African Barrick Gold doubles annual profits

Alpha · 2011-02-16T13:06:39+00:00

[African Barrick Gold doubles annual profits By Christopher Thompson Published: February 16 2011 09:51 | Last updated: February 16 2011 09:51 African Barrick Gold, the Tanzania-focused gold miner, has more than doubled annual pre-tax profits on the back of soaring gold prices and robust sales. The FTSE-100 miner made a pre-tax profit of $309m, up from $150.4m in 2009. That was on the back of increased revenue which rose to $975m from $711.1m, boosted by an average gold price of $1,240 per ounce, up from $974 per ounce in 2009. Strong fourth quarter results contributed handsomely, with revenue up to $309.5m from $229.6m over the same period the previous year. Despite decreased production, down 2 per cent to 700,934 ounces, sales increased by 6 per cent to 724,083 ounces. The company said it proposed a final dividend of $0.03 per share, bringing the overall 2010 dividend to $0.05 per share. That will provide some succour to shareholders who have endured a volatile ride since African Barrick was floated by Barrick Gold, the Canadian miner, in March 2010 at a price of 575p. In July it cut its 2010 production forecast because of delays accessing higher grade ore at Buzwagi, the newest of the companys four mines in Tanzania. Last October the company warned that organised and systematic theft of fuel intended for transportation trucks and mining equipment at Buzwagi meant overall 2010 gold production would be cut by more than 30,000 ounces to a figure comparable to 2009. Trouble at Buzwagi and lower than expected production helped push company-wide production costs up 7 per cent to $569 per ounce. Declining production at the Tulawaka open pit mine, to 42,094 ounces from 65,926 ounces in 2009, was partially offset by an increase at the Bulyanhulu mine, up to 259,873 ounces from 248,991 ounces in 2009. Production remained stable at the North Mara mine at 212,947 ounces. Greg Hawkins, chief executive, said the company expected to produce between 700,000-760,000 ounces in 2011. Cailey Barker, an analyst at Numis Securities, said he was cautiously optimistic for the year ahead. They didnt start on a great foot [so] for them its about building market confidence. Theyve got brownfield expansions at all four mines that could bring on 200,000 extra ouncesthat should drive the share price. African Barrick is not the only London-listed gold miner to have faced problems in 2010, undermining the benefits of gold trading at historically high levels above $1,000 an ounce. Output from Russia-based Petropavlovsk dropped 26 per cent in the first half and, FTSE 100 gold group Randgold Resources had operational problems at its flagship Loulo mine in Mali. In early morning trading African Barrick shares were up 9p, or 1.7 per cent, to 536p. Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web. FT.com / Companies / Mining - African Barrick Gold doubles annual profits

Thread starter Alpha
Start date Feb 16, 2011

Alpha

JF-Expert Member

Feb 16, 2011

Byendangwero

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts