Acacia Mining and Gold

Friday, 20th July 2018 11:16 - by Rajan Dhall

This morning Acacia Mining have posted their interim results and in my opinion, they do not make good reading. Looking at the weekly chart I have posted there is every chance we could break the wave low of 105p soon. The gold market is depressed and the company has struggled with government issues in Tanzania. 

• H1 Revenue of US$333.4 million, 15% lower than H1 2017
• H1 EBITDA1 of US$133.6 million, 17% down from H1 2017 and adjusted EBITDA1 of US$91.6 million 45% lower than H1 2017
• H1 Net earnings of US$30.9 million (US7.5 cents per share), 51% down from US$62.5 million in H1 2017, impacted by a US$24.2 million impairment at Nyanzaga, with adjusted net earnings of US$13.5 million (US3.3 cents per share), 79% lower than H1 2017

Outlook  - Despite the continuation of the challenging environment, the Group has delivered a strong operational performance in H1 2018. In achieving first half production of 254,759 ounces we are on track to achieve the top end of our guidance range of 435,000-475,000 ounces for 2018 and continue to demonstrate the resilience that we have built within our business. All gold produced in 2018 is expected to be in doré form and will not, therefore, be impacted by the current GoT export ban on concentrate.