February 16, 2011 / 7:30 AM / 7 years ago

UPDATE 1-African Barrick annual profit beats expectations

* Net profit $218.1 mln vs expectations of $204.8 mln

* Expects to produce 700,000-760,000 ounces in 2011

(Adds details)

LONDON, Feb 16 (Reuters) - African Barrick Gold ABGL.L reported better-than-expected results for the full year as higher gold prices outweighed a decline in production.

Net profit jumped to $218.1 million from $58.6 million the year earlier. The gold producer was expected to post net profit of $204.8 million, according to a Thomson Reuters I/B/E/S consensus of eight analysts’ forecasts.

The company, which floated in London last March, said it expects to produce 700,000-760,000 ounces of gold in 2011.

The FTSE-100 miner announced in January that it produced 700,934 ounces of gold in 2010, missing its downwardly revised target of 716,000 ounces, although it said output difficulties at the new Buzwagi mine had been resolved. [ID:nLDE70G1L7]

Earlier this month, London-listed rival Randgold Resources (RRS.L) posted a 43 percent jump in full-year profit also boosted by stronger gold prices. [ID:nLDE7122LD]

Gold XAU= rose to record highs last year on a weaker dollar and global economic uncertainty, although prices have fallen back this year. [GOL/]

The Tanzanian-focused company is a unit of Barrick Gold Corp (ABX.TO), the world’s biggest gold producer, which is due to release its earnings results on Thursday.

Reporting by Julie Crust; editing by Matt Scuffham

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