Acacia Mining Plc, a producer of gold in Tanzania, said second-quarter profit dropped 70 percent after mining costs rose and bullion prices slid.
Net income fell to $5.6 million from $18.4 million a year earlier, the London-based producer said in a statement Monday. The company’s so called all-in-sustaining costs rose 4 percent to $1,149 an ounce.
Gold producers are struggling to cut costs to counter falling prices that have slashed margins and profits across the industry. Acacia Chief Executive Officer Brad Gordon has reduced the company’s workforce and sought to expand production at the company’s Tanzanian mines after a 73 percent slump in Acacia’s shares under his predecessor.
Acacia reported second-quarter sales of $231.9 million as gold output climbed 4.2 percent to 185,641 ounces. The company maintained its full-year target of 750,000 ounces to 800,000 ounces at a cost of $1,050 to $1,100 an ounce.