Barrick, government talks next week

BARRICK Gold will begin discussions with the government on the concentrate export ban and other issues next week.

“Barrick is doing so in its capacity as Acacia’s largest shareholder holding 63.9 per cent equity interest,” Barrick said in financial statement yesterday.

This follows a meeting between President John Magufuli and Barrick’s Chairman John Thornton last month agreeing to hold discussions to resolve the row.

Barrick holds 63.9 per cent equity interest in Acacia Mining which is a publicly traded company listed on the London Stock Exchange.

Barrick subsidiary Acacia Mining has three mines in Tanzania of which Buzwagi and Bulyanhulu have been hit by export ban on concentrates of gold and copper ore in March. The other one is North Mara Gold Mine.

Acacia is not participating directly in the discussions at this stage, however it intends to work with Barrick as necessary to support the process.

Any potential resolution arising from these discussions will be subject to approval by Acacia.

Barrick said further that it continues to monitor the situation, and should Acacia revise its full-year outlook it will evaluate the impact to its own guidance at that time. Any impact will depend, in large part, on the duration of the concentrate export ban.

Acacia operations impacted by the current ban on concentrate exports account for approximately six per cent of Barrick’s 2017 gold production guidance.

In total, Acacia accounts for approximately 10 per cent of Barrick’s 2017 gold production guidance. Currently Acacia said it continues to evaluate the impact of Tanzania’s concentrate export ban, as well as recently enacted legislation, on its 2017 production guidance.

Acacia has not revised its fullyear production guidance to reflect any change to annual output as a result of the concentrate export ban currently in place, but has stated that it is now targeting the lower end of its guidance range.

Acacia has also indicated that, given the rate of cash outflow, it does not believe continued operations are sustainable at its Bulyanhulu mine beyond September 30.