Acacia Mining
Acacia Mining's North Mara mine if Tanzania. Photo: Acacia Mining

Acacia Mining reports another strong operating performance in Q2, 2018, delivering a Group production of 133,778 oz which led to an increase in the Group’s cash balance of US$13 million to US$120 million.

These results have been announced by Peter Geleta, Acacia Mining's interim CEO.

“In achieving first half production of 254,759 oz we are on track to achieve the top end of our guidance range of 435,000-475,000 oz for 2018 and continue to demonstrate the resilience that we have built within our business.”

Group gold production for the quarter of 133,778 oz was a 36% decrease on Q2, 2017 (208,533 oz), primarily driven by the move to reduced operations at Bulyanhulu and to stockpile processing at Buzwagi.

Gold ounces sold for the quarter of 134,090 oz were slightly above gold produced for the quarter as a result of the timing of shipments.

At North Mara, gold production for the quarter of 85,920 oz was 3% higher than Q2, 2017 (83,110 oz) mainly due to 4% higher head grades compared to Q2, 2017, driven by higher grades from Gokona Underground.

At Buzwagi, gold production of 37,415 oz for Q2, 2018 was 44% lower than in Q2, 2017 (66,227 oz) as a result of production now being derived solely from lower grade ore stockpiles due to the effective completion of the open pit.

At Bulyanhulu, all gold production continued to be from the retreatment of tailings as a result of the move to reduced operations at the mine in late 2017.

As a result, gold production for the quarter amounted to 10,443 ounces, 82% below Q2, 2017’s overall production result (59,196 oz), but 18% higher than production from tailings retreatment in Q2, 2017 (8,856 oz).

The cash balance as at 30 June 2018 amounted to US$120 million and increased by $13 million during the quarter, with net cash increasing to approximately $63 million at period end.