at 31 December 2015           3,876     (514,841) 1,787,499           - 1,787,499 
(Audited) 
 
Total comprehensive loss for the          -       (6,128)   (7,354)           -   (7,354) 
period 
 
Dividends to equity holders of the        -      (11,490)  (11,490)           -  (11,490) 
Company 
 
Share option grants                      49             -        49           -        49 
 
Balance at 30 June 2016               3,925     (532,459) 1,768,704           - 1,768,704 
(Unaudited) 
 
Total comprehensive income for the        -       101,072   102,305           -   102,305 
period 
 
Share option grants                      28             -        28           -        28 
 
Dividends to equity holders of the        -       (8,142)   (8,142)           -   (8,142) 
Company 
 
Balance at 31 December 2016           3,953     (439,529) 1,862,895           - 1,862,895 
(Audited) 
 
Total comprehensive loss for the          -        62,543    62,595           -    62,595 
period 
 
Dividends to equity holders of the        -      (34,385)  (34,385)           -  (34,385) 
Company 
 
Share option grants                       6                       6                     6 
 
Balance at 30 June 2017               3,959     (411,371) 1,891,111           - 1,891,111 
(Unaudited) 
 
The notes on pages 41 to 58 are an integral part of this financial information. 
 
Consolidated statement of cash flows 
 
                                                          For the six months        For the 
                                                                 ended           year ended 
                                                                30 June         31 December 
 
(US$'000)                                         Notes (Unaudited) (Unaudited)   (Audited) 
                                                               2017        2016        2016 
 
Cash flows from operating activities 
 
Net (loss)/ profit for the period                            62,543     (6,128)      94,944 
 
Adjustments for: 
 
  Tax expense                                                37,002     107,744     147,113 
 
  Depreciation and amortisation                              69,722      79,367     156,301 
 
  Finance items                                               3,911       4,890       9,535 
 
  Sale of mineral royalty                                   (1,753)           -           - 
 
  Loss/ (profit) on disposal of property, plant                   -         136       (289) 
and equipment 
 
Working capital adjustments                          17   (159,697)    (16,306)    (58,497) 
 
Other non-cash items                                 17     (8,209)     (8,952)    (23,850) 
 
Cash generated from operations before interest                3,519     160,751     325,257 
and tax 
 
Finance income                                                1,543         490       1,512 
 
Finance expenses                                            (3,747)     (4,145)     (8,793) 
 
Net cash generated by operating activities                    1,315     157,096     317,976 
 
Cash flows used in investing activities 
 
Purchase of property, plant and equipment                 (100,064)    (82,606)   (193,643) 
 
Movement in other assets                                      3,746       2,529       6,952 
 
Proceeds from sale of mineral royalty                         1,753           -           - 
 
Acquired mineral interest                                         -           -     (5,000) 
 
Other investing activities                                    (221)       (195)       6,528 
 
Net cash used in investing activities                      (94,786)    (80,272)   (185,163) 
 
Cash flows used in financing activities 
 
Loans paid                                                 (14,200)    (14,200)    (28,400) 
 
Dividends paid                                             (34,385)    (11,490)    (19,632) 
 
Net cash used in financing activities                      (48,585)    (25,690)    (48,032) 
 
Net increase/ (decrease) in cash and cash                 (142,056)      51,134      84,781 
equivalents 
 
Net foreign exchange difference                                 151        (45)       (258) 
 
Cash and cash equivalents at the beginning of the           317,791     233,268     233,268 
period 
 
Cash and cash equivalents at the end of the                 175,886     284,357     317,791 
period 
 
 
The notes on pages 41 to 58 are an integral part of this financial information. 
 
Notes to the condensed financial information 
 
1. General Information 
 
Acacia Mining plc, formerly African Barrick Gold plc (the "Company", "Acacia" 
or collectively with its subsidiaries the "Group") was incorporated on 12 
January 2010 and re-registered as a public limited company on 12 March 2010 
under the Companies Act 2006. It is registered in England and Wales with 
registered number 7123187. 
 
On 24 March 2010 the Company's shares were admitted to the Official List of the 
United Kingdom Listing Authority ("UKLA") and to trading on the Main Market of 
the London Stock Exchange, hereafter referred to as the Initial Public Offering 
("IPO"). The address of its registered office is No.1 Cavendish Place, London, 
W1G 0QF. 
 
Barrick Gold Corporation ("Barrick") currently owns approximately 63.9% of the 
shares of the Company and is the ultimate parent and controlling party of the 
Group. The financial statements of Barrick can be obtained from 
www.barrick.com. 
 
The condensed consolidated interim financial information for the six months 
ended 30 June 2017 was approved for issue by the Board of Directors of the 
Company on 21 July 2017. Statutory accounts for the year ended 31 December 2016 
were approved by the Board of Directors on 7 March 2017 and delivered to the 
Registrar of Companies. The report of the auditors' on those accounts was 
unqualified, did not contain an emphasis of matter paragraph and did not 
contain any statement under section 498 of the Companies Act 2006. The 
condensed consolidated interim financial information has been reviewed, not 
audited. The condensed consolidated interim financial information does not 
comprise statutory accounts within the meaning of section 434 of the Companies 
Act 2008. 
 
The Group's primary business is the mining, processing and sale of gold. The 
Group has three operating mines located in Tanzania. The Group also has a 
portfolio of exploration projects located across Africa. 
 
2. Basis of Preparation of the condensed interim financial information 
 
The condensed consolidated interim financial information for the six months 
ended 30 June 2017 has been prepared in accordance with the Disclosure and 
Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim 
Financial Reporting' as adopted by the European Union. The condensed 
consolidated interim financial information should be read in conjunction with 
the annual financial statements for the year ended 31 December 2016, which have 
been prepared in accordance with IFRS as adopted by the European Union. The 
condensed consolidated interim financial information has been prepared under 
the historical cost basis, as modified by the revaluation of financial assets 
and financial liabilities (including derivative instruments) at fair value 
through profit or loss. The financial information is presented in US dollars 
(US$) and all monetary results are rounded to the nearest thousand (US$'000) 
except when otherwise indicated. 
 
Acacia Group's business activities, together with factors likely to affect its 
future development, performance and position, are set out in the operational 
and financial review sections of this interim results release. The financial 
position of the Acacia Group, its cash flows, liquidity position and borrowing 
facilities are described in the operating and financial review sections of this 
interim results release. 
 
At 30 June 2017, the Group had cash and cash equivalents of US$176 million with 
a further US$150 million available under the undrawn revolving credit facility 
which remains in place until November 2019. Total borrowings at the end of the 
period amounted to US$85 million, of which US$28 million will be paid in the 
next 12 months. Included in other current assets are amounts due to the Group 
relating to indirect taxes of US$165 million which are expected to be received 
or recovered within 12 months. The refunds remain dependent on processing and 
payments of refunds by the Government of Tanzania. Furthermore, included in 
working capital is finished gold contained in concentrate of approximately 
127,000 ounces, approximately 8.3 million pounds of copper contained in 
concentrate and approximately 107,000 ounces of silver contained in 
concentrate. These contained metals are in a condition to be sold, and will 
deliver revenue, net of government royalties, of approximately US$163 million. 
 
