ACA.L Share News (ACA)

(Sharecast News) - Acacia Mining upped its annual production target on Monday as third-quarter output topped expectations.The company now expects full-year production of more than 500,000 ounces, up from a previous guidance range of between 435,000 and 475,000 following a "strong operational performance" that saw it deliver 391,000 gold ounces in the nine months to the end of September.For the third quarter, gold production was down 29% on the same quarter in 2017 to 136,640 ounces but better than Acacia had expected, mostly due to the move to reduced operations at Bulyanhulu and to stockpile processing at Buzwagi. This was partly offset by higher gold production at North Mara.At North Mara, production was up 24% to 89,287 ounces, mainly thanks to 21% higher head grade compared to the third quarter of last year, driven by higher grade ore received from the eastern part of the Nyabirama open pit.At Buzwagi, production was down 47% to 36,460 ounces as a result of the mine transitioning to a lower grade stockpile processing operation in line with its remaining life of mine plan. At Bulyanhulu, output was 78% lower than last year at 10,893 gold ouncesAcacia had a cash balance as at 30 September 2018 of around $117m, broadly flat on the prior quarter. Meanwhile, net cash rose $11m to approximately $74m, which also included a loan repayment of $14m during the quarter.RBC Capital Markets said the third-quarter operational results were "impressive", 13% ahead of its forecasts and 20% better than consensus. The 5% increase to full-year guidance was "the cherry on top", RBC said."This clearly demonstrates management are delivering on what they can control, i.e. driving production as the negotiations between the government of Tanzania (GoT) and parent Barrick continue."At 0915 BST, the shares were up 1.8% to 146.86p.