InterestingLONDON, Apr 27, 2010 (
Dow Jones Commodities News Select via Comtex) --
By Alex MacDonald Of DOW JONES NEWSWIRES
African Barrick Gold PLC (ABG.LN) is bullish about gold prices and has the financial muscle to boost production capacity in Tanzania and elsewhere in Africa by expanding existing mines, exploration and acquisitions, the company's chief financial officer said Tuesday.
"We are very bullish about the gold price and optimist about the future," Kevin Jennings told Dow Jones Newswires in an interview following the release of its first-quarter results.
ABG has $320 million of cash and cash equivalents and no debt, said Jennings. It is investing in four brownfield expansion projects at its existing Tanzanian gold mines as part of plan to boost production to 1 million troy ounces in 2014 from 850,000 ounces in 2010, Jennings said.
The newly London-listed miner is also purchasing the remaining shares it doesn't own in a Tanzanian exploration joint venture that has the potential to add "significant ounces" to the company's production in the medium term, Jennings said.
Beyond Tanzania, the company is looking to purchase advanced stage gold projects elsewhere in Africa, but not Sudan, he added.
Separately, Jennings said the new 2010 Minerals Bill passed by Tanzania's Parliament Friday may affect its new projects but not its existing operations.
African Barrick Gold, the result of a spinoff in March by Canadian miner Barrick Gold Corp. (ABX), holds four gold producing mines in northwest Tanzania--Bulyanhulu, Buzwagi, North Mara and Tulawaka. Barrick Gold Ltd. retains a 74% stake.
Company Web site: https://www.africanbarrickgold.com
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328 begin_of_the_skype_highlighting +44 (0)20 7842 9328end_of_the_skype_highlighting; alex.macdonald@dowjones.com
(END) Dow Jones Newswires
04-27-10 0604ET
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