African Barrick Q1 production rises, but earnings halve

Mining group African Barrick Gold has reported a rise in both the production and sale of gold during the first quarter, on track to meet full year guidance, but said net earnings almost halved as a result of Tulawaka ceasing mining operations.

During the three month period, gold production was 146,105 ounces compared to 144,643 the prior year, while sales totalled 148,232 ounces up on 145,417 in the same quarter in 2012.

However, net earnings totalled $20.7m, significantly lower than the $40.3m delivered the prior year, while earnings before interest, tax, depreciation and amortisation came to $81.9m (Q1 2012: $97.4m).

The cash cost of each ounce sold was $931, compared to $873 in the same period in 2012.

In a statement Greg Hawkins, Chief Executive Officer, said: "We have made a good start to 2013, and remain on track to achieve full year guidance, as we continue to deliver on our mine plan while progressing the operational review.

"North Mara and Buzwagi both delivered strong performance with the higher grade profile at North Mara and improved throughput at Buzwagi driving production levels. As anticipated, Bulyanhulu experienced a slow start to the year and we continue to expect improved performance as we move through the year and corrective measures are implemented.

"During the quarter we ceased mining operations at Tulawaka and are working with the government to finalise the closure plans."

Shares in the company fell 4.11% to 163.30p by 10:17 on Thursday.

NR