LSE-listed Acacia Mining said its gold production in the fourth quarter increased by 9.5%, while costs dropped for a ninth successive quarter.
In the results for the three months ended Dec. 31, Acacia Mining posted that gold production of 181 084 ounces and gold sales of 194 243 ounces. Output for the year, then, exceeded its forecasts at 718 651 ounces. All-in costs were $1,088 an ounce, 6.4 percent lower than in the same quarter of 2013.
“We are pleased to report further progress in the fourth quarter resulting in full year production of 718 651 ounces, ahead of our original 2014 guidance and a 13% improvement on 2013. As a result of our continued cost discipline we have delivered our ninth successive quarterly reduction in all-in sustaining costs (AISC) and generated net cash flow of US$7 million in the quarter”, said Brad Gordon, Chief Executive Officer of Acacia Mining.
“During the fourth quarter of 2014 we produced 181 084 ounces of gold, an improvement of 10% on the same period in 2013, driven by strong production at North Mara and the contribution of the new CIL circuit at Bulyanhulu. Bulyanhulu started to step up in the quarter and we remain focused on accelerating this as we move through 2015.”
Acacia Mining is continuing its exploration efforts in an attempt to replace aging operations in Tanzania with new reserves. The East African country has the second largest economy in the region. Nevertheless, Gordon revealed that the company is also considering acquisitions and exploration opportunities in West Africa. Acacia Mining is also considering expanding its existing operations in November this year.