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Fourth Quarter 2016 Production Results

19 Jan 2017

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

 

Acacia Mining plc (“ACA’’) reports fourth quarter production results

 

“We are pleased to report strong fourth quarter production of 212,954 ounces, which resulted in record full year production of 829,705 ounces, almost 100,000 ounces ahead of 2015 and above already increased guidance”, said Brad Gordon, Chief Executive Officer of Acacia. “2016 was the fourth consecutive year of production growth at Acacia, which was driven by a record production year at North Mara and the highest production year at Bulyanhulu since 2006. The strong operational performance during the quarter led to a further build-up in cash of US$16 million, representing an increase of US$114 million in net cash during 2016. We are also pleased to confirm we will extend mining at Buzwagi by six months, and it will now continue until the end of 2017 before at least a further two years of processing stockpiles. As a result we look forward to another strong year and will provide guidance for the year with our preliminary results on 14 February.”

 

Highlights

  • Q4 2016 gold production of 212,954 ounces and gold sales of 209,292 ounces
  • Preliminary Q4 2016 AISC1 of US$952 per ounce sold, after a US$47 per ounce credit in respect of share based payments, 5% lower than Q4 2015
  • Full year 2016 gold production of 829,705 ounces, 13% above 2015, and ahead of revised full year guidance of up to 5% above original guidance of 750,000-780,000 ounces
  • Full year sales of 816,743 ounces, 13% above 2015
  • Preliminary full year 2016 AISC1 of US$958 per ounce sold, 14% lower than 2015 and towards the bottom of the full year guidance range of US$950-980 per ounce
  • Cash balance increased by US$16 million to US$318 million, post negative indirect tax movements of US$19 million and US$15 million for share based incentive costs during the quarter
  • Net cash1 position increased to US$219 million, an increase of US$114 million during 2016
  • Six month extension of mining at Buzwagi until the end of 2017, which will lead to an increase in production compared to 2016 at the operation.
1 These are non-IFRS measures. Refer to page 7 for definitions