Tanzanian listed gold mining company, Acacia Mining has announced that it will likely deepen its operations in Kenya in order to increase its output.
The company’s Chief Executive, Brad Gordon said Kenya could be a new focus since Acacia bought out its partner Lonmin from a joint venture in the east African country.
Acacia Mining expects output this year to be about 5 per cent above the top of its earlier forecast, it said in a previous statement. The group said the jump would likely drive its shares more than 10 per cent higher.
The firm, which operates in Tanzania, with exploration properties in Kenya, Burkina Faso and Mali, said it would produce 5 per cent more gold this year from the three mines it operates in Tanzania than a previous forecast of 750,000 ounces to 780,000 ounces.
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The latest data indicates that since the start of the year, shares in Acacia have gained by over 100 per cent as the mining sector attracted investors seeking better yields in an ultra-low interest rate environment.
Following Britain’s vote to leave the European Union (Brexit) in June, Gold miners have performed particularly well as the value of gold has risen strongly.
Investors have favoured gold since Brexit as it is seen as a safe-haven in times of uncertainty and is also a hedge against a weaker pound, boosting gold mining firms as their revenue is in U.S. dollars.
Acacia’s core profits rose to $124.8 million (Sh12.7 billion) for the third quarter ending Sept. 30, more than five times its earnings a year earlier.
