Thursday, May 25, 2017

#AcaciaMining shares take a beating for company #Fraud in #Tanzania - #BarrickGold

Tanzania-focused gold miner Acacia Mining PLC (LON:ACA) took its two-day loss in value to almost 40% as investors took fright at the tone coming out of the country over concentrate exports.
A ban of the export of concentrate was introduced in March, but hopes this might be lifted were dashed yesterday when the government launched a stinging attack on the miner.
The Tanzanian government accused the company of understating how much it exports by a factor of ten and sending shares in the former African Barrick 30% lower (Barrick Gold).
They were off by a further 12% today as brokers suggested Acacia may have to suspend production at some of its mines.
According to one if Acacia the choice is to close one or two mines, with the risk its relationship with the government may be irreparably damaged, or suffer revenue losses of US$1mln day and try to negotiate with the government.
All of its mines are in Tanzania and brokers today were downgrading price targets in the expectation of a prolonged dispute and the growing likelihood of mine closures.
Shares dropped 12% to 267.7p.

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