Ashanti Goldfields Company Limited Announces Third Quarter Report 2002.Business Editors ACCRA Accra (əkrä`, ăk`rə), city (1984 pop. 867,459), capital of Ghana, a port on the Gulf of Guinea. It is Ghana's largest city and its administrative, communications, and economic center. , Ghana--(BUSINESS WIRE)--Oct. 29, 2002 Ashanti Ashanti (äshän`tē) or Asante (äsän`tē), historic and modern administrative region, central Ghana, W Africa. The region is the source of much of Ghana's cocoa. progresses with its mine site expansion programmes and announces reserve increase at Geita Overview Ashanti recorded unaudited earnings of US$22.5 million during the third quarter 2002. This was a 55% improvement over the corresponding period last year, achieved principally through higher spot prices, lower interest charges and write-back (memory management) write-back - A cache architecture in which data is only written to main memory when it is forced out of the cache. Opposite of write-through. See also no-write allocation. of certain tax provisions no longer required. Earnings per share for the quarter, after taking into account warrants that were exercised as part of the refinancing Refinancing An extension and/or increase in amount of existing debt. , was 18 cents (2001: 13 cents). During the quarter, Ashanti effected a significant reduction in its floating lease rate exposure to its hedge book. The total floating lease rate exposure was reduced by 1.6 million ounces from 4.38 million ounces to 2.78 million ounces. Ashanti also paid down US$33.0 million of its Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility, reducing the amounts drawn to US$157.0 million as at 30 September September: see month. 2002. Ashanti is actively pursuing expansion programmes at three of its mine sites. These are Geita in Tanzania Tanzania (tăn'zənē`ə, –zăn`ēə, Swahili tänzänē`ä), officially United Republic of Tanzania, republic (2005 est. pop. , Iduapriem/Teberebie in Ghana Ghana, country, Africa Ghana, officially Republic of Ghana, republic (2005 est. pop. 21,030,000), 92,099 sq mi (238,536 sq km), W Africa, on the Gulf of Guinea, an arm of the Atlantic Ocean. The capital and largest city is Accra. and Siguiri Siguiri is a city in northeastern Guinea on the River Niger. It is known for its goldsmiths and as the birthplace of Sekouba Bambino Diababé. It also has a former French fort, built in 1888, and an airport.
Guinea (gĭn`ē), an archaic term for the west coast of Africa. In its widest sense it has been applied to the region from Angola to Senegal. . At its Geita JV operation, the plant capacity is planned to be increased from 4.8 million tonnes per annum Per annum Yearly. (mtpa) to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6 mtpa which is planned to increase gold production to over 600,000 ounces per year. At the Iduapriem/Teberebie mine, the expansion of the Carbon-in-Leach (CIL (Common Intermediate Language) The ECMA version of the Microsoft Intermediate Language (MSIL). See CLI. 1. (project) CIL - Component Integration Laboratories. 2. (language) CIL - Common Intermediate Language. ) plant to 4 mtpa will be commisioned by year end with the view to increasing production to some 220,000 ounces per annum at cash operating costs operating costs npl → gastos mpl operacionales below US$200 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . Following the completion of a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. , a decision has been taken to construct a Carbon-in-Pulp (CIP (1) (Common Isochronous Packet) The packet format used in time-based (real time) FireWire transmission. See FireWire, IEC 61883 and mLAN. (2) (Common Industrial P ) plant at the Siguiri mine. At the Geita mine, reserves were increased by 24% to 9.6 million ounces (Ashanti's equity share being 4.8 million ounces). In the third quarter, Ashanti achieved gold production of 407,328 ounces, slightly lower than the 411,532 ounces achieved in the same period last year. This resulted from difficult mining conditions caused by heavy rainfall at our heap leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. operation in Siguiri, coupled with a combination of lower than planned mill grades and lower metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. recovery at Obuasi Obuasi (ōbwä`sē), town (1984 pop. 60,617), S central Ghana. Highly concentrated gold ore is mined, and there are gold-extraction plants. Gold was mined in Obuasi by indigenous peoples as early as the 17th cent. . Consequently, year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. gold production of 1,220,446 ounces was 2% lower than the 1,247,567 ounces produced in the corresponding period last year. Cash operating costs for the third quarter were US$199 per ounce, a US$10 per ounce increase on the same quarter last year while year-to-date cash operating costs of US$194 were US$6 per ounce higher than the corresponding period last year. The Group Lost Time Injury Frequency Rate for the quarter was 0.38 injuries per 200,000 man-hours worked, considerably better than the 0.53 achieved in the same period last year. During the third quarter, Tameng Mining & Exploration Limited, a joint venture vehicle managed by Ashanti, was awarded exploration rights in respect of Platinum Group The platinum group (alternatively, the platinum group metals or platinum metals) is a collective name sometimes used for six metallic elements clustered together in the periodic table. Metals in the Limpopo Limpopo (lĭmpō`pō), river, c.1,100 mi (1,770 km) long, rising in Limpopo prov., South Africa. It flows in a great arc, first north (forming part of the South Africa–Botswana border), then east (forming the South Province of the Republic of South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. by the South African Department of Minerals and Energy. Ashanti holds 40% equity interest in the joint venture. Exploration of this site is expected to commence next year.
