Report: Acacia saw a 32pc gold output slump in 2018

Dar es Salaam. Acacia Mining seems to have been going through a rough time after reporting a 32 per cent drop in gold production in 2018.
The production, which was projected to increase, fell to 521,980 ounces in 2018 compared to 767,800 ounces recorded in 2017. The company’s annual report for 2018 published yesterday shows that the decrease in production was a result of the transition on reduced operations at Buzwagi Gold Mine and a huge gold stockpile.
North Mara’s gold production was 336,055 ounces, four per cent higher than 2017 while Buzwagi recorded 145,440 ounces, 46 per cent lower than 2017 and Bulyanhulu reported 77 per cent decrease to 40,485 ounces last year. The company board chairperson, Ms  Rachel English, said the board remains focused on ensuring that the company achieves a full and comprehensive resolution to its dispute with the government.
The report shows that revenue went down to $664 million last year from $752 million in 2017 while net earning turned into a profit of $59 million last year from a loss of $707 million in 2017.
However, last year’s gold production was ahead of the initial production guidance of 435,000 to 475,000 ounces for the year.
This is being experienced after the company also reported a stockpile of gold, copper and silver concentrate, net of government royalties valued $247 million at average 2018 spot metal price. Since the government ban on mineral concentrate export, the company reports that the stockpile is currently at 185,800 ounces of gold, 12.1 million pounds of copper and 158,900 ounces of silver.
“We currently have 185,800 ounces of gold stockpiled in Tanzania within the concentrate that can’t be exported due to the concentrate export ban,” said Mr Peter Geleta, the company interim chief executive officer.
Annual tax contribution also fell to Sh127 million last year from $143 million (slightly over Sh330 billion) recorded in 2017, he said, adding that $273 million (about Sh630 billion) were spent on local suppliers.
The company is expects a production of 500,000 ounces of gold this year should the current operating business environment prevail.