LONDON (Alliance News) - Acacia Mining PLC Thursday said it will cut another 1,050 jobs across the business, predominantly impacting the Bulyanhanu mine, as it continues to restructure the company to ensure it is economic at current gold prices.
Acacia Mining has already been cutting jobs, with further staff expected to go before the end of 2015. So far, Acacia has already cut 60% of its "higher-cost expatriates" as part of its organisational changes.
On Thursday, the FTSE 250-listed miner it was accelerating the process, cutting another 1,050 staff, representing around 27% of the company's current workforce. Those members have staff have already left or are expected to leave the company before the end of 2015, it said.
"The largest proportion of the role reductions are at Bulyanhulu, but all of our mines and offices will be affected. As part of this process Acacia has fulfilled all local legislative requirements and is committed to minimising any employee hardship; as such we have put in place support services
to assist those affected," it said in a statement.
The latest jobs cuts follow on from the miner's plan to change its mine plans to make the operations more economic, including moving Gokona to an underground mining operation from an open put operation in seek of higher grades.
So far, Acacia has reduced its costs by 30% from their peak in 2012, it said.
The restructuring of its workforce is expected to lead to USD25.0 million in annual savings, partially offset by restructuring costs expected to total around USD11.0 million, most of which will be incurred in 2015.
"Acacia is also working to further refine capital expenditure, renew discussions with contractors and major suppliers to improve their rates, rationalise corporate administration spend and ensure our community spending is in line with our corporate strategy and delivering sustainable development," said Acacia.
The miner said it will provide a further update about the restructuring alongside full year guidance for 2016 when it releases its results for the fourth quarter of 2015, which is expected to be published in January.
Chief Executive Brad Gordon said: "These, and the other planned changes, will help to ensure that we are able to generate sustainable positive free cash flow in 2016 and beyond, and do not experience a recurrence of the unacceptable cash outflow we saw in the third quarter. The majority of those employees affected have already left Acacia, with operational performance continuing to be in line with plan for the quarter."
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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