Gold Silver Reports – Acacia Gold Output to Shrink as Tanzania Dispute Drags On — Acacia Mining Plc canceled its dividend and said gold production will plunge in 2018 as a dispute with the Tanzanian government drags into its second year. Its shares tumbled to a four-year low.
Acacia’s revenue dropped 29 percent last year after the country banned shipments of mineral concentrates, a form of partly processed ore produced at two of the company’s Tanzanian mines. The ban meant Acacia couldn’t sell 185,800 ounces of gold and 12.1 million pounds of copper in concentrate, resulting in “a substantial cash outflow,” it said in a statement Monday.
Gold output will fall at least 38 percent this year after Acacia responded to the ban by suspending underground mining at its Bulyanhulu operation in October.
“Whilst we were impacted by events beyond our control, we took decisive action to stabilize our business and believe our operations are now well placed to deliver in 2018,” interim Chief Executive Officer Peter Geleta said.
Acacia dropped by nearly half last year as a result of the drawn-out public dispute, which began in March. The shares fell as much as 15 percent to 146.8 pence, the lowest since October 2013, and traded at 151 pence by 10:30 a.m. in London Monday. – Goldman Neal Bhai Reports