African Barrick Gold has reported a half year net profit rise of 217 per cent.
Profits at the miner soared to $99 million (approx. €76 million) on the back of increased production and the rising price of gold.
Revenue rose by 64 per cent to $424 million (approx. €326 million) and production by 23 per cent to 356,208 ounces. Realised gold prices jumped by 28 per cent to $1,155 (approx €888) per ounce.
However the company lowered its full-year output target to 750,000 to 800,000 ounces from its previous range of 800,000 to 850,000 ounces following delays at its Buzwagi mine in Tanzania.
Commenting on the results, CEO Greg Hawkins said: “Following our successful IPO on the London Stock Exchange in March, I am delighted to announce the first half year results for African Barrick Gold. I am pleased to mark this milestone with an excellent set of results which clearly demonstrate the exciting potential of the business. Production, revenue and cash flow generation are all showing strong momentum, while costs have been held stable against a backdrop of renewed cost pressures in the industry.”
He continued: “We expect to be at our budgeted production run rate by the end of the year and as a result have not changed our expectations for production in future years. As such, and together with the progress on our portfolio of growth projects, I am confident that we are well positioned to continue to create value for our shareholders.”
African Barrick Gold (ABG) was spun off by the world’s largest gold producer Barrick Gold Corporation in March, and is forecasting annual production of more than one million ounces by 2014.
One of Africa's five largest gold producers,ABG operates four mines in Tanzania. It has produced approximately 4.3 million attributable ounces of gold since it began operations in the country.
Headquartered in London, UK, the company had a total of 4,210 employees and an additional 2,793 contracted personnel as of 31 December 2009.
As of 31 January 2010, ABG held an interest in 239 granted prospecting licences, prospecting licences reconnaissance, special mining licences and mining licences covering approximately 309,377 hectares in Tanzania. The company also held interests in approximately 275 pending applications for prospecting licences and prospecting licences reconnaissance covering approximately 719,067 hectares in Tanzania.
