Nice Breakout (23rd January 2014)

ABG Breakout Today

African Barrick Gold (ABG) rose 23p (11.5%) today and in doing so, broke through the resistance line at 212p (see the Sharescope Graph below)...

Key Metrics

The Key Metrics also show the low price-to-Tangible Book Value (PTBV) and modest PSR (1.36), see below:

Newsflow:

The recent newsflow has been positive, in particular the news released on 21st January, the key highlights being replicated below:

Highlights

• Fourth quarter gold production of 165,374 ounces and sales of 168,177 ounces
• Preliminary fourth quarter all-in sustaining cost of US$1,171 per ounce sold, down 30% on Q4 2012 and 8% on Q3 2013
• Preliminary fourth quarter cash costs of US$774 per ounce sold, 19% lower than Q4 2012
• Full year 2013 production of 641,931 ounces with full year sales of 649,742 ounces, 7% above the upper end of 2013 production guidance of 540,000 - 600,000 ounces
• Cash balance of approximately US$282 million as at 31 December 2013
• The average realised price of US$1,251 per ounce over the quarter and US$1,379 per ounce for the full year were 26% and 17% respectively lower than the prior year

 If you wish to access the full African Barrick Gold (4th Quarter) Production Report (pdf), you will find it HERE.

You may remember that we previously posted (Gold in this Balance Sheet?) about ABG on 13th August 2013, when the price was £1.495. You'll find that post, on the DIY-Investors website Here, if you want to refresh your memory.

I believe that African Barrick Gold could be a real nugget (groan!!!) for DIY-Investors in 2014. What do you think?

Mick (23rd January 2014)