26 May 2017

Tanzania: Acacia Mining Shares Dive for Second Consecutive Day

Photo: The Citizen
Acacia Mining.

Dar es Salaam — The price per share of Acacia Mining plunged further yesterday as investors continued with their wait-and-see approach in the wake of the company's future in the country following disclosure that it has been understating the value of minerals within the exported concentrates.

The shares - which plunged by 15.91 per cent at the Dar es Salaam Stock Exchange (DSE) on Wednesday - dived further by 19.47 per cent yesterday.

The gold miner's share closed at a price of Sh10,990 on Wednesday, tumbling from Sh13,070 on Tuesday, market data show. But as of yesterday, it went further south to close the day at Sh8,850.

On Wednesday, President John Magufuli announced an extension of export ban on metallic mineral concentrates after a probe team which he had instituted in April came up with findings to the effect that minerals' exports had been understated, causing a loss in tax revenue.

Similarly, Acacia's share fell further at the London Stock Exchange yesterday.

By 15:30 hours United Kingdom (UK) time, it was trading at £261.50, being a 14.36 per cent drop from £308.30 that was registered at 08:00 hours UK time yesterday.

The company has however opposed the findings of the report, saying it fully declares everything of commercial value that it produces and pays all appropriate royalties and taxes.

On Tuesday, Acacia share closed at £427.6 but fell to £308 on Wednesday.

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