15 Jan 2018

Based on IFRS and expressed in US Dollars (US$)

Acacia Mining plc ('ACA'') reports fourth quarter production results

'We are pleased to report fourth quarter production of 148,477 ounces driven by strong operational performance at Buzwagi, whilst we successfully transitioned Bulyanhulu into a reduced operational state.' said Peter Geleta, Interim CEO of Acacia. 'Disciplined cost management, combined with the operational performance, led to Q4 2017 all-in sustaining costs ('AISC') of US$779 per ounce, which helped to significantly reduce the cash outflow in the quarter despite the cost of transitioning Bulyanhulu to reduced operations. At the end of the quarter, as previously announced, we also agreed to sell a non-core royalty for US$45 million which will increase the strength of our balance sheet. Our focus remains on delivering optimal performance in the current operating environment and delivering value for all of our stakeholders. We are also continuing to support efforts towards achieving a negotiated resolution with the Tanzanian Government. We look forward to providing guidance for the year in our preliminary results in February.'

Highlights

  • Q4 2017 gold production was slightly ahead of expectations at 148,477 ounces, although 30% lower than Q4 2016 which was a direct result of Bulyanhulu transitioning to reduced operations
  • Gold sales of 147,636 ounces were in line with production with all gold produced being in doré form
  • Preliminary Q4 2017 AISC1 of US$779 per ounce sold, 18% lower than Q4 2016 and preliminary cash costs1 of US$581 per ounce sold, 14% lower than Q4 2016
    • Q4 2017 preliminary AISC1, assuming sales ounces equalled Q4 production, would have been approximately US$764 per ounce
  • 2017 gold production of 767,883 ounces, 7% lower than 2016 as a result of lower production mainly from Bulyanhulu, but ahead of revised full year guidance of 750,000 ounces
  • Full year sales of 592,861 ounces, 27% lower than 2016, driven by the impact of the concentrate export ban
  • Preliminary 2017 AISC1 of US$875 per ounce sold, 9% lower than 2016 and below full year guidance range
    • 2017 preliminary AISC1, assuming sales ounces equalled full year production, would have been approximately US$798 per ounce
  • Cash balance was US$81 million at 31 December 2017 (net cash position of US$10 million), a decrease of US$15 million during the quarter as a result of the cost of transitioning Bulyanhulu to reduced operations
  • Sale of non-core royalty in December for US$45 million with proceeds due to be received in January 2018

1 These are non-IFRS measures. Refer to page 4 for definitions

Acacia Mining plc published this content on 15 January 2018 and is solely responsible for the information contained herein.
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