JOHANNESBURG (miningweekly.com) – Tanzania-focused gold producer African Barrick Gold (ABG) increased its production for the three months ended September 30, by 16% year-on-year, while all-in sustaining costs (AISC) declined for the eight successive quarter.
ABG CEO Brad Gordon said the company’s production amounted to 190 986 oz during the quarter, while the $1 098/oz AISC was down 14% year-on-year and 1% quarter-on-quarter. This provided further evidence that the changes being implemented at ABG’s operations continuously improved performance.
During the quarter under review, ABG sold 178 490 oz of gold, an 11% increase on that sold during the prior corresponding period.
Revenue for the period increased 9% year-on-year to $241-million, as higher sales volumes more than offset lower realised gold prices.
Net earnings for the quarter amounted to $28-million, a 60% increase on that of the prior corresponding period.
“During the quarter, we [also] generated $17-million in net cash flow and have now increased our cash balance [for the] year to date, after returning $14-million in dividends to our shareholders and continuing to invest in growth,” Gordon said.
He added that the optimisation of the company’s assets continued with good progress having been made during the quarter on the projects at Bulyanhulu and North Mara, in Tanzania.
During the period under review, the Bulyanhulu carbon-in-leach expansion project produced 5 097 oz, with commissioning due for completion in the fourth quarter.
The Bulyanhulu run-of-mine head grade had also been increased to 8.8 g/t, as underground development progressed.
“We are looking forward to setting out our longer-term plan for the business at our investor day on November 27," Gordon said.
Further, ABG reiterated its full-year production guidance of more than 700 000 oz, while cost guidance was tightened to around $740/oz and around $1 100/oz sold, for cash costs and AISC respectively.