LONDON (Alliance News) - Acacia Mining PLC said Monday it "stabilised" its operational performance across its three mines, with gold production ahead of guidance, and swung to an annual profit but did not recommend a dividend, amid continued difficulties in Tanzania.
In the twelve months to the end of December 31, the gold miner reported a pretax profit of USD96.8 million from a USD709.7 million loss in 2017. Acacia had taken a USD850.2 million impairment charge in 2017 compared to USD28.9 million in 2018.
Acacia Mining - which has operations in Tanzania, Kenya, Burkino Faso and Mali - reported a 12% decrease in revenue to USD663.8 million from USD751.5 million the year before.
Acacia said the decrease was to the miner achieving less sales than the year before, despite higher gold prices.
The miner's gold production in 2018 reached 521,980 ounces, ahead of its guided target of 435,000 to 475,000, despite an "increasingly challenging operating environment". Acacia's all-in sustaining cost USD905 per ounce sold was also ahead of its guided range of USD935 to USD985 per ounce.
For 2019, Acacia expects production of between 500,000 and 550,000 ounces of gold at an all-in sustaining cost of USD860 to USD920 per ounce.
"I am pleased to report that during 2018 we successfully stabilised the business with our focus on operational performance across all three mines," said Interim Chief Executive Officer Peter Geleta. "
Acacia reported 2018 gold sales of 520,380 ounces, down from 592,861 ounces in 2017, due to reduced operations at the Bulyanhulu mine and to stockpile processing at Buzwagi mine.
Acacia's Buzwagi mine in Tanzania saw a decrease in annual production of 46% with all-in sustaining costs 46% higher. At Bulyanhulu, also in Tanzania, Acacia's full year production was down 43%.
Acacia has been locked in a long-running dispute with the government of Tanzania which has banned exports of gold and copper concentrates from Tanzania.
Geleta said: "We continue to provide support to Barrick in its discussions with the government of Tanzania and believe that a negotiated resolution is in the best interests of all stakeholders."
The miner said it expects capital expenditure in a range of USD75 million to USD85 million for 2019, down from USD93 million in 2018.
Acacia did not recommend a dividend for 2018 on account of its ongoing troubles in Tanzania, blaming its "continuing inability to export concentrates following the imposition of the concentrate export ban in 2017, the uncertainty around the on-going resolution of the company's dispute with the Tanzania and current liquidity requirements".
The miner last paid a dividend in 2016, of 10.4 cents.
Shares in Acacia Mining were down 1.0% in early trading Monday at 190.25 pence each.