Abbot : Results for the 6 months ended 30 June 2014

25 Jul 2014

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

African Barrick Gold plc ("ABG'') reports half year 2014 results

"We are pleased to report strong results for H1 2014, with increased production and continued cost discipline enabling the business to return to cash generation," said Brad Gordon, Chief Executive Officer of African Barrick Gold. "We have now delivered our seventh successive reduction in quarterly all-in sustaining costs (AISC) as we continue to drive operational improvements through the business. During H1 2014 we produced 346,581 ounces of gold, an improvement of 13% on the same period in 2013, at an AISC of US$1,118 per ounce, a reduction of 25% on the previous year. During the second quarter, we delivered the first ounces from the Bulyanhulu CIL Expansion project with development work on the Bulyanhulu Upper East zone and the Gokona underground exploration portal progressing to plan. As a result of the strong H1 2014 performance and the incorporation of the expected production from Bulyanhulu Upper East, we now expect full year gold production to be in excess of 700,000 ounces whilst continuing to target an AISC at the bottom of our guidance range of US$1,100-1,175 per ounce."

Operational Highlights

• Q2 gold production of 178,206 ounces, 8% higher than Q2 2013, with gold sales of 171,563 ounces
• Q2 AISC1,2 of US$1,105 per ounce sold, 21% lower than Q2 2013, with cash costs1,2 of US$749 per ounce
• H1 gold production of 346,581 ounces with gold sales of 330,947 ounces, 13% and 5% respectively, higher than H1 2013
• H1 AISC1,2 of US$1,118 per ounce sold and cash costs1,2 of US$752, respectively down 25% and 14% on H1 2013
• First ounces produced from the Bulyanhulu CIL Expansion project, with final commissioning due to complete in Q3 2014
• Bulyanhulu Upper East and North Mara Underground projects progressing well and on schedule
• Continued strong results from the West Kenya Exploration Project

Financial Highlights

• Cash position increased during Q2 2014 by US$16 million to stand at US$270 million as at 30 June 2014
• H1 revenue of US$446 million, 9% below H1 2013, as the impact of a lower average realised gold price more than offset increased sales volumes
• H1 EBITDA1,3 of US$132 million, 1% higher than H1 2013, due to lower cash costs
• H1 net earnings1,3 of US$41 million (US10.0 cents per share) impacted by a higher non cash tax charge during Q2 2014
• H1 operational cash flow increased to US$127 million (28% higher than H1 2013)
• H1 capital expenditure of US$115 million, 45% lower than H1 2013 due to revised mine plans and stringent capital controls
• Interim dividend of US1.4 cents per share declared, based on a new cash flow based metric

(Unaudited)	Three months ended 30 June			Six months ended 30 June
	2014	20132		2014	20132
Gold Production (ounces)	178,206	164,439		346,581	307,198
Gold Sold (ounces)	171,563	170,092		330,947	314,369
Cash cost (US$/ounce)1	749	862		752	876
AISC (US$/ounce)1	1,105	1,404		1,118	1,483
Average realised gold price (US$/ounce)1	1,277	1,366		1,290	1,480
(in US$'000)
Revenue	229,222	241,900		445,509	487,360
EBITDA1,3	66,959	48,828		131,621	130,771
Net earnings/(loss)3	18,412	(721,946)		40,822	(701,230)
Basic earnings/(loss) per share (EPS) (cents)3	4.5	(176.0)		10.0	(171.0)
Cash generated from operating activities	76,381	41,691		127,107	99,017
Capital expenditure4	58,964	103,347		114,744	209,056

1 These are non-IFRS measures. Refer to page 23 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

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Downloads Results for the 6 months ended 30 June 2014