African Barrick Gold hurt by power problems in Tanzania
African Barrick Gold (ABG), the Tanzania-focused gold producer, saw production drop 11% in the final three months of last year compared to the same period of 2010.
African Barrick Gold (ABG), the Tanzania-focused gold producer, saw production drop 11% in the final three months of last year compared to the same period of 2010.
The amount of gold it actually sold dropped a full 21% over the quarter.
Explaining the sharp declines ABG's Chief Executive, Greg Hawkins, said the unreliable power supply in Tanzania was to blame. The company has now installed a 16 megawatt back-up generator to prevent outtages.
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The full-year figures for ABG look better, but production was still down 2% on 2010 and sales fell 3%.
The firm has had one major factor in its favour, however, the gold price has gained 28% over the last 12 months, 19% in the last quarter alone.
ABG confirms this has had a significant impact on earnings, with the cash position at around $584m by the end of 2011.
Over the last 12 months ABG's share price has dropped 18%. News of the production decrease has seen the stock drop sharply in very early trading, at 8.06am it was down 2.7%.
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