6th Oct 2015 06:59
LONDON (Alliance News) - Acacia Mining PLC on Tuesday said its production output in the third quarter was weaker than anticipated and said its full-year production will now fall below previous guidance.
FTSE 250-listed Acacia said its production in the third quarter was around 164,000 ounces of gold, lower than its had expected due to several short-term issues which hit production at its Bulyanhulu and Buzwagi mines over the period to the end of September, while North Mara performed in line with its expectations. All three mines are based in Tanzania.
The group does expect production to improve in the fourth quarter, but its full-year production will come in broadly flat on the 718,851 ounces it delivered in 2014, below its previous guidance for full-year production to hit 750,000-800,000 ounces.
Due to the lower gold price environment, the company is making more efforts to remove costs from the business in order to generate more cash.
"I am personally very disappointed in the operational performance in the third quarter, which saw a succession of small issues impact Buzwagi and the ramp up at Bulyanhulu. We have addressed each of these to ensure they do not impact future performance," said Chief Executive Brad Gordon.
By Sam Unsted; [email protected]; @SamUAtAlliance
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