Acacia Mining returns to profit in 4th quarter

Acacia Mining returned to profit in the final quarter of 2016 as it said 2017 gold production increased to between 850,000-900,000 ounces at lower costs of $880-$920 per oz.

Fourth quarter pre-tax profits rose to $62m compared with a loss of $131.9m year-on-year. Revenues were up to $263.9m from $228.7m.

Acacia said the further improvement in operating metrics was primarily driven by a six month extension to mining at Buzwagi.

This would lead to the mining of an extra two million tonnes of higher grade ore during 2017 than previously planned and will drive a step up of approximately 40% in production over 2016.

The final dividend is 8.4 cents a share, making a total dividend of 10.4 cents, more than double 2015's 4.2 cents.

“The decision to recommend a dividend at the top of the range reflect the confidence we have in the business, the significant free cash flow the company generated in 2016 and the fact that we are able to fund out of free cash flow the organic projects currently in our pipeline,” the company said.