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Acacia Mining doubles dividend as revenues top US$1bn

Acacia Mining doubles dividend as revenues top US$1bn

OTTAWA: Acacia Mining PLC (LON:ACA) more doubled its dividend payout as revenues jumped back above US$1bn. The 64% owned subsidiary of Canada’s Barrick Mining doubled underlying earnings [EBITDA] to US$415mln in 2016 as the higher revenues combined with lower costs. Other metrics were also in the miner’s favour with cash flow doubled, production up 13% to 817,000 ounces and a gold price 7% higher on average at US$1,240. Acacia’s mines are all in Africa and the company highlighted a record year for North Mara in Tanzania as costs overall fell 14% to US$958 all in.

Brad Gordon, chief executive, said an excellent operational performance in 2016 had translated into strong financial performance. “We continued to invest into our exploration portfolio and are poised to announce a maiden resource on the West Kenya project, in which we strategically increased our interest to 100% in 2016.” The dividend of 10.4c, with a final dividend of 8.4c, was at the top end of policy he added and compares to 4.2c in 2017. We expect 2017 to see further production growth and cost reductions, said Gordon, driven by mine life extension at Buzwagi.

Production should be between 850,000-900,000 ounces at an AISC of between US$880-920 per ounce. Net income for 2016 was US$95mln (US$197mln loss) on sales of US$1.05bn (US$868mln). Fourth quarter income jumped to US$48mln.