By Josephine Christopher
Dar
es Salaam — Acacia Mining Company's revenue went down by 12 per cent
during the first quarter of 2019 compared to the same period in 2018 as a
result of lower sales and the decline in the
average realised price of
gold.
In the quarter
ending March 31, 2019 the company earnings stood at $138 million
(Sh318.4 billion), lower from $156.5 million (Sh360.77 billion) earned
first quarter ending March 31, 2018.
Going by the
company's report on its first quarter results, it was revealed that the
average realised price of gold declined to $1,307 per ounce from $1,332
per ounce in the previous year.
Acacia's Interim
chief executive officer Peter Geleta said: "We achieved gold production
of 104,899 ounces for the first quarter of the year at an all-in
sustaining cost (AISC) of $1,023 per ounce sold".
"Production at our
North Mara mine was lower than expected due to some unanticipated
production issues at the Gokona underground and Nyabirama open pit
mines," he said.
According to him
the company adopted mechanisms such as the introduction of revised
mining plans for both mines to improve performance. The company stated
that they believe to deliver within the full year guidance of 500,000 to
550,000 gold ounces at an AISC of $860 to $920 per ounce.
In their result
report, Acacia also noted some operating challenges that they faced
during the first quarter such as the criminal charges brought by the
government facing three current Acacia employees and a former employee.
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