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Goldminer Acacia Mining announced a 15% drop in profits in the first half of 2018, attributable to the depreciation of a project and high costs related to a dispute with the Tanzanian government that has pushed the company to $ 19.1 million loss in the second quarter
The London-registered miner said his gross profit decreased by $ 133 million from $ 161 million in the same period last year, recording a net loss.
Net income decreased by 51 percent to $ 30.9 million, from $ 62.5 million
The minor was affected by a $ 24.2 million write-down in Nyanzaga, with Adjusted net income of $ 13.5 million, Cash generated from operations in the first half of the year amounted to $ 58.9 million, or 57.6 million. million more than the first six months of 2017.
It also stated that it generated 14 million f The cash balance increased by 49 per cent during the period under review to 120, $ 1 million, due to a non-core royalty sale and strong operational performance.
"We expect to see costs decrease in the second half," said CFO Jaco Maritz
Gold production of miners in the first half of this year was 7,222 kg, or 41 percent less than the same period Between 1965 and March, production stood at 3,792 kg, 36% less than at the same time last year, but 11% more than the first three months of the year.
Acacia also sold 3,800 kg of gold in the last three months, five percent higher than the second quarter of the year. Last year, the company expects to exploit between 12,000 and 13,500 kg this year.
"The changes we made to the company at the end of 2017 have helped the Group to generate cash for the first time since the fourth quarter of 2016. The priority remains the optimization of returns in all areas of our operations, given the current uncertainty in the operational context and disputes with the Government of Tanzania, "said Peter Geleta, interim general manager of Acacia Mining. returns are currently $ 64 million for exports alone and $ 172.5 million pending accounts receivable at the end of last month. The mining company also announced that it would forgo the creation of another gold mine in Tanzania after agreeing to sell its stake in the Nyanzaga gold project
"End of post period, agreement Conditional with OreCorp Ltd., operator of the Nyanzaga Project, to take full ownership of the project in exchange for a total consideration of $ 10 million and a capped smelter fee of $ 15 million, "said Acacia in a release
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