African Barrick ups production targets in wake of gold price slump
African Barrick Gold felt the full force of the nosedive in the price of gold last year.
The miner’s reported fourth-quarter sales down almost 20 per cent to $222m (£135m), saying 2013 was a “year of significant change” due to the lower prices.
Higher production in 2012 failed to translate into an improved financial performance last year, it said.
Losses soared to $98m from $35m in the final quarter.
The company says it intends to continue tightening its belt, slashing capital expenditure this year. It expects sustaining capital to be down 20 per cent from 2013 at $90-100m.
But it's also planning to up production to between 650,000 and 690,000 ounces of gold this year, reducing cash costs to between $740 and $790 per ounce sold, and continuing to reduce all-in sustaining costs to $1,000 to $1,175 per ounce sold.
Total impairment charges for the year came to $823m, meaning a net loss of $781m for the year.
African Barrick has proposed a final dividend of two cents per share, with a total dividend for 2013 of three cents per share.
Numis has a ‘sell’ recommendation on shares, with a target price of 120p.