As set out in the other developments section on pages 2 to 5 and further 
explained in the operating and financial review sections, the current operating 
environment in Tanzania is challenging and there are several uncertainties in 
our operating environment. In March 2017, the Government of Tanzania issued a 
ban on the export of all gold/ copper concentrate and this ban remains in 
place. This has resulted in the stockpiled concentrate material referred to 
above. Currently, it is not clear how long this ban will remain in place. In 
addition, and as set out in the same paragraphs in the other developments 
section on pages 2 to 5 the Government of Tanzania has also announced some 
significant changes to the laws impacting the extractive industry in late June 
2017, which have subsequently been passed in early July 2017. 
 
The Directors are of the opinion that these developments and current 
circumstances represent ongoing challenges in terms of cash flow generation and 
continued uninterrupted operation of the Bulyanhulu and Buzwagi mines. Our 
third mine, North Mara, continues to perform well and to generate free cash 
flow. 
 
As explained in the other developments section, the Group has served notices of 
Arbitration relating to its Bulyanhulu and Buzwagi mines under their respective 
Mineral Development Agreements. In addition, we also believe that our Mineral 
Development Agreements protect us from the legislative changes proposed. 
Notwithstanding these developments, we continue to believe that a negotiated 
settlement of these differences with the Tanzanian Government remains in the 
best interests of all parties and we look forward to discussions commencing in 
the near future. As negotiations are yet to commence the impact of a settlement 
on the Group's financial position, assets, liabilities and future cash flows is 
uncertain. At the same time, management has instituted measures to limit 
unnecessary expenditure and preserve cash, and are considering a range of 
options to limit the impact of the above factors; amongst others to consider 
halting operations at the affected mines should it be needed. 
 
In assessing the Acacia Group's going concern status the Directors have taken 
into account the impact of the ban on ongoing operations as well as the 
following factors and assumptions; the significant current cash position,  the 
latest mine plans and a range of scenarios around the various options under 
these circumstances, including the impact of an extended concentrate export ban 
or the impact of halting the affected mines for a period of time, the current 
gold and copper prices and market expectations for the same in the medium term, 
and Acacia Group's capital expenditure and financing plans. In addition the 
Directors have assumed that the Group will repay its borrowing obligations in 
accordance with the current terms of its agreement, and that undrawn facilities 
continue to be available.  After making appropriate enquiries and considering 
the uncertainties described above, the Directors consider that it is 
appropriate to adopt the going concern basis in preparing the condensed 
consolidated interim financial information however have concluded that the 
combination of these circumstances represents a material uncertainty that may 
cast significant doubt on the Group's ability to continue as a going concern 
should the assumptions referred to above prove not to be correct. 
 
3. Accounting Policies 
 
The accounting policies adopted are consistent with those used in the Acacia 
Mining plc annual financial statements for the year ended 31 December 2016. 
There are no new standards, interpretations or amendments to standards issued 
and effective for the period which materially impacted on the Group. The 
following exchange rates to the US dollar have been applied: 
 
                          As at     Average     As at    Average     As at     Average 
                         30 June   six months  30 June  six months     31     year ended 
                           2016      ended      2016      ended     December      31 
                                    30 June              30 June      2016     December 
                                      2016                 2016                  2016 
 
South African rand        13.09      13.20      14.78     15.40      13.70      14.66 
(US$:ZAR) 
 
Tanzanian shilling        2,230      2,224      2,179     2,179      2,173      2,177 
(US$:TZS) 
 
Australian dollars         1.30       1.33      1.35       1.36       1.38       1.34 
(US$:AUD) 
 
UK pound (US$:GBP)         0.59       0.79      0.76       0.70       0.81       0.74 
 
4. Estimates 
 
The preparation of interim financial statements requires management to make 
judgements, estimates and assumptions that affect the application of accounting 
policies and the reported amounts of assets and liabilities, income and 
expense. Actual results may differ from these estimates. In preparing these 
condensed consolidated interim financial statements, the significant judgements 
made by management in applying the Group's accounting policies and the key 
sources of estimation uncertainty were the same as those that applied to the 
consolidated financial statements for the year ended 31 December 2016. 
 
5. Segment Reporting 
 
The Group has only one primary product produced in a single geographic 
location, being gold produced in Tanzania. In addition the Group produces 
copper and silver as a co-product. Reportable operating segments are based on 
the internal reports provided to the Chief Operating Decision Maker ("CODM") to 
evaluate segment performance, decide how to allocate resources and make other 
operating decisions. After applying the aggregation criteria and quantitative 
thresholds contained in IFRS 8, the Group's reportable operating segments were 
determined to be: North Mara gold mine; Bulyanhulu gold mine; Buzwagi gold 
mine; a separate Corporate and Exploration segment, which primarily consists of 
costs related to other charges and corporate social responsibility expenses. 
 
Segment results and carrying values include items directly attributable to the 
segment as well as those that can be allocated on a reasonable basis. Segment 
carrying values are disclosed and calculated as shareholders equity after 
adding back debt and intercompany liabilities, and subtracting cash and 
intercompany assets. Capital expenditures comprise of additions to property, 
plant and equipment. The Group has also included segment cash costs and all-in 
sustaining cost per ounce sold. 
 
Segment information for the reportable operating segments of the Group for the 
periods ended 30 June 2017, 30 June 2016 and 31 December 2016 is set out below. 
 
                                          For the six months ended 30 June 2017 
 
(Unaudited)                     North Mara Bulyanhulu   Buzwagi   Other      Total 
(US$'000,except per ounce 
amounts) 
 
Gold revenue                       220,217     100,023    65,619        -      385,859 
 
Co-product revenue                     653       2,760     2,392        -        5,805 
 
Total segment revenue              220,870     102,783    68,011        -      391,664 
 
Segment cash operating cost1      (79,251)    (67,344)  (39,413)        0    (186,008) 
 
Corporate administration and       (4,181)     (2,937)   (2,559) (18,992)     (28,669) 
exploration 
 
Other charges and corporate        (3,843)       (902)   (6,099)  (4,728)     (15,572) 
social responsibility expenses 
 
EBITDA2                            133,595      31,600    19,940 (23,720)      161,415 
 
Depreciation and amortisation4    (29,009)    (26,940)   (1,777)    (233)     (57,959) 
 
EBIT2                              104,586       4,660    18,163 (23,953)      103,456 
 
Finance income                                                                   1,543 
 
Finance expense                                                                (5,454) 
 
Profit before taxation                                                          99,545 
 
Tax expense                                                                   (37,002) 
 
Net profit for the period                                                       62,543 
 
Capital expenditure: 
 
Sustaining                          10,930       8,599       865      957       21,351 
 
Expansionary                         4,489         982         -       51        5,522 
 
Capitalised development             33,282      31,054         -        -       64,336 
 
                                    48,701      40,635       865    1,008       91,209 
 
Non-cash capital expenditure 
adjustments 
 
Reclamation asset adjustment          (56)         191       (1)        -          134 
 
