21 Jul Acacia Mining Q2 profit dips amid arbitration notices over Tanzanian dispute
Embattled gold-focused firm Acacia Mining (LSE:ACA) has posted a reduced net profit of US$35.72 million for the second quarter of 2017, down from $46.28 million in the same quarter of the previous year.
The miner has become embroiled in a dispute with the Tanzanian government after it banned gold and copper exports and accused Acacia of under-reporting its concentrate exports.
Brad Gordon, chief executive officer of Acacia, said: “The first half has posed significant challenges to our operations in Tanzania following the introduction of the concentrate export ban in March and I am pleased with how we have performed in light of this.
“We continue to take steps to preserve long-term shareholder value and have served arbitration notices for our Bulyanhulu and Buzwagi mines and will work to achieve a negotiated resolution, which is the preferable outcome for all parties.”
Gold production for Q2 stood at 208,533 ounces, a 6% decrease on its 2017 figure. However, Gordon revealed the miner achieved the highest H1 production in its history, with gold production of 428,203 ounces.
The company maintained that its three mines continue to produce and sell gold, while stockpiling gold and copper concentrate.
As a result of the export ban, Acacia is now targeting the lower end of the production guidance range of 850-900,000 ounces for 2017.