Acacia Mining swings to loss; dividend flat

Source: MarketWatch

LONDON--Tanzania's largest gold miner Acacia Mining PLC (ACA.LN) said Wednesday that it swung to a net loss last year due to a lower gold price, but it will still keep its dividend on par with the previous year.

The U.K.-listed miner, previously known as African Barrick Gold PLC, reported a net loss of $197 million for the year ended Dec. 31, 2015, compared with a net profit of $89 million the year before. The bottom line was weighed down by a non-cash, post-tax impairment charge of $189 million at its Buzwagi mine and a 7% drop in revenue to $868 million.

Revenue fell due to an 8% drop in the average achieved gold price which more than offset a 2% rise in gold output to 731,912 ounces, marking its third consecutive annual rise.

Acacia declared a final dividend of $0.028 a share, bringing its total dividend for 2015 to $0.042 cents a share, in line with 2014.

"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," said Brad Gordon, chief executive officer of Acacia Mining.

The company had a net cash position of $233 million as of end-December.

Write to Alex MacDonald at

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