ACACIA MINING PLC Fourth Quarter Production Report to 31 Dec 2017

 
TIDMACA 
 
15 January 2018 
 
Fourth Quarter Production Report for the three months ended 31 December 2017 
 
Based on IFRS and expressed in US Dollars (US$) 
 
Acacia Mining plc ("ACA") reports fourth quarter production results 
 
"We are pleased to report fourth quarter production of 148,477 ounces driven by 
strong operational performance at Buzwagi, whilst we successfully transitioned 
Bulyanhulu into a reduced operational state." said Peter Geleta, Interim CEO of 
Acacia. "Disciplined cost management, combined with the operational 
performance, led to Q4 2017 all-in sustaining costs ("AISC") of US$779 per 
ounce, which helped to significantly reduce the cash outflow in the quarter 
despite the cost of transitioning Bulyanhulu to reduced operations. At the end 
of the quarter, as previously announced, we also agreed to sell a non-core 
royalty for US$45 million which will increase the strength of our balance 
sheet. Our focus remains on delivering optimal performance in the current 
operating environment and delivering value for all of our stakeholders. We are 
also continuing to support efforts towards achieving a negotiated resolution 
with the Tanzanian Government. We look forward to providing guidance for the 
year in our preliminary results in February." 
 
Highlights 
 
  * Q4 2017 gold production was slightly ahead of expectations at 148,477 
    ounces, although 30% lower than Q4 2016 which was a direct result of 
    Bulyanhulu transitioning to reduced operations 
  * Gold sales of 147,636 ounces were in line with production with all gold 
    produced being in doré form 
  * Preliminary Q4 2017 AISC1 of US$779 per ounce sold, 18% lower than Q4 2016 
    and preliminary cash costs1 of US$581 per ounce sold, 14% lower than Q4 
    2016 
 
  * Q4 2017 preliminary AISC1, assuming sales ounces equalled Q4 production, 
    would have been approximately US$764 per ounce 
 
  * 2017 gold production of 767,883 ounces, 7% lower than 2016 as a result of 
    lower production mainly from Bulyanhulu, but ahead of revised full year 
    guidance of 750,000 ounces 
  * Full year sales of 592,861 ounces, 27% lower than 2016, driven by the 
    impact of the concentrate export ban 
  * Preliminary 2017 AISC1 of US$875 per ounce sold, 9% lower than 2016 and 
    below full year guidance range 
 
  * 2017 preliminary AISC1, assuming sales ounces equalled full year 
    production, would have been approximately US$798 per ounce 
 
  * Cash balance was US$81 million at 31 December 2017 (net cash position of 
    US$10 million), a decrease of US$15 million during the quarter as a result 
    of the cost of transitioning Bulyanhulu to reduced operations 
  * Sale of non-core royalty in December for US$45 million with proceeds due to 
    be received in January 2018 
 
Key Statistics                    Three months ended          Year ended 
                                  31 December                 31 December 
 
(Unaudited)                       2017       2016             2017     2016 
 
Tonnes mined (thousands of             5,270       9,644        31,917    38,491 
tonnes) 
 
Ore tonnes mined (thousands of         2,274       2,584        13,707     9,419 
tonnes) 
 
Ore tonnes processed (thousands        1,855       2,567         8,719     9,818 
of tonnes) 
 
Process recovery rate (percent)*       94.0%       88.9%         93.0%     88.5% 
 
Head grade (grams per tonne)*            2.8         2.9           3.1       3.0 
 
Gold production (ounces)             148,477     212,954       767,883   829,705 
 
Gold sold (ounces)                   147,636     209,292       592,861   816,743 
 
Copper production (thousands of            0       4,255        12,897    16,239 
pounds) 
 
Cash cost (US$/ounce)1                   581         679           587       640 
 
AISC (US$/ounce)1                        779         952           875       958 
 
Net average realised gold price        1,296       1,211         1,260     1,240 
(US$/ounce)1 
 
Capital expenditure (US$'000)2        21,301      57,826       149,376   195,898 
 
Cash balance                          80,513     317,791        80,513   317,791 
 
Total borrowings                      71,000      99,400        71,000    99,400 
 
1 These are non-IFRS measures. Refer to page 4 for definitions 
 
2 Excludes non-cash capital adjustments (reclamation asset adjustments), 
includes finance lease purchases and land purchases treated as long term 
prepayments 
 
*Reported process recovery rates and head grade for the Group includes the 
impact of tailings retreatment at Bulyanhulu 
 
Operating update for the three months ended 31 December 2017 
 
Gold production for the quarter amounted to 148,477 ounces, a 30% decrease on 
the corresponding quarter of 2016 and a 22% decrease on Q3 2017. The decrease 
was predominantly driven by the decision taken in September 2017 to reduce 
operational activity at Bulyanhulu which resulted in no production activities 
for the quarter, except for the production from reprocessing tailings that 
resumed in December and which delivered 2,856 ounces. 
 
