[miningmx.com] – LONDON-listed Acacia Mining said it was on track to produce up to 800,000 ounces of gold at a maximum all in sustaining cost (AISC) of $1,100/oz in its 2015 financial year, but it posted some first quarter bumps and scrapes.
Output was steady in the three months ended March, but there was “a marginal” increase in AISC to $1,117/oz which contributed to a reduction in the firm’s net cash balance which it mostly put down to timing of sales and “short term challenges” as its Bulyanhulu mine in Tanzania.
“We have addressed these issues and continued to implement a range of other operational improvements that will deliver progressive improvement at the mine over the rest of the year,” said Bradley Gordon, CEO of Acacia.
“Disappointing that the cash position has reduced, after three consecutive quarters of accretion, and an indication of how finely balanced free cash generation is currently,” said Investec Securities in a morning note.
“We expect this to turn around and improve as grades and gold production lift into the 2H, while noting that $16m of the $142m debt is due in the 2H,” it said.
