Acacia Mining slides to loss amid Tanzania dispute

Acacia Mining PLC (ACA.LN) said Friday that it slid to a net loss in the second quarter due to the negative impact of its dispute with the government of Tanzania, which is hampering the company’s performance.

The gold-mining company has been hit by an export ban on metal concentrates in Tanzania, which was imposed by the country’s government last March. Majority shareholder Barrick Gold Corp. (ABX.T) is leading negotiations to lift the ban. No timetable has been set for resolving the dispute.

Acacia Mining said it slid to a loss of $19.1 million in the three months ended June 30, away from a net profit of $35.7 million in the year-earlier period. Revenue in the second quarter rose 12% to $176.9 million.

The mining company said gold production in the second quarter dropped 36% to 133,778 ounces versus the year-earlier period. It said it was on track to meet the top end of its production guidance for the year, in a range between 435,000 and 475,000 ounces.

Due to the uncertainty the company is facing, the board said it doesn’t recommend paying an interim dividend.

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