-- Earnings up by 55% on last year to US$22.5 million
-- Revolving Credit Facility paid down by US$33 million
-- Quarter's production of 407,328 ounces, broadly in line with last year
-- Mine site expansion programmes in progress
-- Ashanti-led JV secures exploration rights over Platinum concession in South Africa
-- Geita mine achieves record gold production and increases reserves by 24%
3 months to 3 months to 9 months to 9 months to
Highlights 30 Sept 02 30 Sept 01 30 Sept 02 30 Sept 01
Financial (US$m)
Turnover 141.2 136.2 419.3 405.6
EBITDA 47.9(a) 49.5 149.5(a) 141.9
Profit before tax 19.0(a) 16.2 59.2(a) 41.8
Earnings 22.5(a) 14.5 58.8(a) 37.6
Earnings per share (US$) 0.18(a) 0.13 0.50(a) 0.33
(a) Before exceptional items.
Gold Production (ounces)
Total 407,328 411,532 1,220,446 1,247,567
Attributable 390,410 393,985 1,168,153 1,192,017
Gold Price (US$ per ounce)
Realised by Ashanti 347 331 344 325
Spot price 315 282 308 273
Production Costs
(US$ per ounce)
Cash operating costs 199 189 194 188
Royalties 9 8 9 8
Depreciation and amortisation 58 61 59 61
Total production costs 266 258 262 257
Operations Review Ghana Obuasi Production and costs. Obuasi produced 126,251 ounces of gold at a cash operating cost of US$211 per ounce in the third quarter. This was 4.5% below the gold production of 132,307 ounces achieved at a cash operating cost of US$196 in the corresponding period last year. The lower gold production was due to lower than planned mill grades and lower than planned metallurgical recovery. Obuasi's year-to-date gold production for the 9 months was 386,398 ounces at a cash operating cost of US$201 per ounce compared with 394,028 ounces at a cash operating cost of US$193 per ounce achieved in the same period last year. Mining. Underground ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. production in the quarter was 627,000 tonnes at an average grade of 7.60 g/t compared to 648,000 tonnes at an average grade of 7.82 g/t achieved in the same period last year. Mining started at Homase during the quarter and 163,000 tonnes was hauled to the oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. plant. Processing. Total ore processed in the third quarter was 1.2 million tonnes at a grade of 4.41 g/t, compared with 1.0 million tonnes at 5.36 g/t achieved in the same period last year. At the Sulphide sulphide: see sulfide. Treatment Plant (STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. ) gravity Gravity The gravitational attraction at the surface of a planet or other celestial body. The quantity g is often referred to simply as “gravity’’ or “the force of gravity’’ of Earth, both of which are incorrect. , recoveries were lower than usual due to the lower head grades and continuing SAG (1) A momentary drop in voltage from the power source. Contrast with spike. (2) (SAG) (SQL Access Group) See CLI. mill liner liner /lin·er/ (lin´er) material applied to the inside of the walls of a cavity or container for protection or insulation of the surface. liner see teat cup liner. problems. In addition, CIL recoveries were impacted by the unavailability un·a·vail·a·ble adj. Not available, accessible, or at hand. un  a·vail of the oxide plant tanks for extended leach. BIOX(R)
recoveries were affected by draining drain v. drained, drain·ing, drains v.tr. 1. To draw off (a liquid) by a gradual process: drained water from the sink. 2. a. of the BIOX(R) tanks in an attempt to recover gold lock-up lock-up n (= prison) → cárcel f (= cell); jaula; (also: lock-up garage) → jaula, cochera lock-up . Measures taken during the quarter include a management change, ordering of new SAG mill liners liners, n the liquid material applied to teeth to protect them within a cavity preparation, to seal carious tissues, or to release beneficial chemicals such as fluoride. and re-filling of three BIOX(R) tanks. We intend to implement further steps to improve sampling and control in the fourth quarter. We expect that the re-located Pompora Treatment Plant (PTP (1) See peer-to-peer. (2) (Picture Transfer Protocol) An ISO standard for transferring photos from a digital camera to a computer or photo printer. ) SAG mill will also be commissioned by end of the fourth quarter. Given the challenge outlined above, Obuasi's full year target of 530,000 ounces at a cash cost per ounce of US$190 may now be difficult to attain. Exploration. The deep drilling programme at Obuasi continued to intersect In a relational database, to match two files and produce a third file with records that are common in both. For example, intersecting an American file and a programmer file would yield American programmers. significant mineralisation during the quarter. Best drilling results made below 50 level included 55.3g/t over 5.8 metres on 54 level, 19.2g/t over 2.4 metres and 10.6g/t over 7.3 metres on 56 level, 41.1g/t over 13.2 metres on 561/2 level and 39.5g/t over 9.0 metres on 66 level. Best drilling results above 50 level included 24.3g/t over 11.4 metres on 39 level, 16.7g/t over 6.9 metres and 27.3g/t over 4.9 metres on 391/2 and 401/2 level respectively at the Central Section of the mine and 10.8g/t over 7.5 metres on 30 level at the South Section of the mine. Iduapriem/Teberebie Iduapriem (80% owned)/Teberebie (90% owned) mine produced 51,843 ounces of gold in the quarter at a cash operating cost of US$209, compared with 53,162 ounces of gold at a cash operating cost of US$222 achieved in the same period last year. Construction work on the carbon-in-leach (CIL) plant expansion progressed satisfactorily. Civil works on the stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. reclaim conveyor Conveyor A horizontal, inclined, declined, or vertical machine for moving or transporting bulk materials, packages, or objects in a path predetermined by the design of the device and having points of loading and discharge fixed or selective. were completed, and the leach tanks and SAG mill were erected during the third quarter. We expect commissioning of the CIL expansion to start in the fourth quarter and completion is expected by year end. This expansion is expected to cost US$13 million which is being funded from cash flow generated by the mine. Bibiani Bibiani is a town in Ghana. It is the capital of Bibiani Anhwiaso Bekwai district. Bibiani's third quarter production was 61,192 ounces at a cash operating cost of US$193 per ounce, compared with 65,338 ounces at a cash operating cost of US$189 per ounce achieved in the same period last year. Ore production achieved in the quarter was 882,000 tonnes at a grade of 3.95 g/t, compared with 796,000 tonnes at 3.24g/t mined in the same period last year. Recoveries were lower than plan due to the preg-robbing nature of the ore. We intend to carry out Pressure jigging jig 1 n. 1. a. Any of various lively dances in triple time. b. The music for such a dance. Also called gigue. 2. A joke or trick. Used chiefly in the phrase The jig is up. trials in the fourth quarter as a potential solution to the problem. Bibiani's year-to-date gold production stands at 182,217 ounces at a cash operating cost of US$187 per ounce, compared with 186,355 ounces at a cash operating cost of US$172 per ounce achieved in the corresponding period last year. At the beginning of the fourth quarter Bibiani experienced a slope failure on the western wall of the pit. This is not expected to impact on gold production but will add approximately US$3 million to costs in the fourth quarter 2002 and first quarter 2003. Guinea Siguiri (85% owned) The Siguiri mine produced 60,940 ounces of gold in the third quarter at a cash operating cost of US$226 per ounce, compared to 63,813 ounces of gold produced at a cash operating cost of US$185 per ounce in the same period last year. The lower gold production in the quarter was due to lower than planned feed grade and heavy rainfall, which significantly diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. the solution in the ponds In the Pond is a 1998 novel by Ha Jin, who has also written Under the Red Flag, Ocean of Winds, and Waiting. He has been praised for his works relating to Chinese life and culture. . Costs were higher in the quarter due to increased volumes of waste mined. The mine's year-to-date production for the 9 months stands at 209,159 ounces, compared with 220,648 ounces in the corresponding period last year. The feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. to assess the viability of converting the mine's processing operation to a hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). combining CIP and heap leach operation was completed during the quarter. The expansion is expected to cost approximately US$32 million and is planned to be operational by the end of first quarter of 2004. This expansion is expected to be partly funded by cash flow generated by the mine and the rest through corporate funding. The CIP facility is expected to have a capacity of 8 mtpa producing over 300,000 ounces per year. The CIP process provides potential for longer mine life arising from the conversion of saprolite sap·ro·lite n. Soft, partially decomposed rock rich in clay and remaining in its original place. saprolite resources to reserves. Zimbabwe Zimbabwe, ruined city, Zimbabwe Zimbabwe (zĭmbäb`wā) [Bantu,=stone houses], ruined city, SE Zimbabwe, near Fort Victoria. It was discovered by European explorers c. Freda-Rebecca During the quarter, Freda-Rebecca produced 24,765 ounces of gold at a cash operating cost of US$212 per ounce, compared with 25,354 ounces at a cash operating cost of US$225 per ounce achieved in the same period last year. The lower gold production was due to planned maintenance down time on the SAG mill, and lower metallurgical recovery, resulting from fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. throughput rates Throughput rate is an obsolete term[1] in the terminology of automated chemical analysis. It may mean either:
1. ^ International Union of Pure and Applied Chemistry. "throughput rate". and reduced leach tank capacity. The mine's year-to-date gold production was 75,065 ounces at the end of September, compared with 81,594 in the same period last year. Tanzania Geita (50% Joint Venture) Gold production at the Geita mine in the third quarter was a record 164,673 ounces at a cash operating cost of US$155 per ounce, compared with 143,116 ounces at US$140 per ounce achieved in the same period last year. Geita's production for the first three quarters of the year now stands at 456,301 ounces compared with 407,476 ounces last year. Gold production attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to Ashanti in the quarter and year-to-date are 82,337 ounces and 228,151 ounces respectively. We anticipate that production will be lower for the next three quarters due to lower mined grades as waste stripping continues in cut 3 at Nyankanga. Construction of the secondary crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. plant is expected to increase the overall plant capacity from 4.8 mtpa