TORONTO (Reuters) - 18/02/10 "Barrick Gold Corp (ABX.TO) said on Thursday it will spin off its African gold assets into a new publicly traded company.
Barrick announced the moves as it unveiled a doubling of fourth-quarter operating profit, driven by gold prices that soared to record levels in the final three months of 2009.
The new company, to be called African Barrick Gold (ABG), will list on the London Stock Exchange and will hold Barrick's African gold mines and exploration properties. Barrick plans to retain a 75 percent interest in ABG initially.
ABG also intends to seek a future listing on the Dar es Salaam Stock Exchange in Tanzania.
Barrick, the world's top gold producer, operates four African mines, all in Tanzania.
ABG is expected to produce 800,000 to 850,000 ounces of gold in 2010, with total reserves of 16.8 million ounces as of December 31.
"Size-wise it's bigger than (mid-tier miner) Randgold Resources (RRS.L) and certainly it would be... one of the prime gold listings on the LSE," said Leon Esterhuizen, an analyst at RBC Capital Markets in London.
Due to the spinoff, Barrick trimmed its 2010 production forecast to a range of 7.6 million to 8.0 million ounces from its previous estimate of 7.7 million to 8.1 million ounces.
Barrick said it plans to use proceeds from the ABG spinoff to fund its pipeline of development projects.
PROFIT RISES, TOPS ESTIMATES
Excluding a $241 million charge related to the hedge book buyout and other one-time items, fourth-quarter earnings rose to $604 million, or 61 cents a share, from $277 million, or 32 cents a share, a year earlier.
Analysts polled by Thomson Reuters I/B/E/S had expected, on average, 57 cents a share.
On a net basis, Barrick earned $215 million, or 21 cents a share, compared with a year-earlier loss of $468 million, or 53 cents a share.
Revenue jumped 13 percent to $2.36 billion.
Average realized gold prices in the quarter were $1,119 per ounce, up from $809 a year earlier, as the metal charged to a record price above $1,200 an ounce in the final months of the year. This offset the impact of a 17 percent drop, to 1.8 million ounces, in the amount of gold Barrick sold .
Total cash costs per ounce, which Barrick expects to come down as it opens new lower-cost mines, were little changed at $474.
Barrick expects 2010 gold production costs in a range of $425 to $455 per ounce. In 2009 it produced 7.42 million ounces at a total cash cost of $466 per ounce."
($1=$1.04 Canadian)
The deal, arranged by J.P. Morgan (JPM.N) and Morgan Stanley (MS.N), will run a bookbuilding between March 5 and March 18.

LONDON, March 5 (Reuters) - African Barrick Gold (ABG) started bookbuilding for its $975 million initial public offering (IPO) on Friday, sources close to the deal said, pricing the biggest flotation in London in almost two years.

Parent firm Barrick Gold Corp (BGC) (ABX.TO) -- the world's largest gold miner -- is selling 100 million shares of ABG at 550 pence to 650 pence each, valuing the unit at 1.3 to 1.6 times its net asset value (NAV), the sources said.

"This is a big IPO, and the reception is good. It shows there's appetite in the market," one London-based banker said.

The IPO is London's biggest since New World Resources' (NWRS.L) $2.5 billion offering in May 2008, according to Thomson Reuters data.

BIG DISCOUNT
The valuation comes at about a 30 percent discount to parent firm BGC, the world's top gold miner that trades at 2 times NAV of $19.6 per share, and a 40 percent discount to peer Randgold Resources (RRS.L) and Petropavlovsk (POG.L).

London-headquartered ABG is likely to be admitted to the FTSE 100 Index after selling 25 percent of its enlarged share capital in the IPO."

was reading about this huge discounted floatation a matter of only days ago/- seriously thinking of dipping the old toes / lf it grows as half as well as barrick corps there will be some serious money to be made here ....How sayeth you Harry ?

I agree. I usually wait until the sp settles a little before dipping my toes, but this does look tempting. I wonder if us mere mortals are going to be able to get in at the float price, though, before the MMs crank it up?
I am not aware of any broker that will take an order in anticipation of a floatation, so it's a matter of watching a screen at the opening on the correct day.
Also, I presume institutional investors will get first bite at the cherry?

What with only 25% of ABG up for grabs ,we, the "ordinary Joes " could perhaps end up bidding for as little as 5% of the company Harry. . lf floated within the stipulated price range of 550p/650p ,which is calculated to represent a 40% discount to peers RRS and POG ,and 30% to parent outfit BGC; l would suspect mms will pass on a % of discount plus lions share to inst. investors ,then crank up the s/p (thearby erradicating much of that very discount ) and then letting us participate . ,,,ln saying that i managed to get in at a good entry point at the floatations at both GAZ { which u wouldnt expect} and FOGL ages ao { which you would expect } . ,,,,,,,

For anyone who has the time to do a bit more research:
http://www.ft.com/cms/s/0/101b0524-2cad-11df-8abb-00144feabdc0.html?nclick_check=1

Book closes at 14.30 hrs today & is fully covered, but at a price which is unlikely to get them in to the FTSE100 immediately:
"Books close today on the IPO of Barrick (ABX CN) spin-off African Barrick Gold. The deal is priced between 550p and 650p and issues 100m shares. Barrick Gold announced last night that three workers were killed in a collapse at their Bulyanhulu mine activity was suspended yesterday for rescue and recovery and will be suspended today for a period of mourning. Barrick shares fell C$0.06 yesterday. The activity shutdown is too short to be material. "

Broker comment today from FT:
"ABG starts trading today at 575p. 101,082,317 new shares are issued, approx 25% of the companys issued share capital, resulting in a 2.325bn market cap. The deal was priced at the lower end of the 550-650p valuation range, and well within our estimated valuation range (2.2bn-2.47bn). At this level there ABG is likely on the cusp of FTSE 100 inclusion but will definitely qualify for the FTSE 250. Its now up to the company to prove it can deliver in order to attract a premium multiple."

