By Alex MacDonald
LONDON--Tanzania's largest gold miner Acacia Mining PLC (ACA.LN)
said Monday that it swung to a net profit last year as its
turnaround began to bear fruit, prompting the company to reaffirm
its plans to boost gold output at a lower operating cost.
The U.K.-listed miner, previously known as African Barrick Gold,
posted a net profit of $89 million last year compared with an
impairment-weighted net loss of $780 million the year before.
Revenue was broadly flat at $930 million as higher gold output
offset a lower achieved gold price.
The solid results prompted Acacia Mining to declare a final
dividend of $0.028 a share, resulting in a total dividend of $0.042
cents per share for the year, up 40% compared with the previous
year.
"2014 was a watershed year for Acacia as we returned to free
cash generation for the first time since 2011, exceeding our
initial production guidance and reducing all-in sustaining costs
year-on-year by 18%," said Chief Executive Brad Gordon.
He added that the company has exceeded the planned savings set
out by its operational review 18 months ago and reaffirmed that the
company remains on track to produce 750,000 to 800,000 ounces of
gold, predominantly in the second half, at a reduced all-in
sustaining cash cost of $1,050/oz to $1,100/oz. This will be driven
by further operational improvements and the planned ramp up of its
flagship Bulyanhulu mine.
Acacia Mining, which is 63.9% owned by Barrick Gold Corp. (ABX),
produced 718,651 ounces of gold last year, up 13% on year, at an
all-in sustaining cash cost of $1,105 per ounce of gold.
Write to Alex MacDonald at alex.macdonald@wsj.com
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