Bloomberg News

African Barrick Declines in London on Lower Production Forecast

December 09, 2011

(Updates with closing share price in second paragraph.)

Dec. 9 (Bloomberg) -- African Barrick Gold Plc, the largest producer of the metal in Tanzania, dropped the most in two weeks in London trading after saying fourth-quarter output will miss earlier forecasts because of power outages.

African Barrick fell 2.1 percent to 509 pence, the biggest decline since Nov. 23, by the close in London. It won’t achieve an expected run-rate production in the fourth quarter after five or six daily power outages at its Buzwagi plant in Tanzania, it said in a statement today. “As a result we are likely to fall just short of 700,000 ounces of gold production in 2011.”

The miner expects plant down time and extra maintenance closings because of power problems to cut 35,000 to 40,000 ounces of gold output this year, it said in the statement.

The company commissioned 16 megawatts of back-up power capacity last week on top of the 5 megawatt unit it built in July at Buzwagi, according to the statement. The mine will operate at full capacity in December, the company said.

--Editors: Tony Barrett, Stephen Cunningham

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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