"today"???? ...... i thought trading started on monday, which would certainly make more sense

anyway, i would have thought a good one to buy at the open

Cant disagree there Harry ..... l made a vain attempt to get in @ the very start OF trading > The previous evening l phoned a friend @ Teathers to get me in at the VERY start of trading..He could indeed,But a derisory amount and by 8-01 and before i could even reply to the the offer the s/p had been cranked up from 550p to a tad shy of 590 upon farcical volume . So i waited. Sure enough, and as l fully anticipated, as i suspect you did , the quick profit banditos starting selling and the s/p fell back.Was fun - reminded me of one of the brits 80,s privitizations when i was ay school in UK. Anyway i confidentally dipped in the big toe @ 575p - After what highly foccussed research i had time to do l formed the conclusion that even 590p was splitting hairs in relationship to its fair worth. lf ABG deliver it will equal POG as a bellweather -At least !! Anyway forget my blatent ramping- but i do believe its worthy of your investigation .....ONE for after the election Harry Only unpredictability ahead mon pote ..lncidentally, since taking a position, and thus given more time to research ABG the more and more confident i have become. And what with Barricks Corps holding 75% of stock its hardly going to be in fiscal trouble - touring the city .,,@+.J

why did the SP dive after what looked like a good update? is it just following market sentiment or have i missed something?
If i haven't missed anything then looks a nice price to dip ones toes.
As always DYOR
Alex

Keep on selling ABG to 300p... now 398p.

chart is a stinker ..... what did ABG do wrong?

Lots of operational problems including theft of deisel from a mine site on an industrial scale!

sounds like the site management should be sacked

cynic

Heard anything from TFC ?

Short this with all u can

currently in Rio on biz ..... no, not heard a peep ... wonder what has happened to him and ditto tabby

Citigroup note:
When is a Super Tax not a Super Tax? Tanzanias parliament yesterday approved a 5-year development plan backing the proposed introduction of a super-profit tax on mining companies. On Sunday, the country's mining minister clarified that Tanzania would not impose the new tax (no details provided) on existing companies but would negotiate with the companies to have them pay voluntarily. Both Anglogold and African Barrick have recently argued that their tax agreements with the state are watertight and should not be subject to the super tax

The government seems to have acknowledged this and said it wont impose a super tax but will enter into discussions with miners about a voluntary tax payment. The government statement said, "We will not impose the proposed super profit tax on existing mining companies. If implemented, we will have to negotiate it with the companies because they already have agreements in place with the government." There is much confusion.

Our estimated NPV (10% WACC, gold declining to $950 over the next few years) for ABG is 4.14 and ABG is currently trading at 3.99, well below its IPO price 14 months ago of 5.75 (when gold was trading at $1350, not todays $1520). This process of consultation between the government and the miners is likely to drag on and until then ABG will likely trade at a discount to the 1.5x P/NPV that we think it deserves. However, a discount to NPV seems excessive to us, even in the light of the tax.

Buy ABG at 454p... very cheap now.

Selftrade have a 705p price target, which looks a bit optimistic, imo.

.

Nows the time to get on board ABG as it falls back a little, wont last. Itl be well up by the days end. P/E of just over 10 to 2012, totaly barmy.

Full Broker backing....

African Barrick Gold PLC

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

SG Securities
27-07-11 BUY 42.03 5.86 65.98 6.71
Westhouse Securities
27-07-11 ACCU 275.80 42.60 11.30 306.30 49.70 9.70
Broker Name Withheld 3
26-07-11 BUY 226.62 39.55 3.38 300.93 52.88 3.38
Numis Securities Ltd
26-07-11 BUY 241.36 39.92 4.30 289.87 49.13 5.53
Canaccord Genuity Ltd
25-07-11 BUY
Edison Investment Research
11-07-11 None 229.58 38.94 242.50 41.14
Charles Stanley
08-03-11 HOLD

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 244.07 40.68 6.22 287.04 52.20 6.33

1 Month Change 8.62 -2.04 3.00 23.01 3.70 2.60
3 Month Change 0.43 -3.06 2.62 14.16 2.40 2.31


GROWTH
2010 (A) 2011 (E) 2012 (E)
Norm. EPS 281.53% 15.97% 28.33%
DPS % 503.40% 1.92%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA 199.39m 314.39m 402.19m
EBIT 199.39m 239.45m 320.33m
Dividend Yield 0.19% 1.16% 1.18%
Dividend Cover 34.05x 6.54x 8.24x
PER 15.31x 13.20x 10.29x
PEG 0.05f 0.83f 0.36f
Net Asset Value PS 351.18p 411.90p 471.55p

Hemscott Premium

Morgan Stanley note:
"Gold producers to benefit the most: We increase our PTs for both African Barrick Gold (OW) and Randgold (UW) by around 30% to reflect the significant uplift in gold price forecasts. We expect earnings to grow by >95%, thus projecting both companies to deliver sector-leading earnings growth in 2012. While both would benefit from higher gold prices, ABG remains our relative top pick on valuation and operating leverage."

Dan Coatsworth in this week's Shares Mag:
"THE GOLD PRICE sell-off witnessed in September may be shortlived,which makes miner African Barrick Gold (ABG) a solid buy at 522p. Gold has fallen three places down the commodity ranking (see Top 10 commodity movers chart, page 10) because the US decided not to print more money to stimulate its economy, instead choosing to implement its Operation Twist programme to buy long-term US government bonds, or treasuries.
Quantitative easing drives the gold price, so the absence of this action served to pull down the shiny metal, which has also been hit by three margin requirement hikes from the metals and energy exchange operator CME since August. Yet the market remains concerned Europes sovereign-debt crisis will not be resolved anytime soon and there are growing signs the US is heading back into recession. These factors should serve to remind investors about the haven appeal of gold. African Barrick should this year produce 701,000 ounces of gold and end the fiscal period with $700 million cash. Production is set to rise from 2012 and costs are expected to fall.
Shares says: The US policy fudge does not alter our bullish stance on gold, so trade it through African Barrick Gold shares at 522p.

Possibly worth a punt if & when it goes sub 500p, imo.

7th December, 2011

African Barrick Gold plc (the "Company" or "ABG")

First day of trading on the Dar es Salaam Stock Exchange

Further to the announcement made on 18th November 2011, African Barrick Gold is
pleased to confirm dealings in the ordinary shares of ABG on the Dar es Salaam
Stock Exchange will commence today. Trading will take place in the form of DSE
Depository Receipts and further information on trading mechanics can be found
in ABG's information memorandum.

StockMarketWire.com
African Barrick Gold has completed the full implementation of additional diesel generated back-up power at its Buzwagi mine.

This will provide full back-up power in the event of disruptions to grid electricity supply.

African Barrick Gold points out that, as it has previously reported, there have been significant and continual power disruptions throughout Tanzania this year, significantly reducing the expected levels of power supply.

The installed generating capacity in Tanzania amounts to approximately 1,000 MW, of which close to 50% is generated by hydropower.

As a result of the broader drought conditions experienced in East Africa this year, the availability of this hydropower has been severely limited, placing significant strain on the network and leading to regular power outages.

This has been exacerbated by maintenance work on the transmission network as well as on gas pipelines feeding the network.

StockMarketWire.com
African Barrick Gold's attributable gold production for 2011 was 688,278 ounces - with group production of 713,508 ounces, 2% lower than 2010.

Attributable gold sales totalled 699,539 ounces - with group sales of 724,574 ounces, 2% above production.

Full year total cash costs are expected to be in line with guidance of $675-$700 per ounce.

The group said the increased average realised gold price of $1,655 per ounce over the fourth quarter and $1,587 per ounce for the full year had a positive impact on cash flow and earnings, with a year-end cash position of approximately $584m.

I guess the lack of power supply has affected ABG's production.
I think fair price would be 420-440p.

18 Jan 2012 - 13:14

Jan 18 (Reuters) - African Barrick Gold PLC :

* Rbc cuts African Barrick Gold price target to 700P from 800P END

Ill take 700p any day. Nice.

..Questor share tip: Despite all its setbacks, ABG retains some lustre

By Garry White | Telegraph –

......
African Barrick Gold (ABG) has suffered a series of setbacks since it listed in London in 2010 but 2012 could be the year its fortunes start to turn.

African Barrick Gold 467.8p +0.2 Questor says HOLD

ABG was spun out of Canadian-listed producer Barrick Gold, floating at 575p a share in May 2010. The shares are now around 19pc below this.

Mining (Euronext: SMI.NX - news) in Africa is always a challenge and ABG's challenges have come thick and fast. Just two months after listing, the company was forced to cut its production guidance because of a "delay in accessing the higher-grade primary ore" at its Buzwagi mine.

Then, in October 2010, the company revealed it had uncovered an "organised and systematic" fuel theft ring at Buzwagi. It said criminal gangs had "widely infiltrated" the mine and 40pc of its mining department were suspended, hitting production further. Security has since been tightened.

The next setback for ABG was a raid at its North Mara mine in May 2011. A machete-wielding mob attacked the site in a mass attempt to steal gold. As a result, ABG unveiled plans in October last year to build a 14km wall to prevent any future incursions.

Yesterday, ABG unveiled its production reports that showed power shortages in Tanzania resulted in fourth-quarter gold production falling by 11pc year on year. Production for the full year was 688,278 oz, a 2pc fall. The company had warned of the power issues in December.

ABG is installing back-up power generation to rectify this issue, so it should have more stable production during 2012, although this could negatively impact on cash costs. Gold sales for the full year were 699,539 oz, some 2pc above production. The group also ended the year with cash balances of about $584m (£379m) and no debt.

There was no guidance on expected production and cash costs in 2012 in yesterday's statement. This will come on February 16, when the full-year results for 2011 are released. However, production is expected to be roughly flat. Production growth is expected from the end of 2013 into 2014, but the results of exploration at its Nyanzaga Project should be known in the next few weeks and that could ultimately end up with the company building a fifth mine in the country.

The shares are trading on a December 2012 earnings multiple of 7.1 times, falling to 6.7 in 2013. The prospective yield is 1.2pc.

City analysts are very upbeat about the prospects. Out of the 20 analysts covering the shares and monitored by Bloomberg, 14 have buy recommendations and six say hold. The average price target is 684p a share, almost 50pc above the current price. Investors could find this an attractive entry point.

However, Questor would rather wait until some clarity is given in a few weeks' time on 2012 prospects and results from Nyanzaga are released before assigning a buy. So, for now, hold

Drilling Success Leads to Significant Resource Expansion at Nyanzaga

3.5Moz Au Indicated and 0.6Moz Au Inferred

ABG is pleased to announce a significant uplift to the previously declared
Mineral Resource estimate for the Tusker deposit at the Nyanzaga Project. This
increases our confidence that the project, which comprises the Tusker and
Kilimani deposits, has the potential to be our next mine in Tanzania.

The updated in-pit resource is in excess of 4Moz Au, consisting of 3,481Koz at
1.47g/t Au Indicated and 598Koz at 2.05g/t Au Inferred. This represents a
fourfold increase on the previously declared resource of 313Koz Indicated and
650Koz Inferred, and is another highly encouraging step in the Company's
overall strategy of realising the potential of its existing portfolio of high
quality assets.

http://www.moneyam.com/action/news/showArticle?id=4298298

Summary note from RBC (house broker):
"Our price target of £7.00 (unchanged) reflects a 50:50 blend of 1.20x P/NAV and 6.0x P/CF, based on our 2012 estimates. We retain our Outperform rating and above Average risk qualifier. We expect a positive response from the stock on the basis of this announcement that demonstrates the growth potential in the company’s exploration portfolio."

Numis note:
African Barrick (Buy 640p). "Positive resource update. Resource estimate for the long awaited Nyanzaga project, comprising the Tusker and Kilimani deposits, increases Tusker by four-fold to 4Moz, consisting of 3.5Moz at 1.5g/t in Indicated and 600koz at 2.05g/t in Inferred. A scoping study is expected to be completed in Q1/Q2, with further deeper drilling throughout this quarter. Initial resource estimate for Kilimani is expected at the FY results in Feb. Positive in that it confirms previous historic estimate and a significant increase on ABG’s initial resource for the project. We include a nominal $250m (40p/sh) in our NAV for ABG’s exploration properties, although we may see this increase if the scoping study results in an economic project with some decent scale. No change to our TP and recommendation at this stage. Stock currently trading at 1.4x NAV and 4.1x CF, below the peer group."

From this week's Shares Mag:
"Dan Coatsworth
A four-fold increase in the amount of gold at the Nyanzaga project should trigger a re-rating in Tanzania-based African Barrick Gold (ABG). It now has 4.1 million ounces at the gold deposit. This should help silence those critics who are questioning from where the next leg of the company’s growth will come.
Shares in the £2 billion market cap were weak in the first half of 2011 after security problems at its North Mara mine. A summer rally was shortlived as African Barrick then disappointed at its third-quarter results (20 Oct) when mine costs came in above consensus forecasts. On 9 December, analysts downgraded their estimates for the Buzwagi mine after power problems implied operating expenditure would rise.
African Barrick will report full-year results in two weeks’ time (16 Feb), where it will outline production estimates for 2012. A resource on the latter should be released alongside the results. RBC Capital Markets reckons it will produce 789,000 ounces of gold, 15% more than 2011’s output of 688,278 ounces. Bulyanhulu and North Mara should move into higher grade material while Buzwagi’s grades may drop, it says. Nyanzaga was inherited through the acquisition of Tusker Gold in May 2010. It consists of the main Tusker deposit and the smaller Kilimani deposit. A resource on the latter section should be published at the same time as the final figures in a fortnight’s time. Last week’s (27 Jan) resource upgrade focused on the Tusker section where the miner now has 3.5 million ounces in the indicated category and 600,000 ounces in the inferred category."

StockMarketWire.com
African Barrick Gold reported revenue of $1.218bn for the year to end-December, up 25% on 2010. EBITDA was $544m, up 30% on the prior year.

Barrick said this strong earnings growth supports a trebling of proposed final dividend.

The company recorded a cash margin of $895 per ounce, an increase of 33% on 2010.

Net profit attributable to owners was $275m, with EPS of 67.0 cents, up 26% on 2010.

Operational cash flow was $498m, an increase of 44% on 2010.

Barrick had a cash position of $584m at 31stecember 2011.

The company proposed a final dividend of 13.1 cents per share; total dividend for 2011 of 16.3 cents per share, up 208% on 2010. Attributable gold sales for the year were 699,539 ounces (Group sales of 724,574 ounces), a 3% decrease on 2010.

Attributable gold production was 688,278 ounces (Group production of 713,508 ounces), 2% below 2010 production.

CEO, Greg Hawkins, said: "The underlying performance of each of our assets has improved over the year with three of the four mines achieving production increases, despite the impact of the unreliable power situation in Tanzania. Our strategic investment in exploration has led to a fourfold increase of the resource at Nyanzaga and as a result our total resource base now stands at over 31Moz. The capacity of our assets to generate strong cashflows has again been demonstrated and this is reflected in our decision to treble our dividend payout over 2010 and to set out our dividend policy for future years. In 2012, we expect to produce between 675,000-725,000 ounces of gold at a cash cost of between $790-$860 per ounce sold, whilst also continuing to advance our portfolio of growth projects and assess other opportunities to expand our asset base."

Good results, but SP down this morning - ??

Production & sales were actually down from last year, though not by a huge amount. Also most stocks are down today which makes things worse!

thnx, HC

Addison

off topic , but my old school was Addison Gardens , no connection by any chance ?

aldwickk, soz, no connection, nice name for a school , bet that wasnt in Hackney

No , Shepherds Bush

Citigroup downgrades African Barrick Gold from buy to sell, target price cut from 655p to 419p.
Fox Davies Capital downgrades African Barrick Gold from buy to hold, target price cut from 578p to 489p.
Numis downgrades African Barrick Gold from buy to add, target price cut from 640p to 520p.

time to buy then harry.,.

Time to buy ABG... too cheap now.

Barrick going for `Tusker` goldmine at Nyanzaga
BY PATRICK KISEMBO

Africa Barrick Gold (ABG) has reaffirmed plans to continue investing in its Tanzanian operations this year and beyond, in order to improve efficiency in its four gold mines and explore the potential of developing a fifth mine at its Nyanzaga deposit.
"The operations continue to make progress. We've had our challenges over the last couple of years, and it’s vitally important that we seek to deliver what we have set out to the market and to ourselves during 2012 and beyond," African Barrick Gold CEO Greg Hawkins, said.
"We are looking for growth .... You would have heard us talk about the Nyanzaga project -- the ‘Tusker’ deposit -- and the potential delivered by our exploration team which has worked very, very hard over the last 18 months to declare a 4-million ounce resource out there. So, a real potential fifth mine in Tanzania and something that can really grow the business over the next few years," Hawkins said.
ABG acquired Tusker Gold in May 2010, giving the company 100 percent control of the Nyanzaga project.
Hawkins, speaking at the Barrick Excellence Awards ceremony at Buzwagi mine this week, reaffirmed ABG's commitment to Tanzania in mining gold.
ABG targets increased overall output for its four gold-producing mines in Tanzania -- Bulyanhulu, North Mara, Buzwagi and Tulawaka - and will look to control cash costs further, he said.
"Cash costs are a key focus for us. Our best leverage for improving our cash cost per ounce performance is to produce more ounces and I think we've got some options at all the mines to be able to improve the production level and that will help us manage our cash cost per ounce," he added.
The largest gold miner in the world, with current production of close to 700,000 ounces of gold in Tanzania, ABG plans to boost production to one million ounces in the country per year by 2014.
The company, which has invested around USD2bn in its Tanzanian operations so far, currently employs 5,400 people.
Hawkins applauded ABG employees who were awarded the 2011 excellence awards in various fields, including safety, security, community relations and the environment.
"I congratulate all the winners. We should all be very proud ... there are not too many of these awards that are handed out across the entire organisation, so you should be very proud," he said.
"To the teams that have put in the effort and the individuals that have received the awards, this is an enormous achievement," he said. Some senior officials from ABG's parent company, Toronto-based Barrick Gold Corporation, attended the employees’ excellence award ceremony at the Buzwagi mine in Tanzania.
Barrick's Vice-President for Safety, Health and Risk, Craig Ross, said ABG's mines in Tanzania had made great strides in improving their health and safety performances over the past few years.
"If you look at the health and safety statistics across the board at ABG, you can see significant improvements," he said.
"What has been done with the safety awards -- recognizing people -- is to see that expanded to the environmental awards, CSR (corporate social responsibility) awards and security awards. It shows the company ethos, which is all about people," he said.

Nyanzaga Resource Continues to Grow

Total Resource now 3.75Moz Au Indicated and 0.85Moz Au Inferred

ABG is pleased to announce a further uplift to the previously declared Mineral Resource estimate for the Nyanzaga Project, with the addition of the Kilimani zone. This continues to increase our confidence that the Nyanzaga project, which comprises the Tusker and Kilimani mineralised zones, has the potential to become our next mine in Tanzania.

