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Interim Results

Acacia revenues hit by export ban

21 July 2017 08:06

Acacia Mining's first half financial performance was significantly impacted by the ongoing ban on exporting concentrate which resulted in approximately US$175m of lost revenue.

H1 revenue was 22% lower at US$391.7m and EBITDA of US$161.4m was 13% down.

The group said no interim dividend had been declared, in-line with the cash flow based dividend policy.

Chief executive Brad Gordon said: "“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.

"It is a complex and fluid situation which has led to a significant reduction in our cash balance to US$176 million from US$318 million, as a result of being unable to realise US$175 million of revenue during the half together with a US$51 million VAT outflow.

"We continue to take steps to preserve long-term shareholder value and have served Arbitration notices for our Bulyanhulu and Buzwagi mines and will work to achieve a negotiated resolution, which is the preferable outcome for all parties.

"In spite of the challenges we faced, we delivered the highest H1 production in the history of the Company, with gold production of 428,203 ounces. AISC for the first six months was US$893 per ounce sold, 5% lower than H1 2016, and if we had been able to sell all of the concentrate produced, AISC would have been approximately US$800 per ounce.

"As a result of the impact of the ban we are now targeting the lower end of the production guidance range of 850-900,000 ounces for 2017, but due to strong cost discipline we are leaving AISC guidance unchanged.”

At 8:06am: (LON:ACA) Acacia Mining Plc share price was -13.4p at 267.4p

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