JOHANNESBURG (miningweekly.com) – London-listed gold producer African Barrick Gold (ABG) reported a net profit of $41-million for the six months ended June 30, driven by increased production and continued cost discipline.

ABG CEO Brad Gordon pointed out that the company had now achieved its seventh successive reduction of quarterly all-in sustaining costs (AISC).

AISC for the first half of the year amounted to $1 118/oz sold, a reduction of 25% on that of the prior corresponding period.

Cash costs for the three-months ended June were down 21% to $1 105/oz sold.

During the half-year, ABG produced 346 581 oz of gold, an improvement of 13% on the same period in 2013, with second-quarter production having amounted to 178 206 oz, reflecting an 8% year-on-year increase.

Gordon noted that, during the second quarter of the year, ABG had delivered the first ounces from its Bulyanhulu carbon-in-leach (CIL) expansion project, in Tanzania, with development work on the Bulyanhulu upper east zone and the Gokona underground exploration portal progressing to plan.

The Bulyanhulu upper east zone was expected to produce 1.7-million ounces of gold, averaging 60 000 oz a year, over a life in excess of 25 years, at an AISC below the company’s target run rate for Bulyanhulu for year-end 2015 of $900/oz.

“As a result of the strong first-half performance and the incorporation of the expected production from Bulyanhulu upper east, we now expect full-year gold production to be in excess of 700 000 oz, while continuing to target an AISC at the bottom of our guidance range of $1 100/oz to $1 175/oz,” Gordon said.

Meanwhile, ABG achieved a 9% increase in revenue for the first half of the year, to $446-million, while its earnings before interest, tax, depreciation and amortisation for the period was 1% higher, at $132-million, owing to lower cash costs.

First-half capital expenditure amounted to $115-million, a 45% reduction on that of the first half of 2013.

ABG declared an interim dividend of 1.4c a share.