Acacia Mining's Q4 output down on Tanzania export ban

By Reuters / January 15, 2018 / www.mining.com / Article Link

JOHANNESBURG, Jan 15 (Reuters) - Acacia Mining said on Monday said fourth-quarter production fell by a third on the previous year due to a ban on exports of gold and copper concentrates in Tanzania.

The London-listed miner said production in the three months to December fell 30 percent to 148,477 ounces compared with a year ago and 22 percent from the previous quarter. This brought 2017 gold to 767,883 ounces, ahead of its expectations of 750,000 ounces.

The company shut its flagship Bulyanhulu mine in September as the miner bled cash due to the government export ban that was introduced in March.

Tanzania believes it is not getting enough revenue from its minerals and is encouraging the construction of a local smelter.

"We are also continuing to support efforts towards achieving a negotiated resolution with the Tanzanian government," said interim chief executive Peter Geleta.

The cash balance as at December stood at $81 million after a $15 million outflow in the fourth quarter.

The all-in sustaining cost of producing an ounce of gold, an industry benchmark, fell to 779 per ounce compared with 952 per ounce a year ago.

(Reporting by Zandi Shabalala, editing by Louise Heavens)

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