22 September 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Acacia Mining plc
LSE:ACA
("Acacia" or the "Company" or the "Group")
Positive Results from Buzwagi Processing Trial
Acacia is pleased to announce positive results from the processing trial
underway at Buzwagi that has been designed to maximise gold doré production
from the mine.
Buzwagi currently produces both doré (gold bars) and a gold/copper concentrate
(with over 90% of the value of the concentrate being gold). During 2017, gold/
copper concentrate has accounted for approximately 65% of Buzwagi's gold
production. Since 3 March 2017, however, the mine has been unable to export and
sell its concentrate, and as such has only been selling approximately 35% of
its gold production, whilst incurring 100% of the cost of production.
The results of the processing trial to date have indicated that Buzwagi should
be able to achieve gold recoveries of around 85% through the additional use of
reagents in the leaching circuit at limited additional operating costs. All of
the recovered gold will be produced in doré form. Buzwagi previously intended
to end concentrate production in Q2 2018, but as a result of the trial the mine
will solely produce doré from now until the end of its life in 2020.
There are no changes to group production or cost guidance resulting from this
processing change, however it will result in Buzwagi being able to sell an
additional 8,000-10,000 ounces per month for the remainder of the year. As
such, Government royalties and local service levies (which are based on
revenue) from Buzwagi are expected to more than double for the remainder of the
year due to the increase in sales compared to the last 6 months. We believe
that the changes will move the mine from a monthly cashflow negative position
to a monthly cashflow positive position, strengthening Acacia's balance sheet
and helping to protect thousands of direct and indirect jobs that the Company
supports.
ENQUIRIES
For further information, please visit our website: www.acaciamining.com or
contact:
Acacia Mining plc +44 (0) 20 7129 7150
Giles Blackham, Investor Relations
Camarco +44 (0) 20 3757 4980
Gordon Poole / Billy Clegg / Nick Hennis
About Acacia Mining plc
Acacia Mining plc (LSE:ACA) is Tanzania's largest gold miner and one of the
largest producers of gold in Africa. We have three mines, all located in
north-west Tanzania: Bulyanhulu, Buzwagi, and North Mara and a portfolio of
exploration projects in Kenya, Burkina Faso and Mali.
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 is 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. Save as required under the Market Abuse
Regulation or otherwise as may be required under applicable law, Acacia
explicitly disclaims any obligation or undertaking publicly to update or revise
any forward-looking statements in this announcement, whether as a result of new
information, future events or otherwise. Nothing in this announcement should be
construed as a profit forecast or estimate and no statement made should be
interpreted to mean that Acacia's profits or earnings per share for any future
period will necessarily match or exceed its historical published profits or
earnings per share.