Acacia Mining, a Tanzania focused gold mining company, has achieved high gold production at Buzwagi mine, one of its assets in the country. The company’s other assets are North Mara and Bulyanhulu.
According to Acacia’s interim financial results for the 12 months ending in December 2017, Buzwagi produced a record gold production of 268,785 ounces, which was 66% higher than in 2016.
The company, which is majority-owned by Barrick Gold, has attributed the high production to a 75% higher head grade as a result of higher grade ore mined from the main ore zone at the bottom of pit.
The production for the year comprised 113,035 ounces of gold in concentrate and 155,749 ounces of gold in doré bars.
However, it was a different story for the other mines.
North Mara produced 323,607 ounces, a 14% drop from 2016, while Bulyanhulu’s production was 175,491 ounces, 39% lower than the previous financial year.
Acadia explained that a drop in production at Bulyanhulu was due to a 34% decrease in run-of-mine tonnes for the year, a phenomenal that has been attributed to the decision to transition Bulyanhulu into reduced operations at the end of the third quarter of 2017.
Providing a general overview on the results, in a statement, Acacia’s interim Chief Executive Officer, Peter Gereta : “The company recorded a resilient performance in what turned to be a difficult year in terms of operating environment. We expect to return the business to free cash generation during the forthcoming year.”
However, Gereta admitted that, despite what he described as a “solid” operational performance, financial performance was “below expectations”, due to Tanzania’s on-going ban on exporting gold/copper concentrate. The ban resulted in approximately $264 million of lost revenue in 2017 and drove a total cash outflow of $237 million.