African Barrick to beat output target, cost cutting on track

Reuters

LONDON, Oct 30 (Reuters) - Tanzania-focused miner AfricanBarrick Gold said it would exceed its annual productiontarget and was on track with a cost cutting plan, giving hopethat the company's new boss is starting to turn the companyaround.

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

Bradley Gordon, who was appointed as the company's new chiefexecutive in August, said in a statement on Wednesday that cashcosts would come in at the lower end of its guidance of $925 perounce sold.

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

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