Miner African Barrick Gold sees production exceed expectations

African Barrick Gold has reported net earnings of $17.8m (£11.09m) in the third quarter to 30 September, with gold production of 164,719 ounces, up 11 per cent on the third quarter 2012. (Release)

This, said investment bank Numis, was better than consensus expectations of 153,000 ounces and the its prediction of 146,000 ounces.

The miner reports that it is on track for its $100m savings target, with expectations that 30 per cent will be saved this year.

Its cash balance was down again at $289m which, Numis says, was due to a lower working cap from tax receivables building up.

Barrick saw strong performance at both the Buzwagi and North Mara gold mines, and it has decided to defer Gokona Cut 3 at the latter.

The Bulyanhulu CIL expansion is on track for first production in the first quarter of 2014, and remains on budget.

Numis comments that this is the mining company's "first decent quarter for a while so, while still not without its risks the plans appear to be making some good effect."