Dar es Salaam — Acacia Mining Company's revenue went down by 12 per cent during the first quarter of 2019 compared to the same period in 2018 as a result of lower sales and the decline in the average realised price of gold.
In the quarter ending March 31, 2019 the company earnings stood at $138 million (Sh318.4 billion), lower from $156.5 million (Sh360.77 billion) earned first quarter ending March 31, 2018.
Going by the company's report on its first quarter results, it was revealed that the average realised price of gold declined to $1,307 per ounce from $1,332 per ounce in the previous year.
Acacia's Interim chief executive officer Peter Geleta said: "We achieved gold production of 104,899 ounces for the first quarter of the year at an all-in sustaining cost (AISC) of $1,023 per ounce sold".
"Production at our North Mara mine was lower than expected due to some unanticipated production issues at the Gokona underground and Nyabirama open pit mines," he said.
According to him the company adopted mechanisms such as the introduction of revised mining plans for both mines to improve performance. The company stated that they believe to deliver within the full year guidance of 500,000 to 550,000 gold ounces at an AISC of $860 to $920 per ounce.
In their result report, Acacia also noted some operating challenges that they faced during the first quarter such as the criminal charges brought by the government facing three current Acacia employees and a former employee.