ABX anticipates 2014 gold production of 6M-6.5M oz. vs. 7.2M oz. in 2013, due to sales of non-core assets and the company's new focus on mining high-margin ounces in a low-price environment instead of just maximizing output; the production drop is within analyst expectations.
ABX cuts reserves 26% Y/Y to 104.1M oz. as it reduced the gold price used to calculate them to $1,100/oz. from $1,500 last year.
Through all the troubles, ABX's mines are operating well: Gold cost guidance is the lowest among senior producers, with all-in sustaining costs seen at $920-$980/oz. in 2014 after $899/oz. in Q4.
Capital spending totaled ~$5B in 2013, but is expected to fall to $2.4B-$2.7B this year with the idling of Pascua-Lama.