Proactiveinvestors United Kingdom Acacia Mining https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Acacia Mining RSS feed en Wed, 24 Apr 2019 17:47:27 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Acacia Mining posts worse-than-expected drop in gold production due to issues at North Mara ]]> https://www.proactiveinvestors.co.uk/companies/news/218568/acacia-mining-posts-worse-than-expected-drop-in-gold-production-due-to-issues-at-north-mara-218568.html Acacia Mining PLC (LON:ACA) shares dropped after reporting a worse-than-expected decline in first quarter production due to issues at its North Mara mine.

The Tanzanian miner, which has been banned from exporting gold and copper concentrates from the country since 2017 in a bitter row with the government, said gold production fell by 13% to 104,899 ounces in the quarter. It missed consensus forecasts by 17%.

Production at the North Mara mine was hit by a fall of ground in the Gokona underground mine at the end of December as well as an excavator breakdown in the Nyabirama open pit.

READ: Acacia Mining resolves waste water spill at North Mara after Tanzania government threatens closure

In March, Acacia said wastewater pollution that leaked from a storage dam at North Mara had been stopped.

The group said sections of the pipe used to move wastewater were either vandalised or stolen, causing an overspill at the mine.

The Buzwagi mine saw gold production drop 20% to 28,577 ounces.

Gold production at the Bulyanhulu mine gained 17% to 9,999 ounces due to higher grades recovered from the retreatment of tailings and improvements in plant throughput.

In September 2017, Acacia scaled back operations at Bulyanhulu and transitioned Buzwagi to a lower grade stockpile processing operation.

The move was in response to the company’s export ban, which was imposed after Tanzania’s president John Magufuli accused the company of owing US$190bn in taxes from undeclared exports.

Talks with Tanzanian government continue

In Monday’s statement, Acacia said it has continued to engage with parent company Barrick Gold in its negotiations with the Tanzanian government.

"Acacia is looking forward to receiving a detailed proposal for a comprehensive resolution of Acacia’s disputes with the Government, once Barrick’s negotiations have been successfully concluded," it said.

"Acacia continues to favour a negotiated resolution on a timely basis that will benefit all stakeholders."

Acacia said it remains confident meeting its full-year production guidance of 500,000 to 550,000 ounces after making changes at North Mara to improve grades and volumes.

Shares fell 2.4% to 187.4p in morning trading.

North Mara disruptions to have negative impact on costs, says RBC 

RBC Capital Markets thinks it is likely Acacia will only meet the low end of its full-year guidance.

“It was an extremely tough start to the year for Acacia with first quarter production -17% below consensus and -23% below our forecast,” the broker said.

RBC said the production disruptions at North Mara are likely to have a “significantly negative impact” on costs.

The broker said changes at North Mara may also mean Acacia reaches the upper end of its forecast range for full-year capital expenditure.

It also noted that net cash fell by US$17mln quarter-on-quarter to US$99mln.

RBC maintained a ‘sector perform’ rating and target price of 192p.

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Mon, 15 Apr 2019 08:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218568/acacia-mining-posts-worse-than-expected-drop-in-gold-production-due-to-issues-at-north-mara-218568.html
<![CDATA[RNS press release - ACACIA MINING PLC - 1st Quarter Production Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201904150200PR_NEWS_UKDISCLO_0006/ Mon, 15 Apr 2019 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201904150200PR_NEWS_UKDISCLO_0006/ <![CDATA[RNS press release - ACACIA MINING PLC - Annual Report Publication ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201904020543PR_NEWS_UKDISCLO_0040/ Tue, 02 Apr 2019 10:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201904020543PR_NEWS_UKDISCLO_0040/ <![CDATA[News - Acacia Mining resolves waste water spill at North Mara after Tanzania government threatens closure ]]> https://www.proactiveinvestors.co.uk/companies/news/216104/acacia-mining-resolves-waste-water-spill-at-north-mara-after-tanzania-government-threatens-closure-216104.html Acacia Mining PLC (LON:ACA) said on Friday that waste water pollution that leaked from its North Mara gold mine in Tanzania has been stopped.

Contaminated water from a storage dam at the mine had spilled into a stream in north of Tanzania. 

READ: Acacia board left out in the cold, as Barrick’s Bristow steps in to resolve long-standing Tanzanian dispute

Acacia said sections of the pipe it uses to move waste water were either vandalised or stolen, causing an overspill at the mine.

"Following the mine’s remedial actions, the temporary overspill from the pond has been stopped," it said.

The group added that is working closely with the authorities to implement improvements to security measures to prevent the same thing from happening again.

Acacia made the statement after Tanzania’s mining minister Doto Biteko told Reuters that the mining company must halt waste water pollution at the mine or the facility would be shut down.

"The life of even one Tanzanian is worth more than their gold mining activities," he told the news agency.

In September, Tanzania's environment watchdog launched a review into historical allegations of pollution at North Mara. President John Magufuli instructed the regulator to carry out the probe, claiming that a previous report that found no evidence of wrongdoing had been compromised. 

North Mara is Acacia’s largest mine with production accounting for 65% of total output last year.

It is also the only mine in Tanzania that has not been affected by a government ban on exports of gold and copper concentrations over allegations Acacia owes tax on under-reported output. Acacia has denied the claims.

The ban has hit production at Acacia’s other two gold mines, Bulyanhulu and Buzwagi.

Last month, Canadian parent company Barrick Gold outlined details of a deal it had reached with the Tanzanian government to settle the dispute. 

The announcement confirms a deal made in 2017 that included US$300mln to resolve outstanding tax claims, the creation of a Tanzanian firm to manage Acacia’s assets and a 50-50 split of economic benefits.

READ: Barrick doubles estimate of Acacia Mining's tax bill after settlement with Tanzania

Shares dropped 2.6% to 201.2p in afternoon trading.

