LONDON (dpa-AFX) - African Barrick Gold Plc. (ABG.L), a gold producer in Africa, said that it has made good progress on the Operational Review, which was initiated in the first quarter to deliver robust returns and cash flow over the long term and in the current gold price environment.
The company said the Review was aimed at realising clear benefits in its cost structure and operating metrics, based on five key areas: namely Operating Costs, Capital Costs, Organisational Structure, Corporate Overheads and Mine Planning.
The company said it has already implemented a series of measures which will substantially reduce the year on year expenditure in these areas, including a $50 million reduction in its sustaining capital, reduction of $25 million in exploration spend, $8 million of savings in its corporate overheads.
While it has made substantial progress on the Operational Review, the company said it critically aware of the need to deliver the most effective structure for the business in the shortest timeframe possible. To this end, the company said it has decided to augment its internal capacity by engaging KPMG to provide both additional support and an external perspective on its findings to ensure it meets the timelines to which it has committed.
The CEO Greg Hawkins said, 'After a challenging period in 2012, it has been encouraging to hit our targets in the last two quarters. We have made significant improvements to the Buzwagi operation, whileNorth Mara is performing well andBulyanhulu is on track for recovery. We are making good progress on cost reductions through the Operational Review and we are well underway with a complete life of minereview of the assets. We have moved to shut our high cost mine at Tulawaka, are on track with our expansion project at Bulyanhulu and are determined to ensure that ABG can generate robust cash flows over the long term'.
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