Acacia Mining : Results for the 6 months ended 30 June 2015

27 Jul 2015

Based on IFRS and expressed in US Dollars (US$)

Acacia Mining plc ("Acacia") reports interim 2015 results

"Over the first half of 2015 we made further progress at each of our mines, with a particular focus on laying the foundations for the future at Bulyanhulu and North Mara which will ensure that we are in a position by the end of 2015 to generate strong cashflow at and below the current gold price." said Brad Gordon, Chief Executive Officer of Acacia. "Production at Bulyanhulu increased by 26% over H1 2014, as well as by 16% in Q2 2015 compared to Q1 2015, and we expect further production increases in the second half as we benefit from our investment in the mine; whilst at North Mara we delivered first stoping ore from the Gokona Underground project ahead of schedule in Q2 2015. As a group we delivered production of 367,301 ounces in the first half, an increase of 6% on H1 2014. Our all-in sustaining costs of US$1,133 per ounce sold were 1% higher than H1 2014, principally as a result of investing in the growth of Bulyanhulu and North Mara. As this production is delivered and we continue to drive cost efficiencies; we anticipate that unit costs will decline over the remainder of the year. As a result, we continue to expect our production and costs to be within our guidance range as communicated earlier this year."

Operational Highlights

• Q2 gold production of 185,641 ounces, 4% higher than Q2 2014, with gold sales of 184,055 ounces
• Q2 AISC1 of US$1,149 per ounce sold, 4% higher than Q2 2014
• Q2 cash costs1 of US$777 per ounce sold, 4% higher than Q2 2014
• H1 gold production of 367,301 ounces, 6% higher than H1 2014, with gold sales of 355,470 ounces
• H1 AISC1 of US$1,133 per ounce sold, and cash costs of US$780, respectively 1% and 4% higher than H1 2014
• Commenced production from Gokona Underground in Q2 2015, ahead of schedule
• Exploration agreement in Western Mali covering 150 square kilometres of prospective ground; expanded footprint in the Houndé belt in Burkina Faso to over 2,400 square kilometres

Financial Highlights

• H1 revenue of US$447 million in line with H1 2014, as increased ounces sold offset the lower gold price
• H1 EBITDA1,2 of US$97 million, 26% below H1 2014, impacted by non-cash net foreign exchange revaluation charges of US$15 million, non-cash share-based payment costs of US$8 million and increased cash costs
• H1 net earnings2 of US$15 million (US3.6 cents per share)
• Operational cash flow of US$107 million, a 16% decrease from H1 2014
• Capital expenditure of US$83 million, 28% lower than H1 2014
• Cash position increased during Q2 2015 by US$1 million after payment of the final 2014 dividend of US$12 million, to stand at US$287 million as at 30 June 2015
• Interim dividend of US1.4 cents per share declared, in line with 2014

1 These are non-IFRS measures. Refer to page 22 for definitions
2 EBITDA, net earnings, earnings per share and cash generated from operating activities include continuing and discontinued operations in 2014
3 Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases