ACACIA Resources all but restored its net cash balance to safer levels following second quarter gold production which totalled 133,778 ounces which means the group is on-track to meet its full year half production guidance of between 435,000 oz to 475,000 oz.
The group’s cash balance increased to $120m from $13m in the first quarter taking its net cash to $63m at quarter-end. It was about $50m at the close of the first quarter. “We are pleased to report another strong operating performance in the second quarter,” said Peter Geleta, interim CEO of Acacia Resources, in a statement.
Production for the six months ended June 30 was 254,759 oz and has been achieved in difficult circumstances for the group considering it scaled back Bulyanhulu after the mine was prohibited by Tanzanian authorities last year from exporting gold-in-concentrate.
The Tanzanians say the company owes the country billions of dollars in unpaid tax, interest and penalties after allegedly under-reporting the value of its concentrate exports over a period of more than ten years.
Bulyanhulu was subsequently mothballed except for the rereatment of gold from tailings. By way of demonstration, at 133,778 oz, the group’s second quarter gold production was a third down on the 208,533 oz produced in the corresponding quarter of the previous financial year.
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