JOHANNESBURG (miningweekly.com) – Tanzanian gold miner Acacia Mining reported adjusted net earnings of $7-million for the quarter ended March 31, which is 73% lower than the $26.8-million adjusted net earnings reported for the first quarter of 2017.

The lower earnings are attributable to Acacia having to reduce operations at its flagship Bulyanhulu mine, in Tanzania.

On the upside, the company says it remains on track to meet its full-year production and cost targets.

Acacia reported last week that it had produced 120 981 oz of gold in the first quarter of the year, which sets it in good stead to deliver against its full-year guidance of between 435 000 oz and 475 000 oz.

The miner has been forced to change production strategies in Tanzania amid a ban on gold and copper concentrate exports. The changes mainly relate to its Bulyanhulu mine, which now has reduced underground mining operation.

Meanwhile, Acacia’s revenue decreased by 33% year-on-year to $157-million for the first quarter, owing to lower sales, which was offset by slightly higher realised gold prices.

Acacia recorded earnings before interest, taxes, depreciation and amortisation (Ebitda) of $86-million – 4% higher than in the first quarter of 2017, primarily owing to the sale of a noncore royalty asset for $45-million.

The adjusted Ebitda was $44-million, compared with the first quarter of 2017’s $37.4-million.

Meanwhile, Acacia has completed 9 215 m of extension and infill drilling with four rigs at Gokona Underground, at the company’s North Mara mine. Drilling continued to define the upper central zone beneath the openpit.

Acacia also focused its exploration efforts during the first quarter on testing for structures within the Liranda Corridor, parallel to Isulu, at its West Kenya project.

This exploration location is within 5 km of the existing inferred resource, to expand the current inferred resource of 1.17-million ounces at 12.6 g/t of gold; Acacia said that two-million ounces is the resource target for the Liranda Corridor.

Additionally, Acacia conducted exploration work on the Houndé Belt in southwest Burkina Faso, where the miner currently manages four joint ventures across 2 700 km² of prospective greenstone belt. The exploration entailed air-core drilling on the Tankoro corridor and field mapping, geochemistry sampling and induced polarisation surveys on the regional targets.