Acacia Mining plc (“Acacia’’) reports full year 2015 results
“2015 was another year of transformation for Acacia as we continued to transition our company into a low cost producer,” said Brad Gordon, Chief Executive Officer of Acacia Mining. “During the year we delivered gold production of 731,912 ounces, a third consecutive annual increase, with our continued investment into the turnaround of Bulyanhulu and the successful transition to underground operations at North Mara, leading to all-in sustaining costs (AISC) remaining flat year on year at US$1,112 per ounce. In light of the lower gold price we have reviewed the carrying value of our assets and have incurred a non-cash post-tax impairment charge of US$189 million at Buzwagi, but still expect to generate free cash flow at both the mine and the group in 2016 at levels well below the current gold price. We continue to have one of the strongest balance sheets in the sector and as a result of this and expected improvements in production, costs and cash flow generation in 2016, the Board have recommended maintaining the final dividend in line with 2014 at US2.8 cents per share.”
Full Year Financial Highlights
Revenue of US$868 million, 7% lower than 2014, due to the 8% lower average gold price
EBITDA1,2 of US$175 million, 31% lower than 2014, mainly due to lower revenue
Non-cash post tax impairment charges of US$189 million at Buzwagi, due to lower gold price planning assumptions, leading to a net loss2 of US$197 million (US48.1 cents per share)
Adjusted net earnings of US$7 million (US1.7 cents per share)
Cash position of US$233 million as at 31 December 2015, with net cash of US$105 million, down US$46 million from 2014
Capital expenditure of US$184 million, 30% lower than 2014 due to stringent capital controls
Proposed final dividend of US2.8 cents per share, total dividend for 2015 of US4.2 cents per share, in line with 2014
