24 Apr 2014

Results for the three months ended 31 March 2014 (Unaudited)

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

African Barrick Gold plc ("ABG'') reports first quarter 2014 results

"We have delivered another strong set of results, with production of 168,375 ounces and all-in sustaining costs of US$1,131 per ounce, our sixth successive quarterly reduction in AISC", said Brad Gordon, Chief Executive Officer of African Barrick Gold. "As a result of our continued cost discipline we generated positive cash from the operations during the quarter and continue to expect to be cash flow positive for the full year. We also continue to make progress on our expansion projects with the commencement of commissioning of the Bulyanhulu CIL Expansion, approval for an underground portal at North Mara and today's announcement on the approval of the Upper East Zone at Bulyanhulu which together will further drive the business forward. We remain on track to achieve our guidance of 650,000-690,000 ounces of gold production at AISC per ounce of between US$1,100 and US$1,175."

First Quarter Operational Highlights

  • Gold production of 168,375 ounces 18% higher than Q1 2013
  • Gold sales were 5% below production at 159,384 ounces, but 10% higher than Q1 2013
  • Cash costs1,2 of US$756 per ounce sold, 15% lower than Q1 2013
  • All-in sustaining costs1,2 of US$1,131 per ounce sold, 3% lower than Q4 2013 and 28% lower than Q1 2013
  • Average realised gold price of US$1,303 per ounce was 19% below Q1 2013
  • Bulyanhulu CIL Expansion project moved into the commissioning phase which will continue through Q2 2014
  • Post quarter end the Board approved the next step in optimising Bulyanhulu with the acceleration of the Upper East Zone

First Quarter Financial Highlights

  • Revenue of US$216 million and EBITDA1,3 of US$65 million were 12% and 21% respectively below Q1 2013 due to the lower average realised gold price in the quarter
  • Net earnings2,3 of US$22.4 million (US5.5 cents per share), up 8% on Q1 2013
  • Total capital expenditure4 of US$55.7 million was reduced by 47% from Q1 2013
  • Generated cash flow from operations of US$13.3 million after sustaining capital
  • Cash position of US$254 million as at 31 March 2014
Three months ended
31 March 		Year ended
31 December
(Unaudited) 2014 20132 % change 20132
Gold Production (ounces) 168,375 142,759 18% 637,002
Gold Sold (ounces) 159,384 144,277 10% 643,597
Cash cost (US$/ounce)1 756 893 -15% 812
AISC (US$/ounce)1 1,131 1,577 -28% 1,346
Average realised gold price (US$/ounce)1 1,303 1,610 -19% 1,377
(in US$'000)
Revenue 216,287 245,460 -12% 929,004
EBITDA1,3 64,731 81,943 -21% 240,407
Net earnings/(loss)3 22,410 20,716 8% (781,101)
Basic earnings/(loss) per share (EPS) (cents)3 5.5 5.1 8% (190.4)
Cash generated from operating activities 50,726 57,326 -12% 187,115
Capital expenditure4 55,780 105,709 -47% 385,069

1 Cash costs per ounce sold, all-in sustaining cost per ounce sold (AISC) and EBITDA are non-IFRS measures. Refer to page 11 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

Downloads First Quarter Results 2014
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