FTSE 100 miner African Barrick Gold expects the price of gold to continue rising because of global economic uncertainty.
The company, the largest producer of the metal in Tanzania, said gold's attraction as a safe haven for investors means prices will grow further despite already clearing record levels of $1,600 per ounce.
Greg Hawkins, chief executive of African Barrick, said: "Against a backdrop of continuing uncertainty in the overall economy, we remain positive on the outlook for gold.
"We believe that the fundamental attraction of gold as a store of value as a result of the global credit crisis will continue to support future gold prices."
Mr Hawkins comments came as the company posted an increase in pre-tax profits to $178m (£109m) from $143m for the first half of 2011. Production levels were in line with expectations at 345,857 ounces, although this is a 3pc decline on last year following a security breach at one mine and a mill failure at another.
The results pushed African Barrick shares up 31.9, or 6.5pc, to 521p.
The company is a spin-off of the African assets of Barrick Gold, the world's biggest miner. Its shares had fallen sharply between February and June after missing production targets for 2010 and suffering the further setbacks at mines this year.
The company, the largest producer of the metal in Tanzania, said gold's attraction as a safe haven for investors means prices will grow further despite already clearing record levels of $1,600 per ounce.
Greg Hawkins, chief executive of African Barrick, said: "Against a backdrop of continuing uncertainty in the overall economy, we remain positive on the outlook for gold.
"We believe that the fundamental attraction of gold as a store of value as a result of the global credit crisis will continue to support future gold prices."
Mr Hawkins comments came as the company posted an increase in pre-tax profits to $178m (£109m) from $143m for the first half of 2011. Production levels were in line with expectations at 345,857 ounces, although this is a 3pc decline on last year following a security breach at one mine and a mill failure at another.
The results pushed African Barrick shares up 31.9, or 6.5pc, to 521p.
The company is a spin-off of the African assets of Barrick Gold, the world's biggest miner. Its shares had fallen sharply between February and June after missing production targets for 2010 and suffering the further setbacks at mines this year.
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