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MODERN MINING
August 2016
MINING News
In its interim results for the six months
(H1 2016) and three months (Q2 2016)
ended 30 June 2016, LSE-listed Acacia
Mining, Tanzania’s largest gold producer,
has reported gold production of 412 025
ounces, 12 % higher than in H1 2015. The
AISC for the six-month period was US$941
per ounce sold, which was 17 % lower
than in the equivalent period last year. Q2
gold production was 221 815 ounces, 19 %
higher than in Q2 2015.
“We are pleased that, through continu-
ing optimisation, our assets are starting to
deliver performance which reflects their
potential and as a result increased our
net cash position by US$47 million in the
second quarter,” comments Brad Gordon,
Acacia’s CEO. “Strong production of
221 815 ounces aided a further reduction
in All-in Sustaining Cost (AISC) to US$926
per ounce, even after US$72 per ounce of
cost due to the impact of the strong share
price on the valuation of future share-
based payments to employees.
“The transition to underground min-
ing at North Mara continues to deliver
ahead of expectations with high grades at
Gokona supporting production of 100 016
ounces in the quarter. Bulyanhulu again
produced above plan, delivering 78 643
ounces, although a planned two-week
shaft closure for maintenance in August
and a move back towards reserve grade
will reduce output in Q3.”
Looking ahead, Gordon says Acacia is
now expecting to deliver at or above the
upper end of full year production guidance
of 750-780 000 ounces, and at the lower
end of AISC guidance of US$950-980 per
ounce.
The North Mara mine produced
100 016 ounces in Q2 2016, 50 % higher
than in Q2 2015 and 34 % higher than Q1
2016, driven by higher grade ore than plan
from the Gokona Underground resulting
from positive grade reconciliations and
the processing of higher grade open-pit
material. Total open-pit tonnes mined
increased by 23 % fromQ2 2015, driven by
waste stripping in the Nyabirama pit. Cash
cost per ounce sold of US$382 was 37 %
lower than in Q2 2015, mainly driven by
the higher production base, higher capi-
talised development costs due to waste
stripping at the Nyabirama pit and lower
labour costs due to reductions in head
count, partly offset by higher sales related
costs as a result of higher sales volumes.
Bulyanhulu produced 78 643 ounces,
10 % higher than for the same period
in Q2 2015 and in line with Q1 2016.
Ounces produced from underground
mining amounted to 70 307 ounces, a
17 % improvement on Q2 2015 due to an
increase in throughput and grade, while
production from the reprocessing of tail-
ings amounted to 8 336 ounces. During
the quarter, 236 000 tonnes of ore were
hoisted while 251 000 tonnes of run-of-
mine ore were processed, 10 % higher than
in Q2 2015 while grade increased by 5 %
to 9,6 g/t.
At Buzwagi, gold production for the
quarter of 43 156 ounces was 10 % lower
than Q2 2015, but 16 % ahead of Q1 2016.
Total tonnes mined decreased by 18 %
from Q2 2015 while ore tonnes mined
were in line with the prior year. Cash cost
per ounce sold of US$948 was 2 % higher
than Q2 2015. This was mainly due to the
lower production base, partly offset by
a fall in energy and fuel costs driven by
lower global fuel prices and reduced diesel
usage, lower general and administrative
expenses as a result of lower freight costs
and lower labour costs driven by head-
count reductions.
Acacia’s Tanzanian gold mines performing strongly
Acacia’s Buzwagi mine is an open-pit operation commissioned in 2009. It produced 43 156 ounces in Q2 2016 (photo: Acacia Mining).