Other non-cash capital                   -           -         -      (1)          (1) 
expenditure 
 
Total capital expenditure           48,645      40,826       864    1,007       91,342 
 
Segmental cash operating cost       79,251      67,344    39,413        -      186,008 
 
Deduct: co-product revenue           (654)     (2,760)   (2,392)        -      (5,806) 
 
Total cash costs                    78,597      64,584    37,021        -      180,202 
 
Sold ounces                        178,130      81,214    53,094        -      312,438 
 
Cash cost per ounce sold2              441         795       697                   577 
 
Corporate administration                23          36        48        9           40 
charges 
 
Share-based payments                   (2)         (4)       (6)     (22)         (25) 
 
Rehabilitation - accretion and          10          16         7        -           11 
depreciation 
 
Corporate social responsibility          8           8         7        4           12 
expenses 
 
Capitalised stripping/ UG              187         382         -        -          206 
development 
 
Sustaining capital expenditure          69         107        17        3           72 
 
All-in sustaining cost per             736       1,340       770      (6)          893 
ounce sold2 
 
Segment carrying value3            294,744   1,281,208   142,280   97,233    1,815,465 
 
 
 
                                          For the six months ended 30 June 2016 
 
(Unaudited)                     North Mara Bulyanhulu   Buzwagi   Other      Total 
(US$'000,except per ounce 
amounts) 
 
Gold revenue                       203,788     182,872    97,954        -      484,614 
 
Co-product revenue                     366       8,188    11,779        -       20,333 
 
Total segment revenue              204,154     191,060   109,733        -      504,947 
 
Segment cash operating cost1      (72,895)   (107,842)  (96,326)        -    (277,063) 
 
Corporate administration and       (5,443)     (6,273)   (2,847) (25,993)     (40,556) 
exploration 
 
Other charges and corporate          3,158     (2,651)   (1,725)  (1,228)      (2,446) 
social responsibility expenses 
 
EBITDA2                            128,974      74,294     8,835 (27,221)      184,882 
 
Depreciation and amortisation4    (29,346)    (41,107)   (6,869)  (1,054)     (78,376) 
 
EBIT2                               99,628      33,187     1,966 (28,275)      106,506 
 
Finance income                                                                     490 
 
Finance expense                                                                (5,380) 
 
Profit before taxation                                                         101,616 
 
Tax expense                                                                  (107,744) 
 
Net loss for the period                                                        (6,128) 
 
Capital expenditure: 
 
Sustaining                           7,257      11,506     2,231      654       21,648 
 
Expansionary                           458         753         -        -        1,211 
 
Capitalised development             31,051      28,438         -        -       59,489 
 
                                    38,766      40,697     2,231      654       82,348 
 
Non-cash capital expenditure 
adjustments 
 
Reclamation asset adjustment         6,252       9,937     3,007        -       19,196 
 
Total capital expenditure           45,018      50,634     5,238      654      101,544 
 
Segmental cash operating cost       72,895     107,842    96,326               277,063 
 
Deduct: co-product revenue           (366)     (8,188)  (11,779)              (20,333) 
 
Total cash costs                    72,529      99,654    84,547               256,730 
 
Sold ounces                        169,840     150,719    80,404               400,963 
 
Cash cost per ounce sold2              427         661     1,052                   640 
 
Corporate administration                24          21        25                    24 
charges 
 
Share-based payments                     7          11        11                    49 
 
Rehabilitation - accretion and           9           7         3                     7 
depreciation 
 
Corporate social responsibility         11           5         7                    12 
expenses 
 
Capitalised stripping/ UG              183         189         -                   148 
development 
 
Sustaining capital expenditure          59          76        26                    61 
 
All-in sustaining cost per             720         970     1,124                   941 
ounce sold2 
 
Segment carrying value3            262,260   1,214,729    71,676   62,764    1,611,429 
 
 
 
                                           For the year ended 31 December 2016 
 
(Audited)                       North Mara Bulyanhulu   Buzwagi   Other      Total 
(US$'000,except per ounce 
amounts) 
 
Gold revenue                       468,340     345,481   200,648        -    1,014,469 
 
Co-product revenue                     953      15,447    22,663        -       39,063 
 
Total segment revenue              469,293     360,928   223,311        -    1,053,532 
 
Segment cash operating cost1     (155,344)   (217,226) (188,896)        -    (561,466) 
 
Corporate administration and       (8,251)     (9,507)   (4,176) (23,191)     (45,915) 
exploration 
 
Other charges and corporate        (2,918)     (3,960)   (3,011) (20,874)     (30,763) 
social responsibility expenses 
 
EBITDA2                            302,780     130,235    27,228 (44,855)      415,388 
 
Impairment charges                       -           -         -        -            - 
 
Depreciation and amortisation4    (67,472)    (82,022)  (12,668)  (1,634)    (163,796) 
 
EBIT2                              235,308      48,213    14,560 (46,489)      251,592 
 
Finance income                                                                   1,512 
 
Finance expense                                                               (11,047) 
 
Loss before taxation                                                           242,057 
 
Tax expense                                                                  (147,113) 
 
Net profit for the year                                                         94,944 
 
Capital expenditure: 
 
Sustaining                          23,558      20,231     3,582    1,416       48,787 
 
Expansionary                         2,399       1,262         -        -        3,661 
 
Capitalised development             75,609      63,082         -        -      138,691 
 
                                   101,566      84,575     3,582    1,416      191,139 
 
Non-cash capital expenditure 
adjustments 
 
Reclamation asset adjustment         6,703      10,728     4,524        -       21,955 
 
Total capital expenditure          108,269      95,303     8,106    1,416      213,094 
 
Segmental cash operating cost      155,344     217,226   188,896               561,466 
 
Deduct: co-product revenue           (953)    (15,447)  (22,663)              (39,063) 
 
Total cash costs                   154,391     201,779   166,233               522,403 
 
Sold ounces                        376,255     279,286   161,202               816,743 
 
Cash cost per ounce sold2              410         722     1,031                   640 
 
Corporate administration                21          21        26                    27 
charges 
 
Share-based payments                     2           2         3                    37 
 
Rehabilitation - accretion and           9           7         3                     7 
depreciation 
 
Corporate social responsibility         15           6        10                    13 
expenses 
 
Capitalised stripping/ UG              201         226         -                   170 
development 
 
Sustaining capital expenditure          75          74        22                    64 
 
All-in sustaining cost per             733       1,058     1,095                   958 
ounce sold2 
 
Segment carrying value3            246,175   1,231,793    97,243   82,710    1,657,921 
 
1   The CODM reviews cash operating costs for the three operating mine sites 
separately from corporate administration costs and exploration costs. 
Consequently, the Group has reported these costs in this manner. 
 
2   These are non-IFRS financial performance measures with no standard meaning 
under IFRS. Refer to 'Non IFRS measures' on page 28 for definitions. 
 
3   Segment carrying values are calculated as shareholders equity after adding 
back debt and intercompany liabilities, and subtracting cash and intercompany 
assets and include outside shareholders' interests. 
 
