Letter from the Chairman, Kelvin Dushnisky
2016 was a pleasing year for Acacia overall. We delivered against our primary objective of generating free cash flow and delivered our highest ever levels of Group production. The turnaround of the business, helped by external tailwinds, meant that the share price performed extremely strongly during 2016, rising 108% over the year.
To support these achievements, throughout 2016 the Board continued to perform key oversight and monitoring activities across the Company’s core business areas (financial, operational and exploration) and we continued to conduct further strategic and risk reviews focused on longer-term growth objectives.
There have been no significant changes to Board composition in 2016. However, this year we revisited Board Committee composition to ensure that the composition of each Board Committee is best aligned to Acacia’s needs. As a result of this review, we have decided to alter the composition of our Audit and EHS&S Committees, with membership changes applying from 2017. Firstly, we have decided to appoint Peter Tomsett as a member of the EHS&S Committee to replace Brad Gordon. This decision was taken to reflect our preference to have Board Committees comprised of Non-Executive Directors and, at the same time, to ensure that the EHS&S Committee maintains appropriate mining operational skill sets relevant to its remit of responsibilities. Secondly, it was decided that Steve Lucas should replace Peter Tomsett as a member of the Audit Committee. Steve’s financial and audit committee experience across the extractive industry will further enhance the skill set of Acacia’s Audit Committee and we feel he is a natural addition to the Committee.