The inclusion of this near surface, oxide resource in the Kilimani zone and the further expansion of the overall in-pit resource should improve the overall project economics with additional production at the start of the mine life.

The in-pit resource has been increased by a further 0.5Moz and is now in excess of 4.6Moz Au, consisting of 3.75Moz at 1.42g/t Au Indicated and 0.85Moz at 1.81g/t Au Inferred. The updated modelling now confirms the opportunity to exploit the Tusker and Kilimani mineralised zones in a single open pit, and is another highly encouraging step in the Company's overall strategy of realising the potential of its existing portfolio of high quality assets.

Since announcing the updated mineral resource for the Nyanzaga project in January 2012, desktop scoping work has focused on the modelling of the Kilimani near-surface resource, whilst field activities have focused on continuing geotechnical, hydrology and metallurgical drill programmes to allow us to better constrain the open pit model. As a result of the addition of the Kilimani resource we have been able to re-model the open pit resource, which has resulted in a larger, single pit incorporating both the Tusker and Kilimani resource areas.

Commenting on the expanded Mineral Resource at Nyanzaga, CEO Greg Hawkins said:
"The addition of near surface, oxide ounces and resulting further expansion of the overall deposit further increases our confidence in the potential for Nyanzaga to become our next mine in Tanzania. Not only does it add to the overall scale of the deposit but it further improves the economics with an improved production profile early on in the life of the project."

..African Barrick Gold production worse than expected

By Garry White | Telegraph – 24 minutes ago

IVKA.F 4.88 0.00

......
Tanzanian-focused miner African Barrick Gold posted a 17pc fall in first quarter gold production, sending its shares down.

The fall in output was against a weak comparison in the first quarter of last year, when production fell 2pc dues to power outages.

African Barrick Gold

In the three months ending March, pre-tax profits slumped by 26pc to $55m (£34.2m) after a 22pc rise in costs.

This year’s production slide was caused by “the ongoing waste stripping at North Mara and reduced head grade at Buzwagi as planned.” The company, which is majority owned by Canada’s Barrick Gold, produced 144,643 ounces of gold in the first three months of the year.

“We had expected African Barrick Gold (ABG) to deliver a weak first quarter result and it did not disappoint,” Investec (Frankfurt: A0J32R - news) analysts Hunter Hillcoat said. “We should see an ongoing lift in ABG's operational performance across 2012, but otherwise find it difficult to see a positive catalyst, other than potential gold price performance.”

The company maintained its full-year gold production targets of 675,000 to 725,000 ounces at a cost of producing each ounce of $790 to $860 per ounce. Analysts think it is now likely that output will come in at the lower end of the forecast range.

ABG was spun out of Barrick Gold, the world’s largest gold miner by market capitalisation, in March 2010 but has experienced a series of setbacks since listing in London. Listed at 575p the shares are about 36pc below their flotation price.

Problems included a fuel-theft ring at one of its mines, a machete-wielding mob attacking the North Mara mine, in a mass attempt to steal gold, and power problems.

It currently operates four mines in north-west Tanzania and has a number of exploration projects.

The shares fell 4.05p to 364.85p in early trading.

..

StockMarketWire.com
African Barrick Gold has received final approval from the Tanzanian vice-president's office responsible for environment for the potentially acid forming waste rock permit at its North Mara mine, with immediate effect.

The granting of the PAF permit, together with the non-acid forming permit which was granted in late 2011, will allow ABG to progress the major waste stripping programme in the Gokona pit at North Mara in order to open up higher grades zones in the open pit in the second half of 2012.

Chief executive Greg Hawkins said: "This approval is an important milestone for North Mara in delivering its mine plan going forward.

"As we have previously communicated, our waste stripping activities had been constrained and we now look forward to being able to access the higher grade zones in the Gokona pit from the second half of this year onwards as expected."

StockMarketWire.com
African Barrick Gold has increased its interim dividend - despite lower earnings and net profits.

The group said its financial performance for the six months to the end if June reflected the planned lower production levels when compared to the corresponding period, with the benefit of the 12% increase in the gold price compared to H1 2011. ABG said that despite lower production levels, it generated earnings before interest, tax, depreciation and amortisation of US$171m and earnings per share of US15.9 cents, which enabled it to declare an interim dividend of US4.0 cents per share for 2012, up 25% on 2011.

It adds: "We are also in a position to continue to invest in profitable growth in our business, as evidenced by the approval of the Bulyanhulu CIL expansion during the period on which we expect to commit up to US$50 million in 2012.

"We have also invested US$119m over the first half of the year in our ongoing operations in order to maintain our strong operational platform.

"While we are committed to investing in the business, we also remain focused on improving efficiencies throughout the organisation in order to further enhance cost and capital control."

Revenues were 8% down of 2011's first half at $534m and EBITDA was 30% lower.

Net profits were down 46% at $65m.

StockMarketWire.com
African Barrick Gold has agreed to take over Aviva Mining (Kenya) for and initial cash consideration of A$20m.

Aviva Mining (Kenya)'s the assets include interests in a number of licences in west Kenya.

The acquisition is subject to the approval of Aviva Mining's shareholders, which will be sought at a general meeting in late August or early September; and the consent of the Kenyan Competition Authority, with completion expected shortly after.

Statement regarding today's announcement by Barrick Gold Corporation ("Barrick")
The Board of ABG notes the announcement made today by Barrick in which Barrick confirmed that it is in preliminary discussions with China National Gold Group Corporation ("China Gold") regarding its holding in ABG. At this stage, there can be no certainty that these discussions will result in an offer for Barrick's holding in ABG. Should China Gold acquire more than 30% of the voting interest in ABG, it would then be required to make an offer for the whole of ABG's issued ordinary share capital.

The Panel Executive has confirmed to Barrick on an ex parte basis that, in view of Barrick's 73.9 per cent stake in ABG, the 28 day deadline referred to in Rule 2.6(a) of the Code will not apply to China Gold in respect of this announcement.

A further announcement will be made in due course.