4   Depreciation and amortisation includes the depreciation component of the 
cost of inventory sold. 
 
6. Impairment Assessment 
 
In accordance with IAS 36 "Impairment of assets" and IAS 38 "Intangible Assets" 
a review for impairment of goodwill is undertaken annually, or at any time an 
indicator of impairment is considered to exist, and in accordance with IAS 16 
"Property, plant and equipment" a review for impairment of long-lived assets is 
undertaken at any time an indicator of impairment is considered to exist. 
 
As previously reported, and as discussed in the other developments and 
operating and finance reviews of this interim financial results release, the 
Government of Tanzania announced a ban on the export of gold/copper concentrate 
in March 2017. Subsequently, during the second quarter two Presidential 
Committees reported their findings following investigations into the technical 
and economic aspects of the historic exports of gold/copper concentrates. 
Acacia fully refutes the implausible findings of both committees which claim 
that Acacia and its predecessor companies have historically significantly 
under-declared the contents of exports of concentrate which has led to an 
under-declaration of taxes running into the tens of billions of dollars. Acacia 
re-iterates that it has declared everything of commercial value that it has 
produced since it started operating in Tanzania and has paid all appropriate 
royalties and taxes on all of the payable minerals that it has produced. 
Discussions to find a mutually beneficial solution to these issues are expected 
to start early in Q3 2017. 
 
The above has had a negative impact on the operating environment of Acacia and 
the three mines it operates in Tanzania. These changes, in combination with the 
ban imposed and proposed legislative changes have been identified by management 
as potential triggers for an impairment assessment. 
 
As a result of the above, a review for impairment of the affected cash 
generating units ("CGU") has been performed. The review compared the 
recoverable amount of assets for the CGU to the carrying value of the CGU's 
including goodwill. The recoverable amount of an asset is assessed by reference 
to the higher of value in use ("VIU"), being the net present value ("NPV") of 
future cash flows expected to be generated by the asset, and fair value less 
costs to dispose ("FVLCD"). The FVLCD of a CGU is based on an estimate of the 
amount that the Group may obtain in a sale transaction on an arm's length 
basis. There is no active market for the Group's CGU's. Consequently, FVLCD is 
derived using discounted cash flow techniques (NPV of expected future cash 
flows of a CGU), which incorporate market participant assumptions. Cost to 
dispose is based on management's best estimates of future selling costs at the 
time of calculating FVLCD. Costs attributable to the disposal of a CGU are not 
considered significant. The expected future cash flows utilised in the NPV 
model are derived from estimates of projected future revenues, future cash 
costs of production and capital expenditures contained in the life-of-mine 
("LOM") plan for each CGU. The Group's LOM plans reflect proven and probable 
reserves, assume limited resource conversion, and are based on detailed 
research, analysis and modelling to optimise the internal rate of return for 
each CGU. 
 
The discount rate applied to calculate the present value is based upon the real 
weighted average cost of capital applicable to the CGU. The discount rate 
reflects equity risk premiums over the risk-free rate, the impact of the 
remaining economic life of the CGU and the risks associated with the relevant 
cash flows based on the country in which the CGU is located. These risk 
adjustments are based on observed equity risk premiums, historical country risk 
premiums and average credit default swap spreads for the period. 
 
The key economic assumptions used in the reviews during 2017 and 2016 were: 
 
                                   For the 6 months              For the year ended 
                                              ended                     31 December 
                                            30 June 
 
                                               2017                            2016 
 
Gold price per ounce (2017)                US$1,200                        US$1,200 
 
Gold price per ounce(Long                  US$1,200                        US$1,200 
term) 
 
Copper price per pound                      US$2.50                         US$2.25 
 
South African Rand (US$:ZAR)                     14                              14 
 
Tanzanian Shilling (US$:TZS)                  2,100                           2,150 
 
Long-term oil price per                       US$60                           US$60 
barrel 
 
Discount rate                                    5%                              5% 
 
NPV multiples                                     1                               1 
 
 
 
 
 
Our assessment took into account the impact of the current ban on the export of 
gold/ copper concentrate as well as the increased royalty rate and export 
clearing fees announced in June 2017 on cash flows generated by each affected 
CGU. 
 
As a result of the impairment assessment performed, no impairment charge was 
recorded for the six months ended 30 June 2017. 
 
For purposes of testing for impairment of long-lived assets, we have assessed 
whether a reasonably possible change in any of the key assumptions used to 
estimate the recoverable value for CGUs would result in an impairment charge. 
 
Management's view is that the recoverable values are most sensitive to changes 
in the assumptions around gold prices and discount rates. As a result, 
sensitivity calculations were performed for these for each of the CGUs. The 
sensitivity analysis is based on a decrease in the long term gold price of 
US$100 per ounce, and an increase in the discount rate of 1%. 
 
Neither of the reasonably possible changes set out above would result in an 
impairment. This sensitivity analysis also does not take into account any of 
management's mitigation factors should these changes occur. 
 
Our review assumed that negotiations around resolving the current in-country 
matters are resolved. Should this not be the case, a carrying value assessment 
review will be performed again, and this might or might not result in the 
recognition of impairment losses. 
 
7. Other Charges 
 
                                                    For the six months ended 30     For the 
                                                                           June  year ended 
                                                                                31 December 
 
                                                      (Unaudited)   (Unaudited)   (Audited) 
 
(US$'000)                                                    2017          2016        2016 
 
Other expenses 
 
 Operational Review costs (including                        3,304         2,125       7,689 
restructuring cost) 
 
 Foreign exchange losses                                    4,583             -           - 
 
 Disallowed indirect taxes                                    615           938       1,447 
 
 Unrealised non-hedge derivative losses                     2,431             -           - 
 
 Legal costs                                                4,601           667       2,641 
 
 One off legal settlements                                  1,500             -           - 
 
 Government levies and charges                                535             -           - 
 
 Loss on disposal of property, plant and                        -           136           - 
equipment 
 
 Other                                                      3,801         2,782       4,259 
 
 Total                                                     21,370         6,648      16,036 
 
Other income 
 
 Discounting of indirect tax receivables                        -       (6,508)     (9,719) 
 
 Profit on disposal of property, plant and                      -             -       (289) 
equipment 
 
 Unrealised non-hedge derivative gains                          -       (1,352)    (13,031) 
 
 Insurance proceeds                                             -             -     (3,455) 
 
 Foreign exchange gains                                         -         (956)     (1,137) 
 
Sale of mineral royalty                                   (1,753)             -           - 
 
 Other                                                          -             -        (54) 
 
 Total                                                    (1,753)       (8,816)    (27,685) 
 
Total other income/(charges)                               19,617       (2,168)    (11,649) 
 
8. Finance Income and Expenses 
 
a)Finance income 
 
                                                    For the six months ended 30     For the 
                                                                           June  year ended 
                                                                                31 December 
 
                                                      (Unaudited)   (Unaudited)   (Audited) 
 
(US$'000)                                                    2017          2016        2016 
 
Interest on time deposits                                   1,443           403       1,236 
 
Other                                                         100            87         276 
 
Total                                                       1,543           490       1,512 
 
b) Finance expense 
 
                                                    For the six months ended 30     For the 
                                                                           June  year ended 
                                                                                31 December 
 
                                                      (Unaudited)   (Unaudited)   (Audited) 
 
(US$'000)                                                    2017          2016        2016 
 
Unwinding of discount1                                      1,708         1,235       2,254 
 
Revolving credit facility charges2                          1,151         1,087       2,279 
 
Interest on CIL facility                                    1,573         1,896       3,956 
 
Interest on finance leases                                    200           199           - 
 
Bank charges                                                  319           604         701 
 
Other                                                         503           359       1,857 
 
Total                                                       5,454         5,380      11,047 
 
 1. The unwinding of discount is calculated on the environmental rehabilitation 
    provision. 
 2. Included in credit facility charges are the amortisation of the fees 
    related to the revolving credit facility as well as the monthly interest 
    and facility fees. 
 
