Lower realised gold prices and lower production resulted in gold miner Acacia Mining reporting an 11% year-on-year decrease in earnings before interest, taxes, depreciation and amortisation to $44.6-million for the third quarter, ended September 30.
The company reported revenue for the period of $165.6-million, which is 3%, or $5-million, lower than in the third quarter of 2017.
Net earnings were $11.9-million, or 2.9c apiece, which is 26% down from $16-million, or 3.9c apiece, reported in the third quarter of 2017.
However, the company expects to exceed the upper end of its full-year production guidance, which is set between 435 000 oz and 475 000 oz, with production now expected to be marginally in excess of 500 000 oz for the year, which should contribute to higher earnings.
Acacia produced 136 640 oz of gold in the third quarter, at an all-in sustaining cost (AISC) of $880/oz, which is 6% below the AISC in the third quarter of 2017, and 4% lower than the AISC in the second quarter of this year.
The company had a net cash position of $74-million as at September 30 – an increase of $11-million during the quarter.
“In line with our clear cost reduction strategy, we have also steadily reduced our costs throughout the year and are tracking towards the lower end of our AISC guidance range of $935/oz to $985/oz and cash costs of between $690/oz and $720/oz,” Acacia interim CEO Peter Geleta said on Friday.