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Fri, 08 Mar 2019 13:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216104/acacia-mining-resolves-waste-water-spill-at-north-mara-after-tanzania-government-threatens-closure-216104.html
<![CDATA[RNS press release - ACACIA MINING PLC - Statement on North Mara ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201903080618PR_NEWS_UKDISCLO_0036/ Fri, 08 Mar 2019 11:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201903080618PR_NEWS_UKDISCLO_0036/ <![CDATA[RNS press release - ACACIA MINING PLC - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201903010559PR_NEWS_UKDISCLO_0060/ Fri, 01 Mar 2019 10:59:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201903010559PR_NEWS_UKDISCLO_0060/ <![CDATA[RNS press release - ACACIA MINING PLC - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902280200PR_NEWS_UKDISCLO_0004/ Thu, 28 Feb 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902280200PR_NEWS_UKDISCLO_0004/ <![CDATA[News - Acacia board left out in the cold, as Barrick’s Bristow steps in to resolve long-standing Tanzanian dispute ]]> https://www.proactiveinvestors.co.uk/companies/news/214968/acacia-board-left-out-in-the-cold-as-barricks-bristow-steps-in-to-resolve-long-standing-tanzanian-dispute-214968.html Control of the destiny of Acacia Mining PLC (LON:ACA) looks rapidly to be slipping away from incumbent board members and into the hands of one man, Mark Bristow.

Bristow’s only a couple of months into his new role at the helm of Barrick Gold, but already he is making his mark. He has already shaken up the management structure with the establishment of regional executive teams for North America, Latin America and the Middle East, and now he’s moving on to tackling what’s been a major thorn in Barrick’s side for a long time now: Acacia.

READ: Will the newly enlarged Barrick-Randgold behemoth swallow up Acacia Mining next?

As we highlighted a few weeks ago, Bristow was always going to make some sort of move in regard to Acacia.

The reasons were simple.

Firstly, Barrick owns a 63.9% stake in Acacia so, allowing for due process at general meetings and the like, it gets to call the shots. Secondly, Bristow, as the former chief executive of Randgold, has a wealth of African experience he can bring to bear on Acacia’s ongoing dispute with the Tanzanian government. Barrick has always been light on African expertise, which is partly why it spun off Acacia in the first place.

And thirdly, in spite of recent relative share price strength, Acacia is still trading a long way below the price it was floated off at, and any resolution to the issues would likely result in a significant uplift in value that would show through immediately onto the Barrick balance sheet, making it an easy early win for Bristow.

That would then leave Barrick in a much stronger position when it comes to making the next crucial decision regarding Acacia’s future: does it take it completely in-house, or off-load the rest of the stake. Given that Bristow’s African empire is now firmly inside the Barrick fold, it would make plenty of sense to expand it with the addition of some major Tanzanian projects. But first, there’s an urgent need to square off the Tanzanian government, if indeed it can be squared off.

How culpable Acacia’s own management team is for the company’s current predicament is a matter for some debate, but Barrick and Bristow are certainly sending a clear enough signal to the market in their approach to solving the issue. At its heart is an allegation by the Tanzanian government that Acacia “under-declared”, to use the wording of Barrick’s cautionary statement, the amount of gold it was exporting out of the country in concentrate form.

There are also several separate festering issues relating to tax payments, in particular, in the context of a new mining law that was brought in in 2018. Bristow is no stranger to arguments with governments: on occasion, he has had to bang heads together in relation to the Randgold operations in the Democratic Republic of Congo. Sometimes he’s given ground, but so far when problems have arisen there’s always been a solution to be thrashed out.

That’s what made Acacia stand out in the days when it was measured against Randgold on the London stock exchange - as far as London investors are concerned, there’s no reason why operations in Africa can’t be made to work on as satisfactory a footing as operations anywhere else in the world.

READ: Acacia Mining beats quarterly production target despite Tanzania government export ban

Accordingly, Bristow has wasted no time in opening negotiations at the top levels of the Tanzanian government. Pointedly though, he hasn’t brought any of the Acacia directors along to help or advise him in any way. The public spin on this is that Barrick is acting as a “facilitator.”

But it doesn’t take much reading between the lines to conclude that Acacia’s days as an independent operating entity are over.

Indeed, one reading of recent announcements implies that Acacia wasn’t even aware of the negotiating position that Bristow was adopting on its behalf.

Instead, it said simply that it had not received “any proposals” from Barrick, and added lamely that any proposal it did receive would be “subject to review.”

So there’s no doubt now about who’s controlling events.

It is Bristow, and on behalf of Barrick, he has now laid out clearly possible terms that might allow for an agreement with the Tanzanians.

In a joint proposal he has put together with the Tanzanian government, it is envisaged that a local operating company will be created to manage Acacia’s projects more effectively than the somewhat hands-off approach that has hitherto been employed.

Further, the Tanzanians and Bristow reckon that the economic benefits from Acacia’s gold operations in Tanzania, including the troubled Bulyanhulu mine, ought to be shared on a 50:50 basis.

And finally, it is proposed that Acacia pay US$300mln to settle “outstanding tax claims” and that this payment will be staged over time.

If the Tanzanians are on board with this proposal, it’s hard to see things playing out in any other way, however much the Acacia side may or may not wish to protest about the former negotiating positions it has struck in the past.

It remains to be seen exactly what future Bristow has in mind for Acacia. But it looks like we won’t have long to wait.

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Wed, 20 Feb 2019 13:13:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214968/acacia-board-left-out-in-the-cold-as-barricks-bristow-steps-in-to-resolve-long-standing-tanzanian-dispute-214968.html
<![CDATA[RNS press release - ACACIA MINING PLC - Update on Discussions in Tanzania ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902200714PR_NEWS_UKDISCLO_0066/ Wed, 20 Feb 2019 12:14:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902200714PR_NEWS_UKDISCLO_0066/ <![CDATA[News - Will the newly enlarged Barrick-Randgold behemoth swallow up Acacia Mining next? ]]> https://www.proactiveinvestors.co.uk/companies/news/214458/will-the-newly-enlarged-barrick-randgold-behemoth-swallow-up-acacia-mining-next-214458.html Depending whether you are a glass half full or a glass half empty type of a person, the previous six months have been either highly encouraging for shareholders in Acacia Mining PLC (LON:ACA) investors, or else the ongoing continuation of a deeply troubling period that began the moment the company was spun out from Barrick Gold Corp (TSE:ABX)(NYSE:GOLD) itself all those years ago.