to approximately 6.0 mtpa which is planned to increase gold production to over 600,000 ounces per annum. Production Outlook Despite the shortfalls to date at Obuasi and Siguiri, total production for the year is expected to exceed 1.57 million ounces. Exploration East Africa Tanzania As a result of the major drilling campaign undertaken this year, open pit reserves at Geita have increased to 72 million tonnes grading 4.13 g/t, equivalent to 9.6 million ounces (Ashanti: 4.8 million equity ounces). This consists of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. of 32 million tonnes grading 3.62 g/t and probable PROBABLE. That which has the appearance of truth; that which appears to be founded in reason. reserves of 40million tonnes grading 4.53 g/t and represents a 24% increase compared with last year. This increase has resulted primarily from increases at Nyankanga and Geita Hill where infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. drilling has now established a continuous 5 kilometre mineralised trend from Nyankanga-Lone Cone to Geita Hill. New reserves have also been included for Chipaka, Roberts and Area 3W. At Star & Comet comet [Gr.,=longhaired], a small celestial body consisting mostly of dust and gases that moves in an elongated elliptical or nearly parabolic orbit around the sun. Comets visible from the earth can be seen for periods ranging from a few days to several months. in the west of the Geita Greenstone Belt Greenstone belts are zones of variably metamorphosed mafic to ultramafic volcanic sequences with associated sedimentary rocks that occur within Archaean and Proterozoic cratons between granite and gneiss bodies. , infill drilling was undertaken with the objective of converting the shallow This article or section may contain original research or unverified claims. Please help Wikipedia by adding references. See the for details. This article has been tagged since October 2007. Shallow means not very deep. inferred resource into an indicated resource. In addition, drilling below the Area 3W deposit demonstrated continuity of the mineralisation at depth. Elsewhere in Tanzania, Ashanti continued its regional assessment of the Lake Victoria Goldfields n. 1. A small slender woolly annual (Lasthenia chrysostoma) with very narrow opposite leaves and branches bearing solitary golden-yellow flower heads; it grows from Southwestern Oregon to Baja California and Arizona; - it is often cultivated. . West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. Guinea At Siguiri, reverse circulation drilling adjacent to the Tubani and Eureka Hill open pits intersected mineralisation warranting follow up. In addition infill drilling commenced at Kami with the objective of upgrading resources into the measured and indicated categories. Cote d'Ivoire Two gold-in-soil anomalies were defined by gridded soil sampling on anomalies located by reconnaissance  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. exploration in two permits held in a joint venture with Rio Tinto Rio Tinto may refer to:
Mali Auger auger (ô`gər): see drill. auger Tool (or bit) used with a carpenter's brace for drilling holes, usually in wood. It looks like a corkscrew and produces extremely clean holes, almost regardless of how large the bit is. drilling showed the Tinkeleni soil anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. to be caused by minor bedrock mineralisation and the authorisation was allowed to lapse (language) LAPSE - A single assignment language for the Manchester dataflow machine. ["A Single Assignment Language for Data Flow Computing", J.R.W. Glauert, M.Sc Diss, Victoria U Manchester, 1978]. . Four new Exploration Authorisations were acquired in southern Mali. Ghana Exploration and assessment continued on a number of prospects and in the vicinity of the Bibiani, Iduapriem and Obuasi operations. Central Africa Democratic Republic of Congo Congo, river, Africa Congo (kŏng`gō) or Zaïre (zī`ēr, zäēr`), great river of equatorial Africa, c. A deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the security situation in the general vicinity of Ashanti's Kilo Thousand (10 to the 3rd power). Abbreviated "K." For technical specifications, it refers to the precise value 1,024 since computer specifications are based on binary numbers. For example, 64K means 65,536 bytes when referring to memory or storage (64x1024), but a 64K salary means $64,000. gold project in northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. Congo has delayed the commencement of exploration activities. Southern Africa
During the quarter, Tameng Mining & Exploration (Pty) Limited in which Ashanti has a 40% equity interest, was awarded through competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. , Platinum Group Metal (PGM PGM Program PGM Pragmatic General Multicast PGM Phosphoglucomutase PgM Program Manager PGM Platinum Group Metal PGM Pagemaker (software) PGM Portable Gray Map PGM Precision Guided Munition ) mineral exploration rights on the farm M'phatlele's Location 457KS in the northeastern limb of the Bushveld Igneous Complex The Bushveld Igneous Complex (or BIC) is a large igneous intrusion within the Earth's crust which has been tilted and eroded and now outcrops around what appears to be the edge of a great geological basin. . The sub-outcrop of the Merensky and UG2 Reefs which are the principal mineralised horizons for PGMs in Bushveld Igneous Complex, have been mapped on M'phatlele's Location over a strike length of 8 kilometres.
