23rd Jun 2015 06:53
LONDON (Alliance News) - Acacia Mining PLC Tuesday said the weakening of the Tanzanian shilling against the dollar during the second quarter of 2015 will impact the indirect tax balances owed to the company if that currency weakness continues to the end of June.
The FTSE-250 miner said the indirect tax balances owed to the company are converted from Tanzanian shillings to dollars. If the exchange rate, which has weakened in the second quarter, prevails until June 30, Acacia is expecting it to make an impact.
The total outstanding indirect tax balance owed to Acacia, both long and short term, was the equivalent of around USD124 million at the start of the second quarter. Acacia said that, excluding the movement in the exchange rate, this has not "materially moved".
"Any accounting loss from the revaluation will be allocated to 'other costs' on the company's profit and loss statement for the period and may therefore impact earnings, although has no corresponding impact on cash flow for the period," said the miner.
However, Acacia said if the exchange rate remains at the same level, the 15% to 20% of its cost base that is denominated in Tanzanian shillings would benefit.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
ACA.L