Acacia describes itself as Tanzania’s largest gold producer and one of the five largest gold producers in Africa. It has four producing mines, all located in north-west Tanzania, as well as several exploration projects at various stages of development. Its stated aim is to increase production to one million ounces per year by 2014. The company has four producing mines, all located in the north of Tanzania. These are Bulyanhulu, Buzwagi, North Mara and Tulawaka and regional offices in London, Johannesburg and Dar Es Salaam.
The Telegraph online declared ‘Budget 2015 – Investors face tax raid on dividends’. Whilst this is true for those with large income portfolios, not everybody loses out and in fact those who do not currently invest in stocks and shares, there is now a tax incentive to do so.
Operational Highlights
Q2 gold production of 178,206 ounces, 8% higher than Q2 2013, with gold sales
of 171,563 ounces
Q2 AISC1,2 of US$1,105 per ounce sold, 21% lower than Q2 2013, with cash
costs1,2 of US$749 per ounce
H1 gold production of 346,581 ounces with gold sales of 330,947 ounces, 13% and
5% respectively, higher than H1 2013
H1 AISC1,2 of US$1,118 per ounce sold and cash costs1,2 of US$752, respectively
down 25% and 14% on H1 2013
First ounces produced from the Bulyanhulu CIL Expansion project, with final
commissioning due to complete in Q3 2014
Bulyanhulu Upper East and North Mara Underground projects progressing well and
on schedule
Continued strong results from the West Kenya Exploration Project
Financial Highlights
Cash position increased during Q2 2014 by US$16 million to stand at US$270
million as at 30 June 2014
H1 revenue of US$446 million, 9% below H1 2013, as the impact of a lower
average realised gold price more than offset increased sales volumes
H1 EBITDA1,3 of US$132 million, 1% higher than H1 2013, due to lower cash costs
H1 net earnings1,3 of US$41 million (US10.0 cents per share) impacted by a
higher non cash tax charge during Q2 2014
H1 operational cash flow increased to US$127 million (28% higher than H1 2013)
H1 capital expenditure of US$115 million, 45% lower than H1 2013 due to revised
mine plans and stringent capital controls
Interim dividend of US1.4 cents per share declared, based on a new cash flow based metric
Full Year Financial Highlights Revenue of US$929 million and EBITDA2 of US$240 million Deferral of Gokona Cut 3 to drive cash flow led to a year-end non-cash impairment charge of US$96 million at North Mara Total impairment charges of US$823 million for 2013 leading to a net loss of US$781 million for the year Adjusted net earnings2 of US$106 million (US25.9 cents per share) Cash position of US$282 million as at 31 December 2013 Proposed final dividend of US2.0 cents per share; total dividend for 2013 of US3.0 cents per share
I am pretty convinced that all of this QE is going to eventually lead to inflation (although at the moment, there is no evidence of this). To make good money in the markets you have to think things through and preferably come up with a contrarian strategy. I am not really a momentum investor, which means following the herd to a large extent. The real key to making money is to analyse everything within a scenario and take your pick of the best of breed. So, I think that the price of gold is going to rebound when QE generated inflation eventually kicks in.
African Barrick Gold plc first quarter 2013 results
"We have made a good start to 2013, and remain on track to achieve full year guidance, as we continue to deliver on our mine plan while progressing the Operational Review" said Greg Hawkins, Chief Executive Officer of African Barrick Gold. "North Mara and Buzwagi both delivered strong performance with the higher grade profile at North Mara and improved throughput at Buzwagi driving production levels. As anticipated, Bulyanhulu experienced a slow start to the year and we continue to expect improved performance as we move through the year and corrective measures are implemented. During the quarter we ceased mining operations at Tulawaka and are working with the Government to finalise the closure plans."
Quarterly Highlights
* Gold production1 of 146,105 ounces and gold sales of 148,232 ounces
* Cash costs2 of US$931 per ounce sold, with cash costs excluding Tulawaka of US$893 per ounce sold
* EBITDA2 of US$81.9 million; excluding Tulawaka this amounted to US$88.8 million
* Net earnings of US$20.7 million; excluding Tulawaka this amounted to US$31.2 million
* Operational cash flow of US$57.3 million, with a cash balance of US$402 million
* Completion of US$142 million financing for the Bulyanhulu CIL expansion project
* Operational Review progressed with key initiatives identified and project plans formulated
ABG reports net earnings of US$59 million (US14.5 cents per share), including one-off adjustments of US$46 million, primarily due to impairment charges related to Tulawaka which, after a long and successful run, is coming to a close in 2013. Adjusted net earnings2 were US$105 million (US25.7 cents per share) and operational cash flow was US$258 million.
Other significant highlights include:
Gold production1 of 626,212 ounces and Cash costs2 of US$949 per ounce sold, were within recent guidance
Revenue of US$1,087 million and EBITDA2 of US$331 million
Continued progress on the CIL Expansion and Upper East Acceleration, our key expansion projects at Bulyanhulu
Renewal of the North Mara Special Mining Licences on the existing terms and conditions for a 15 year period
Highly prospective exploration package of 2,800km2 acquired in Kenya for an initial consideration of US$22 million
Operational Review initiated to drive improved returns and free cash flow generation from the existing asset base
Net cash position of US$401 million as at 31 December 2012
Proposed final dividend of US12.3 cents per share; total dividend for 2012 of US16.3 cents per share
0%
100%
(79.9%)
