African Barrick Gold plc’s (ABG) shares rose 7% after beating its 2013 production guidance and lowering its all-in-sustaining-costs (AISC).
The company, owned 74% by Barrick Gold Corp, produced 641,931oz last year from its mines in Tanzania, exceeding the guidance of 540,000oz-600,000oz/y it issued at the start of last year. Its December quarter output fell 8% to 165,374oz, from 180,684oz in the same three months a year earlier.
AISC dropped to US$1,362/oz for 2013, from US$1,584 in 2012, while the December quarter saw AISC fall 30% to US$1,171/oz, compared with US$1,675/oz a year earlier.
ABG’s shares rose to £2.15/share (US$3.53/share) on January 21 at 10:10am Londontime, compared with the close of £2.01/share on January 20.
“We are pleased to deliver another strong production quarter together with the fifth successive reduction in quarterly all-in-sustaining-costs. This is driven by the changes we are implementing to the business,” CEO Brad Gordon said.