Summary of production and cash operating costs per ounce
Obuasi Ayanfuri Iduapriem Bibiani
3 months to 30 September 2002
Production (ounces) 126,251 - 51,843 61,192
Cash operating cost per
ounce (US$) 211 - 209 193
3 months to 30 September 2001
Production (ounces) 132,307 - 53,162 65,338
Cash operating cost per
ounce (US$) 196 - 222 189
9 months to 30 September 2002
Production (ounces) 386,398 - 139,456 182,217
Cash operating cost
per ounce (US$) 201 - 208 187
9 months to 30 September 2001
Production (ounces) 394,028 11,517 149,687 186,355
Cash operating cost per
ounce (US$) 193 243 215 172
Freda- Total/
Siguiri Rebecca Geita Average
3 months to 30 September 2002
Production (ounces) 60,940 24,765 82,337 407,328
Cash operating cost per
ounce (US$) 226 212 155 199
3 months to 30 September 2001
Production (ounces) 63,813 25,354 71,558 411,532
Cash operating cost per
ounce (US$) 185 225 140 189
9 months to 30 September 2002
Production (ounces) 209,159 75,065 228,151 1,220,446
Cash operating cost per
ounce (US$) 211 220 153 194
9 months to 30 September 2001
Production (ounces) 220,648 81,594 203,738 1,247,567
Cash operating cost per
ounce (US$) 207 217 139 188
Gold Production Summary
3 months to 3 months to 9 months to 9 months to
30 Sept 2002 30 Sept 2001 30 Sept 2002 30 Sept 2001
Obuasi
Underground Mining
Ore production
(000 tonnes) 627 648 1,827 1,889
Ore grade (g/t) 7.60 7.82 7.52 7.82
Surface Mining
(Homase)
Ore production
(000 tonnes) 163 - 192 -
Ore grade (g/t) 2.81 - 2.76 -
Waste mined
(000 tonnes) 1,063 - 1,136 -
Strip ratio 6.5 - 5.9 -
Sulphide Treatment
Plant
Ore processed
(000 tonnes) 593 629 1,758 1,784
Head grade
(g/t) 6.80 7.27 7.23 7.51
Recovery (%) 82.6 82.8 84.9 83.3
Gold produced
(ounces) 107,097 121,675 346,529 358,518
Pompora Treatment
Plant
Ore processed
(000 tonnes) - - - -
Head grade (g/t) - - - -
Recovery (%) - - - -
Gold produced
(ounces) - 71 195 2,158
Oxide Treatment Plant
Ore processed
(000 tonnes) 184 - 184 -
Head grade
(g/t) 1.98 - 1.98 -
Recovery (%) 80.1 - 80.1 -
Gold produced
(ounces) 9,399 - 9,399 -
Tailings Treatment Plant
Ore processed
(000 tonnes 453 414 1,326 1,236
Head grade
(g/t) 2.27 2.47 2.29 2.50
Recovery (%) 29.5 32.1 31.0 33.5
Gold produced
(ounces) 9,755 10,561 30,275 33,352
Obuasi Total Processed
Ore processed
(000 tonnes) 1,230 1,043 3,268 3,020
Head grade (g/t) 4.41 5.36 4.93 5.46
Recovery (%) 72.4 73.5 74.6 74.4
Total gold produced
(ounces) 126,251 132,307 386,398 394,028
Distribution
of Obuasi
Production
(ounces)
Obuasi
underground 107,097 121,746 346,529 360,676
Obuasi surface 9,399 - 9,399 -
Obuasi tailings 9,755 10,561 30,275 33,352
Obuasi total 126,251 132,307 386,398 394,028
Ayanfuri
Mining
Ore production
(000 tonnes) - - - 332
Ore grade (g/t) - - - 1.50
Waste mined
(000 tonnes) - - - 1,059
Strip ratio - - - 3.2
Heap Leach
Ore stacked
(000 tonnes) - - - 329
Head grade (g/t) - - - 1.20
Recovery (%) - - - 90.8
Gold produced
(ounces) - - - 11,517
Iduapriem/Teberebie
Mining
Ore production
(000 tonnes) 1,238 1,215 3,339 3,441
Ore grade (g/t) 1.65 1.57 1.63 1.61
Waste mined
(000 tonnes) 3,632 3,460 11,920 10,127
Strip ratio 2.9 2.8 3.6 2.9
CIL Plant
Ore processed
(000 tonnes) 668 704 1,966 2,045
Head grade
(g/t) 2.01 1.84 1.96 1.88
Recovery (%) 96.0 94.2 92.5 94.5
Gold produced
(ounces) 41,444 38,168 110,945 116,743
Heap Leach
Ore stacked
(000 tonnes) 496 861 1,301 1,995
Head grade (g/t) 1.16 0.97 1.12 0.90
Recovery (%) 56.2 55.8 60.9 57.4
Gold produced 10,399 14,994 28,511 32,944
Iduapriem/
Teberebie
total (ounces) 51,843 53,162 139,456 149,687
3 months to 3 months to 9 months to 9 months to
30 Sept 2002 30 Sept 2001 30 Sept 2002 30 Sept 2001
Bibiani
Mining
Ore production
(000 tonnes) 882 796 1,873 1,748
Ore grade (g/t) 3.95 3.24 3.29 3.56
Waste mined
(000 tonnes) 2,717 3,151 8,721 10,964
Strip ratio 3.3 4.0 4.7 6.3
CIL Plant
Ore processed
(000 tonnes) 680 714 1,891 618
Head grade (g/t) 3.64 3.27 3.75 3.87
Recovery (%) 79.7 82.2 81.2 81.4
Gold produced
(ounces) 61,192 65,338 182,217 186,335
Siguiri
Mining
Ore production
(000 tonnes) 2,231 2,139 6,609 6,512
Ore grade (g/t) 1.13 1.26 1.19 1.32
Waste mined
(000 tonnes) 2,052 422 6,080 3,531
Strip ratio 0.9 0.2 0.92 0.5
Heap Leach
Ore stacked
(000 tonnes) 2,101 1,827 6,956 6,894
Head grade (g/t) 1.09 1.26 1.14 1.32
Recovery (%) 82.9 86.2 81.7 75.4
Gold produced
(ounces) 60,940 63,813 209,159 220,648
Freda-Rebecca
Underground Mining
Ore production
(000 tonnes) 286 327 832 913
Ore grade (g/t) 2.84 3.34 3.00 3.52
Surface Mining
Ore production
(000 tonnes) - - 110 -
Ore grade (g/t) - - 2.52 -
Waste mined
(000 tonnes) - - 81 -
Strip ratio - - 0.7 -
Processing
Ore processed
(000 tonnes) 274 277 845 844
Head grade (g/t) 3.40 3.24 3.36 3.43
Recovery (%) 82.5 88.0 82.4 87.7
Gold produced
(ounces) 24,765 25,354 75,065 81,594
Geita Joint Venture
Surface Mining
Ore mined
(000 tonnes) 1,466 966 4,306 3,123
Grade (g/t) 3.80 4.07 3.60 3.82
Waste mined
(000 tonnes) 12,269 7,517 27,503 20,021
Strip ratio 8.4 7.8 6.4 6.4
Processing
CIL Plant
Ore processed
(000 tonnes) 1,280 1,067 3,718 3,389
Head grade
(g/t) 4.30 4.50 4.10 4.02
Recovery (%) 93.0 93.0 93.0 93.0
Gold produced
(ounces) 164,673 143,116 456,301 407,476
Ashanti's 50%
share
(ounces) 82,337 71,558 228,151 203,738
Group Summary
Managed gold
production
(ounces) 324,991 339,974 992,295 1,043,829
Geita JV 50%
(ounces) 82,337 71,558 228,151 203,738
Sub-total
(ounces) 407,328 411,532 1,220,446 1,247,567
Less minority
interests
(ounces) 16,917 17,546 52,292 55,550
Group Attributable
Total
(ounces) 390,410 393,985 1,168,153 1,192,017
Financial Review Earnings Ashanti's third quarter unaudited earnings of US$22.5 million were US$8.0 million higher than the US$14.5 million recorded last year. The 55% improvement in earnings as compared to last year was principally due to higher spot prices, lower interest charges and write-back of certain tax provisions no longer required. Earnings per share for the quarter, after taking into account the warrants that were exercised as part of the refinancing, were 18 cents (2001: 13 cents). Year-to-date earnings before exceptional costs were US$58.8 million, US$21.2 million higher than last year. Year-to-date earnings after charging refinancing and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs of US$23.5 million (2001: nil) were US$35.3 million (2001: US$37.6 million). Revenue Gold production for the quarter of 407,328 ounces generated spot revenue of US$128.3 million, equivalent to US$315 per ounce, US$33 per ounce higher than last year. Hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. income was lower at US$10.1 million as a result of higher spot prices. Total revenue of US$141.2 million was US$5.0 million higher than the US$136.2 million recorded last year, as improved spot revenue more than offset the reduction in hedging income. The realised gold price for the quarter was US$347 per ounce (2001: US$331 per ounce). Hedging At 30 September 2002 Ashanti had 5.0 million ounces protected at an average price of US$358 per ounce, with commitments to deliver 6.8 million ounces with an average price of US$345 per ounce. The marked-to-market Marked-to-market An arrangement whereby the profits or losses on a futures contract are settled each day. value of the hedge book was negative US$46.0 million based on a spot price of US$323 per ounce. At 30 September 2002 Ashanti's share of the Geita hedge book was negative US$32.6 million. Both Ashanti's hedge book and the Geita hedge book benefit from margin free trading. Full details of the hedge positions are set out below. During the quarter, Ashanti effected a significant reduction in its floating lease rate exposure. The total floating lease rate exposure was reduced by 1.6 million ounces from 4.38 million ounces to 2.78 million ounces. Cash Operating Costs Total cash operating costs for the quarter wereUS$199 per ounce, US$10 higher than last year. The principal increases were in Obuasi, Siguiri and Geita. Further details are included in the Operations Review. Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Operating profit for the quarter was US$24.4 million (2001: US$24.1 million). An analysis of operating profit is set out below. Exploration expenditure written off in the quarter was US$1.1 million bringing year-to-date expenditure to US$3.4 million. Corporate administration costs for the quarter were US$3.6 million bringing the year to date expenditure to US$12.5 million. Net interest payable for the quarter was US$5.4 million, 32% lower than last year due to lower debt levels and lower interest rates. Taxation for the quarter was a credit of US$3.9 million as a result of the successful conclusion of some outstanding prior year tax issues. Exceptional Items As provided for in the sale and purchase agreement entered in to in 2000 in respect of the Geita mine, AngloGold AngloGold was a gold mining company based in South Africa and majority-owned by the Anglo American group. In 2004 it merged with the Ashanti Goldfields Corporation to create the world's second-largest gold producer, AngloGold Ashanti. transferred the neighbouring neighbouring or US neighboring Adjective situated nearby: the neighbouring island neighbouring U.S. Ridge ridge (rij) a linear projection or projecting structure; a crest. dental ridge any linear elevation on the crown of a tooth. dermal ridges cristae cutis. 