14 February 2018

Tanzania: Acacia Shares Price Down

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."


Magufuli to Chair Next SADC Summit

TANZANIA is scheduled to host the 39th Summit of Heads of State and Government of the Southern African Development… Read more »

See What Everyone is Watching

Copyright © 2018 The Citizen. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.