ACACIA MINING PLC Third Quarter Production and Full Year Guidance Update

 
TIDMACA 
 
06 October 2015 
 
                               Acacia Mining plc 
 
                                    LSE:ACA 
 
                          ("Acacia" or the "Company") 
 
            Third Quarter Production and Full Year Guidance Update 
 
Acacia today announces preliminary production for the quarter ended 30 
September 2015, with lower than expected output of approximately 164,000 
ounces, as several short-term factors negatively impacted output at Bulyanhulu 
and Buzwagi over the period. North Mara performed in line with expectations. 
 As a result of the lower levels of production, cash cost per ounce sold and 
all-in sustaining cost per ounce sold ("AISC") for the quarter will be above 
US$800 per ounce and US$1,200 per ounce respectively. We continue to expect a 
stronger fourth quarter performance, with production increases at all three 
mines. 
 
With the increase in fourth quarter production, we expect to deliver full year 
production at around the level achieved in 2014 (718,851 ounces), compared to 
the initial guidance range of 750,000-800,000 ounces. With respect to cash 
costs and AISC, we now expect these to be around 5% above the top of their 
initial respective guidance ranges of US$675-725 per ounce sold and 
US$1,050-1,100 per ounce sold for the full year. In light of the lower gold 
price environment we are redoubling our efforts to further remove costs from 
the business in order to return to free cash generation. These initiatives will 
also be incorporated into annual life of mine planning which is currently 
underway. 
 
As a result of the operational performance, together with the payment of the 
interim dividend of US$6 million in September, net cash declined by 
approximately US$45 million, to stand at approximately US$100 million at 30 
September 2015. Gross cash on the balance sheet was approximately US$226 
million. 
 
Commenting on the update, Brad Gordon, CEO of Acacia said; "I am personally 
very disappointed in the operational performance in the third quarter, which 
saw a succession of small issues impact Buzwagi and the ramp up at Bulyanhulu. 
We have addressed each of these to ensure they do not impact future 
performance. Importantly, key underlying metrics at Bulyanhulu, such as 
underground development rates, mining widths and stope availability are on 
track to sustain a step-up in production in Q4 2015." 
 
Mine Site Review 
 
At Bulyanhulu, the anticipated production ramp up did not materialise during 
the quarter, leading to production of approximately 62,000 ounces, with 
run-of-mine production of 55,000 ounces and reclaimed tailings production of 
7,000 ounces. The reduced output was primarily due to delays in opening new 
high grade long-hole stopes, which led to lower ore tonnes mined than planned 
and reduced head grade together with lower plant recoveries. A specialist 
contractor has been brought in to undertake the stope opening process, which 
will ensure that sufficient long-hole stopes are available as we move into Q4 
2015. 
 
Recoveries have been impacted by the lower grade together with instability in 
the plant caused by power interruptions and contamination of the elution 
circuit, which have both now largely been resolved. Furthermore, in order to 
better manage long term recoveries and processing costs we are looking at 
options to separate the run of mine and the reclaimed tailings streams within 
the CIL circuit. 
 
Whilst production at Bulyanhulu was disappointing in the quarter, it did not 
reflect the continuing improvement in the operating environment at the mine. We 
have maintained the improvements in development rates and long-hole stoping 
widths over the quarter, with the changed procedures regarding long-hole stope 
openings leading to improved stope availability towards the end of September. 
We remain confident that the fourth quarter will see Bulyanhulu demonstrate the 
benefits from the sustainable underlying operating improvements already made at 
the mine. 
 
At Buzwagi, production of approximately 34,000 ounces for the quarter was 
impacted by the mining of lower than planned grades together with reduced mill 
throughput as a result of extended crusher downtime in September and an 
unplanned SAG mill re-line. Mining during the quarter was primarily focused on 
lower grade splay areas within the open pit; however negative grade 
reconciliations from a higher grade zone, combined with limited flexibility 
resulting from slower than planned waste movement led to mining below reserve 
grade for the quarter. The mine focused on additional waste movement in late 
September which will continue into early Q4 2015 in order to increase access to 
higher grade areas and lead to a step-up in production. 
 
At North Mara, production of approximately 68,000 ounces was in line with plan. 
As expected, mined grade from the underground operation increased. This was due 
to the proportion of stoping ore of total underground ore production increasing 
over the quarter, and we expect this trend to continue into the fourth quarter. 
 
