Acacia Mining speeds up job cuts

Gold producer Acacia Mining unveiled plans to cut a further 1,050 jobs as part of its restructuring programme.

The FTSE 250 group has cut approximately 60% of its "higher-cost expatriates" amid its organisational changes and it expects more staff to be made redundant by the end of the year.

Earlier this year, the miner said it would implement a restructuring plan to ensure it remains profitable at current gold price and another 1,050 employees, representing approximately 27% of the current workforce, have either left of will go before the end of 2015.

The latest round of job cuts, which mean the group has reduced its costs by 30% over the last three years, will predominantly affect the Bulyanhanu mine in Tanzania.

"The largest proportion of the role reductions are at Bulyanhulu, but all of our mines and offices will be affected,” it said.

“As part of this process Acacia has fulfilled all local legislative requirements and is committed to minimising any employee hardship; as such we have put in place support services to assist those affected."

The London-listed miner added it expects the job cuts to deliver $25m in annual savings, although those would be partially offset by $11m worth of restructuring costs.

"These, and the other planned changes, will help to ensure that we are able to generate sustainable positive free cash flow in 2016 and beyond, and do not experience a recurrence of the unacceptable cash outflow we saw in the third quarter,” said group chief executive Brad Gordon.

“The majority of those employees affected have already left Acacia, with operational performance continuing to be in line with plan for the quarter."

Acacia shares were down 0.06% to 179.90p at 0824 GMT on Thursday.