Financial Trading Blog
Stock of the day 13/02/2015 – Acacia Mining PLC
With the precious metal having a rollercoaster of a year, Acacia Mining followed it every step of the way. The company started the year at £1.89 and quickly hit its year low of £1.84 on the first day of trading. The stock then saw a steep rise in the first quarter, and hit a yearly high of £3.19 at the start of March as gold was trading at nearly $1380 per ounce. However, after this point the metal’s price began to falter, and the fates of gold hampered the stock for much of the year, failing to get near its high for the rest of 2014.
After falling to £2.054 by the end of June, it railed to £2.61 in August before being crippled by gold falling below $1200 per ounce, seeing the stock languish at £1.95 by mid-October. Acacia Mining managed to grow to £2.56 by the start of 2015, and saw a big spike to £3.18 on 22nd January, the day the ECB announced its quantitative easing plan causing the euro plummet in price and gold to climb near $1300 per ounce. However, like gold, the stock couldn’t maintain this price and is now trading at £2.71.
Acacia Mining announced its Q4 and full year production figures in January, and the results were fairly impressive. It managed to decrease its all-in sustaining costs by 6% year on year to $1105 per ounce, whilst its full year production totalled 718,651 ounces which is 4% above the company’s own highest production forecasts.
Given the fact the company is making moves in West Africa, buying up gold mines and exploration projects in Senegal, Mali and Ghana, Acacia Mining is clearly confident of its progress in 2015. And following the strong production figures for 2014, so too are analysts, with an average rating of ‘buy’ and an average target price of £3.12, near the highs its saw last March.
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