8 property to Geita during the quarter. The consideration of US$17.6 million will be left outstanding until the project finance loans are fully repaid by Geita. AngloGold has transferred to Ashanti for no consideration, its 50% share of the receivable which resulted in an exceptional gain of US$8.8million. Ashanti has written down the value of this property to nil, thereby recording a compensating exceptional loss of US$8.8 million. Cash Flow and Balance Sheet Cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. from operating activities for the quarter was lower at US$13.2 million (2001: US$25.1 million) due to the payment this quarter of approximately US$13.0 million of the refinancing and restructuring costs accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. in the last quarter. Net interest payments of US$4.4 million were US$3.5 million lower than last year following the refinancing. Capital expenditure for the quarter was US$15.5 million, US$2.6 million higher than the corresponding period last year due to the ongoing construction work at the Iduapriem CIL plant and additions to the mining equipment and plant at the Freda-Rebecca mine. During the quarter Ashanti paid down US$36.6 million of loans which included US$33.0 million of its Revolving Credit Facility, reducing the amounts drawn to US$157.0 million as at 30 September 2002. At the quarter end, the Group's gross debt level, excluding the 50% share of the non-recourse Geita project finance loan, was lower at US$268.1 million (30 June June: see month. 2002: US$303.9 million) analysed as follows:
US$m
US$200 million Revolving Credit Facility ("RCF") 157.0
Iduapriem/Teberebie project finance loans 23.8
Other loans (net of deferred loan fees) 12.3
193.1
Mandatorily Exchangeable Notes ("MENS") 75.0
Ashanti Group's gross debt as at
30 September 2002 268.1
The Group's net debt however increased by US$6.9 million to US$232.3 million due to the payment this quarter of approximately US$13.0 million of the refinancing and restructuring costs accrued in the last quarter and other working capital movements. Principal Registrars Following their decision to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: their registration function, Barclays Bank of Ghana The Bank of Ghana is the central bank of Ghana. It is located in Accra and was formed in 1957. Its name is abbreviated to BOG. History The history of the Bank of Ghana began with the Bank of the Gold Coast (BCG). Limited have been replaced with NTHC NTHC Nottingham Transport Heritage Centre (UK) Limited as the Company's Principal Registrars with effect from 1 December December: see month. 2002.
Group Profit and Loss Account
Unaudited
3 months
3 months to to
30 Sept 2002 30 Sept.
2001
Group
Before After
exceptional Exceptional exceptional
items items items Group
Note US$m US$m US$m US$m
Turnover: Group
and share of
joint venture 2 141.2 - 141.2 136.2
Less share of
joint
venture
turnover (24.5) - (24.5) (19.8)
Group turnover 116.7 - 116.7 116.4
Cash operating
costs 2 (68.3) - (68.3) (67.6)
Other costs (7.7) - (7.7) (6.0)
Royalties (2.9) - (2.9) (2.5)
Depreciation and
amortisation (19.9) - (19.9) (22.2)
Refinancing and
restructuring
costs - - - -
Other income - 8.8 8.8 -
Group operating
profit/
(loss) 2 17.9 8.8 26.7 18.1
Share of
operating profit
of joint venture 6.5 (8.8) (2.3) 6.0
Total operating
profit/
(loss) 24.4 - 24.4 24.1
Net interest
payable: Group (4.0) - (4.0) (5.5)
Joint venture (1.4) - (1.4) (2.4)
Profit/(loss)
before
taxation 19.0 - 19.0 16.2
Taxation 3.9 - 3.9 (1.7)
Profit/(loss)
after
taxation 22.9 - 22.9 14.5
Minority interests (0.4) - (0.4) -
Profit/(loss)
attributable to
shareholders 22.5 - 22.5 14.5
Dividends - - - -
Retained profit/
(loss)
