23 Oct 2014

Based on IFRS and expressed in US Dollars (US$)

African Barrick Gold plc ("ABG'') reports third quarter results

"We are pleased to announce production of 190,986 ounces in the quarter, up 16% on Q3 2013, providing further evidence that the changes we are implementing at our operations continue to improve performance", said Brad Gordon, CEO of African Barrick Gold. "As a result we have delivered our eighth successive quarterly reduction in all-in sustaining costs (AISC). During the quarter we generated US$17 million in net cash flow and have now increased our cash balance year to date, after returning US$14 million in dividends to our shareholders and continuing to invest in growth. The optimisation of our assets continues with good progress made during the quarter on the projects at both Bulyanhulu and North Mara and we are looking forward to setting out our longer term plan for the business at our Investor Day on 27 November."

Operational Highlights

  • Gold production of 190,986 ounces, up 16% on Q3 2013
  • Gold sales of 178,490 ounces, 11% higher than Q3 2013
  • AISC1,2 of US$1,098 per ounce sold, 14% lower than Q3 2013 and 1% lower than Q2 2014
  • Cash costs1,2 of US$679 per ounce sold, 7% lower than both Q3 2013 and Q2 2014
  • Bulyanhulu CIL Expansion produced 5,097 ounces, with commissioning due for completion in Q4 2014
  • Bulyanhulu run of mine head grade increased to 8.8 grams per tonne as underground development progressed well
  • Full year production guidance reiterated of upwards of 700,000 ounces with cost guidance tightened to around US$740 and around US$1,100 per ounce sold, for cash costs and AISC respectively (previously US$740-790 and US$1,100-1,175)

Financial Highlights

  • Cash position increased by US$17 million to stand at US$287 million at 30 September 2014
  • Revenue of US$241 million, 9% up on Q3 2013, as higher sales volumes more than offset lower average realised gold prices
  • EBITDA1,3 of US$76 million, 17% higher than Q3 2013, due to increased revenue and lower cash costs
  • Net earnings1,3 of US$28 million (US6.9 cents per share), 60% higher than Q3 2013
  • Operational cash flow of US$101 million (155% higher than Q3 2013), driven by increased EBITDA and indirect tax refunds
  • Capital expenditure of US$81 million was in line with Q3 2013
  • Remain on track to exceed the planned US$185 million of cost savings as set out in the Operational Review
(Unaudited) Three months ended 30 September Nine months ended 30 September
2014 20132 2014 20132
Gold Production (ounces) 190,986 164,429 537,567 471,627
Gold Sold (ounces) 178,490 161,061 509,437 475,430
Cash cost (US$/ounce)1 679 728 727 826
AISC (US$/ounce)1 1,098 1,270 1,111 1,411
Average realised gold price (US$/ounce)1 1,268 1,309 1,282 1,421
(in US$'000)
Revenue 240,878 220,042 686,387 707,402
EBITDA1,3 75,835 64,769 207,456 195,541
Net earnings/(loss)3 28,444 17,830 69,266 (683,400)
Basic earnings/(loss) per share (EPS) (cents)3 6.9 4.3 16.9 (166.6)
Cash generated from operating activities 101,428 39,851 228,535 138,922
Capital expenditure4 81,251 81,291 195,995 246,100

1 These are non-IFRS measures. Refer to page 10 for definitions
2 2013 comparative amounts have been restated to exclude Tulawaka
3 EBITDA and net earnings consist of earnings from both continuing and discontinued operations
4 Excludes non-cash reclamation asset adjustments and includes finance lease purchases

Results Conference Call

To join the 2014 Third Quarter Results conference call on Thursday 23 October 2014 at 09:30 BST, please dial the number below and enter the password

Participant dial in number:
+44 (0) 203 003 2666
+1 646 843 4608
Password: ABG

A recording of the conference call will be made available in the Reports section of this website after the call.

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