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Our investment proposition

A leading asset portfolio in Africa

Acacia has a high quality portfolio of mines which stand out as one of the leading asset portfolios in Africa, with Bulyanhulu and North Mara both being seen as world class deposits. Our three mines have one of the highest average reserve grades amongst our peers and allow the company to deliver competitive all-in sustaining costs. Our overall reserve and resource base of 27.5 million ounces is one of the largest asset bases in Africa.

Focused on free cash flow

Acacia’s primary focus is to generate free cash flow for the benefit of all of our stakeholders. As a business we are not driven by the number of ounces we produce, but maximising the free cash flow that each ounce generates. Over the past three years, we have made significant changes to the structures and mine plans of each of our three mines so that they are able to generate appropriate returns.

Track Record of Delivery

Our Management team have made significant changes to our business since 2013 which have led to four successive years of production increases from our portfolio, in spite of the closure of one of our mines. We have also seen all-in sustaining costs fall from US$1,585 per ounce in 2012 to US$958 per ounce in 2016, a reduction of over US$600 per ounce. In 2017 we expect to see production increase for a fifth year and see costs fall again.

Disciplined capital allocation

Our business is expected to generate significant cash flows in the coming years due to the high quality nature of our asset base and we remain disciplined in how we allocate this capital. A key element of our capital allocation is our dividend, which we have consistently paid since our IPO in 2010. In 2014, in order to better align the dividend with our focus on free cash flow, we amended how we calculated the dividend from an earnings based metric to a cash flow based metric. Our policy is now to pay out 15-30% of free cash flow, pre growth capital and financing costs, which means our shareholders are prioritised ahead of any other use of proceeds. We will then look to allocate the remaining capital to where it adds most value to our stakeholders.

Growing our footprint

A key element of our strategy is to invest in our future. We believe that exploration is a significant driver of value for the business over the long term and have invested in building extensive land packages in Kenya, Burkina Faso and Mali whilst the exploration sector struggled over the past few years. The results of this investment are already being seen as we declared a high-grade Inferred Resource of 1.3 million ounces of gold at 12.1 grams per tonne in February 2017 following extensive drill programmes in 2016. This represents one of the highest-grade projects in Africa and the Company believes that the Initial Resource is a first step in the delineation of a multi-million ounce high-grade Resource along the Liranda Corridor, in Western Kenya.

Becoming the partner of choice

We have focused on improving our relationships with the communities around our mines and with the Government. We have engaged more actively with the community, the media and our broader stakeholders. We have also worked hard to strengthen our relationships with local and national authorities to ensure that we receive the appropriate support for our business in order for us to continue to be a key economic development driver for our host countries. Our ambition is to become the partner of choice across Africa.