Acacia set to fall short of targets after 'challenging' quarter

Acacia Mining is expecting to fall short on its guidance for 2015, after a “challenging” third quarter.

The FTSE 250 company released its third quarter results to 30 September on Wednesday.

Gold production was down 14% on the previous year to 163,888 ounces, with the year to date total down 1.2% on 2014 to 531,189 ounces.

Gold sales were also down from 178,490 ounces for the 2014 quarter to 167,116 ounces.

The lower production also affected the company’s all-in sustaining costs, rising 9% on the previous year to $1,195 per ounce sold.

The company’s finances have also taken a hit, with revenue down 20% to $193m and a net loss of $13m.

Acacia chief executive Brad Gordon said the results have been impacted by short term issues.

“As previously communicated, we had a challenging third quarter, with short term issues impacting Bulyanhulu and Buzwagi.

“Whilst North Mara again performed well, group production of 163,888 ounces was lower than the previous quarter and means we expect to fall short of our original plans for 2015.”

Gordon said despite the results, he’s confident they are close to completing the business’s turnaround.

“Over the past two years we have made significant changes to the business to lay the foundation for improved and consistent operational delivery,” he said.

“We have addressed each of the issues that impacted the business in Q3 to ensure they do not re-occur and, importantly, key underlying metrics at Bulyanhulu are on track to sustain a step-up in production in Q4 2015."