Despite lower realised gold prices, Acacia Mining (ACA) boosted full-year cash profits by 5 per cent to $253m (£164m). Continued progress on the cost front enabled the Tanzania-focused miner to generate free cash-flow from the second quarter onwards. This was not only ahead of schedule, but the first time in three years that this had been achieved.
Costs are being pared back due to increased mechanisation within Acacia's mining complex, specifically at the Bulyanhulu mine, where a method known as 'long-hole stoping' has replaced traditional labour-intensive practices. The switch has helped to bring down labour costs, highlighted by a steep fall in the number of costly expatriates employed by the miner. All-in sustaining costs (AISC) were reduced by nearly a fifth to $1,105 an ounce. That's well below the industry average, but Acacia's chief executive, Brad Gordon, said that it is still on the way down. Capital expenditure, at $254m, was down by a third on the prior year owing to revised mine plans and improved capital controls. Guidance for the current year is $220m-$240m.