African Barrick to beat output target, cost cutting on track

Wed Oct 30, 2013 3:27am EDT
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LONDON Oct 30 (Reuters) - Tanzania-focused miner African Barrick Gold said it would exceed its annual production target and was on track with a cost cutting plan, giving hope that the company's new boss is starting to turn the company around.

The FTSE 250 company, whose poor performance meant it was under pressure even before a gold price rout began in April, said it would beat the upper end of its 600,000 ounce production range. It had said in July that output would be at the upper end of the 540,000 to 600,000 ounce guidance.

Bradley Gordon, who was appointed as the company's new chief executive in August, said in a statement on Wednesday that cash costs would come in at the lower end of its guidance of $925 per ounce sold.

The company also said it was on track to deliver its target of over $100 million in cost reductions to help improve the company's cash generation and in the face of a lower gold price environment.