Dar es Salaam — Acacia Mining share price at the Dar es Salaam Stock Exchange (DSE) fell by 0.92 per cent on Monday to Sh2,410 from Sh5,460 recorded during the last week's close.
This trend is experienced during a day when the company announced its financial statement for 12 months of last year and announced an appointment of the new Managing Director for Tanzania subsidiaries.
The DSE market report shows that the company share price was Sh5,460 during the last week's close but opened the Monday's session at Sh5,410 before rebound to a closing price of Sh5,460.
The fall in share price, which is reflection of the performance of the company at the London Stock Exchange, where the company originally listed, might be due to investors' reaction after the financial statements announcement for the 12 months ending December 2017.
The share price of LSE-listed Acacia Mining fell by 18.6 per cent on Monday. The international media reported yesterday that Acacia Mining opened at GBX 165.25 ($2.28) on Tuesday. The stock has a market cap of $666.33 and a PE ratio of 751.14. Acacia Mining has a one year low of GBX 139.83 ($1.93) and a one year high of GBX 545.50 ($7.54).
At Financial Times Stock Exchange (FTSE250), shares in Acacia were down sharply after the miner was forced to scrap its 2017 dividend due to a slump in profits sparked by a ban on unprocessed mineral exports in Tanzania.
According to financial statements, the company recorded revenue of $752 million, 29 per cent lower than 2016, with adjusted Earnings Before Interests, Taxes, Depreciation and Amortisation (EBITDA) of $311 million, 24 per cent down from 2016. However, this has translated into a loss of $707.3 million in 2017 from a profit of $94.9 million recorded in 2016. Following the loss, Acacia has announced that it will not pay dividends to its shareholders for 2017. New York Time's reported "Acacia said the export ban resulted in about $264 million in lost revenue and a cash burn of $237 million in 2017, though it expects to return to cash-flow generation this year."