African Barrick Gold posts record Q3 profit

Andrew Topf | October 20, 2011 | 7:25 pm Precious Metals Africa Europe Gold 

African Barrick Gold plc (ABG) (LON:ABG) cruised to a record profit in the third quarter on the back of higher production and high gold prices, the company announced today.

ABG more than doubled its net profit for the quarter, posting a net profit of $102 million and earnings per share of 24.9 cents — a 156% increase from the same period last year. Quarterly revenues were up 61% to $354 million.

The company credited improvements at the Buzwagi and Buyyanhulu mines for driving production, which increased 11% from Q3 2010 to 182,401 ounces.

ABG is Tanzania’s largest gold producer with over 700,000 ounces annually.

Financial Highlights

  • Net profit of $102 million for the quarter, up 156% year-on-year, with an EPS of 24.9 cents
  • Revenue increased by 61% to $354 million for the quarter
  • Average realised gold price at record levels of $1,774 per ounce, up 44% year-on-year
  • Cash margin per ounce sold up 76% at $1,087 per ounce
  • EBITDA of $184 million for the quarter, up 106% on Q3 2010
  • Operational cash flow of $153 million, an increase of 145% on Q3 2010
  • Net cash position of $525 million as at 30 September 2011

Operational Highlights

  • Attributable gold production of 182,401 ounces, 11% higher than Q3 2010
  • Throughput improvements at Buzwagi and Bulyanhulu driving production growth
  • Targeted production improvements achieved at Buzwagi following process plant investments
  • Cash costs of $687 per ounce, up 12% year-on-year
  • Tulawaka mine life extended to the end of 2012
  • Continued progress at our other organic growth projects and further positive drilling results at the Nyanzaga project
  • Launch of Maendeleo Fund for community development inTanzaniawith an annual commitment of $10 million
Image of workers at the Bulyanhulu mine by African Barrick Gold plc

 

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Comments

  • Charlie

    thats good,keep it up

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