Acacia, which once upon a time was known as African Barrick, has indeed had a troubled history. Indeed, mining industry experts often blame the downward spiral of the entire Tanzanian mining industry on the inept handling of community relations there by Acacia.

In particular, the operations in the north of the country, a very long way indeed from where Acacia's top brass have traditionally held court in offices in Dar Es Salaam, have proved troublesome. There have been riots. There have been environmental breaches. And people have been killed.

It is in that context that the Tanzanian government has been able to come down hard on the mining industry as a whole, and it’s in that context that Acacia Mining’s shares are 67% down on the 575p listing price that it debuted at nine years ago.

READ: Acacia Mining says it successfully stabilised its business in 2018

That’s the half-empty case right there, although if you’d bought in at the beginning, we’re actually talking two-thirds empty.

But the world was a different place then too, of course. The global financial crisis had barely got going, and mining companies across the board were enjoying much punchier valuations. And of course, for the seller, Barrick, that deal now looks very good indeed.

So much so that it may well be that Barrick will become tempted to re-absorb the assets it sold at such a premium, but for a much cheaper price.

There are several reasons why such a deal might make sense, both to Barrick and to the government of Tanzania.

The first is the change at the top of Barrick itself. The ink is barely drying on the merger document between London’s former gold mining champion Randgold and Barrick itself, and it’s perhaps even fresher on the contract of the new chief executive, former Randgold driving force Mark Bristow.

READ: Acacia Mining beats quarterly production target despite Tanzania government export ban

Seasoned mining investors will know that Bristow built up an enviable track record for Randgold as one of the most reliable gold mining companies in the world, built almost exclusively around a portfolio of African assets.

Thus Randgold brought into the Barrick stable considerable exposure to the Democratic Republic of Congo, for example, and to Cote D’Ivoire. A case could easily be made that both of those countries are far trickier jurisdictions than Tanzania. But more to the point, Barrick, which once ran from its African assets partly for fear of a lack of African expertise, is now teeming with the relevant skills.

Bristow knows how to operate in Africa, he knows how to do corporate deals in Africa, and he probably has several high-level ins right to the heart of the Tanzanian government.

From his point of view, a deal would be attractive on a number of counts. First off, even if Barrick ended up paying a premium to market for Acacia, it can be very plausibly argued that buying the same assets back at a much cheaper price than they were sold makes sense. And if the Acacia board pushes too hard for too much of a premium, then Bristow can push back by highlighting all the literal and financial goodwill that has been destroyed in the intervening period.

Secondly, it would establish Bristow as the major consolidator of gold assets globally, in a phase of consolidation that looks to be getting underway industry-wide. A deal ought not to be too hard to push through since Barrick still owns around 64% of Acacia’s shares.

And thirdly, for the half-full types, Acacia isn’t actually doing that badly just at the minute. Last year’s losses have turned to profit, and all-in costs remain attractively low at around US$890 per ounce. Bristow himself is a fan of low-cost operations and famously models all the Randgold operations using a gold price assumption of US$1,000, which is much more conservative than the industry standard.

What’s more, Acacia’s production, partly as a result of the ongoing disputes with the government, remains depressed. If Bristow backs himself to address and fix those issues, the growth that could be delivered from the Acacia suite of assets could be exponentially greater.

With the gold price still holding firm above US$1,300, it’s an interesting time to be in the sector. One thing is for sure, Bristow’s unlikely to stand still. If Acacia doesn’t come back into the Barrick fold, then the recent boost in share price may conversely herald an opportunity to sell. There has been talk before of potential Chinese buyers. Wither way the attitude of the Tanzanian government is likely to be crucial.

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Tue, 12 Feb 2019 13:08:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214458/will-the-newly-enlarged-barrick-randgold-behemoth-swallow-up-acacia-mining-next-214458.html
<![CDATA[News - Acacia Mining says it successfully stabilised its business in 2018 ]]> https://www.proactiveinvestors.co.uk/companies/news/214346/acacia-mining-says-it-successfully-stabilised-its-business-in-2018-214346.html Acacia Mining plc (LON:ACA) told investors it successfully stabilised its business through 2018, whilst highlighting annual gold production above previous guidance.

The miner said it produced 521,980 ounces of gold in the year, versus guidance for 435,000-475,000 ounces.

Whilst flagging the strong operating performance, it noted that at 520,380 ounces gold sales for the year were broadly in line with annual production volumes, but, below the 592,883 ounces sold in 2017.

READ: Acacia Mining beats production target despite Tanzania export ban

Revenue (unaudited) for the year amounted to US$664mln and was down 12% from the preceding year although the company noted that the impact of lower sales was somewhat offset by better gold prices.

Similarly, earnings (EBITDA) were down 12% at US$226mln, albeit net earnings remained positive at US$59mln compared to 2017’s US$707mln net loss.

Non-core asset sales in the year supported the cash position, with around US$130mln available at the end of the year.

It noted that it contributed some US$127mln of taxes and royalties to Tanzania during the year, and, spent more than US$273mln with Tanzanian suppliers.

“We were able to return the company to free cash flow generation in the second quarter of the year, a trend which was sustained during the second half, ending the year with a net cash position of US$88 million,” said Peter Geleta, Acacia’s interim chief executive.

“At the same time, we continued to demonstrate our long-term commitment to Tanzania and its mining industry.”

Acacia’s business has had to adjust, following government-led reforms and regulations related to Tanzania’s mining industry.

Russ Mould, AJ Bell investment director commented: “Today’s full-year results featured no nasty surprises although investors’ experiences of the last nine years could easily colour their judgement here."

In late morning trading, shares in Acacia Mining were 0.6% higher at 193.30p.

