A new twist to Acacia Mining’s (ACA) gold export problem saw its share price collapse by 35% in the course of a week to 286.3p.

The Tanzanian government, which recently banned the export of unprocessed ore, has accused Acacia of under-reporting the amount of metal in its previous shipments, something the miner denies.

Acacia is losing $1m a day in lost revenue as a large chunk of production from two of its gold mines cannot be sold. Investment bank Jefferies says the closure of these two mines ‘now appears increasingly likely’.

Jefferies adds: ‘With $196m net cash as of March 31st, we do not have immediate concerns over the liquidity of the company, though note a $22m advanced payment will likely need to be repaid near-term.’

Stockbroker Numis notes that Acacia has ongoing parallel disputes relating to VAT and dividend payments. ‘It also faces pressure to change the ownership of its local operating companies to include a 30% holding by Tanzanian nationals.’

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