Informer
JF-Expert Member
- Jul 29, 2006
- 1,599
- 6,669
By Adam Hejl
Acacia Mining plc (LON:ACA), a London-headquartered gold-mining company with operations in Africa, saw shares plummet more than 10% in early-trading this Wednesday following Tanzanian government’s claims that ACA’s containers carrying concentrates at the Dar es Salaam port had nearly 10 times the declared mineral-value by the company.
Acacia’s all three producing mines — Bulyanhulu, Buzwagi and North Mara — are located in north-west Tanzania; however, only the former two are involved in producing the concentrate, which is facing an export ban.
On 3rd March, Tanzanian authorities had issued a directive that prohibited Acacia’s export of gold/copper concentrate, which accounted for 30% of the company-revenue in 2016. The company said it’s taking a US$1 million hit per day to the top-line due to the same.
“During April we will reassess how long we can continue to produce as normal if the ban remains in place and what other measures may be necessary”, said Acacia in response to the directive then.
Due to the ban, ACA could not sell 34,926 ounces of gold, limiting sales to 184,744 during the first quarter of 2017, nearly same as the year-ago-quarter despite a 15% jump in production.
Tanzania formed a presidential committee to investigate ACA’s concentrate after the March-ban by the Ministery of Energy and Minerals, limiting exports from ACA’s Bulyanhulu and Buzwagi mines.
LSE:ACA Acacia Mining Future Revenue and Net Income by Simply Wall St
Although ACA’s has asked for the full report after the committee announced its findings to the president, Dr. John P. Magufuli, in a public presentation earlier today, the situation seems to have worsened. For the foreseeable future, ACA would continue to experience a substantial contraction in its top-line, which analysts were expecting would see low-single-digit growth in 2017.
Acacia Mining plc (LON:ACA), a London-headquartered gold-mining company with operations in Africa, saw shares plummet more than 10% in early-trading this Wednesday following Tanzanian government’s claims that ACA’s containers carrying concentrates at the Dar es Salaam port had nearly 10 times the declared mineral-value by the company.
Acacia’s all three producing mines — Bulyanhulu, Buzwagi and North Mara — are located in north-west Tanzania; however, only the former two are involved in producing the concentrate, which is facing an export ban.
On 3rd March, Tanzanian authorities had issued a directive that prohibited Acacia’s export of gold/copper concentrate, which accounted for 30% of the company-revenue in 2016. The company said it’s taking a US$1 million hit per day to the top-line due to the same.
“During April we will reassess how long we can continue to produce as normal if the ban remains in place and what other measures may be necessary”, said Acacia in response to the directive then.
Due to the ban, ACA could not sell 34,926 ounces of gold, limiting sales to 184,744 during the first quarter of 2017, nearly same as the year-ago-quarter despite a 15% jump in production.
Tanzania formed a presidential committee to investigate ACA’s concentrate after the March-ban by the Ministery of Energy and Minerals, limiting exports from ACA’s Bulyanhulu and Buzwagi mines.
LSE:ACA Acacia Mining Future Revenue and Net Income by Simply Wall St
Although ACA’s has asked for the full report after the committee announced its findings to the president, Dr. John P. Magufuli, in a public presentation earlier today, the situation seems to have worsened. For the foreseeable future, ACA would continue to experience a substantial contraction in its top-line, which analysts were expecting would see low-single-digit growth in 2017.