StockMarketWire.com
Morgan Stanley has downgraded the gold producer African Barrick Gold (LON:ABG) to 'equal weight' from 'overweight' with a share price target of 480 pence as the company is viewed to have limited means to increase shareholder returns. Analyst Alain Gabriel: 'African Barrick Gold has few internal levers to pull to grow volumes or deliver the material cost cuts that, in turn, could increase returns. Valuation is not demanding, but that is justified by near-term risks to volume and cost estimates. We move to EW, with a £4.80 PT. We argue that capital allocation could be rebalanced in favour of cash returns to shareholders. We think the current dividend payout looks too low at 24%, and limited earnings growth and sustainably high operational costs will not support long-term cash flow (and dividend) growth. Since the beginning of July shares in African Barrick Gold have increased by approximately 18 per cent.

StockMarketWire.com
African Barrick Gold's board has approved the order of long lead items to expand the Bulyanhulu Upper East project.

The project was previously solely based on the 1.2 million ounces of reserves located in Reef 1 of the Upper East zone, but ABG has now completed a positive scoping study to incorporate the 900,000 ounces (koz) of gold which currently sit in reserves in Reef 2 of the Upper East zone.

ABG is now progressing with pre-feasibility and feasibility work on Reef 2 with the aim of completing a combined feasibility study for both reefs by the end of the first quarter of 2013.

Production from the Upper East zone is targeted to begin in late 2014 and is now expected to average in excess of 90koz per annum over the life of mine at average cash costs of $608 per ounce.

ABG says the incorporation of Reef 2 significantly enhances the project economics, driving a post tax IRR of 34% at $1,700 per ounce.

The project is estimated to require approximately $100m of pre-production capital, to be spent in 2013 and 2014 and is planned to deliver life of mine production of 1.86Moz over the next 20 years.

Chief executive Greg Hawkins said: "One of our key aims for this year is to progress the expansion of Bulyanhulu in order to accelerate the realisation of the value provided by the scale of the reserve base.

"In May we received board approval for the CIL expansion, and we have now successfully expanded the scope of the Upper East project whilst maintaining our planned timeline for first production.

"With the two expansion projects, we now have a clear path to increasing production levels at Bulyanhulu towards 400,000 ounces per annum over the coming years."

StockMarketWire.com
African Barrick Gold's cquisition of Aviva Mining (Kenya) from Aviva Corporation has been approved by the Kenyan Competition Commission.

All conditions have now been satisfied and the transaction will now be finalised.

ABG chief executive Greg Hawkins said: "With the final condition for the acquisition of AMKL now satisfied we look forward to continuing the successful exploration programme on this highly prospective land package.

"ABG has a proven track record of successfully developing early stage prospects into large scale deposits and we are confident of further successes in Kenya."

..

Questor share tip: Time to sell African Barrick Gold
By Garry White | Telegraph – 2 hours 37 minutes ago


African Barrick Gold has cut production guidance again. Questor says sell.

African Barrick Gold 465p Questor says: SELL

African Barrick Gold (ABG) issued yet another disappointing statement on Friday which has become something of a habit.

The negative news this time was a cut in full-year production guidance and a surge in costs, which caused third-quarter profits to fall by more than 70pc.

This is the third consecutive year that the company has been forced to cut its production guidance. It has endured fuel-theft rings, raids on its mines and power shortages over the relatively short time it has been listed in London.

ABG said full-year gold production would now be about 5pc to 10pc below the lower end of its 675,000 to 725,000 ounce guidance.

ABG was spun out of Canadian gold behemoth Barrick Gold in 2010, the world’s biggest producer of the precious metal. It was floated at 575p a share, before slumping to lows below 310p a share in the past few months.

Barrick is currently in talks with China National Gold Group about selling its 74pc stake in ABG to the state-owned company. The shares jumped substantially since the talks were revealed and, should an agreement fail to be reached, Questor sees significant downside.

In fact, given Friday’s gloomy news, there is potentially more downside in the event China walks away than upside should a deal be struck. This means the risks look skewed to the downside.

Questor has recommended the shares as a buy as low

as 317p and as high as 448p, so all investors who acted on the advice are sitting on a profit. Questor thinks it is time to bank these gains and the shares are a sell.

Sell ABG now... a good short at 433p.

StockMarketWire.com
Barrick Gold Corporation is no longer in talks over its holding in African Barrick Gold with China National Gold.

Barrick president and chief executive Jamie Sokalsky said: "These discussions were part of our ongoing efforts to identify opportunities to optimize our portfolio, however we are approaching this in a prudent and disciplined manner and will only proceed with opportunities that generate acceptable value for Barrick.

"African Barrick Gold's assets hold significant potential, and we will continue to look for ways to best realize that value for our shareholders."

Westhouse Securities has retained a 'neutral' rating for African Barrick Gold but reduced its target price for the stock from 195p to 180p despite the company pleasing the market with its first-quarter report on Thursday.

Deutsche Bank comment:
We believe African Barrick has the right management and plans to deliver the cost and capex cutting started in 2013, and to drive down All-In Sustaining Costs. The group has responded very well to the ‘back against the wall’ moments of 2013, and we expect it to announce more cost cutting measures, focused on mining efficiencies, at its forthcoming FY13 results. In the weak gold price environment which we expect into the medium-term, ABG will need to work hard to maintain a margin post sustaining costs, in particular, through delivery of its grade improvement plans. Hold on balanced risk/reward.
ABG released strong production and cash cost results for FY13. Full year group production was 641.9koz, up 5.4% y/y, and 3% higher than our forecast for 623koz. The strong end to the year was driven by a 10% q/q improvement in grades at Bulyanhulu, as expected, offset somewhat by planned lower grades at Buzwagi and planned plant downtime at North Mara. Cash costs for FY13 of US$827/oz were well below the company’s guidance for US$925/oz and DBe US$904/oz, on the higher production and cost cutting. All In Sustaining Costs were US$1,362/oz for the year, clearly above the current gold price, but 4Q13 AISC did drop down to US$1,171/oz, due to ongoing cost cutting efforts. Group net cash stood at US$282m at the end of the year, higher than our estimate of US$152m.
ABG is aiming to take US$185m out of its cost base by end 2014, and today it indicated that it has cut more than US$100m by end 2013 – in particular, it is ahead of plan in cutting corporate admin and exploration costs. The group’s efforts in bringing AISC down for a fifth successive quarter, to US$1,171/oz in 4Q13, down 8% q/q, testify to the success of the plan so far. When it reports FY13 prelims on 12 February, we expect African Barrick will target a further cut to its cost base, from focusing on the mining cycle to drive up mining efficiencies. Our 2013e EPS increases substantially on the better results, given the operational gearing within the group. For 2014e, we have made one change to our forecasts, increasing grades at North Mara from 2.4g/t to 2.9g/t in line with ABG’s guidance.
Our 12-month TP is based on 0.8x our end- 2013E NAV, applying a WACC of 5% to a life of- mine DCF model. Key risks include higher-/lower-than-expected gold prices, lower-/higher-than-expected costs and Tanzanian Shilling."