9. Tax Expense 
 
                                                  For the six months ended  For the year 
                                                           30 June                 ended 
                                                                             31 December 
 
                                                   (Unaudited)  (Unaudited)    (Audited) 
 
(US$'000)                                                 2017         2016         2016 
 
Current tax: 
 
Current tax on profits for the period                   31,793       27,843       54,508 
 
Adjustments in respect of prior years1                       0      36,6041       36,697 
 
Total current tax                                       31,793       64,447       91,205 
 
Deferred tax: 
 
Origination and reversal of temporary                    5,209      43,2972       55,908 
differences2 
 
Total deferred tax                                       5,209       43,297       55,908 
 
Income tax expense                                      37,002      107,744      147,113 
 
1 Included in this amount for 2016 is a provision for uncertain tax positions 
of US$32.3 million relating to North Mara, and US$4.4 million relating to 
Tulawaka, following an adverse tax ruling as reported in Q1 2016. 
 
2 Included in this amount for 2016 is a provision for uncertain tax positions 
of US$35.0 million relating to Bulyanhulu following an adverse tax ruling, as 
reported in Q1 2016. 
 
The tax on the Group's profit before tax differs from the theoretical amount 
that would arise using the weighted average tax rate applicable to the profits 
of the consolidated entities as follows: 
 
                                                  For the six months ended  For the year 
                                                           30 June              ended 31 
                                                                                December 
 
                                                   (Unaudited)  (Unaudited)    (Audited) 
 
(US$'000)                                                 2017         2016         2016 
 
Profit/(loss) before tax                                99,545      101,616      242,057 
 
Tax calculated at domestic tax rates applicable         30,519       28,481       73,373 
to profits in the respective countries 
 
Tax effects of: 
 
Expenses not deductible for tax purposes                    57          463          247 
 
Tax losses for which no deferred income tax asset        6,426        7,100       76,592 
was recognised3 
 
Adjustments to unrecognised tax benefits carried             -       69,916            - 
forward4 
 
Prior year adjustments                                       -        1,784      (3,099) 
 
Tax charge                                              37,002      107,744      147,113 
 
3 The reconciliation includes an amount of US$69.9 million for 2016 relating to 
an increase in the amount of unrecognised tax liabilities carried forward. The 
adjustment reflects uncertainty regarding recoverability of certain tax losses, 
and gives rise to an increased deferred tax charge. 
 
Tax periods remain open to review by the Tanzanian Revenue Authority (TRA) in 
respect of income taxes for five years following the date of the filing of the 
corporate tax return, during which time the authorities have the right to raise 
additional tax assessments including penalties and interest. Under certain 
circumstances the reviews may cover longer periods. Because a number of tax 
periods remain open to review by tax authorities, there is a risk that 
transactions that have not been challenged in the past by the authorities may 
be challenged by them in the future, and this may result in the raising of 
additional tax assessments plus penalties and interest. 
 
10. (Loss)/ earnings Per Share (EPS) 
 
Basic EPS is calculated by dividing the net (loss)/ profit for the period 
attributable to owners of the Company by the weighted average number of 
Ordinary Shares in issue during the year. 
 
Diluted earnings per share is calculated by adjusting the weighted average 
number of Ordinary Shares outstanding to assume conversion of all dilutive 
potential Ordinary Shares. The Company has dilutive potential Ordinary Shares 
in the form of stock options. The weighted average number of shares is adjusted 
for the number of shares granted assuming the exercise of stock options. 
 
At 30 June 2017, 30 June 2016 and 31 December 2016, (loss)/ earnings per share 
have been calculated as follows: 
 
                                                          For the six months ended  For the year 
                                                                  30 June              ended 
                                                                                    31 December 
 
                                                     (Unaudited)   (Unaudited)    (Audited) 
 
(US$'000)                                                   2017          2016         2016 
 
(Loss)/ earnings 
 
Net (loss)/ profit attributable to owners of the parent        62,543       (6,128)       94,944 
 
Weighted average number of Ordinary Shares in issue       410,085,499   410,085,499  410,085,499 
 
Adjusted for dilutive effect of stock options                 382,474       277,889      355,514 
 
Weighted average number of Ordinary Shares for diluted    410,467,973   410,363,388  410,441,013 
earnings per share 
 
(Loss)/ earnings per share 
 
Basic (loss)/ earnings per share (cents)                         15.3         (1.5)         23.2 
 
Dilutive (loss)/ earnings per share (cents)                      15.2         (1.5)         23.1 
 
 
11. Dividends 
 
The final dividend declared in respect of the year ended 31 December 2016 of 
US$34.4 million (US0.8 cents per share) was paid during May 2017. No 2017 
interim dividend has been declared based on the Group's year-to-date negative 
free cash flow. 
 
12. Property, Plant and Equipment 
 
For the six months ended 30 June         Plant and        Mineral Assets under       Total 
2017 (Unaudited)                         equipment properties and construction 
 (US$'000)                                                   mine            ¹ 
                                                      development 
                                                            costs 
 
At 1 January 2017, net of                  553,993        842,019       47,164   1,443,176 
accumulated depreciation and 
impairment 
 
Additions                                        -              -       91,209      91,209 
 
Non-cash reclamation asset                       -              -          134         134 
adjustments 
 
Foreign currency translation                   512              -            -         512 
adjustments 
 
Disposals/write-downs                            -              -            -           - 
 
Depreciation                              (37,854)       (31,868)            -    (69,722) 
 
Transfers between categories                21,373         74,511     (95,884)           - 
 
At 30 June 2017                            538,024        884,662       42,623   1,465,309 
 
At 1 January 2017 
 
Cost                                     1,914,522      1,777,277       47,164   3,738,963 
 
Accumulated depreciation and           (1,360,529)      (935,258)            - (2,295,787) 
impairment 
 
Net carrying amount                        553,993        842,019       47,164   1,443,176 
 
At 30 June 2017 
 
Cost                                     1,936,407      1,851,788       42,623   3,830,818 
 
Accumulated depreciation and           (1,398,383)      (967,126)            - (2,365,509) 
impairment 
 
Net carrying amount                        538,024        884,662       42,623   1,465,309 
 