 -- Adds analysts comment, share price --

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Mon, 11 Feb 2019 08:21:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214346/acacia-mining-says-it-successfully-stabilised-its-business-in-2018-214346.html
<![CDATA[RNS press release - ACACIA MINING PLC - Results for the 12 months ended 31 Dec 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902110200PR_NEWS_UKDISCLO_0011/ Mon, 11 Feb 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902110200PR_NEWS_UKDISCLO_0011/ <![CDATA[RNS press release - ACACIA MINING PLC - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902060955PR_NEWS_UKDISCLO_0085/ Wed, 06 Feb 2019 14:55:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201902060955PR_NEWS_UKDISCLO_0085/ <![CDATA[News - Acacia Mining beats quarterly production target despite Tanzania government export ban ]]> https://www.proactiveinvestors.co.uk/companies/news/212476/acacia-mining-beats-quarterly-production-target-despite-tanzania-government-export-ban-212476.html Acacia Mining PLC (LON:ACA) said fourth-quarter production exceeded its expectations but was still down 12% from a year ago, reflecting the impact of a government-imposed ban on exports of gold and copper concentrates from Tanzania.

The miner, which has been in a long-running dispute with the Tanzania government over undeclared royalties it allegedly owes, reported fourth-quarter gold production of 130,581 ounces.

READ: Acacia Mining says senior manager of its Tanzanian businesses arrested and charged by corruption bureau

Production was lower due to the transitioning of its Buzwagi mine to a stockpile processing operation, partly offset by higher output at the North Mara and Bulyanhulu mines.

The group sold 133,460 ounces of gold in the quarter, which is slightly higher than output due to the favourable timing of shipments and drawdown of finished gold on hand.

For the year, gold production amounted to 521,980 ounces, beating the company’s guidance of  435,000 to 475,000 ounces.

“I am proud of the resilience, hard work and dedication shown by our people in realising this achievement despite a challenging operating environment,” said interim chief executive Peter Geleta.

“Over the last 12 months we have focused on successfully stabilising the business, including a return to free cash flow generation in Q2, and I am pleased to report that we end the year with a net cash balance of US$88 million.”

The export ban on gold and copper concentrates has been in place since April 2017.

Acacia’s majority shareholder Barrick Gold Corp has been negotiating with the Tanzania government on Acacia’s behalf but they are yet to agree on a final deal.

In October last year, a senior manager of Acacia’s Tanzanian businesses was arrested and charged by the Tanzanian Prevention and Combating of Corruption Bureau (PCCB).  The manager pleaded not guilty to all charges, which were understood to have included counts of tax evasion, forgery and money laundering.

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Mon, 14 Jan 2019 08:14:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212476/acacia-mining-beats-quarterly-production-target-despite-tanzania-government-export-ban-212476.html
<![CDATA[RNS press release - ACACIA MINING PLC - Fourth Quarter 2018 Production Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201901140200PR_NEWS_UKDISCLO_0003/ Mon, 14 Jan 2019 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201901140200PR_NEWS_UKDISCLO_0003/ <![CDATA[RNS press release - ACACIA MINING PLC - Statement on North Mara ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201901100508PR_NEWS_UKDISCLO_0038/ Thu, 10 Jan 2019 10:08:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201901100508PR_NEWS_UKDISCLO_0038/ <![CDATA[RNS press release - ACACIA MINING PLC - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201901020906PR_NEWS_UKDISCLO_0114/ Wed, 02 Jan 2019 14:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201901020906PR_NEWS_UKDISCLO_0114/ <![CDATA[RNS press release - ACACIA MINING PLC - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201812310200PR_NEWS_UKDISCLO_0011/ Mon, 31 Dec 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201812310200PR_NEWS_UKDISCLO_0011/ <![CDATA[RNS press release - ACACIA MINING PLC - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201812171324PR_NEWS_UKDISCLO_0112/ Mon, 17 Dec 2018 18:24:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201812171324PR_NEWS_UKDISCLO_0112/ <![CDATA[RNS press release - ACACIA MINING PLC - Correction to Media Speculation ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201812141328PR_NEWS_UKDISCLO_0111/ Fri, 14 Dec 2018 18:28:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201812141328PR_NEWS_UKDISCLO_0111/ <![CDATA[RNS press release - ACACIA MINING PLC - South Houndé Project Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201811280200PR_NEWS_UKDISCLO_0009/ Wed, 28 Nov 2018 07:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201811280200PR_NEWS_UKDISCLO_0009/ <![CDATA[RNS press release - ACACIA MINING PLC - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201811010547PR_NEWS_UKDISCLO_0052/ Thu, 01 Nov 2018 09:47:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201811010547PR_NEWS_UKDISCLO_0052/ <![CDATA[News - Acacia Mining says senior manager of its Tanzanian businesses arrested and charged by corruption bureau ]]> https://www.proactiveinvestors.co.uk/companies/news/207690/acacia-mining-says-senior-manager-of-its-tanzanian-businesses-arrested-and-charged-by-corruption-bureau-207690.html Acacia Mining PLC (LON:ACA) said that a senior manager of its Tanzanian businesses has been arrested and charged on Tuesday by the Tanzanian Prevention and Combating of Corruption Bureau (PCCB). 

In a statement, the FTSE 250-listed gold miner said the senior manager - a Tanzanian national - has pleaded not guilty to all charges.

READ: Acacia Mining 'deeply concerned' about turn of events in Tanzania

The company said it believes that the senior manager has been charged as an additional accused to some - but not all - of the 39 criminal charges brought by the PCCB on 17 October against a current employee and a former employee of Acacia group companies, as well as Pangea Minerals Limited, Bulyanhulu Gold Mine Limited, and North Mara Gold Mine Limited. 

It added: “We understand that he has been charged with various counts of tax evasion, forgery and money laundering, but have not yet seen a copy of the charge sheet.

“The Company notes again with concern that offences under the Tanzanian Anti-Money Laundering Act are not bailable and, accordingly, the senior manager charged today has not been released on bail.”

Significant escalation of governmental pressure

The group said: “Acacia is deeply concerned about the increasing risks to the safety and security of its people given the criminal charges being brought by the Government of Tanzania (GoT). 

