Acacia Mining (LSE: ACA), the largest gold producer in Tanzania, issued an announcement confirming that it has commenced a process to explore the value to the company of the sale of a stake in some or all of its Tanzanian operations.
Acacia is indeed engaging with a small number of potential investors, but the process remains at a very early stage and there can be no certainty that an agreement will be reached, the company stresses.
Acacia recently released its 2017 Preliminary Results showing net losses of USD 707.394 million as opposed to net earnings of USD 94.944 million in 2016.
During the same period revenues dropped by -29% reaching USD 751.515 million versus USD 1,053.532 million in 2016.
The company was impacted by Tanzania’s ongoing ban on the export of gold/copper concentrate introduced in March 2017.
In addition, two Presidential Committees that investigated into mineral content and historic exports of gold/copper concentrate, accuse Acacia of undermining its values.
The company made a number of observations that discredit the findings and has always refuted the accusations and is in ongoing negotiations with the Government of Tanzania and Barrick Gold Corporation, Acacia’s majority shareholder, in seeking a resolution.