Acacia Group reported 55 per cent decrease in gold production during the first quarter of this year, which the company says was in line with expectations.
Production results for Q1, 2018 published yesterday showed 120,981 ounces produced during the first three months of this year, lower than 219,620 ounces reported in Q1 2017. The fall was primarily driven by the company move to reduce operations at Bulyanhulu and to stockpile processing at Buzwagi.
According to the results, gold ounces sold for the quarter was 116,955 ounces, slightly below produced for the quarter as a result of the timing of shipments.
North Mara production was 76,769 ounces, 20 per cent lower than 96,468 ounces reported during the first quarter of last year.
"This was primarily due to lower head grade, driven by the underground mine grade of 7.0 grams per tonne being 28 per cent lower than the prior year period as a result of mining taking place in the lower-grade west zone of the Gokona Underground," says a statement. Buzwagi produced 35,685 ounces for Q1 2018, 41 per cent lower than 59,856 ounces reported in Q1 2017 while Bulyanhulu recorded 8,527 ounces, which is 87 per cent below 63,346 ounces reported Q1, 2018. "All production came from the retreatment of tailings as a result of the underground mine being placed on reduced operations in late 2017," results statement say.
The firm has also reported that it recorded a cash balance as at 31 March 2018 amounted to approximately $107 million and increased by $26 million during the quarter, with net cash increasing by $40 million to approximately $50 million at period end.
"Acacia continued to demonstrate resilient operating performance and delivered solid production of 120,981 ounces, which sets us in good stead to deliver against our full year guidance of 435,000-475,000 ounces," said Peter Geleta, interim chief executive officer.