“The Company believes that these recent actions represent a significant escalation of governmental pressure, as the Company’s 19-month dispute with the GoT remains unresolved and as the discussions between Barrick Gold Corporation and the GoT have not yet been concluded.” 

Acacia noted that, as has previously announced, senior officials from the PCCB have recently been reported in Tanzanian media to have stated that the current arrests and charges form part of their “ongoing investigation into natural resources exploitation” and as part of the “war that the government is waging in the Minerals sector”. 

Acacia said it is committed “to running its business to the highest ethical standards and is taking these matters extremely seriously.”

The company said it is continuing to reach out to the GoT to seek the opportunity for direct dialogue regarding the ongoing disputes between the GoT, the company and the broader Acacia Group.

READ: Acacia seeks 'further clarity' over proposed merger of Barrick Gold and Randgold Resources

It said it has also advised Barrick of these latest charges and is seeking to understand the Canadian group’s proposals for the next steps in its direct discussions with the GoT, in which the company is not directly involved.   

Acacia Mining said it will provide further updates in due course.

In late afternoon trading, after a turn lower, Acacia Mining shares bobbed 1.1% higher to 148.10p.

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Tue, 23 Oct 2018 15:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207690/acacia-mining-says-senior-manager-of-its-tanzanian-businesses-arrested-and-charged-by-corruption-bureau-207690.html
<![CDATA[RNS press release - ACACIA MINING PLC - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810231018PR_NEWS_UKDISCLO_0089/ Tue, 23 Oct 2018 15:18:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810231018PR_NEWS_UKDISCLO_0089/ <![CDATA[RNS press release - ACACIA MINING PLC - Senior Manager of Tanzanian Businesses Charged ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810230911PR_NEWS_UKDISCLO_0079/ Tue, 23 Oct 2018 14:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810230911PR_NEWS_UKDISCLO_0079/ <![CDATA[News - Acacia Mining 'deeply concerned' about turn of events in Tanzania ]]> https://www.proactiveinvestors.co.uk/companies/news/207454/acacia-mining-deeply-concerned-about-turn-of-events-in-tanzania-207454.html Acacia Mining PLC (LON:ACA) shares plunged on Friday after the group expressed ‘deep concern’ over an escalation of its dispute with the Tanzanian government that this week saw money laundering charges brought against some staff.

Acacia’s parent Barrick is negotiating with the government but the miner said if no resolution is reached it will look at how to pursue its claims directly through a bilateral treaty.

READ: Acacia expects output to reach top end of guidance amid dispute with Tanzania government

Peter Geleta, Acacia’s interim chief executive, said he was: “Deeply concerned about the increasing risks to the safety and security of our people and the increasingly challenging operating environment in Tanzania which could impact the outlook for the business.

“I am particularly concerned with the criminal charges now being brought against several current or former employees over the past week, in connection with matters which are being raised in the arbitrations with the Government of Tanzania relating to Bulyanhulu and Buzwagi.”

Acacia’s dispute with the Tanzanian Government dates back 19 months.

In April, Acacia was banned from exporting gold and copper concentrates due to government claims that it was owed huge amounts of undeclared royalties on production from the Bulyanhulu and Buzwagi mines.

Production higher in Q3

In a trading update today, Acacia reported that production rose to 136,640 ounces in the third quarter of 2018, better than both the first and second quarters of the year. Gold sales were 135,875oz.

Third quarter revenue was US$165.6mln with underlying earnings of US$44.6mln.

The group added it is on target to produce 500,000 ounces of gold this year despite the uncertainty, slightly more than predicted earlier in the year.

“We are now tracking towards the lower end of our AISC guidance range of US$935-985 per ounce,” added Geleta.

In late morning trading, Acacia Mining shares were 13.2% lower at 137.45p.

In a note to clients, analysts at RBC Capital said: "Trading on 0.54x NAV there is a clear value opportunity, but we continue to expect that investor focus will remain on the outcome of the Tanzanian government negotiations with Barrick as well as any implications from the Barrick Randgold merger – neither of which are materially updated in today’s release. 

"This leaves us with a Sector Perform recommendation and Speculative Risk rating until we can assess the long-term investment case with more clarity."

  -- Adds share price, analyst comment --

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Fri, 19 Oct 2018 08:04:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207454/acacia-mining-deeply-concerned-about-turn-of-events-in-tanzania-207454.html
<![CDATA[RNS press release - ACACIA MINING PLC - 3rd Quarter Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810190200PR_NEWS_UKDISCLO_0009/ Fri, 19 Oct 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810190200PR_NEWS_UKDISCLO_0009/ <![CDATA[RNS press release - ACACIA MINING PLC - Further response to media reports in Tanzania ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810171144PR_NEWS_UKDISCLO_0104/ Wed, 17 Oct 2018 16:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810171144PR_NEWS_UKDISCLO_0104/ <![CDATA[RNS press release - ACACIA MINING PLC - Response to Today's Media Reports in Tanzania ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810170532PR_NEWS_UKDISCLO_0043/ Wed, 17 Oct 2018 10:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810170532PR_NEWS_UKDISCLO_0043/ <![CDATA[RNS press release - ACACIA MINING PLC - Update on North Mara ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810110539PR_NEWS_UKDISCLO_0042/ Thu, 11 Oct 2018 10:39:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810110539PR_NEWS_UKDISCLO_0042/ <![CDATA[News - Acacia expects output to reach top end of guidance amid dispute with Tanzania government ]]> https://www.proactiveinvestors.co.uk/companies/news/206576/acacia-expects-output-to-reach-top-end-of-guidance-amid-dispute-with-tanzania-government-206576.html Acacia Mining PLC (LON:ACA) shares gained after saying it expects to reach the upper end of its full-year production guidance range.

The miner, which has been banned from exporting gold and copper concentrates from Tanzania in a long-running dispute with the government over undeclared royalties allegedly owed, said it delivered an output of 391,000 gold ounces in the year to date.

