15th Apr 2019 09:02
LONDON (Alliance News) - Acacia Mining PLC said Monday its production in the first quarter was 13% lower than the year before due to lower production at its North Mara and Buzwagi mines in Tanzania.
In the three months to March 31, Acacia produced 104,899 tonnes of gold, 15% below the prior year. The company's gold ounces sold in the first quarter were in line with production.
"While historically our production is typically stronger in the second half of the year, production this quarter was impacted by unanticipated production issues at our North Mara mine. We have taken immediate steps to address these, introducing a revised mining plan in mid-March for both the underground and open pit mines, and we remain confident of delivering against our full year production guidance. I would also like to thank our people for their commitment during these times of uncertainty," said Interim Chief Executive Peter Geleta.
Acacia saw the North Mara mine produce 66,324 ounces in the first quarter, 14% lower than the prior year.
The gold miner attributed the drop on a fall of ground in the Gokona underground mine at the end of December 2018 as well as an excavator breakdown in the Nyabirama open pit.
To address the fall of ground at Gokona - which is preventing access to higher grade stopes - Acacia began working on a revised mining plan.
At Buzwagi, production fell 20% to 28,577 ounces, in line with expectations. Acacia said the lowered expectations stem from the mine fully transitioning to a lower grade stockpile processing operation.
Acacia said it remains on track for production guidance of between 500,000 tonnes to 550,000 tonnes.
Acacia added: "Through the quarter, Acacia has continued to engage with and provide support to Barrick in its direct negotiations with the Government of Tanzania. Acacia is looking forward to receiving a detailed proposal for a comprehensive resolution of Acacia's disputes with the Government, once Barrick's negotiations have been successfully concluded. Acacia continues to favour a negotiated resolution on a timely basis that will benefit all stakeholders."
Canadian gold mining giant Barrick Gold Corp holds a 64% stake in Acacia.
Shares in Acacia Mining were down 2.2% Monday at 187.80 pence each.
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