Dar es Salaam — Acacia Mining plc net cash balance rose by $63 million (Sh143.29 billion) in the second quarter of the year compared to that of the preceding quarter, thanks to an increase in gold production.
According to the production result released on June 6, total production increased by 133,778 ounces (about 3.79 tonnes) of gold, to make a group cash balance as at June 30 amounted to $120 million (Sh272.94 billion) and increased by $13 million (Sh29.57 billion) during the quarter, with net cash increasing to approximately $63 million (Sh143.29 billion) at period-end. "We are pleased to report another strong operating performance in the second quarter, delivering Group production of 133,778 ounces which led to an increase in the Group's cash balance of $13 million to $120 million," said Peter Geleta, interim Chief Executive Officer.
He adds that "In achieving first half production of 254,759 ounces (7.2 tonnes) we are on track to achieve the top end of our guidance range of 435,000-475,000 ounces (12.3-13.5 tonnes) for 2018 and continue to demonstrate the resilience that we have built within our business".
The Acacia Group has three mines, all located in northwest Tanzania which are Bulyanhulu, Buzwagi and North Mara.
Group gold production for the quarter of 133,778 ounces was a 36 per cent cut on second quarter 2017 (208,533 ounces), primarily driven by the move to reduce operations at Bulyanhulu.