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African Barrick Gold Q3

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African Barrick Gold Q3 profit surges on higher gold production, prices

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Thursday, 20 October 2011 22:00

By The Citizen Reporter and Agencies
Dar es Salaam. The African Barrick Gold plc has reported a sharp rise in its third-quarter net income, driven by an 11 per cent increase in gold production and a 44 per cent rise in gold prices.

Net income for the quarter more than doubled to $102.08 million or 24.9 cents per share from $39.87 million or 9.7 cents per share last year.The increase was primarily due to an increase in average realised gold price to $1,774 per ounce from $1,233 per ounce in the corresponding period a year ago.

Revenues increased 61 per cent to $354.33 million from $219.61 million, mirroring the increase in attributable gold production to 182,401 ounces from 164,996 ounces a year ago, following improved production at its Buzwagi and Bulyanhulu sites.

This was offset by the waste stripping programme at North Mara mine, resulting in lower gold production there, the company noted.Copper production increased 27 per cent to 4.2 million pounds from 3.3 million pounds last year, and prices increasing to $3.68 per pound against $3.18 per pound last year.

Commenting on the results, CEO Greg Hawkins said, "We are reporting a strong operational performance which combined with a high gold price has delivered excellent financial results in the quarter and cash margins in excess of $1,000 per ounce."

Looking ahead, the company reiterated its full year production target of 700 thousand to 760 thousand ounces of gold.The stock is currently trading down 3.01 percent or 17 pence at 547 pence on the London Stock Exchange