“As a result, we expect to exceed the upper end of our full year production guidance range of 435,000 to 475,000 ounces and are now targeting production to be marginally in excess of 500,000 ounces for the full year,” said Peter Geleta, interim chief executive.

In the third quarter, gold production dropped 29% to 136,640 ounces due to the decision to reduce operations at the Bulyanhulu mine and to stockpile processing at Buzwagi following the export ban.

Buzwagi gold production declined 47% to 36,460 ounces for the quarter while Bulyanhulu production fell 78% to 10,893 ounces. 

North Mara, which is unaffected by the ban, achieved a 24% rise in gold production to 89,287 ounces for the quarter as grades increased by 21%.

At the end of the quarter, Acacia had a cash balance of US$117mln, broadly flat on the previous quarter. Net cash rose by US$11mln to US$74mln at the end of the period.

Shares edged up 4.02% to 150p in morning trading.

Barrick Gold continues talks with Tanzania government on Acacia’s behalf

Acacia’s majority shareholder Barrick Gold Corp has been negotiating with the Tanzania government on Acacia’s behalf.

In October last year, Barrick reached a framework agreement with the government that would see Acacia make a payment of US$300mln and share the economic benefits from its mining 50/50 going forward.

However, discussions remain ongoing and Acacia needs to give any final deal its approval.

In September, Barrick said it had agreed to buy Randgold Resources PLC (LON:RR) in an all-share deal to create the world’s largest gold miner valued at US$18.3bn.

READ: Acacia seeks 'further clarity' over proposed merger of Barrick Gold and Randgold Resources

Acacia has said it would be seeking further clarity from Barrick over the deal. 

Third quarter update 'impressive', says RBC

 "ACA delivered an impressive set of Q3 operational results with production well ahead of both our forecasts (+13%) and consensus (+20%)," said Royal Bank of Canada. 

"A FY guidance increase of +5% to “marginally above 500koz” was the cherry on top. This clearly demonstrates management are delivering on what they can control, i.e. driving production as the negotiations between the government of Tanzania and parent Barrick continue."

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Mon, 08 Oct 2018 09:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206576/acacia-expects-output-to-reach-top-end-of-guidance-amid-dispute-with-tanzania-government-206576.html
<![CDATA[RNS press release - ACACIA MINING PLC - Third Quarter 2018 Production Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810080200PR_NEWS_UKDISCLO_0003/ Mon, 08 Oct 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810080200PR_NEWS_UKDISCLO_0003/ <![CDATA[RNS press release - ACACIA MINING PLC - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810010510PR_NEWS_UKDISCLO_0064/ Mon, 01 Oct 2018 10:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201810010510PR_NEWS_UKDISCLO_0064/ <![CDATA[RNS press release - ACACIA MINING PLC - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809251019PR_NEWS_UKDISCLO_0085/ Tue, 25 Sep 2018 15:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809251019PR_NEWS_UKDISCLO_0085/ <![CDATA[News - Acacia seeks 'further clarity' over proposed merger of Barrick Gold and Randgold Resources ]]> https://www.proactiveinvestors.co.uk/companies/news/205560/acacia-seeks-further-clarity-over-proposed-merger-of-barrick-gold-and-randgold-resources-205560.html Acacia Mining PLC (LON:ACA) said it would be seeking further clarity from majority shareholder Barrick Gold Corp (NYSE:ABX) regarding the Canada miner’s plan to merge with Randgold Resources PLC (LON:RR).

Barrick Gold, which has a 63.9% equity interest in Tanzania-focused Acacia, announced on Monday that it has agreed to buy Randgold in an all-share deal to create the world’s largest gold miner valued at US$18.3bn.

READ: Randgold Resources and Barrick Gold confirm plans for US$18.3bn merger

The deal comes eight years after Barrick decided to spin off its African assets as African Barrick Gold, now called Acacia, in a bid to de-risk the portfolio.

Barrick in discussions with Tanzania government over Acacia dispute

Acacia has been banned from exporting gold and copper concentrates from Tanzania since April 2017 in a long-running dispute with the government over royalties the company allegedly owes on undeclared exports.

Barrick has stepped in to negotiate with the Tanzania government on Acacia’s behalf.

READ: Acacia Mining's first-half earnings fall as no end in sight for Tanzania row

In October last year, Barrick reached a framework agreement with the government that would see Acacia make a payment of US$300mln and share the economic benefits from its mining 50/50 going forward.

But discussions remain ongoing and Acacia needs to give any final deal its approval.

Acacia's response to merger announcement 

Following the merger news from Barrick Gold on Monday, Acacia said: "Acacia notes today’s announcement by Barrick Gold Corporation and Randgold Resources Ltd regarding a potential merger between the two companies. We further note that the potential transaction will be subject to the approval of both Barrick and Randgold shareholders. Acacia is currently seeking further clarity from Barrick and will update the market in due course."

The newly merged company will be called New Barrick Group with Barrick Gold holding a 66.5% stake and Randgold owning the rest of the shares. Mark Bristow, chief executive of Randgold, will become president and chief executive of the New Barrick Group.

Randgold shares on the London Stock Exchange will be cancelled and New Barrick Group will list in Toronto and New York.

Analyst says Acacia's fate in London a key area of concern for investors

Charles Gibson, analyst at Edison Investment Research, said the proposed merger raises two immediate questions - what will become of Acacia in London and will Bristow stay on long enough apply the same “successful approach” that he used at Randgold to New Barrick Group.

Gibson noted that when Bristow first mooted a “transformative deal”, many bankers thought that Acacia would make a perfect fit with Randgold.

“However, Acacia has since fallen on hard times and Mr Bristow wasted little diplomacy in signalling his distaste for the idea (as well – as we see now – as having bigger fish to fry),” he said.

“To be fair, Mr Bristow has always described tax as the dues a company has to pay in order to operate within a particular country and, inasmuch as Randgold has been a diligent taxpayer in the countries in which it operates, he might find himself on common ground with the Tanzania government.

