Acacia Mining PLC (ACA.LN) said Friday it is heading for the lower end of its range of its production forecast this year as a result of Tanzania's ban on exporting gold concentrate which took its toll on earnings in the second quarter.
The gold-mining company, whose controlling shareholder is Canada's Barrick Gold, said earnings before interest, taxes, depreciation and amortization fell 34% to $79.2 million in the three months to end-June from $119.3 million a year earlier on a near halving in revenue to $157.8 million from $284.0 million.
Continue Reading Below
Gold production fell 6% to 208,533 ounces, though for the six months to June 30, output was 4% higher at 428,203 ounces from same period a year earlier.
"The first half has posed significant challenges to our operations in Tanzania following the introduction of the concentrate export ban in March and I am pleased with how we have performed in light of this," Chief Executive Officer Brad Gordon said.
Acacia operates three gold mines in Tanzania, with output from the Bulyanhulu and Buzwagi operations comprised of gold and silver bars and a concentrate containing gold, silver and copper.
"As a result of the impact of the ban we are now targeting the lower end of the production guidance range of 850,000 to 900,000 ounces for 2017," Mr. Gordon said. Management is sticking to its forecast for all-in sustaining costs, he said, citing strict cost controls.
-Write to Razak Musah Baba at email@example.com; Twitter: @Raztweet
(END) Dow Jones Newswires
July 21, 2017 03:21 ET (07:21 GMT)