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22 July 2016

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2016 Interim Results

Acacia Mining plc announced its 2016 Interim Results at 0700 on Friday 22nd July 2016

Operational Highlights

  • Q2 gold production of 221,815 ounces, 19% higher than Q2 2015, with gold sales of 216,782 ounces
  • Q2 AISC1 of US$926 per ounce sold, 19% below Q2 2015, after a US$72 per ounce share-based payment valuation impact
  • Q2 cash costs1 of US$595 per ounce sold, 23% lower than Q2 2015
  • H1 gold production of 412,025 ounces, 12% higher than H1 2015, with gold sales of 400,963 ounces
  • H1 AISC1 of US$941 per ounce sold, after a US$49 per ounce share-based payment valuation impact, and cash costs of US$640, respectively 17% and 18% lower than H1 2015
  • Continued low cost expansion of exploration activity, with 10 rigs active across Africa, delivering positive results

Financial Highlights

  • H1 revenue of US$505 million, 13% higher than H1 2015, due to a 13% increase in gold sales
  • H1 EBITDA1 of US$185 million, 91% higher than H1 2015, due to higher revenues and lower operating costs
  • H1 net loss of US$6 million (US1.5 cents per share) as a result of US$70 million of additional tax provisions made in Q1 2016, with H1 Adjusted net earnings1 of US$59 million (US14.3 cents per share), up from US$18 million in H1 2015
  • Operational cash flow of US$157 million, 47% up on H1 2015, driven primarily by higher sales volumes
  • Cash position of US$284 million as at 30 June 2016, an increase of US$47 million during the second quarter
  • Net cash of US$171 million, an increase of 38% during Q2 2016
  • Interim dividend of US2.0 cents per share declared, an increase of 43% over the 2015 interim dividend

Key statistics

 (Unaudited) Three months ended
30 June
Six months ended
30 June
2016 2015 2016 2015
Gold production (ounces) 221,815 185,641 412,025 367,301
Gold sold (ounces) 216,782 184,055 400,963 355,470
Cash cost (US$/ounce)1 595 777 640 780
AISC (US$/ounce)1 926 1,149 941 1,133
Average realised gold price (US$/ounce)1 1,258 1,194 1,209 1,200
(in US$'000)
Revenue 284,038 231,887 504,947 446,781
EBITDA1 119,332 43,935 184,882 96,888
Adjusted EBITDA1 114,088 46,343 180,499 101,941
Net earnings/(loss) 46,282 5,558 (6,128) 14,765
Basic and diluted earnings/(loss) per share (EPS) 11.3 1.4 (1.5) 3.6
Adjusted net earnings1 40,659 7,244 58,767 18,302
Adjusted earnings per share (AEPS) (cents)1 9.9 1.8 14.3 4.5
Cash generated from operating activities 104,864 59,964 157,096 107,093
Capital expenditure2 49,142 46,461 85,172 89,040
Cash balance 284,357 286,932 284,357 286,932
Total borrowings 113,600 142,000 113,600 142,000

1These are non-IFRS measures. Refer to page 24 for definitions
2Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases and land purchases recognised as long term prepayments

Outlook

We are pleased with performance over the first half of 2016 and as a result are now expecting to deliver at or above the upper end of the full year production guidance of 750-780,000 ounces, and at the lower end of AISC guidance of US$950-980 per ounce. As we move into H2 2016, we expect a step up in production at Buzwagi with grade increasing each quarter until the end of the year as mining is re-established in the main zone of the orebody. At North Mara and Bulyanhulu we expect smaller contributions in the second half with North Mara quarterly production normalising below the Q2 2016 level. At Bulyanhulu we will see a lowering of the average grade mined to in line with the reserve grade. This, together with a planned two week shutdown of the hoisting shaft for refurbishment in August, will lead to Q3 2016 being in line with Q3 2015 before increasing again in Q4.

Looking further forward we continue to look to optimise our portfolio and are focused on value enhancing brownfields extensions at Bulyanhulu and North Mara, as well as assessing our options at Buzwagi. We continue to invest in our high quality exploration portfolio and believe it holds the potential to host our next mine.

Conference call

To join the 2016 Interim Results conference call on Friday 22 July 2016 at 07:00 BST, please dial the number below and enter the password

The presentation will also be webcast on the website or can be accessed directly via the following link. View the webcast.

An on-demand version of the webcast will be made available in the reports section of this website after the presentation.

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