Results for the three months ended 30 September 2016

21 Oct 2016

Based on IFRS and expressed in US Dollars (US$)

Acacia Mining plc (“Acacia’’) reports third quarter results

“Our strong third quarter operational and financial results represent another significant step forward for Acacia, particularly  considering some of the headwinds experienced during the quarter”, said Brad Gordon, Chief Executive Officer. “I am particularly pleased with North Mara’s performance this quarter, delivering 112,523 ounces at an all-in sustaining cost (“AISC”) of US$655 per ounce sold. This more than offset the impact of operational stoppages at Bulyanhulu and the deferred access to higher grades at Buzwagi. Group all-in sustaining cost for the quarter of US$998 per ounce, including a US$97 per ounce of share based valuation charges, was 16% lower than Q3 2015. We have also increased our net cash position by a further US$32 million to US$203 million, which means we have close to doubled our net cash already in 2016. Due to continued strong performance year to date, we now expect full year group production to be around 5% higher than the top of our initial guidance range of 750 – 780,000 ounces of gold.”

Operational Highlights

  • Gold production of 204,726 ounces, 25% higher than Q3 2015
  • Gold sales of 206,488 ounces, 24% higher than Q3 2015, and 1% above production
  • AISC1 of US$998 per ounce sold (US$901 per ounce before the impact of the share based payment valuation charge), 16% below Q3 2015
  • Cash costs1 of US$598 per ounce sold, 26% lower than Q3 2015
  • Secured 100% ownership of the highly prospective West Kenya Project, which continues to deliver positive drill results

Financial Highlights

  • Revenue of US$285 million, 48% higher than Q3 2015, driven by increased gold sales and higher net realised gold price1
  • EBITDA1 of US$125 million, US$104 million higher than Q3 2015, despite share based valuation charges of US$20 million
  • Net earnings of US$53 million, (US12.9 cents per share), despite US$20 million of share based valuation charges
  • Adjusted net earnings1 of US$51 million (US12.4 cents per share), US$64 million higher than Q3 2015
  • Operational cash flow of US$100 million, US$96 million higher than Q3 2015
  • Capital expenditure2 of US$53 million, 2% higher than Q3 2015 due to a focus on capitalised development at Bulyanhulu and North Mara
  • Net cash1 position increased by US$32 million during the quarter to US$203 million, almost doubling year to date, with the cash balance increasing to US$302 million
(Unaudited) Three months ended
30 September
Nine months ended
30 September
2016 2015 2016 2015
Gold production (ounces) 204,726 163,888 616,751 531,189
Gold sold (ounces) 206,488 167,116 607,451 522,586
Cash cost (US$/ounce)1 598 807 626 789
AISC (US$/ounce)1 998 1,195 961 1,153
Net Average realised gold price (US$/ounce)1 1,330 1,113 1,250 1,172
(in US$'000)
Revenue 284,695 192,682 789,642 639,463
EBITDA1 124,825 20,453 309,707 117,341
Adjusted EBITDA1 122,125 20,438 302,624 121,750
Net earnings/(loss) 52,787 (13,053) 46,659 1,712
Basic earnings/(loss) per share (EPS) (cents) 12.9 (3.2) 11.4 0.4
Adjusted net earnings/(loss)1 50,898 (13,063) 109,665 4,798
Adjusted earnings/(loss) per share (AEPS) (cents)1 12.4 (3.2) 26.8 1.2
Cash generated from operating activities 99,947 4,262 257,043 111,355
Capital expenditure2 52,900 51,646 138,072 140,686
Cash balance 302,061 226,373 302,061 226,373
Total borrowings 99,400 127,800 99,400 127,800

1 These are non-IFRS measures. Refer to page 13 for definitions
2 Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases and land purchases recognised as long term prepayments

Results Conference Call

Acacia Mining plc will host a conference call for analysts and investors on Friday 21st October 2016 at 09:00am BST.