LONDON (Alliance News) - FTSE 250-listed Acacia Mining PLC said on Monday that gold production was ahead of expectations in 2018 but still was lower than in 2017, due to reduced operations and a transition to stockpile processing.
For the three months to the end of 2018, Acacia produced 130,581 ounces, 12% down from 148,477 ounces the year before, but this was "slightly ahead of expectations".
In the fourth quarter, Acacia sold 133,460 ounces in gold, down from 147,636 ounces in 2017 but higher than production due to the timing of shipments and a draw-down of finished gold on hand.
For all of 2018, gold production was 521,980 ounces, down 32% from 767,883 ounces in 2017. Gold sales were largely in line with production at 520,380, but down from 592,861 ounces the year before.
Gold production saw an annual fall partly due to a transition to reduced operations for the Bulyanhulu underground mine in Tanzania since late 2017. Production from Bulyanhulu has continued to be produced from the retreatment of tailings.
In addition, production from Buzwagi, also in Tanzania, halved during the fourth quarter of 2018 as the mine transitioned to lower-grade stockpile processing operations in line with its remaining life of mine plan.
Acacia ended 2018 with a cash balance of USD130 million, up from USD81 million on the same date the year before.
"I am proud of the resilience, hard work and dedication shown by our people in realising this achievement despite a challenging operating environment. Over the last 12 months we have focused on successfully stabilising the business, including a return to free cash flow
generation in the second quarter," said Chief Executive Officer Peter Geleta.
Acacia, which is majority-owned by Canadian mining giant Barrick Gold Corp, faced numerous regulatory issues in Tanzania last year, including the arrest of a current and former employee. In October, Acacia reported three of its subsidiaries in Tanzania have been charged under the country's anti-money laundering laws.
Acacia has been locked in a tax disagreement with the Tanzanian government for almost two years now.
Acacia will publish its annual results and 2019 production guidance on February 11.
Shares in Acacia were trading flat at 195.02 pence on Monday.