Gold ounces sold for the quarter of 147,636 ounces were broadly in line with 
gold produced for the quarter and 29% lower than Q4 2016. 
 
At Buzwagi, gold production of 73,603 ounces for Q4 2017 was 76% higher than in 
Q4 2016, driven by an increase in grade due to ore tonnes solely being mined 
from the main ore zone as the mine accessed the final stages of the open pit 
before it moves to becoming a stockpile processing operation in 2018. 
 
At North Mara, gold production for the quarter of 72,018 ounces was in line 
with plan but 21% lower than Q4 2016 mainly due to lower head grade driven by 
the underground mine grade of 7.7 grams per tonne being 30% lower than the 
prior year period. This was a result of mining taking place in the lower grade 
west zone of the Gokona Underground. Lower grades were also received from the 
Nyabirama pit due to increased mining from the Stage 4 open pit. 
 
At Bulyanhulu, gold production for the quarter amounted to 2,856 ounces, 96% 
below Q4 2016, as a result of the decision taken in September to reduce 
operational activity at Bulyanhulu. During the quarter there were no production 
activities from the underground mine and all production came from the 
retreatment of tailings which re-commenced in December 2017 following 
sufficient rainfall being received at the mine. 
 
Total tonnes mined for the quarter were 5.3 million, compared to 9.6 million in 
Q4 2016, primarily due to lower waste tonnes mined at Buzwagi as the mine 
accessed the final stages of the open pit and saw restricted access in December 
due to excessive rainfall. 
 
Tonnes processed in the fourth quarter were 1.9 million, 28% lower than Q4 
2016, predominantly driven by the reduced operational activity and temporary 
suspension of tailings retreatment at Bulyanhulu, and lower mill availability 
at Buzwagi. 
 
The average grade processed for the quarter was 2.8 grams per tonne which was 
3% lower than the prior year period, mainly due to no underground material 
being processed at Bulyanhulu, a lower head grade at North Mara driven by lower 
mined grades, partly offset by higher head grades at Buzwagi due to higher 
mined grades. 
 
There was no copper production for the quarter as a result of the reduced 
operational activity at Bulyanhulu and at Buzwagi as a result of the flotation 
circuit bypass. 
 
The cash balance as at 31 December 2017 amounted to approximately US$81 million 
and decreased by US$15 million during the quarter. The sale of a non-core 
royalty in December 2017 for US$45 million, with proceeds due to be received 
later in January 2018, will strengthen current cash balances. The outstanding 
balance of the CIL debt facility amounted to approximately US$71 million at 
year end. 
 
ENQUIRIES 
 
For further information, please visit our website: www.acaciamining.com or 
contact: 
 
Acacia Mining plc                      [phone] 
 
Peter Geleta, Interim Chief Executive Officer 
 
Jaco Maritz, Chief Financial Officer 
 
Giles Blackham, Head of Investor Relations 
 
Camarco                                [phone] 
 
Gordon Poole 
 
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 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. 
 
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. 
 
Disclaimer and forward-looking statements 
 
This announcement is for information purposes only and does not constitute an 
invitation or offer to underwrite, subscribe for or otherwise acquire or 
dispose of any securities of Acacia in any jurisdiction. 
 
This announcement includes "forward-looking statements" that express or imply 
expectations of future events or results as opposed to historical facts. These 
statements include, 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 herein. 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 and 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 announcement. 
Any forward-looking statements in this announcement only reflect information 
available at the time of preparation. Save as required under the Market Abuse 
Regulation or otherwise as may be required under applicable law, Acacia 
explicitly disclaims any obligation or undertaking publicly to update or revise 
any forward-looking statements in this announcement, whether as a result of new 
information, future events or otherwise. Nothing in this announcement 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 its historical published profits or 
earnings per share. 
 
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. 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. 
 
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, reduced operations costs 
and corporate social responsibility charges. Cash cost is calculated net of 
co-product revenue. 
 
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 
cost per ounce sold is calculated by dividing the aggregate of these costs by 
gold ounces sold. Cash costs and cash cost per ounce sold are calculated on a 
consistent basis for the periods presented. 
 
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, reclamation and remediation costs for operating mines, 
corporate social responsibility expenses, mine exploration and study costs, 
capitalised stripping and underground development costs and sustaining capital 
expenditure. This is then divided by the total ounces sold. 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, depreciation and selling costs. 
 
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 / trammed - measures in tonnes the total 
    amount of underground ore mined and hoisted / 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. 
 
 
 
END 
 

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January 15, 2018 02:00 ET (07:00 GMT)