Acacia Mining Share Discussion Threads

[atlantic57] 29/5/2017 11:07

That is a very good point,you would need a very detailed grasp of the underlying figures to make that judgement.

[novicetrade68] 29/5/2017 11:04

Since markets are a discounting mechanism as they say, the question might be, what has the s/price already factored in and what not. The market has by now applied a £600m discount. Should the discount become a £1bn? Or £300m since their most profitable mine isn't affected?

[atlantic57] 29/5/2017 10:51

This is high risk /high reward or as chip has stated now at the lower price lower risk.

However not for me ,as stated Acacia may be in the right but even small legal disputes generate huge legal fees and drag on and on.When you are talking about a national Gov being involved ,then this is difficult to see how this will be settled quickly.

[glenkaz] 29/5/2017 10:47

Tanzania would be in deep 💩 With any company wanting to invest! This will be resolved. It's a try on! And o dear silly us are abacus wass missing a few beads! 😂T

[bookwormrobert] 29/5/2017 10:38

Redbaron - I think you're spot on. In effect, Acacia are being blackmailed by false charges into giving up control of either a share of their Tanzanian assets, or all of them. Acacia may be in the right, but it's very hard to fight against the power of a state.

[redbaron10] 29/5/2017 09:19

I get the impression all this posturing by the Tanzanian president and his commission is related to the issues now coming to a head in S.Africa.The government there, has in the past,wanted more local involvement in mining companies through BEE,Black Employee Empowerment, where a percentage of ownership is given over to the local community and its workers.According to business reports the S.African government is making another concerted effort in this area to appease communities surrounding the mines.With Zuma and S.Africa facing important national elections next year,the cynic in me says the timing of all this intervention is very convenient.I think the Tanzanian president wants the same sort of deal and may wish to employ delaying tactics to see what the fall-out and reaction to the changes it invokes in S.Africa.The Tanzanian president has said he wants a similar BEE deal in his country, and only recently speeded up the time frame in which he wishes this to be achieved.I can't help but feel this is more than just coincidental,and the Tanzanian president is waiting for the reaction and backlash from foreign companies and their investors to what is being proposed now in S.Africa.If Zuma and S.Africa lose a lot of their foreign backing,which is likely,then the Tanzanian president will have to weigh up the consequences of carrying on with his actions towards ACA.

[glenkaz] 28/5/2017 16:00

Won't take long for a re audit! Tanzania gov will look stupid and would not want to put off companies investing there! IMO news with a mistake of audit could be very soon! Especially as Aca are not Gona take any 💩! Shorts caught off guard Friday and I think will again soon! Gla!

[atlantic57] 28/5/2017 14:44

I have no position not easy to make a call
On how long this will take to resolve
And how it will end up.

[welshwiz] 28/5/2017 14:15

I wouldnt be surprised to see that Cawkey the Fat after his little ramp on Friday has cashed in his chips.
He, like myself had a decent wedge in CHL and ACA looks at this stage to be going down the same path with a major dispute with a government.
Arbitration is a long drawn out process with a scant regard to truth and justice as we have so far found out with CHL
No position here for me,but could change if this gets MUCH cheaper or the Tanz govenment start making concessions

[bookwormrobert] 28/5/2017 13:28

Google "Tanzania Acacia" and read the articles in the English language local newspapers! There is apparently still another Presidential commission to report, which is looking at the last 15 years of payments from Acacia. I think the end game is that this commission declares that Acacia has massively defrauded the government for all this time, and that it should be penalised by nationalisation of the mines without compensation. You can also read there about two of the mines (Buly and Buzwagi) being surrounded by the police.

For the record, I don't have a short on ACA. But if you held a gun to my head and made me choose, I'd definitely go short rather than long.

[glenkaz] 28/5/2017 13:10

Smell a short! Rubbish!

[bookwormrobert] 28/5/2017 12:26

I've just spent an hour reading the state-owned Tanzanian press and their view of the Acacia investigation. I don't believe a word they write about the mineral content of the containers - it's clearly a political "hit job" on the company. But I am interested in their justification of their President's actions. After my research it seems to me that the end game here is nationalisation of the mines, or at the least part nationalisation. For this reason I'll continue avoiding this share, even at the current price.

(BTW - It seems that two of Acacia's three mines are not working as of last week, and indeed that they are surrounded by police who refuse to let anybody in and out. All in all, it looks really bad.)

[macca32] 28/5/2017 08:45

Last part of the article shows there were already plans to close a mine down

[gersemi] 28/5/2017 06:46

Acacia set to close loss-making mine as Tanzania export row deepens

Acacia's Bulyanhulu mine could close because of a dispute with the Tanzania government

Jon Yeomans

27 May 2017 • 7:40pm

Acacia Mining is preparing to close a loss-making mine after a row over exports with the Tanzanian government escalated.

Shares in the FTSE 250 gold miner plunged nearly 40pc last week after a report by the Tanzanian government accused it of under-representing the amount of gold in the concentrate it exports, potentially depriving the country of millions in royalties.

The government said that Acacia’s gold output was 10 times greater than it claimed – a level that would “make it third-biggest gold miner in the world”, the company said.

The findings, published with great fanfare on national TV, mean an export ban on gold concentrate imposed at the start of March is likely to continue indefinitely. Acacia is still able to ship out gold bars, which make up 70pc of its output, but estimates that it is losing $1m (£780,000) in revenue every day.

The company, which is dependent on its three mines in Tanzania, has been stockpiling gold concentrate in the hope of a quick end to the dispute. But it is now preparing to close Bulyanhulu mine to stem mounting losses.
Acacia mine

Acacia is dependent on three mines in Tanzania

Around 45pc of Bulyanhulu’s output is gold concentrate, and the losses from stockpiling production cannot be offset by sales of gold bars.

Acacia’s Buzwagi and North Mara mines will remain operational for now.

Some observers suggest that Tanzania’s president, John Magufuli, is trying to force Acacia to fund a new gold-smelting industry, but experts say the country’s output is too small for this to be economically viable.

Acacia is petitioning the government to allow a third party to assess its output.

“We need to defend ourselves,” said a person close to the situation. “The numbers are not believable. We are not guilty of a multi-billion dollar fraud.”

A second government committee is looking at gold concentrate production in Tanzania dating back 15 years - roughly the time-span that Acacia, formerly African Barrick, has been operating there. As Acacia is by far the largest miner in the country, it is thought to be the focus of the probe.

[tsmith2] 27/5/2017 23:50

Full article?

[glenkaz] 27/5/2017 23:36

Nice find Harry we move up easy!🤒

[macca32] 27/5/2017 23:32

Interesting article above

[the_equaliser] 27/5/2017 21:42

Dyor don't lose to postas tryin to recova there loss 😁

[the_equaliser] 27/5/2017 21:42

Dyor don't lose to postas tryin to recova there loss 😁

[glenkaz] 27/5/2017 19:55

Here take these 🍌🍌 and shut da f/ck up! All is forgiven! 😂

[glenkaz] 27/5/2017 13:23

Hi mr wonga😃 £3 looking for £6 and divis once cleared up not worried at all think it's one of those that will rerate as fast as it went down! Solid company! On the radar now for lots of peeps! Also check out pfc but don't buy yet IMO but a buying from moi 🤒 Soon after shorts have raped it a bit more!

[letmepass] 27/5/2017 11:39

Next trading session back to 350