Conference call 
 
Acacia will be hosting a conference call for investors and analysts today at 
12.00 midday, London time. The access details for the conference call are as 
follows: 
 
Participant dial in:                   +44 (0) 203 003 2666 / +1 866 966 5335 
 
Password:                              Acacia 
 
A recording of the conference call will be available on our website http:// 
www.acaciamining.com/ after the call. 
 
Acacia will announce its full third quarter results on 21st October 2015. 
 
ENQUIRIES 
 
For further information, please visit our website: http://www.acaciamining.com/ 
or contact: 
 
Acacia Mining plc                      +44 (0) 20 7129 7150 
 
Giles Blackham, Investor Relations Manager 
 
Bell Pottinger                          +44 (0)20 3772 2500 
 
Daniel Thöle 
 
About Acacia Mining plc 
 
Acacia Mining plc (LSE:ACA), formerly African Barrick Gold, is Tanzania's 
largest gold miner and one of the largest producers of gold in Africa. We have 
three producing mines, all located in north-west Tanzania: Bulyanhulu, Buzwagi, 
and North Mara and a portfolio of exploration projects in Tanzania, Kenya, 
Burkina Faso and Mali. 
 
Our approach is focused on strengthening our three core pillars; our business, 
our people and our relationships. Our name change from African Barrick Gold to 
Acacia reflects a new approach to mining, and an ambition to create a leading 
African Company. 
 
Acacia is a UK public company headquartered in London. We are listed on the 
Main Market of the London Stock Exchange with a secondary listing on the Dar es 
Salaam Stock Exchange. Barrick Gold Corporation remains our majority 
shareholder. Acacia reports in US dollars and in accordance with IFRS as 
adopted by the European Union, unless otherwise stated in this announcement. 
 
Disclaimer and forward-looking statements 
 
This announcement is for information purposes only and does not constitute an 
invitation or offer to underwrite, subscribe for or otherwise acquire or 
dispose of any securities of Acacia in any jurisdiction. 
 
This announcement includes "forward-looking statements" that express or imply 
expectations of future events or results as opposed to historical facts. These 
statements include, financial projections and estimates and their underlying 
assumptions, statements regarding plans, objectives and expectations with 
respect to future production, operations, costs, projects, and statements 
regarding future performance. Forward-looking statements are generally 
identified by the words "plans," "expects," "anticipates," "believes," 
"intends," "estimates" and other similar expressions. 
 
All forward-looking statements involve a number of risks, uncertainties and 
other factors, many of which are beyond the control of Acacia, which could 
cause actual results and developments to differ materially from those expressed 
in, or implied by, the forward-looking statements contained herein. Factors 
that could cause or contribute to differences between the actual results, 
performance and achievements of Acacia include, but are not limited to, changes 
or developments in political, economic or business conditions or national or 
local legislation or regulation in countries in which Acacia conducts - or may 
in the future conduct - business, industry trends, competition, fluctuations in 
the spot and forward price of gold or certain other commodity prices (such as 
copper and diesel), currency fluctuations (including the US dollar, South 
African rand, Kenyan shilling and Tanzanian shilling exchange rates), Acacia's 
ability to successfully integrate acquisitions, Acacia's ability to recover its 
reserves or develop new reserves, including its ability to convert its 
resources into reserves and its mineral potential into resources or reserves, 
and to process its mineral reserves successfully and in a timely manner, 
Acacia's ability to complete land acquisitions required to support its mining 
activities, operational or technical difficulties which may occur in the 
context of mining activities, delays and technical challenges associated with 
the completion of projects, risk of trespass, theft and vandalism, changes in 
Acacia's business strategy and ongoing implementation of operational reviews, 
as well as risks and hazards associated with the business of mineral 
exploration, development, mining and production and risks and factors affecting 
the gold mining industry in general. Although Acacia's management believes that 
the expectations reflected in such forward-looking statements are reasonable, 
Acacia cannot give assurances that such statements will prove to be correct. 
Accordingly, investors should not place reliance on forward-looking statements 
contained in this announcement. 
 
Any forward-looking statements in this announcement only reflect information 
available at the time of preparation. Subject to the requirements of the 
Disclosure and Transparency Rules and the Listing Rules or applicable law,
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