Friday preview: Acacia Mining reports third quarter results

Tanzania-focused Acacia Mining on Friday reports its third quarter results with the focus likely to be on the impact of a mill shutdown at the Bulyanhulu gold mine.

In September, Acacia said it had restarted operations at Bulyanhulu which had been halted due to overheating of the ball million trunion bearing.

The miner said further work will be carried out during a planned plant shutdown in the fourth quarter of 2016. A full bearing housing replacement will be installed next year.

However, Acacia said full year production guidance for Bulyanhulu remained unchanged.

“Furthermore, at a group level we continue to expect third quarter production to be broadly in line with the first quarter with unchanged full year production guidance of at least 780,000 ounces of gold,” the company said in a statement.

Numis expects group production of 184,000 oz, including 58,000 oz from Bulyanhulu, 74,000 oz from Mara and 52,000 oz at Buzwagi. The broker estimates cash costs of $720 per oz and predicts earnings per share of 11 cents per share.

“The key to the quarter should be the impact of the protracted mill shutdown at Bulyanhulu due to overheating of the trunion bearing,” Numis said.

“This could be partially offset by production at North Mara continues to be higher than management had initially expected due to positive grade reconciliation at the Gokona underground mine.”

Friday 21 October

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