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Acacia Mining Turns To Profit In 2018; Revenue Down 12% - Quick Facts

Acacia Mining plc (ACA.L) reported net earnings for 2018 of $58.9 million, against the prior year loss of $707.4 million. Earnings per share was 14.4 cents, compared to the prior year loss per share of 172.5 cents per share. The company said the increase was driven by the higher earnings, with no change in the underlying issued shares. Adjusted earnings per share was 10.8 cents, a decrease from 2017 adjusted earnings per share of 35.7 cents.

Revenue for 2018 was $663.8 million, 12% lower than 2017 due to a 12% decrease in gold sales volumes mainly from Bulyanhulu driven by lower production following the transition to reduced operations at the mine, and from Buzwagi driven by the planned transition to stockpile processing.

"We achieved gold production of 521,980 ounces for the year, substantially ahead of our initial 2018 production guidance of 435,000 to 475,000 ounces, and we maintained a strong cost discipline achieving an all-in sustaining cost of $905 per ounce sold, well below the full year guidance range of $935 to $985 per ounce. Looking ahead to 2019 we expect production of 500,000-550,000 ounces at an all-in sustaining cost of $860-920 per ounce with cash costs of $665-710 per ounce," said Peter Geleta, Interim CEO of Acacia.

Acacia Mining stated that as a result of the continuing inability to export concentrates following the imposition of the concentrate export ban in 2017, the uncertainty around the on-going resolution of the company's dispute with the GoT and current liquidity requirements, the Board of Directors has not recommended a dividend for 2018.

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