UPDATE 1-Cost cuts help Acacia Mining report 4th qtr profit

Mon Feb 16, 2015 3:04am EST
 
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(Adds forecast for costs, background)

Feb 16 (Reuters) - Acacia Mining Plc reported a profit for the fourth quarter of 2014, compared with a loss a year earlier, and forecast a rise in gold production for 2015.

Acacia, previously known as African Barrick Gold, reported a net profit of $21.1 million, compared with a loss of $97.7 million a year earlier, as it focused on cutting costs.

Falling gold prices have forced miners around the globe to take drastic steps to control costs, including shutting mines, scrapping dividends and halting operations.

Acacia, whose production comes from three mines in Tanzania, said it expected to produce 750,000-800,000 ounces of gold in 2015, compared with 718,651 in 2014.

The company said it would target an all-in sustaining cost (AISC) of $1,050-$1,100 per ounce sold in 2015, compared with$1,105 in 2014, and expects capital expenditure to fall to $220-$240 million from $254 million.

AISC includes production and exploration expenses.

Acacia's revenue rose 10.1 pct to $243.9 million as the company sold more gold, offsetting the fall in prices.

Acacia, which is majority-owned by Canada's Barrick Gold Corp, said it sold 194,243 ounces of gold in the quarter, up from 168,167 in the same quarter of 2013. (Reporting by Mamidipudi Soumithri in Bengaluru; Editing by Ted Kerr)