Acacia Mining (LSE: ACA), the largest gold producer in Tanzania, just released its Annual Report for 2018, showing a total gold production of 521,980oz, compared to 767,880 oz in 2017 (-32%).
During the same period, revenues reached USD 664m vs USD 752m in 2017, (-11.7%), due to a decrease in gold sales volumes mainly from the Bulyanhulu and Buzwagi mines, while EBITDA reached USD 226m vs USD 257m in 2017 (-12%).
The unsold concentrate on hand as a result of the concentrate ban remains unchanged at approximately 186,000 ounces of gold, 12.1 million pounds of copper and 159,000 ounces of silver.
Looking ahead to 2019, Peter Geleta, the Interim CEO, commented “Assuming a resolution of our disputes with the Government of Tanzania (GoT), the ability to economically produce and sell gold concentrate and a successful resumption of underground mining operations, […] further capital investment of around USD 120 to USD 140 million could deliver an expected life of mine of 18 years with an average steady-state production rate of 300,000 to 350,000 ounces per year. A final decision to resume underground mining operations and make necessary further capital
investments would be dependent on achieving a comprehensive settlement with the GoT. “
Acacia Mining is currently in a raw with the GoT after a presidential committee found in May 2017 that the company allegedly under-declared its exports and eventually presented it with a demand for USD 190 billion in unpaid taxes.
The gold miner has always refuted the accusation and has been since in talks with the GoT for a resolution.