[miningmx.com] — AFRICAN Barrick Gold said net income rose 21% in the first half, boosted by higher gold sales and prices, with production in line with its expectations.
Net income rose to $120m from $99m as the Tanzania-focused miner doubled its interim dividend to 3.2 cents a share.
Production in the second quarter, which saw a mill motor failure at its Buzwagi mine and an attack on its North Mara operation, fell 4% from the year-earlier quarter to 171,950 ounces.
However, the figure exceeded some analysts expectations. Canaccord Genuity had forecast second-quarter output of 159,000 ounces and Numis Corp had anticipated 150,000 ounces.
The miner, a unit of the world’s largest gold miner Barrick Gold Corp , said it was confident for the second half and retained its forecast to produce between 700,000 and 760,000 ounces of gold this year at a cash cost of $590-650 an ounce.
Gold prices rose to a record $1,622.49 an ounce on Monday.
African Barrick is looking to rebuild investor confidence after missing its production target last year even after downwardly revising its guidance following a fuel theft at Buzwagi.
