2016 Preliminary Results

14 Feb 2017

"2016 was another successful year for Acacia as we delivered record production, reduced our all-in sustaining costs by 14% and more than doubled our net cash position" said Brad Gordon, Chief Executive Officer of Acacia Mining. "This excellent operational performance translated into strong financial performance with EBITDA more than doubling to US$415 million and adjusted net earnings increasing to US$161 million. We continued to invest into our exploration portfolio and are poised to announce a maiden resource on the West Kenya project, in which we strategically increased our interest to 100% in 2016. As a result of this strong underlying performance in 2016, the Board of Directors has proposed a full year dividend of 10.4 cents (final dividend of 8.4 cents) which is at the top end of our policy and more than twice the total dividend announced for 2015 (4.2 cents). We expect 2017, driven by the mine life extension at Buzwagi, to see further production growth and cost reductions, with production expected to be between 850,000-900,000 ounces at an AISC of between US$880-920 per ounce.

Financial Highlights

  • Revenue of US$1,054 million, 21% higher than 2015, due to a 13% increase in gold sales and a 7% higher gold price
  • EBITDA1 of US$415 million, more than doubled from 2015, mainly due to higher revenues and lower operating costs
  • Net earnings of US$95 million (US23.2 cents per share), with adjusted net earnings1 of US$161 million (US39.2 cents per share), is up from US$7 million in 2015
  • Operational cash flow of US$318 million, 103% up on 2015, driven primarily by higher EBITDA
  • Proposed final dividend of US8.4 cents per share, total 2016 dividend of US10.4 cents per share, more than double 2015
  • Net cash of US$218 million, an increase of 107% during 2016
  • Cash on hand of US$318 million as at 31 December 2016, an increase of US$85 million during the year

Operational Highlights

  • Gold production of 829,705 ounces, 13% higher than 2015, with gold sales of 816,743 ounces
  • Cash costs1 of US$640 per ounce sold,17% lower than 2015
  • AISC1 of US$958 per ounce sold, 14% below 2015, including a US$37 per ounce share-based payment charge
  • North Mara achieved record annual production of 378,443 ounces at AISC of US$733 per ounce sold
  • Bulyanhulu overcame significant downtime in Q3 2016 and delivered production of 289,432 ounces, 6% higher than 2015
  • Six month extension of mining at Buzwagi, which will lead to a 40% increase in production compared to 2016

Results Conference Call

Acacia Mining plc will host a presentation for analysts and investors on Tuesday 14th February 2017 at Noon GMT

1 These are non-IFRS measures