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Acacia Mining said it would more than double its dividend for 2016 as the gold miner announced record production for the yellow metal last year.

Revenues at the FTSE 250-listed miner jumped 21 per cent last year to $1,054m, aided by a 13 per cent increase in gold sales and a 7 per cent gain in the gold price in 2016.

Operating profit – earnings before interest, tax, depreciation and amortisation – more than doubled to $415m helped by higher revenues and lower operating costs.

The company, which is majority owned by Barrick Gold, the world’s largest gold miner, proposed a final dividend of $8.4 cents per share, bringing its total 2016 dividend to $10.4 cents a share compared with $4.2 cents a share in 2015.

Brad Gordon, Chief Executive Officer of Acacia Mining, said: “2016 was another successful year for Acacia as we delivered record production, reduced our all-in sustaining costs by 14% and more than doubled our net cash position.”

He added that the company expects to see further production growth and cost reductions in 2017, with production expected to be between 850,000-900,000 ounces.

The company said it would continue to invest into its exploration portfolio and would shortly announce a maiden resource on its West Kenya project.

Acacia said last month it was in talks with Endeavour Mining about a merger that could create a £3bn gold miner focused on Africa.

Shares in gold miners, including Acacia, had a bumper 2016 as the price of gold climbed amid geopolitical uncertainty, with the London listed company’s shares gaining more than 100 per cent.

The results are the latest strong showing for Acacia after it reported a 48 percent jump in revenues and sixfold increase in operating profit for the third quarter of last year.

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