ACACIA MINING PLC Fourth Quarter 2018 Production Results

 
TIDMACA 
 
14 January 2019 
 
                               Acacia Mining plc 
 
                     ("Acacia", "Group" or the "Company") 
 
                    Fourth Quarter 2018 Production Results 
 
"I am pleased to report that we have achieved gold production of 130,581 ounces 
for the fourth quarter, bringing our total gold production for the full year to 
521,980 ounces.  This is substantially ahead of our initial production guidance 
for the year of 435,000 to 475,000 ounces. I am proud of the resilience, hard 
work and dedication shown by our people in realising this achievement despite a 
challenging operating environment.  Over the last 12 months we have focused on 
successfully stabilising the business, including a return to free cash flow 
generation in Q2, and I am pleased to report that we end the year with a net 
cash balance of US$88 million." said Peter Geleta, Interim Chief Executive 
Officer. 
 
Gold production for the quarter of 130,581 ounces was slightly ahead of 
expectations, although 12% lower than the prior year mainly due to the 
transitioning of Buzwagi to a stockpile processing operation, partly offset by 
higher gold production at North Mara and Bulyanhulu. Gold ounces sold for the 
quarter of 133,460 ounces were slightly higher than production due to the 
favourable timing of shipments and draw down of finished gold on hand. 
 
Full year production of 521,980 ounces was ahead of expectations for the year, 
although 32% lower than 2017 due to the transition to reduced operations at 
Bulyanhulu and to stockpile processing at Buzwagi.  Gold production in 2018 
benefitted from the higher grade ore received from the Nyabirama open pit at 
North Mara, the extended mining of the final cut of the higher grade ore at the 
bottom of the pit and switchbacks at Buzwagi combined with the better than 
expected performance of the Buzwagi processing plant with improved throughput 
and recoveries, and the favourable performance from tailings processing at 
Bulyanhulu. Full year gold sales of 520,380 ounces were broadly in line with 
production. 
 
At North Mara, gold production for the quarter of 84,079 ounces was 17% higher 
than the prior year of 72,018 ounces, mainly driven by 11% higher head grades 
due to the higher grade ore received from the eastern part of the Nyabirama 
open pit. 
 
Buzwagi gold production of 35,880 ounces for Q4 2018 was 51% lower than the 
prior year of 73,604 ounces as a result of the mine transitioning to primarily 
a lower grade stockpile processing operation in 2018 in line with its remaining 
life of mine plan. Mining of the final cut of higher grade ore remaining at the 
bottom of the pit and switchbacks was largely completed during the quarter, 
resulting in slightly higher than expected production. 
 
Bulyanhulu produced 10,622 gold ounces for the quarter, above the prior year of 
2,855 ounces which was negatively impacted by a drought in the Kahama district, 
resulting in a temporary halt in the retreatment of tailings in Q4 2017. All 
production continued to be produced from the retreatment of tailings as a 
result of the underground mine being placed on reduced operations in late 2017. 
 
The cash balance as at 31 December 2018 amounted to approximately US$130 
million, representing an increase of approximately US$13 million during the 
quarter and US$50 million for the year, with net cash increasing to 
approximately US$88 million at period end. 
 
Acacia will be releasing its 2018 preliminary results and 2019 guidance at 07: 
00 GMT on 11 February and a presentation and webcast will be held for analysts 
and investors at 12.00 GMT on the same day. The webcast will be accessible from 
http://www.acaciamining.com/ and the details for the webcast and call are as 
follows: 
 
Webcast Live Link: https://www.investis-live.com/acacia-mining/ 
5c349ca4ff46a80a00ed7224/etgt 
 
Conference Call Dial-in: 
 
United Kingdom (Local): 020 3936 2999 
 
All other locations: [phone] 
 
Participant Access Code: 864721 
 
ENQUIRIES 
 
For further information, please visit our website: http://www.acaciamining.com/ 
or contact: 
 
Acacia Mining plc                       [phone] 
 
Sally Marshak, Head of Investor Relations and Communications 
 
Camarco                                 [phone] 
 
Gordon Poole / Nick Hennis 
 
About Acacia Mining plc 
 
Acacia Mining plc (LSE:ACA) is the UK holding company of the Acacia Group, 
Tanzania's largest gold miner and one of the largest producers of gold in 
Africa. The Acacia Group has three mines, all located in north-west Tanzania: 
Bulyanhulu, which is owned and operated by Bulyanhulu Gold Mine Limited, 
Buzwagi, which is owned and operated by Pangea Minerals Limited and North Mara, 
which is owned and operated by North Mara Gold Mine Limited. 
 
The Acacia Group also has a portfolio of exploration projects in Kenya, Burkina 
Faso and Mali. Acacia is a UK public company headquartered in London. We are 
listed on the Main Market of the London Stock Exchange with a secondary listing 
on the Dar es Salaam Stock Exchange. Barrick Gold Corporation is our majority 
shareholder. Acacia reports in US dollars and in accordance with IFRS as 
adopted by the European Union, unless otherwise stated in this announcement. 
 
Disclaimer and 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 on-going 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. 
 
 
 
END 
 

(END) Dow Jones Newswires

January 14, 2019 02:00 ET (07:00 GMT)