Canaccord note:
"We maintain a HOLD and 180p target price (Edited), which is based on 0.98x NAV at Canaccord Genuity’s forward gold price deck."

HARRY , i was in and out of these last year ,the target i found for Canaccord is 180p am i missing something ?

No, I think that must be a typo! Why rate as a hold but predict a doubling of the sp? Maybe they meant 210p? I will have root around to see if that is shown on the Digitallook site.

As you say jimmy, 180p is their target. I will correct the post.

30p below where they are now . I was looking on DigitalLook also..

HSBC downgrades African Barrick Gold from neutral to underweight, target cut from 200p to 160p.

RBC Capital Markets retains outperform on African Barrick Gold, target increased from 220p to 250p

Moving up strongly this morning. Was given on the chart thread over the weekend.

11 March 2014

African Barrick Gold plc (the "Company" or "ABG")

Completion of Placing by Barrick Gold Corporation

ABG notes the announcement by Barrick Gold Corporation ("Barrick") that it has
completed the sale of 41 million shares, representing 10% of the issued share
capital of ABG, and has entered into a lock-up agreement for its remaining
holding for the next 120 days. This transaction is consistent with Barrick's
ongoing portfolio optimisation strategy. Following the transaction, Barrick's
holding in ABG is reduced to 63.9%.

Commenting, Brad Gordon, CEO of African Barrick Gold said "This is a positive
step by Barrick which significantly increases our free float. The placing is a
reflection of the increased interest in the business as a result of the
progress we are making as we continue to drive improved operational delivery
from our high quality asset base."

Canaccord sees buying opportunity at African Barrick Gold after sell-off
12 March 2014 11:24

The 17 per cent share price slump of African Barrick Gold (ABG) has created a buying opportunity, according to Canaccord Genuity on Wednesday.

The broker kept a 'buy' recommendation and 315p target price for ABG.

Shares fell sharply on Tuesday after parent company Barrick Gold disposed of 41m shares - representing a 10% stake - to lower its holding to 63.9%.

"We believe the magnitude of the price drop was exacerbated by the profit taking following the best performance among UK peers since mid-2013. The fall we think opens up a buying opportunity," said analysts Dmitry Kalachev and Peter Mallin-Jones.

Among their key reasons to buy the stock, the analysts highlighted free cashflow (FCF) which is expected to average $230m per annum between 2015 and 2020.

This translates into a FCF yield of 13% which is the highest among ABG's London-listed peers under Canaccord's coverage. Adding growth projects would see FCF rise to $280m per annum at a 16% yield.

They also pointed to a robust balance sheet, strong production growth and easing upwards pressure on costs.

Addressing recent speculation that Barrick Gold could move to sell-down its remaining stake, Kalachev and Mallin-Jones said ABG now represents only 7% of the parent company's annual production so even a total disposal of the entire 63.9% stake will improve Barrick's costs by only around 2%.

"The sale at any cost in order to improve cost profile looks out of the question and this, we think, reduces the overhang risk from the remaining stake," they said.

The stock, which hit a low of 229.3p in early trading on Wednesday, had trimmed losses to trade just 1.4% down at 246.5p by 11:45.

BC

Related Companies: ABG

Shakeup at ABG

ABG update

StockMarketWire.com
African Barrick Gold's third quarter revenues rose to $241m, 9% up on last year, as higher sales volumes more than offset lower average realised gold prices.

Earnings before interest, tax, depreciation and amortisation rose by 17% to $76m due to increased revenue and lower cash costs.

Gold production was 16% up at 190,986 ounces and gold sales were 11% higher at 178,490 oz.

Chief executive Brad Gordon, said the increase in output was further evidence that the changes being implemented continue to improve performance.

He added: "As a result we have delivered our eighth successive quarterly reduction in all-in sustaining costs (AISC).

"During the quarter we generated US$17 million in net cash flow and have now increased our cash balance year to date, after returning US$14 million in dividends to our shareholders and continuing to invest in growth.

"The optimisation of our assets continues with good progress made during the quarter on the projects at both Bulyanhulu and North Mara and we are looking forward to setting out our longer term plan for the business at our Investor Day on 27 November."

Westhouse Securities reiterates add on African Barrick Gold, target raised from 230p to 240p.

StockMarketWire.com
A General Meeting of African Barrick Gold was held on 26 November 2014 to consider a Change of Company Name to Acacia Mining plc which, if passed, would take effect as of 27 November 2014.

The final voting figures of the poll as certified by the scrutineers, Computershare Investor Services, showed that 100% voted in favour of the Special Resolution.

This company is now called Acacia Mining under the ticker ACA.

ACA ........

Fantastic update....AHEAD OF GUIDANCE.............

http://www.investegate.co.uk/acacia-mining-plc--aca-/prn/4th-quarter-production-results/20150116070000P20DA/

BRIEF – Acacia Mining 2014 production comes in ahead of guidance
16 Jan 2015 - 07:10

Jan 16 (Reuters) – Acacia Mining Plc :

Q4 gold production of 181,084 ounces and gold sales of 194,243 ounces
Preliminary Q4 AISC of $1,088 per ounce sold, 6 percent lower than Q4 2013
Source text for Eikon: ... Further company coverage: ACAA.L

(Bengaluru Newsroom: +91 806 749 1136)

16 Jan 2015 Acacia Mining Plc... ACA JP Morgan Cazenove Overweight 0.00 299.70 - - Reiterates

Feel free to start a new thread gf. This one is a bit misleading now.

will do later Harry, cheers. Bit busy at the moment.

Acacia Mining Eyes M&A As Turnaround Strategy Delivers Cash

Acacia Min (LSE:ACA)

Today : Friday 16 January 2015
By Alex MacDonald

LONDON--Acacia Mining PLC (ACA.LN) is setting its sights on acquiring gold-producing assets as it starts to reap the rewards from its turnaround strategy, said the company's chief executive Friday.

