Questor share tip: tide will turn for African Barrick Gold Nonetheless, the shares dropped almost 14pc following the results. Behind the rising revenues at ABG was a 2pc fall in production, masked by the 19pc rise in the average gold price the miner realised last year, which was $1,655 an ounce. As a user of 11pc of the power in Tanzania, the company has been hit hard by the country's unreliable power, as drought affected its hydropower dams. Management has been turning to diesel generators, but it is more expensive than plugging into the grid and it has taken time to equip all its mines as needed. Without the power disruption, the company said that 2011 production would have exceeded 2010. As it was, attributable gold production of 688,278 ounces represented a second annual decline in output. The production target is 675,000 to 725,000 ounces for 2011 - a marked drop on the projected (and missed) range for last year of 700,000 to 760,000 ounces. There was also bad news on costs, which are rising as competition for skilled workers increases. Questor reckons the tide has to turn for ABG soon - but is not convinced that now is the time to buy. The shares trade on a prospective price/earnings ratio of 7.8 for 2012 and a yield of 1.6pc.