“With Acacia thus far effectively cut out of the talks with the government about its future, however, the gulf between what the Tanzanian government want and what New Barrick might be prepared to offer seems almost impossibly wide and it may tax even Mr Bristow’s legendary deal-making abilities to bring such a fraught dispute to a happy resolution. With his African experience and heritage, however, he might just be the man for the job.”

On Bristow's role as chief executive of New Barrick Group, Gibson said he is "personally credited with creating the environment and philosophy that underpinned much of Randgold’s success and forward-thinking investors were already beginning to ask questions about the succession at Randgold".

"They will certainly want comfort now that he will stay for long enough to apply the same approach to Barrick’s assets before hanging up his spurs," he said.

 

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Mon, 24 Sep 2018 15:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205560/acacia-seeks-further-clarity-over-proposed-merger-of-barrick-gold-and-randgold-resources-205560.html
<![CDATA[RNS press release - ACACIA MINING PLC - Response to Barrick & Randgold merger announcement ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809240433PR_NEWS_UKDISCLO_0032/ Mon, 24 Sep 2018 09:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809240433PR_NEWS_UKDISCLO_0032/ <![CDATA[RNS press release - ACACIA MINING PLC - Nyanzaga Project Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809060200PR_NEWS_UKDISCLO_0011/ Thu, 06 Sep 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809060200PR_NEWS_UKDISCLO_0011/ <![CDATA[RNS press release - ACACIA MINING PLC - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809030652PR_NEWS_UKDISCLO_0080/ Mon, 03 Sep 2018 11:52:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201809030652PR_NEWS_UKDISCLO_0080/ <![CDATA[RNS press release - ACACIA MINING PLC - Board Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201808281109PR_NEWS_UKDISCLO_0113/ Tue, 28 Aug 2018 16:09:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201808281109PR_NEWS_UKDISCLO_0113/ <![CDATA[RNS press release - ACACIA MINING PLC - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201808140200PR_NEWS_UKDISCLO_0009/ Tue, 14 Aug 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201808140200PR_NEWS_UKDISCLO_0009/ <![CDATA[RNS press release - ACACIA MINING PLC - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201808010614PR_NEWS_UKDISCLO_0074/ Wed, 01 Aug 2018 11:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201808010614PR_NEWS_UKDISCLO_0074/ <![CDATA[News - Acacia Mining's first half earnings fall as no end in sight for Tanzania row ]]> https://www.proactiveinvestors.co.uk/companies/news/201219/acacia-mining-s-first-half-earnings-fall-as-no-end-in-sight-for-tanzania-row-201219.html Acacia Mining PLC (LON:ACA) reported a 45% decline in first-half earnings amid an ongoing dispute with the Tanzania government over claims it owes royalties on undeclared exports.

Adjusted underlying earnings (EBITDA) fell to $91.6mln in the six months through June from US$166.2mln the same period a year ago.

Revenue dropped 15% to US$333.4mln from US$391.6mln last year.

Production continues to slide

Production decreased 41% to 254,759 ounces from 428,203 ounces and gold sales were broadly in line with output.

The company scaled back operations at it two of its three mines in Tanzania - Bulyanhulu and Buzwagi – after the government banned it from exporting gold and copper concentrates.  

READ: Acacia Mining production steadies after Tanzania disruption

Acacia’s majority owner Barrick Gold has been negotiating with the Tanzanian government to lift the ban.

Since the ban does not apply to gold doré bars, the miner expects this to account for all of its gold production in 2018.

RBC Capital Markets said while the results are likely to disappoint the market today it notes that first half EBITDA sits at 50% of the full year consensus forecast and 52% of its own estimate for the year.

It added: "With uncertainty in Tanzania high and no visibility on when or what type of outcome there may be we reiterate our sector perform, speculative risk rating."

Acacia generates free cash flow for the first time since 2016

Despite the declines in earnings, revenues and production, Acacia said it generated free cash flow of US$14mln in the second quarter for the first time since 2016.

“The changes we made to the business in late 2017 have delivered the desired results, helping to return the group to free cash generation for the first time since the fourth quarter of 2016 and we are on track to achieve the top end of our production guidance range of 435,000-475,000 ounces for 2018 at an AISC of US$935-985 per ounce,” said interim chief executive Peter Geleta.

“Following the stability we have brought to the business during the last six months, our priority remains on optimising performance across all areas of our operations as we manage through the current uncertainty in the operating environment and the on-going disputes with the Government of Tanzania.

“By continuing to be resilient, managing our costs and working to our mine plans, we are addressing what we can control and will look to deliver value for all of our stakeholders.” 

Shares fell 4.8% to 111p each.   

Liberum said cashflow was flattered by US$45mln of proceeds from the disposal of its 2% net smelter royalty in the Hounde gold mine in West Africa a ndwithout which the cash pile would actually have fallen.   

 

                                                                                                                                                                    

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Fri, 20 Jul 2018 08:04:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201219/acacia-mining-s-first-half-earnings-fall-as-no-end-in-sight-for-tanzania-row-201219.html
<![CDATA[RNS press release - ACACIA MINING PLC - 2018 Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201807200200PR_NEWS_UKDISCLO_0014/ Fri, 20 Jul 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201807200200PR_NEWS_UKDISCLO_0014/ <![CDATA[News - Acacia Mining shares offer attractive risk/reward, says Barclays as it upgrades the stock ]]> https://www.proactiveinvestors.co.uk/companies/news/200476/acacia-mining-shares-offer-attractive-riskreward-says-barclays-as-it-upgrades-the-stock-200476.html Acacia Mining PLC (LON:ACA) is an attractive investment following a slump in its share price, Barclays Capital said as it turned positive on the stock.

The miner’s shares have fallen more than 50% over the past 12 months as its majority owner Barrick Gold negotiates with the Tanzanian government to lift a ban on the export of gold and copper concentrates.

Tanzanian government claims Acacia owes unpaid royalties on undeclared exports.

The export ban prompted the miner to scale back operations at its two of its three mines - Bulyanhulu and Buzwagi.

Barclays upgrades Acacia to an ‘overweight’

“Following the collapse in the share price, we see attractive risk/reward on offer,” Barclays said.

