By Alex MacDonald
LONDON--African Barrick Gold PLC (ABG.LN), Tanzania's largest
gold producer, said Tuesday that fourth quarter gold production
dropped on the year but still beat its full-year production and
cash cost guidance as it continues to focus on implementing its
turnaround plan amid a lower gold price environment.
The U.K.-based miner said fourth quarter gold production dropped
8.5% to 165,374 troy ounces compared with the same quarter a year
before, largely due to lower grades at its Buzwagi mine, reduced
throughput at its North Mara mine due to planned plant maintenance
and the cessation of gold production at its Tulawaka mine.
But gold production rose 2.5% to 641,931oz in 2013, marking the
company's first annual gold output rise since it was spun off from
its parent company, Barrick Gold Corp. (ABX), in 2010. The annual
figure was also 7% above the upper end of the company's guidance
range of 540,000-600,000 ounces for 2013.
"We comfortably exceeded the top end of our initial production
guidance range for 2013 due to strong performances from North Mara
and Buzwagi and saw cash costs come in 10% below the bottom of the
initial cash cost guidance range," Chief Executive Officer Brad
Gordon said in a statement. The company's initial cash cost dropped
12% on the year to $827/oz, below its guidance range of $925 to
$975 per ounce of gold.
African Barrick Gold has been buffeted by high costs and
production delays since listing its shares in 2010. In August it
appointed a new CEO to accelerate the company's turnaround given
the lower gold price environment. Gold dropped 28% last year,
marking its worst performance in about three decades as investors
lost faith in the yellow metal as a store of value.
Mr. Gordon also said the company delivered its fifth consecutive
reduction in quarterly all-in sustaining costs. The company's
all-in sustaining costs--which takes into account both operating
costs and capital expenditure costs--dropped 30% on the year to
$1,171 per ounce.
Mr. Gordon said its flagship Bulyanhulu mine continues to
improve and the Environmental Protection Order at North Mara has
been lifted, thereby removing a constraint on the mine. African
Barrick also reached an agreement with Tanzania's state-owned
mining company STAMICO to transfer the Tulawaka mine in the first
quarter of this year.
Write to Alex MacDonald at alex.macdonald@wsj.com
Order free Annual Report for Barrick Gold Corporation
Visit http://djnweurope.ar.wilink.com/?ticker=CA0679011084 or
call +44 (0)208 391 6028
Order free Annual Report for African Barrick Gold Plc
Visit http://djnweurope.ar.wilink.com/?ticker=GB00B61D2N63 or
call +44 (0)208 391 6028
Order free Annual Report for African Barrick Gold Plc
Visit http://djnweurope.ar.wilink.com/?ticker=US00830M1071 or
call +44 (0)208 391 6028