 
 
For the six months ended 30 June      Plant and         Mineral    Assets       Total 
2016 (Unaudited)                     equipment   properties and    under 
(US$'000)                                                  mine construction 
                                                    development      ¹ 
                                                          costs 
 
At 1 January 2016, net of                572,877        761,592       56,244   1,390,713 
accumulated depreciation and 
impairment 
 
Additions                                      -              -       82,348      82,348 
 
Non-cash reclamation asset                     -              -       19,196      19,196 
adjustments 
 
Foreign currency translation               1,441              -            -       1,441 
adjustments 
 
Disposals/write-downs                      (137)              -            -       (137) 
 
Depreciation                            (49,362)       (30,005)            -    (79,367) 
 
Transfers between categories              41,169         60,801    (101,970)           - 
 
At 30 June 2016                          565,988        792,388       55,818   1,414,194 
 
At 1 January 2016 
 
Cost                                   1,845,234      1,636,413       56,244   3,537,891 
 
Accumulated depreciation and         (1,272,357)      (874,821)            - (2,147,178) 
impairment 
 
Net carrying amount                      572,877        761,592       56,244   1,390,713 
 
At 30 June 2016 
 
Cost                                   1,887,676      1,697,214       55,818   3,640,708 
 
Accumulated depreciation and         (1,321,688)      (904,826)            - (2,226,514) 
impairment 
 
Net carrying amount                      565,988        792,388       55,818   1,414,194 
 
 
 
For the year ended 31 December 2016      Plant and       Mineral Assets under       Total 
(Audited)                                equipment    properties construction 
 (US$'000)                                              and mine            ¹ 
                                                     development 
                                                           costs 
 
At 1 January 2016, net of                  572,877       761,592       56,244   1,390,713 
accumulated depreciation and 
impairment 
 
Additions                                        -             -      191,139     191,139 
 
Non-cash reclamation asset                       -             -       21,955      21,955 
adjustments 
 
Foreign currency translation                 2,203             -            -       2,203 
adjustments 
 
Disposals/write-downs                      (6,533)             -            -     (6,533) 
 
Depreciation                              (95,864)      (60,437)            -   (156,301) 
 
Transfers between categories                81,310       140,864    (222,174)           - 
 
At 31 December 2016                        553,993       842,019       47,164   1,443,176 
 
At 1 January 2016 
 
Cost                                     1,845,234     1,636,413       56,244   3,537,891 
 
Accumulated depreciation and           (1,272,357)     (874,821)            - (2,147,178) 
impairment 
 
Net carrying amount                        572,877       761,592       56,244   1,390,713 
 
At 31 December 2016 
 
Cost                                     1,914,522     1,777,277       47,164   3,738,963 
 
Accumulated depreciation and           (1,360,529)     (935,258)            - (2,295,787) 
impairment 
 
Net carrying amount                        553,993       842,019       47,164   1,443,176 
 
1 Assets under construction represents (a) sustaining capital expenditures 
incurred constructing property, plant and equipment related to operating mines 
and advance deposits made towards the purchase of property, plant and 
equipment; and (b) expansionary expenditure allocated to a project on a 
business combination or asset acquisition, and the subsequent costs incurred to 
develop the mine. Once these assets are ready for their intended use, the 
balance is transferred to plant and equipment and/or mineral properties and 
mine development costs. 
 
Leases 
 
Property, plant and equipment includes assets relating to the design and 
construction costs of power transmission lines and related infrastructure. At 
completion, ownership was transferred to TANESCO in exchange for amortised 
repayment in the form of reduced electricity supply charges. No future lease 
payment obligations are payable under these finance leases. 
 
Property, plant and equipment also includes five drill rigs purchased under 
short-term finance leases. 
 
The following amounts were included in property, plant and equipment where the 
Group is a lessee under a finance lease: 
 
                                                    For the six months ended  For the year 
                                                             30 June              ended 
                                                                               31 December 
 
                                                    (Unaudited)   (Unaudited)     (Audited) 
 
(US$'000)                                                  2017          2016          2016 
 
 Cost - capitalised finance leases                       51,618        51,617        51,617 
 
 Accumulated depreciation and                          (42,050)      (36,392)      (40,925) 
impairment 
 
 Net carrying amount                                      9,568        15,225        10,692 
 
13. Derivative Financial Instruments 
 
The table below analyses financial instruments carried at fair value, by 
valuation method. The Group has derivative financial instruments in the form of 
economic and cash flow hedging contracts which are all defined as level two 
instruments as they are valued using inputs other than quoted prices that are 
observable for the assets or liabilities. The following tables present the 
group's assets and liabilities that are measured at fair value at 30 June 2017, 
30 June 2016 and 31 December 2016. 
 
                                                      Assets              Liabilities 
 
                                                Current Non-current     Current Non-current 
(US$'000) 
 
For the six months ended 30 June 2017 
(Unaudited) 
 
Interest contracts: Designated as cash              528         611         518           - 
flow hedges 
 
Commodity contracts - Fuel: Not designated           73         159         596       1,068 
as hedges 
 
Total                                               601         770       1,114       1,068 
 
 
 
 
                                                      Assets              Liabilities 
 
                                                Current Non-current     Current Non-current 
(US$'000) 
 
For the six months ended 30 June 2016 
(Unaudited) 
 
Interest contracts: Designated as cash                -           -         434         320 
flow hedges 
 
Currency contracts: Not designated as                 -           -       6,761           - 
hedges 
 
Commodity contracts - Fuel: Not designated            9         129       3,778         268 
as hedges 
 
Total                                                 9         129      10,973         588 
 
 
 
 
                                                Assets            Liabilities 
 
                                         Current Non-current    Current Non-current 
(US$'000) 
 
For the year ended 31 December 2016 
(Audited) 
 
Interest contracts: Designated as             33         255         73           -     215 
cash flow hedges 
 
Commodity contracts - Fuel: Not            1,310         566        511          30   1,335 
designated as hedges 
 
Total                                      1,343         821        584          30   1,550 
 
 
14. Inventories 
 
                                                    For the six months ended    For the year 
                                                             30 June               ended 
                                                                                31 December 
 
                                                    (Unaudited)   (Unaudited)        (Audited) 
 
(US$'000)                                                  2017          2016             2016 
 
Raw materials 
 
Ore in stockpiles                                        14,041        17,733            8,270 
 
Mine operating supplies                                 154,859       145,936          143,609 
 
Work in process                                          10,807        14,632           10,534 
 
Finished products 
 
Gold doré/bullion                                         7,084         5,424            8,692 
 
Gold, copper and silver concentrate                      93,901        11,932           13,208 
 
Total current portion of inventory                      280,692       195,657          184,313 
 
Non-current ore in stockpiles¹                          115,775        87,050           98,936 
 
Total                                                   396,467       282,707          283,249 
 
15. Other Current Assets 
 
                                                    For the six months ended  For the year 
                                                             30 June              ended 
                                                                               31 December 
 
                                                    (Unaudited)   (Unaudited)     (Audited) 
 
(US$'000)                                                  2017          2016          2016 
 
Other current assets: 
 
Current portion of indirect tax                         157,936        50,787       128,423 
receivables 
 
Other receivables and advance                            32,932        35,443        21,095 
payments1 
 
Total                                                   190,868        86,230       149,518 
 
1 Other receivables and advance payments relate to prepayments for insurance 
and income taxes offset against outstanding refunds for VAT and fuel levies and 
current amounts receivable from the NSSF of US$2.3 million (2016: US$5.0 
million). 
 
