ABN - Acacia Mining’s production figures were above forecasts but its sales figures were down as it faced the reality of the Tanzania Government’s export ban.
The London-listed gold miner, which is 64% owned by Barrick Gold, announced overall third quarter production of 191,203 ounces of gold on the back of improved output from its Buzwagi mine.
Buzwagi produced above expectations with 69,097 ounces driven by strong ore grades. However, production at North Mara and Bulyanhulu was down, impacted by work permit issues and moving to reduced operations respectively.
Acacia reported sales for the quarter of 132,787 which came well below predictions as the company suffered from President John Magufuli’s ban on the export of gold/copper concentrate from Bulyanhulu and Buzwagi in Tanzania.
The gold miner has been in a prolonged legal battle with the Tanzanian government as it tries to get the ban lifted and resume regular operations.
Acacia was hit with a demand from the Tanzanian government to pay US$190 billion in unpaid taxes to the local authorities.
The latest development in the struggle saw Acacia’s owner Barrick Gold become involved in negotiations with the government in the hope of reaching a resolution.
Acacia will release a full third quarter results on October 20.