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Acacia improves production in April

Acacia Mining's revised mining plan at its North Mara mine in Tanzania has been successful, boosting gold production in April.
Acacia improves production in April Acacia improves production in April Acacia improves production in April Acacia improves production in April Acacia improves production in April

Acacia has upped production at its North Mara operations

The mine's output in April was 33,941 ounces, 54% above the March quarter's average monthly production and 52% higher than March's volume.
 
Acacia cited an increase in grade from the underground combined with higher grade at the openpit, with a combined head grade through the plant above 4.5g/t as a result of the implementation of revised mine sequencing.  
 
"Mining rates increased in the openpit with around 1.2 million tonnes moved due to additional equipment and improvements in asset reliability," it said.
 
At Buzwagi, Acacia produced 10,705oz of gold in April, 12% higher than the previous quarter's monthly average when the operation's annual maintenance shutdown had taken place.
 
This resulted in Acacia producing 47,805oz in April, 37% above the March quarter's monthly average.  
 
Interim Acacia CEO Peter Geleta said while it was still early in the June quarter, he was pleased with the rebound in production levels and was confident of delivering to the company's full-year production guidance of 500,000-550,000oz.
 
RBC's James Bell said it was pleasing to see a rebound in production in April, but pointed out that this was just one month of the quarter.
 
"A sustained recovery at North Mara is crucial to Acacia hitting its FY guidance. To have this reiterated today is somewhat reassuring but we continue to forecast 503,000oz for 2019, the low-end of guidance - something that now seems more achievable, in our view," he said. 
 
Geleta gave a short update on the situation with the government of Tanzania, saying Acacia remained a committed investor in Tanzania and a negotiated resolution remained its preferred outcome to the ongoing disputes.
 
"The company continues to provide support to Barrick Gold in its direct discussions with the government and, once these discussions have been successfully concluded, we look forward to receiving and reviewing a proposal for a resolution of Acacia's disputes agreed in principle between Barrick and the government," he said.
 
The company acknowledged Barrick CEO Mark Bristow's recent comments about identifying a proposal for a comprehensive resolution of Acacia's disputes with the government, including normalisation of the operating environment for the company's businesses going forward. 
 
"Acacia is seeking clarification from Barrick regarding Mr Bristow's reported comments, not all of which are consistent with Acacia's own understanding of the position, as well as Barrick's expectations for the conclusion of their direct discussions with the GoT," Acacia said.  
 
"In the meantime Acacia confirms that it is continuing to provide support to Barrick in their discussions, although it has not yet received a proposal agreed in principle between Barrick and the GoT for a resolution of Acacia's disputes. 
 
"Once Barrick has been able to bring their discussions with the GoT to a successful conclusion, and the company receives a proposal agreed in principle between Barrick and the GoT, the independent committee of the board of Acacia will be able to decide whether to recommend the proposal to the company's shareholders for approval," it said.
 
Acacia's shares (LSE:ACA) were up 5.93% Thursday at £1.54 (US$2).