Acacia Mining’s H1 2015 earnings fell 64% from H1 the previous year to US$14.8 million. Despite increasing gold production by 6%, to 367.3 koz, the combination of a lower received gold price (US$1,200/oz against US$1,290/oz previously) and higher All-in Sustaining costs (ASIC) (up marginally to US$1,133/oz) were principally responsible for the fall in earnings. Results were also impacted by certain non-cash charges.
After capital expenditure of US$83 million (down 28% from H1 2014) and payment of the final 2014 dividend of US$12 million, the company’s cash position stood at US$287 million as at 30 June 2015. Acacia has declared an interim dividend of USc1.4/share.
The company has maintained its full year production guidance at 750-800 koz at an ASIC of US$1,050-US$1,100/oz.
Acacia’s H1 2015 earnings down 64% on lower price, higher costs: ACA