Acacia Mining to lift gold production

Tanzania-focused Acacia Mining, formerly known as African Barrick Gold, said gold production nudged up in 2015 and announced plans to raise guidance for this year following the ramp-up of the flagship Bulyanhulu mine.

Gold output was 2% higher on the year at 731,912 ounces, which the company attributed in part to the ramp-up at Bulyanhulu in the last three months of the year.

For the fourth quarter, gold production was up 11% from the same period a year ago to 200,723 ounces as output at Bulyanhulu increased and thanks to improved grades and recoveries at North Mara.

Chief executive Brad Gordon said: “We continue to focus on reducing our cost base to ensure our assets are able to generate free cash flow in the current gold price environment.”

The company said it now expects production of around 750,000 to 780,000 this year thanks to the ramp-up at Bulyanhulu.

Acacia also noted that its drive to cut costs was working. Its all-in sustaining cash cost fell 7.7% on the year to $1,004 an ounce in the fourth quarter

Although full year all-in sustaining costs edge up 0.6% to $1,112 an ounce, Acacia said this should fall to around $950 to $980 an ounce in 2016.

At 1010 GMT, Acacia shares were up 9.2% to 176.60p.