AFRICAN Barrick Gold Plc (ABG), Tanzania’s biggest
gold producer, expects mining costs to fall further as a new chief seeks to
turn around the company’s fortunes.
“Expect the trend to continue,” Chief Executive
Officer Brad Gordon said today in London. So-called all-in sustaining costs may
fall to about $1,100 an ounce this year from $1,362 in 2013 and drop to $1,000
an ounce in a couple of years, he said
African Barrick today reported its first annual rise
in production since it was spun off from Toronto-based Barrick Gold Corp. in
2010. Gordon was appointed CEO in August after the shares slumped 73 percent
under his predecessor. The company is reviewing operations and seeking to cut
costs after being dogged by operational setbacks.
Gold production in 2013 rose 2.5 percent from a year
earlier to 641,931 ounces, beating the 600,000 ounce target, the company said.
The stock rose as much as 7.2 percent to 215 pence
and was trading at 214.9 pence at 9:24 a.m., the second-best performer on the
FTSE All-Share Index. (ASX)
When African Barrick listed in London, it targeted
annual production of 1 million ounces in 2014. Instead, it posted output
declines for three straight years and was surpassed by rivals Randgold
Resources Ltd. and Petropavlovsk Plc.
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