16th Feb 2015 07:54
LONDON (Alliance News) - Acacia Mining PLC Monday reported an increase in earnings in 2014 despite revenue remaining flat from 2013, after the Africa-focused gold miner implemented "stringent" capital controls, which allowed it to increase its full-year dividend by 40%.
For the year ended December 31, the FTSE 250-listed miner reported earnings before interest, tax, depreciation and amortization of USD253 million, up 5% from 2013 despite being hit by non-cash charges of USD27 million. Net earnings totalled USD90 million during the year, or 22.1 cents per share.
Revenue for the year remained flat from 2013 at USD930 million after increased production was offset by the lower gold price.
With earnings up, Acacia proposed a final dividend of 2.8 cents per share, making the total dividend for 2014 of 4.2 cents per share, a 40% increase from 2013.
In 2014, Acacia spent a total of USD254 million, down by 34% from a year earlier due to revised mine plans and "stringent capital controls", said the miner.
In 2015, the company expects overall capital expenditure of between USD220 million to USD240 million, a further reduction on 2014, as it enforces "stringent capital controls" and moves closer to "industry average per ounce spend," said Acacia.
At the end of the period, the company reported a cash balance of USD294 million.
Production for the year reached 718,651 ounces of gold, up 13% from 2013, and the company reduced its cash costs by 10% to USD732 per ounce. Gold sales reached 703,680 ounces in 2014.
For 2015, the miner is expecting production to increase and total between 750,000 to 800,000 ounces of gold, whilst lowering operating cash costs to around USD695 to USD725 per ounce.
"I am delighted with the progress we have made across the business over the last 12 months. We continued to deliver operationally, with each quarter showing lower all-in sustaining costs. This discipline enabled us to return to free cash generation, for the first time since 2011, which was one of our key objectives for the year," said Chief Executive Brad Gordon.
In 2015, the company said it will focus on delivering free cashflow from its existing portfolio. Acacia said it plans to "drive free cashflow, of which 15% to 30% is expected to be returned to shareholders via dividends".
By Joshua Warner; [email protected]; @JoshAlliance
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