Acacia mining company has lamented a great loss in June of $142 million, in six months accumulation, revealing that they had failed to take note of $175 million of revenue due to ban exports of unprocessed ore. $51 million tax bill “ignorance” also added weight to the suffering in the financial docket.
The miner managed to contain the fall in its pre-tax profits to just 2pc, at $99.5m, but it will not pay an interim dividend for the first time since it was founded in 2000.
The company is still able to export gold bars, which make up 70pc of its output, but it has been stockpiling concentrate at two of its three mines while it waits for the ban to be lifted.
Brad Gordon, chief executive, said Acacia’s underlying performance was “the best it had ever achieved”, pointing out gold production of 428,203 ounces was 4pc higher than a year ago – a result hailed as “better than expected” by analysts. It has trimmed its production guidance for the full year, however.
Negotiations to end the dispute will be led by Acacia’s majority shareholder, Barrick Gold, which has a 64pc stake. Mr Gordon said he was “not happy” about being excluded from the talks – which have yet to begin – but insisted Acacia management would be fully consulted.
“I would rather be sitting around the table, but we have to respect the government’s wishes,” he said.