Although gold production has risen and cash costs fallen – and the company has identified substantial cost savings opportunities – African Barrick still has a way to go to get itself fully back on track at current gold prices.
by Lawrence Williams, MineWeb.com
All things are relative, and on the face of things, relative to the previous quarter, African Barrick Gold appears to have come up with some very good Q2 results in terms of gold output and operating costs and it does look that the company is beginning at last to get a grip on things now it has had to concentrate on operations once the prospective sale to the Chinese fell by the wayside. Whether it has truly turned the corner towards becoming what was hoped of it when it was spun off from parent Barrick Gold still remains to be seen.
The company operates three mines in Tanzania and is that country’s largest gold miner. The flagship mine is the Bulyanhulu underground operation and the others are Buzwagi (open pit) and North Mara, also an open pit operation. A fourth mine, Tulawaka, closed down earlier this year as it had become uneconomic. The company does also have several promising exploration projects at various stages of development in Tanzania and also across the border in Kenya.
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