Acacia: resolve, but no resolution

That’s not just because the upper range for this year’s all-in cost forecast is $985; in fact, management thinks that should be enough to return to free cash generation. Moreover, a massive cloud still looms above Acacia, and it's one that will not be dispersed by a truly staggering gross impairment charge of $850m, which includes a $686m non-cash write-down of property, plant and equipment, and a further $122m hit to goodwill.

The total impairment charge – a product of the ongoing ban on concentrate exports and “uncertainty in the operating environment” – is muddied somewhat by the accounting treatment of $172m of additional tax provisions related to a Barrick-brokered framework agreement to settle the stand-off between Acacia and Tanzanian authorities. Another tax headache – namely, the steady growth in receivables – has combined with a build-up in working capital to further strain the balance sheet, forcing the sale of a mining royalty post-period for $45m. Output, capital expenditure and exploration is all set to fall, although analysts still expect adjusted pre-tax profit of $170m and EPS of 32.3¢ in 2018, versus estimates of $173m and 28.9¢ last year.