16. Borrowings 
 
During 2013, a US$142 million facility was put in place to fund the bulk of the 
costs of the construction of one of Acacia's key growth projects, the 
Bulyanhulu CIL Expansion project ("Project"). The Facility is collateralised by 
the Project, has a term of seven years with a spread over Libor of 250 basis 
points. In common with borrowing agreements of this nature the facility 
includes various covenants as well as a material adverse effect clauses.  The 
interest rate has been fixed at 3.6% through the use of an interest rate swap. 
The 7 year Facility is repayable in equal $14.2 million bi-annual instalments 
over the term of the Facility, after a two year repayment holiday period. The 
full facility of US$142 million was drawn at the end of 2013. The first 
principal payment of US$14.2 million was paid in H2 2015 and regular repayments 
have been made each half year. As at 30 June 2017 the balance owing was US$85.2 
million (2016: US$99.4 million) all covenants have been complied with. Interest 
accrued to the value of US$0.6 million (2016: US$0.6 million) was included in 
accounts payable at the end of the period. Interest incurred on the borrowings 
as well as hedging losses on the interest rate swap for the period ended 30 
June 2017 was US$1.2 million (2016: US$4.0 million). 
 
17. Cash flow - other items 
 
a) Operating cash flows - other items 
 
Movements relating to working capital items 
 
                                                 For the six months ended    For the 
                                                         30 June                year 
                                                                               ended 
                                                                                  31 
                                                                            December 
 
                                                  (Unaudited)  (Unaudited) (Audited) 
 
(in thousands of United States dollars)                  2017         2016      2016 
 
Indirect and corporate taxes1                        (51,047)     (13,015)  (59,100) 
 
 Increase in current indirect tax receivable         (33,747)      (3,015)  (18,224) 
 
 Prepaid corporate tax                                      -     (10,000)  (20,000) 
 
 Income tax paid                                     (17,300)            -  (20,876) 
 
Other current assets                                    6,519        4,512       695 
 
Trade receivables                                       6,931      (5,756)   (4,472) 
 
Inventories2                                        (113,217)      (7,770)   (8,312) 
 
Other liabilities                                     (7,626)      (3,027)    33,582 
 
Share based payments3                                   (834)       19,635  (35,966) 
 
Trade and other payables4                                 795     (10,905)    15,931 
 
Other working capital items5                          (1,218)           20     (855) 
 
Total                                               (159,697)     (16,306)  (58,497) 
 
1 During the year, we have made US$17.3 million (US$20 million 2016) corporate 
tax provisional payments. This has been funded through an offset against 
current indirect taxes that was due for refund. 
 
2 The inventory adjustment includes the movement in current as well as the 
non-current portion of inventory. 
 
3 During the year, share based payments of US$0.8 million was made. 
 
4 The trade and other payables adjustment exclude statutory liabilities in the 
form of income tax payable. 
 
5 Other working capital items include exchange losses associated with working 
capital. 
 
Other non-cash items 
 
                                                   For the six months ended For the year 
                                                                    30 June        ended 
                                                                             31 December 
 
                                                    (Unaudited) (Unaudited)    (Audited) 
 
(in thousands of United States dollars)                    2017        2016         2016 
 
Adjustments for non-cash income statement items: 
 
Foreign exchange (gains)/losses                           4,734     (1,070)      (1,463) 
 
Discounting of indirect tax receivables                       -     (6,508)      (9,719) 
 
Provisions settled                                        2,101        (11)          (8) 
 
Unrealised gain on derivatives                            2,431     (1,352)     (13,031) 
 
Stock option expense                                          6          49           77 
 
Provisional tax offsets                                (17,300)           -            - 
 
Other non-cash items                                       (30)       (105)           36 
 
Exchange loss on revaluation of cash balances             (151)          45          258 
 
Total                                                   (8,209)     (8,952)     (23,850) 
 
b) Investing cash flows - other items 
 
                                                    For the six months ended For the year 
                                                                     30 June        ended 
                                                                              31 December 
 
                                                     (Unaudited) (Unaudited)    (Audited) 
 
(in thousands of United States dollars)                     2017        2016         2016 
 
Proceeds on sale of property, plant and                        -          40        6,713 
equipment 
 
Other long-term receivables                                   29       (125)         (10) 
 
Rehabilitation expenditure                                 (250)       (110)        (175) 
 
18. Commitments and Contingencies 
 
The Group is subject to various laws and regulations which, if not observed, 
could give rise to penalties. As at 30 June 2017, the Group has the following 
commitments and/ or contingencies. 
 
a)            Legal contingencies 
 
As at 30 June 2017, the Group was a defendant in a number of lawsuits. The 
plaintiffs are claiming damages and interest thereon for the loss caused by the 
Group due to one or more of the following: unlawful eviction, termination of 
services and/or, non-payment for services, defamation, negligence by act or 
omission in failing to provide a safe working environment, unpaid overtime, 
public holiday compensation and various other commercial/project disputes. 
 
The Group's Legal Counsel is defending the Group's current position, and the 
outcome of the lawsuits cannot presently be determined. However, in the opinion 
of the Directors and Group's Legal Counsel, no material liabilities are 
expected to materialise from these lawsuits that have not already been provided 
for. 
 
