Ashanti overcomes effects of drought
Wednesday 31 May 1995
Ashanti, the Ghana gold miner, suprised the market with better than expected interim figures, despite extremes of weather that wreaked havoc with production at the start of the year.
Pre-tax profits were pounds 32.26m, up from pounds 29.61m for the six months to March 1995.
Ashanti, traditionally a low-cost producer, suffered from a drought around its main mining operation at Obusi. This inflated costs and slowed production, which fell by 15,000 ounces in February, the worst month. The company is now building a dam and reservoir to limit the impact of weather on both its surface and underground mining.
But analysts now consider that Ashanti's target of mining one million ounces by the end of the year is unreachable.
Mark Keatley, chief financial officer, was bullish aboutprospects as the company had sold hedge contracts with fixed prices to protect it from gold price fluctuations, making pounds 4.36m profit from the deal. He also predicted that the gold price would range from $400-$420 per ounce during the next two years, compared with the current range of $380-$400.
The company is keen to expand outside Ghana and has formed an alliance with the Canadian-registered International Africa Mining Gold Corp.
The two firms have pooled a portfolio of exploration interests, including Senegal's Bambadji region, thought likely to produce gold within the next two to three years.
The company will also explore further prospects in Angola and Mozambique in an effort to reach the long-term target that one-third of output should come from outside Ghana by the end of the century.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 Blackest is the new black: Scientists have developed a material so dark that you can't see it...
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Stephen Fry ‘criticises Operation Yewtree in dinner party rant’ calling for tougher laws to deter false sex abuse allegations
Israel-Gaza conflict: ‘Sderot cinema’ image shows Israelis with popcorn and chairs 'cheering as missiles strike Palestinian targets'
Israel-Gaza conflict: Israeli air strike destroys home for the disabled killing two women residents
Israel-Gaza conflict: Israeli PM says conflict may 'continue for a long time' as hundreds of Palestinians flee their homes
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...