Results round-up

Acacia Mining posted a drop in first-half core earnings on Friday as it said it was not yet clear when it might resolve the dispute with the Tanzanian government over its gold exports.

In the six months to 30 June, earnings before interest, taxes, depreciation and amortisation were down 17% to $133.6m, while adjusted EBITDA was 45% lower than the first half of last year at $91.6m. Meanwhile, first-half revenue was down 15% on the same period a year ago to $333.4m.

Gold production during the period was 41% lower than the year before at 254,759 ounces, while gold sales of 251,045 ounces were in line with production.

The company generated cash from operating activities of $58.9m, up $57.6m from the first half of last year, while net cash of $63.3m increased by $53.8m from the end of 2017.

In addition, Acacia - which is majority-owned by Barrick Gold - said it generated free cash flow of $14m in the second quarter thanks to a strong operational performance.

Chief executive officer Peter Geleta said: "The changes we made to the business in late 2017 have delivered the desired results, helping to return the group to free cash generation for the first time since Q4 2016 and we are on track to achieve the top end of our production guidance range of 435,000-475,000 ounces for 2018 at an all-in sustaining costs of $935-985 per ounce.

"Following the stability we have brought to the business during the last six months, our priority remains on optimising performance across all areas of our operations as we manage through the current uncertainty in the operating environment and the on-going disputes with the Government of Tanzania. By continuing to be resilient, managing our costs and working to our mine plans, we are addressing what we can control and will look to deliver value for all of our stakeholders."

RBC Capital Markets analyst Tyler Broda said the financials for Acacia remain "somewhat of a sideshow" due to the ongoing negotiations between parent Barrick and the Government of Tanzania.

"Whilst likely to disappoint the market today we would note that H1 EBITDA sits at 50% of FY consensus and 52% of our FY forecast," Broda said. "Operationally the underlying mines are performing well with Q2 all-in Sustaining costs (AISC) of $918/oz coming in -2% below our forecast.

"Management are continuing with a number of initiatives in an effort to keep costs under control and help offset local inflation. That this was Acacia's first quarter with free cash flow since Q4 2016 should also help ease any concerns on short term liquidity."

Employee benefits and insurance specialist Personal Group reported that its three business segments were all performing ahead of last year and in line with expectations.

The AIM traded company said that during the first half its salary sacrifice business PG Lets Connect has benefited from Royal Mail Group's salary sacrifice offer to its employees and was also appointed to the Crown Commercial Services framework, one of the biggest public procurement frameworks in the UK.

Meanwhile, the core insurance business started the year well and the firm’s software as a service division won contracts with Randstad and St John Ambulance.

The company also started to supply its own reward and recognition, retail discounts and cinema tickets having previously used third parties, which resulted in raised revenues and improved margins.

Other developments include the launch of the next generation of the Hapi app, which allows employees to track their benefits in real time, and the launch of the next product version of the Sage Employee Benefits proposition.

Mark Scanlon, chief executive of Personal, said: "Personal Group has performed in line with management's expectations during the first half of the year, which saw improvements across all parts of the business. This has provided us with a good foundation as we enter the second half of 2018, which has also started well. The board remains confident in its outlook for the full year."

AorTech International reported a fall in annual revenues and larger losses as the company finally completed long-running legal dispute with a former chief executive.

The AIM traded heart valve implant developer reported that over the course of the year ended 31 March revenues fell 12% to $0.54m as administrative expenses increased 13% to $0.63m.

As a result, the firm’s operational loss increased by 54% to $0.38m when excluding exceptional items such as the receipt of $0.34m in litigation proceeds.

Elsewhere, AorTech successfully raised $3.4m to fund a new business strategy and ended the year with a cash balance of $0.6m, up from the $114,000 that the company had at the end of its previous full year.

Bill Brown, executive chairman of AorTech, said: “The company on which I report today has changed beyond all recognition from the AorTech I reported on last year. A year ago, AorTech was embroiled in litigation with its former chief executive and, as such, the focus of the company was on historic events. Resolving the litigation has allowed AorTech to switch focus to its very exciting future.”

The company said it is transitioning into a medical device company with a portfolio in the cardiovascular field.

The new strategy sees AorTech pursuing licensing and supply business through manufacturing partner Biomerics in order to advance the development of the firm’s IPs and move further up the value chain.