"2015 is the year where we start looking at growth opportunities," said Brad Gordon in an interview with The Wall Street Journal. "We are interested in production assets, particularly in Africa."

Mr. Gordon joined Acacia Mining about a year and a half ago with a view to accelerating the company's turnaround strategy by cutting costs and ramping up production from more profitable gold ounces in a lower gold price environment. The turnaround strategy is paying-off with all-in sustaining costs dropping for a ninth consecutive quarter, last quarter, and output rising for a second year in a row after years of decline. These two factors resulted in the company's first annual free cash flow since 2011, Mr. Gordon said.

As the company's cashpile continues to grow, Acacia plans to take advantage of the recent gold price slump to buy gold assets at attractive valuations.

The company, formerly known as African Barrick Gold, is interested in assets that are able to produce at least 270,000oz of gold. Geographically the company is interested in Senegal, Ghana and Mali, areas where the company is already considering investing in exploration acreage, Mr. Gordon said.

Acacia produced 718,651 troy ounces last year based on an all-in sustaining cash cost of $1,105/oz. Gold output rose 13% on year while the cash cost dropped 18%, in line with the company's guidance.

Acacia, which is majority owned by Canada-based gold producer Barrick Gold Corp. (ABX), plans to ramp up production to around 800,000 oz of gold at a cash cost below $900/oz in 2016, according to a November investor day presentation.

Operationally, the key focus will be to ramp up the Bulyanhulu mine to full production capacity by year-end. Mr. Gordon said he was comfortable with North Mara and Buzwagi's operational performance but thought Bulyanhulu could do better.

Acacia's shares were down 1.5% at 295 pence a share as of 1031 GMT.

The company had $294 million in cash as of the end of 2014 up $12 million from a year before.

Write to Alex MacDonald at alex.macdonald@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

MONEY WEEK.

Acacia Mining output exceeds guidance
16/01/2015

Acacia Mining saw further progress in the fourth quarter resulting in full year production of 718,651 ounces, ahead of its original guidance and a 13% improvement on 2013.


Chief executive Brad Gordon said: “As a result of our continued cost discipline we have delivered our ninth successive quarterly reduction in all-in sustaining costs (AISC) and generated net cash flow of US$7 million in the quarter.

“During Q4 2014 we produced 181,084 ounces of gold, an improvement of 10% on the same period in 2013, driven by strong production at North Mara and the contribution of the new CIL circuit at Bulyanhulu. Bulyanhulu started to step up in the quarter and we remain focused on accelerating this as we move through 2015.”

Highlights

* Q4 2014 gold production of 181,084 ounces and gold sales of 194,243 ounces

* Preliminary Q4 2014 AISC1,2 of US$1,088 per ounce sold, 6% lower than Q4 2013 and 1% down on Q3 2014

* Preliminary Q4 2014 cash cost of US$744 per ounce sold, 4% lower than Q4 2013


* Full year 2014 production of 718,651 with full year sales of 703,680, 4% above the upper end of our initial production guidance of 650,000-690,000 ounces

* Preliminary full year 2014 AISC1,2 of US$1,105 per ounce sold, at the bottom of our guidance range, and 18% down on 2013

* Preliminary full year cash cost of US$732 per ounce sold, 10% down on 2013, and below our guidance range

* Cash balance increased by US$7 million during the quarter to end the year at approximately US$294 million


http://moneyweek.com/prices-news-charts/acacia-mining-output-exceeds-guidance/

Taken from KIBO's operational update 30 Dec 2014:

For Imweru we will be finalising our review of the Preliminary Economic Assessment report and be reporting to market various operational and financial data from the report in the near future. We are also seeking to confirm the strategic direction for Imweru and are in discussions with various parties in this regard. This could lead to a sale of the asset or a decision to move the asset down the development pathway toward the cash generative production phase. We will update shareholders in this regard, as soon as possible.

Acacia hold 10% of Imweru and already operate close by. it would possibly make strategic sense for Acacia to buy the remaining 90% of Imweru. If they do I doubt it will have much impact on Acacia's share price, but it will certainly give KIBO a healthy boost.

London’s leading gold forecaster: gold to average $1321 in 2015
By Tom Winnifrith | Saturday 17 January 2015

Over the past 15 years Ross Norman of Sharps Pixley has been the forecaster with the best record in the LBMA for predicting gold price moves so you should take his gold price forecasts seriously. Ross writes, "We are going out on a limb this year." Indeed.

AVERAGE : $1321

HIGH : $1450

LOW : $1170

If markets move on what you don't know today, but will know tomorrow then it follows that many factors such as a US interest rate rises should already be factored into the current price... it also begs the question what the new drivers for 2015 will be. We see ongoing declines in economic growth prompting central banks to fight deflation by resorting to inflationary pressures in H2.

If our outlook for gold in dollar terms is bullish, in emerging currencies it may be even more so as investors seek to insure or hedge against currency debasement. As such, we foresee good demand for the physical.

Most annoyingly for bulls in 2014, gold exhibited 'rally fade' despite a global economy that was as fragile as ever. Our forecast is predicated on gold becoming price inelastic (as it was in the early 2000's) and able to sustain the momentum. I say annoyingly because arguably never before have savers potentially so needed an asset with the wealth preservation qualities that gold provides ... yet the price performance these last few years has disappointed.

In short, we see gold demonstrating that it has turned a corner and investor flows return with a vengeance, aided by short covering and fresh longs in the futures markets. Perhaps most disappointingly though we are unlikely to see runaway prices beyond the $1450 level without either significant new product innovations or without the sort of black swan events in the economy that few of us would wish for.

SILVER

AVERAGE : $18.56

HIGH : $21.75

LOW : $14.50

With a firm outlook for gold, it follows that our expectations for silver would be similar ... and a little more so... such is silver's propensity to follow gold in a exaggerated fashion. Investors will take comfort from

silver ETF holdings which have remained firm (unlike gold) coupled with retail sales of the physical coins and bars which have remained robust.

Even mine production looks set for a modest decline back to levels last seen in 1999. With 75% of silver being produced as a by-product of base metals mining, the weaker global economy may well prompt some cut-backs in mining those host metals. Equally, demand from industrial applications will be correspondingly weaker, but investors (... or more likely speculators) are normally on hand to fill the void.

Like gold, silver does seem to struggle to sustain momentum to the upside as it experiences 'rally fade' for this reason we do not see the likelihood of runaway prices just yet.