Acacia Mining : Results for the three months ended 30 September 2017

20 Oct 2017

'Our business has continued to be resilient in the face of the challenges in Tanzania and delivered production of 191,203 ounces during the quarter at all-in sustaining costs of US$939 per ounce sold', said Brad Gordon, Chief Executive Officer of Acacia Mining. 'Whilst production at Buzwagi was especially pleasing, the continued restrictions on the export of gold/copper concentrate, together with a lack of refunds of VAT have further impacted our balance sheet, with our cash position falling to US$95 million at the end of the quarter. In order to preserve our balance sheet and the long-term viability of our business we took a range of actions including the transition of Bulyanhulu to a reduced operational state, changing the processing flow sheet at Buzwagi to enable the mine to sell all of the gold it produces, and securing a US$1,300/oz floor price for the majority of our gold sales until February 2018. We note yesterday's announcement that a framework agreement has been signed, which highlights the progress in the discussions between Barrick Gold Corporation and the Government of Tanzania. We continue to seek further clarification on the agreement and as yet no formal proposal has been put to Acacia.'

Operational Highlights

• Gold production of 191,203 ounces, 7% lower than Q3 2016, with gold sales of 132,787 ounces
• AISC of US$939 per ounce sold, 6% below Q3 2016 and cash costs of US$616 per ounce sold, 3% higher than Q3 2016
• • Q3 AISC, assuming sales ounces equalled Q3 production, would have been approximately US$820 per ounce
• Bulyanhulu commenced the transition to Reduced Operations ('ROP'), announced in September, and process is ahead of schedule
• Buzwagi completed a processing trial in September and will only produce saleable gold doré for the rest of the mine's life

Financial Highlights

• Q3 revenue of US$171 million, 40% lower than Q3 2016, impacted by the ban on concentrate exports, resulting in the loss of gross revenue during the quarter of approximately US$90 million
• Q3 EBITDA of US$50 million, 60% lower than Q3 2016, mainly due to the lower sales, with adjusted EBITDA of US$77 million
• Net earnings of US$16 million (US3.9 cents per share), down from US$53 million in Q3 2016, with adjusted net earnings of US$35 million, down 32% from Q3 2016
• Paid corporate tax relating to North Mara of US$9 million in Q3, bringing year-to-date provisional corporate tax paid to US$26 million
• Cash on hand of US$95 million as of 30 September with net cash of US$24 million
• US$23 million of Bulyanhulu ROP costs, primarily related to contract exits and retrenchments, were accrued in Q3 2017 and treated as other charges, with majority of cash flow impact together with expected working capital outflows due in Q4 2017

Results Conference Call

Acacia Mining plc will host a conference call for analysts and investors on Friday 20th October 2017 at 09:00am BST.