Tanzanian gold producer Acacia Mining (LSE: ACA) released its Fourth Quarter Production Report for the three months ended 31 December 2017, showing a gold production 30% lower than Q4 2016.
The company indicates that gold production reached 148,477 ounces, as a direct result of Bulyanhulu transitioning to reduced operations.
On 4th September 2017, the company announced the decision to reduce operational activity at Bulyanhulu, driven by unsustainable cash outflows at the mine due to the mineral concentrate export ban introduced by the government of Tanzania in March 2017, and the operating environment.
In addition, full-year sales of gold reached 592,861 ounces, -27% lower than 2016, also driven by the impact of the export ban.
Bulyanhulu is one of the three gold mines Acacia operates in Tanzania, together with Buzwagi and North Mara. The combined revenues of Bulyanhulu and Buzwagi represent 30% of the group’s revenues.
Acacia is currently on a raw with the Tanzanian government after a committee found that the company allegedly under-declared its exports.
The gold producer refutes the accusation and is in talks with the Government of Tanzania for a resolution.
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