Acacia Mining core profit slumps as Tanzania woes continue

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Jul 29, 2011
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April 25 (Reuters) - Acacia Mining Plc reported a slump in underlying core earnings as it struggled with production issues at its North Mara gold mine in Tanzania.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) slipped to $24 million for the three months ended March 31, from $44 a year earlier.

Gold production dropped 13 percent to 104,899 ounces during the quarter, as a fall of ground in the North Mara Gokona underground mine prevented access to higher-grade stopes, the company said.


The miner is also struggling with a long-running tax dispute in Tanzania where it operates all its mines. It has cut output by a third since the government banned the export of mineral concentrates in 2017.

However, the company stood by its production target for the rest of the year.


Acacia also said Mike Kenyon and André Falzon would step down from the board and that it appointed Alan Ashworth, Deborah Gudgeon and Adrian Reynolds as independent non-executive directors with immediate effect.

Shares of the mid-cap company were down 2.4 percent after the opening bell, deepening a 12 percent drop year to date. (Reporting by Muvija M in Bengaluru; editing by Gopakumar Warrier)

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https://www.reuters.com/article/aca...lumps-as-tanzania-woes-continue-idUSL3N2271ZC
 
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