Miner African Barrick Gold said on Wednesday fourth quarter gold production fell 11 percent and missed its annual production targets, hit by power outages at its Buzwagi mine, but said 2011 cash costs would be in line with its guidance.
The miner, a unit of the world's largest gold producer Barrick Gold Corp, said it produced 160,020 ounces of gold in the fourth quarter.
Production for the full year was 688,278 ounces, a dip of 2 percent. The Tanzania-focused company had warned in December that it would fall short of its 2011 production target of 700,000 to 760,000 ounces of gold this year because of power disruptions to the national electricity grid.
Diesel-generated power is typically more expensive than electricity supplied from the national grid.
During the quarter our output was impacted by the power situation in Tanzania, but as we go into 2012, we will benefit from our investment in additional back-up power generation and are well positioned to continue delivering on our potential and generating significant cash flows from our assets, Chief Executive Greg Hawkins said in a statement.
ABG, which operates four gold mines in Tanzania, said full year total cash costs would be in line with guidance of $675 to $700 per ounce.
It said the average realised gold price was $1,655 per ounce over the quarter and $1,587 per ounce over the full year, allowing the company to end the year with a cash position of around $584 million.