LSE-listed African gold miner and explorer Acacia Mining has undergone a significant transition period which was first set in motion after the company was spun out from Barrick Gold in 2010 and took hold in 2012 when significant management changes were implemented.
“We are a new company with a new story to tell which has undergone operational re-focus and major cost reductions,” Acacia Mining’s head of exploration PETER SPORA told delegates at the 2015 Africa Down Under conference in Perth, Australia. Laura Cornish writes.
Acacia Mining, formerly known as African Barrick Gold, started its new journey in 2012 with CEO Brad Gordon at the helm and a new management team which, according to Spora, “has given a fresh approach to the way we do business.” “And we have made a lot of progress over the last two years, particularly in reducing our costs from among the highest in the sector. With major operational initiatives underway at our three core Tanzania-based mines, we expect to reduce this further to settle within the first cost quartile.” Acacia Mining has delivered a 35% reduction in its all-in sustaining costs (AISC) since 2012 and is currently operating at around $1 100/oz.
The three pillars
Spora also attributes the company’s improving successes to its three key pillar focus – business, people and relationships.
From a business perspective, Acacia Mining has made “technical changes” to each of its mines with the aim of driving free cash flow. The company is also being steered by a strong technical team that is focused on maximising returns from the current portfolio and ensuring a disciplined capital allocation. In terms of people, the company has made significant in-roads in reducing its expatriate headcount, which is today around 200, from over 500 just two years ago. This is in addition to cutting the total workforce (including contractors) across…