Acacia Mining production slows in third quarter

Production was ahead of expectations at its Buzwagi mine in Tanzania with 69,097 ounces produced thanks to strong grades, while North Mara produced 72,011 ounces.

The Bulyanhulu mine turned out a historically low 50,094 ounces after work permit issues and moving to reduced operations.

Sales were below production due to the ban on the export of gold/copper concentrate produced at Bulyanhulu and Buzwagi from the Tanzanian government, though last month production at the latter was switched to from the gold/copper concentrate to gold doré bars, which are not affected by the ban.

The export ban was imposed in March and the dispute has escalated since, with a host of tougher new laws and higher government royalties imposed over the summer.

In the first half of the year gold production was 428,203 ounces, up 4% year on year, with the second quarter contributing 208,533 ounces, down 6% on the same period last year.

After gold sales of 312,438 ounces, at the end of the first quarter the FTSE 250 company had a cash balance of $176m.

Acacia made the production announcement on Thursday ahead of its own third quarter results on 20 October and imminent results from 64% owner Barrick Gold Corporation.