  * An adjudication claim for US$115 million by Bismark Hotel Limited relating 
    to an alleged breach of contract under an Option Agreement signed in 1995. 
    The claim relates to an application for a prospecting licence with no 
    attributable reserves, resources or value. We are waiting for the 
    adjudicators to fix a hearing date. Management are of the opinion that the 
    claim is without merit and that it will be successfully defended. 
  * An arbitration award of US$4 million, relating to a historical arbitration 
    between North Mara Gold Mine Limited (NMGML) and Diamond Motors Limited 
    (DML) in respect of an alleged breach of contract claim in relation to the 
    interpretation of periodic   rate review requirements and   other 
    provisions of drilling services contracts. NMGML counterclaimed against the 
    amount and raised a provision of US$6.2 million reflecting the view of 
    NMGML as to the proper interpretation and application of the rate review 
    clauses of the contracts. An arbitral tribunal decided in favour of NMGML 
    on the material grounds  of  the  claim  on  10 August  2015, with an award 
    of US$4 million  for  unpaid  rates  to  DML  for  the  period  up to 
    September 2013. The Tribunal found that the subsequent period fell to be 
    determined by negotiation of the parties pursuant to the contractual terms 
    and should be calculated based on the tribunal's judgment. After the Award 
    was issued, DML: (i) sought to challenge the Award in the Commercial Court; 
    and (ii) filed a winding up application against NMGML based on unpaid rates 
    for 2014 and 2015. NMGML petitioned the High Court to stay the winding up 
    petition, given that the underlying debt and alleged indebtedness for 2014/ 
    2015 must be determined by arbitration. The stay was rejected on the basis 
    that winding up procedures cannot be determined by arbitration. This 
    decision is on appeal. DML recently applied to strike out the appeal on the 
    basis that the record on appeal was not timely filed.  We will be opposing 
    this application, which may not be heard by the Court of Appeal for some 
    months.  We are currently assessing options available to determine the 
    amount payable to DML for 2014/2015 in order to reach an agreement on this 
    and to have all Court proceedings set aside.  The hearing for the 
    application to wind up North Mara has yet to be scheduled. Payment has been 
    made for the Arbitration award (US$4 million) and we continue to carry a 
    provision of US$2.2 million as provisioned for the first arbitration. 
  * A contractual dispute between various Acacia operating companies and 
    Petrolube/ISA to the value of US$35.1 million. The Acacia entities 
    terminated contractual supply relationships for: (i) the provision of 
    hoses, fittings and assembly services to operating entities by ISA on 
    Notice of 5 July 2016; and (ii) the provision of lubricants and associated 
    services by Petrolube to operating entities on 5 July 2016, in each case 
    pursuant to the express termination without cause provisions in the 
    agreement, and following retendering of relevant services and as a result 
    of various breaches of contract relating to the provision of Petrolube/ISA 
    services (including issues relating to reliability of prior supplies and 
    quality of products) and various other breaches of contract by Petrolube/ 
    ISA.  The termination of the Petrolube/ISA contracts resulted in Petrolube 
    / ISA commencing proceedings and procedural applications in the High Court 
    of Tanzania. This was undertaken despite the contracts providing for 
    arbitration as the principal dispute resolution mechanism. Petrolube /ISA's 
    ultimate objective was to have the termination of the agreements set aside 
    on the basis of unlawful termination and to recover various damages limbs, 
    including loss of profits, and other general damages (US$ 56,080,878.46 - 
    Petrolube Claim and US$ 24,868,942.64 ISA Claim). We have challenged all 
    elements of these Court proceedings and have also challenged the 
    jurisdiction of the Court together with an application for a stay of 
    proceedings, given that the contracts require all disputes to be referred 
    to arbitration following principal to principal dispute discussions. We 
    have also filed petitions to stay these amended plaints (again, on the 
    basis of the contractual dispute resolution process) and are waiting for 
    these to be determined. In conjunction with these court proceedings, 
    however, we have commenced separate arbitration proceedings in accordance 
    with the dispute resolution procedures under the relevant contracts. 
  * A claim for compensation against NMGML in relation to the destruction of an 
    office building and stone crusher machine. The damage to the property was 
    caused by the Tanzanian Police Force. The claim has been re-filed in the 
    High Court and awaits scheduling. Management   expects   to be   able   to 
    defend   the   claim successfully as the damage of the property was caused 
    by the Tanzanian Police Force; therefore no provision has been made. 
 
b) Tax-related contingencies 
 
The TRA has issued a number of tax assessments to the Group related to past 
taxation years from 2002-onwards. The Group believes that the majority of these 
assessments are incorrect and has filed objections and appeals accordingly in 
an attempt to resolve these matters by means of discussions with the TRA or 
through the Tanzanian appeals process. These include the following: 
 
  * A TRA assessment of US$21.3 million in respect of Tusker Gold Limited. The 
    tax assessment is based on the sales price of the Nyanzaga property of 
    US$71 million multiplied by the tax rate of 30%. Management is of the view 
    that the assessment is invalid due to the fact that the acquisition is for 
    Tusker Gold Limited, a company incorporated in Australia. The shareholding 
    of the Tanzanian related entities did not change and the Tusker Gold 
    Limited group structure remains the same as prior to the acquisition. The 
    case was decided in favour of Acacia however the TRA appealed that 
    decision. The tax tribunal upheld the decision in favour of Acacia however 
    the TRA has appealed to the Court of Appeal. We are awaiting a hearing date 
    to be set. 
  * A TRA assessment to the value of US$41.3 million for withholding tax on 
    certain historic offshore dividend payments paid by Acacia Mining plc to 
    its shareholders in 2010 to 2013 arguing that these were sourced from 
    within Tanzania. Acacia is appealing this assessment on the substantive 
    grounds that, as an English incorporated company, it is not resident in 
    Tanzania for taxation purposes. The appeal is currently pending at the 
    Court of Appeal. 
  * Further TRA assessments issued to Acacia Mining plc in January 2016 to the 
    value of US$500.7 million, based on an allegation that Acacia is resident 
    in Tanzania for corporate and dividend withholding tax purposes. The 
    corporate tax assessments have been levied on certain Group net profits 
    before tax. We are in the process of appealing these assessments at the TRA 
    Board level. Acacia's substantive grounds of appeal are, again, based on 
    the correct interpretation of Tanzanian permanent establishment principles 
    and law, relevant to a non-resident English incorporated company. 
  * In addition, in Q1 2016 we received a judgement from the Court of Appeal 
    regarding a long standing dispute over tax calculations at Bulyanhulu from 
    2000-2006. The Court of Appeal was reviewing seven issues initially raised 
    by the TRA in 2012 regarding certain historic tax loss carry forwards and 
    ruled in favour of Bulyanhulu by the Tax Appeals Board in 2013. The TRA 
    appealed against this ruling and in 2014 the Tax Tribunal reversed the 
    decision for all seven issues. Acacia appealed against this judgement and 
    in March 2016 the Court of Appeal found in favour of the TRA in five of the 
    seven issues. The legal route in Tanzania has now been exhausted; however 
    we are considering our options for the next steps. The Court of Appeal 
    ruling does not have a short term cash flow impact but means that 
    Bulyanhulu will be in a tax payable situation approximately one year 
    earlier than previously expected.  Acacia is yet to receive a revised tax 
    assessment following the judgement, but has raised further tax provisions 
    of US$69.9 million in order to address the direct impact of the ruling on 
    Bulyanhulu's tax loss carry forwards and the potential impact this may have 
    on the applicability of certain capital deductions for other years and our 
    other mines. The additional tax provisions raised are US$35.1 million 
    relating to Bulyanhulu, US$30.4 million relating to North Mara and US$4.4 
    million relating to Tulawaka and were all raised in H1 2016. Total 
    provisions for uncertain tax positions now amount to US$128 million. 
 
19. Related party balances and transactions 
 
The Group has related party relationships with entities owned or controlled by 
Barrick Gold Corporation, which is the ultimate controlling party of the Group. 
 
The Company and its subsidiaries, in the ordinary course of business, enter 
into various sales, purchase and service transactions and other professional 
services arrangements with others in the Barrick Group. These transactions are 
under terms that are on normal commercial terms and conditions. These 
transactions are not considered to be significant. 
 
At 30 June 2017 the Group had no loans of a funding nature due to or from 
related parties (30 June 2016: zero; 31 December 2016: zero). 
 
 
 
END 
 

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