“The shares are trading at a 32% discount to our 184p base case NPV (net present value), which assumes a US$300m tax settlement, 7% royalty and 16% government free carry in the assets.”

Barclays upgraded Acacia to an ‘overweight’ rating from ‘equal-weight’ and raised its target price to 171p from 165p.

The investment bank said the negotiations with the Tanzanian government have dragged on for more than a year but should be concluded soon.

“This is the key catalyst for a re-rating, allowing the market to price in the restart of Bulyanhulu and release of US$230mln concentrate inventory over 2019.”

Higher tax settlement a risk, says Barclays 

But Barclays said since Acacia has "limited liquidity", a key risk is a potential increase in the US$300mln tax settlement with Tanzania. 

Last Friday, Acacia said gold production dropped 36% year-on-year to 133,778 ounces in the second quarter after cutting back operations at Bulyanhulu and Buzwagi.

READ: Acacia Mining production steadies after Tanzania disruption

Barclays pointed out that compared to the first quarter, production was up 11% and accounted for more than half of the total estimated for the full year.

“1H18 results on 20 July is the next major catalyst for the stock,” the bank said.

“Finally while gold has struggled against a strong USD and no sign of the long-awaited inflation lift, we'd be surprised to see it fall much given current geopolitics and trade disputes.”

In late morning trading, shares fell 1.3% to 127p. 

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Tue, 10 Jul 2018 11:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200476/acacia-mining-shares-offer-attractive-riskreward-says-barclays-as-it-upgrades-the-stock-200476.html
<![CDATA[News - Acacia Mining production steadies after Tanzania disruption ]]> https://www.proactiveinvestors.co.uk/companies/news/200277/acacia-mining-production-steadies-after-tanzania-disruption-200277.html Acacia Mining PLC’s (LON:ACA) production fell sharply again as the row with the Tanzanian government over unpaid royalties continued to simmer.

Group gold production for the quarter to June dropped 36% to 133,778 ounces as operations at two its three mines - Bulyanhulu and Buzwagi – were scaled back.

At Buzwagi, gold production fell 44% to 37,415oz as lower grade ore stockpiles were processed as mining from the pit came to an end. At Bulyanhulu, all gold production continued to be from the retreatment of tailings with gold production 82% lower at 10,443 ounces. The third mine, North Mara, saw gold production rise during the quarter by3% to 85,920oz due to higher grades from Gokona Underground.

Peter Geleta, Acacia’s interim chief executive, said the group was on target to hit the top end of its 435,000-475,000oz forecast for 2018.

Gold sold was 134,090oz during the June quarter while net cash rose to US$63mln. 

Broker Shore Capital noted second quarter production was up slightly up on the first three months while the rise in net cash was encouraging.

Export ban

The Tanzania government has banned Acacia from exporting gold and copper concentrates, claiming it is owed royalties from Bulyanhulu and Buzwagi.

In response, the miner has cut back operations and switched to producing gold bars.

Canadian giant Barrick, which owns 63.9% of Acacia, is in talks with the Tanzanians over a final settlement of the dispute.

In October last year a framework agreement was proposed that would see Acacia make a payment of US$300mln to the Tanzania government and share the economic benefits from its mining 50/50 going forward.

Last month, Barrick said discussions were continuing there was no timetable for finalisation of a deal, which also needs to be agreed by the board of Acacia.

Shares in Acacia, which have lost 75% of their value over the past two years, dropped 1% to 132p.

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Fri, 06 Jul 2018 09:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200277/acacia-mining-production-steadies-after-tanzania-disruption-200277.html
<![CDATA[RNS press release - ACACIA MINING PLC - Second Quarter Production Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201807060200PR_NEWS_UKDISCLO_0009/ Fri, 06 Jul 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201807060200PR_NEWS_UKDISCLO_0009/ <![CDATA[RNS press release - ACACIA MINING PLC - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201807020654PR_NEWS_UKDISCLO_0108/ Mon, 02 Jul 2018 11:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201807020654PR_NEWS_UKDISCLO_0108/ <![CDATA[News - Acacia Mining continues to support Barrick Gold's discussions for operations framework in Tanzania ]]> https://www.proactiveinvestors.co.uk/companies/news/199469/acacia-mining-continues-to-support-barrick-gold-s-discussions-for-operations-framework-in-tanzania-199469.html Acacia Mining PLC (LON:ACA) said it is continuing to support Barrick Gold Corporation in its discussions with the government of Tanzania concerning Acacia’s operations in the country.

The gold miner said discussions between the government of Tanzania and Barrick are constructive, with progress being made on the drafting of definitive agreements necessary for the implementation of a proposed operations framework.

READ: Acacia's first quarter production drops 55% amid dispute with Tanzania government

The group added that Barrick had said it was not providing a timetable for the completion of the discussions at this time, and that if discussions were concluded satisfactorily, the proposal would be submitted to the independent committee of the Acacia board for approval.

Barrick, based in Toronto, Canada, currently holds a 63.9% equity interest in Acacia.

The discussions follow an incident earlier in June when an accident at Acacia’s North Mara gold mine in the country led to the death of a contractor’s operator.

This, in turn, followed a dispute with the Tanzanian government in April when it was banned from exporting gold and copper concentrates due to government claims that it owed undeclared royalties from its Bulyanhulu and Buzwagi mines.

In early morning trading Monday, Acacia shares were down 2.1% at 116p.

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Mon, 25 Jun 2018 08:27:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199469/acacia-mining-continues-to-support-barrick-gold-s-discussions-for-operations-framework-in-tanzania-199469.html
<![CDATA[RNS press release - ACACIA MINING PLC - Report on Payments to Governments ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201806250200PR_NEWS_UKDISCLO_0004/ Mon, 25 Jun 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201806250200PR_NEWS_UKDISCLO_0004/ <![CDATA[RNS press release - ACACIA MINING PLC - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201806210200PR_NEWS_UKDISCLO_0005/ Thu, 21 Jun 2018 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10678/PRNRNS_201806210200PR_NEWS_UKDISCLO_0005/