for the
period 22.5 - 22.5 14.5
Earnings per share
(US$) 0.18 - 0.18 0.13
9 months
9 months to to
30 Sept 2002 30 Sept.
2001
Group
Before After
exceptional Exceptional exceptional
items items items Group
Note US$m US$m US$m US$m
Turnover:
Group and
share of
joint
venture 2 419.3 - 419.3 405.6
Less share
of joint
venture
turnover (67.0) - (67.0) (56.8)
Group turnover 352.3 - 352.3 348.8
Cash operating
costs 2 (201.6) - (201.6) (206.4)
Other costs (20.2) - (20.2) (19.3)
Royalties (8.7) - (8.7) (7.9)
Depreciation and
amortisation (62.7) - (62.7) (67.5)
Refinancing and
restructuring
costs - (23.5) (23.5) -
Other income - 8.8 8.8 -
Group operating
profit/(loss) 2 59.1 (14.7) 44.4 47.7
Share of operating
profit of
joint
venture 17.8 (8.8) 9.0 17.6
Total operating
profit/(loss) 76.9 (23.5) 53.4 65.3
Net interest
payable: Group (14.1) - (14.1) (17.1)
Joint venture (3.6) - (3.6) (6.4)
Profit/(loss)
before taxation 59.2 (23.5) 35.7 41.8
Taxation - - - (4.2)
Profit/(loss)
after
taxation 59.2 (23.5) 35.7 37.6
Minority interests (0.4) - (0.4) -
Profit/(loss)
attributable to
shareholders 58.8 (23.5) 35.3 37.6
Dividends - - - -
Retained profit/
(loss)
for the
period 58.8 (23.5) 35.3 37.6
Earnings per
share (US$) 0.50 (0.20) 0.30 0.33
Group Balance Sheet
Unaudited
As at As at As at
30 Sept 2002 30 Sept 31 Dec
Interest 2001 2001
in
Group joint Total Group Group
venture
US$m US$m US$m US$m US$m
Fixed assets
Intangible assets 17.5 55.7 73.2 19.5 18.8
Tangible assets 597.5 101.0 698.5 612.9 612.9
Investments
- Geita joint venture 96.0 (96.0) - 80.5 81.7
- Loans to joint venture
and other
investments 32.6 - 32.6 32.6 32.6
743.6 804.3 745.5 746.0
Current assets
Stocks 74.8 10.7 85.5 77.4 73.5
Debtors 20.4 13.0 33.4 15.2 16.1
Cash 35.8 21.9 57.7 51.4 55.2
131.0 45.6 176.6 144.0 144.8
Creditors: amounts
falling due within one
year
Creditors (124.0) (15.8) (139.8) (161.3) (155.0)
Borrowings (5.7) (10.8) (16.5) (10.0) (25.3)
(129.7) (26.6) (156.3) (171.3) (180.3)
Net current assets/
(liabilities) 1.3 19.0 20.3 (27.3) (35.5)
Total assets less
current
liabilities 744.9 824.6 718.2 710.5
Creditors: amounts
falling due over one
year
Creditors (41.9) (31.1) (73.0) (49.2) (49.8)
Borrowings (262.4) (45.9) (308.3) (324.8) (300.6)
Provisions for
liabilities
and charges (21.6) (2.7) (24.3) (26.9) (19.8)
419.0 419.0 317.3 340.3
Capital and reserves
Stated capital 588.2 545.2 545.2
Reserves (171.6) (232.0) (206.9)
Equity shareholders'
funds 416.6 313.2 338.3
Equity minority
interests 2.4 4.1 2.0
419.0 317.3 340.3
Group Cash Flow Statement
Unaudited
3 months to 3 months to 9 months to 9 months to
30 Sept 2002 30 Sept 2001 30 Sept 2002 30 Sept 2001
US$m US$m US$m US$m
Cash inflow from
operating
activities 13.2 25.1 58.2 66.6
Returns on
investments
and servicing
of finance
Interest received 0.2 0.4 0.5 2.1
Interest paid (4.6) (8.3) (18.0) (21.5)
Net cash outflow
from returns
on investments
and service
of finance (4.4) (7.9) (17.5) (19.4)
Taxation
Corporate tax paid - (0.2) (1.7) (2.8)
Capital expenditure
and financial
investments
Purchase of tangible
fixed assets (15.5) (12.9) (46.1) (35.0)
Net cash outflow
from capital
expenditure and
financial
investment (15.5) (12.9) (46.1) (35.0)
Cash (outflow)/
inflow before
use of liquid
resources
and
financing (6.7) 4.1 (7.1) 9.4
Management of
liquid resources 1.8 3.7 13.4 12.1
Cash (outflow)/
inflow before
financing (4.9) 7.8 6.3 21.5
Financing
Loans drawn
down - 0.3 265.0 0.3
Loans repayments (36.6) (7.8) (317.0) (30.2)
Issue of shares - - 41.8 -
Net cash outflow
from financing (36.6) (7.5) (10.2) (29.9)
(Decrease)/increase
in cash (41.5) 0.3 (3.9) (8.4)
Reconciliation of
net cash flow
to movement
in net debt
(Decrease)/increase
in cash (41.5) 0.3 (3.9) (8.4)
Decrease in liquid
resources (1.8) (3.7) (13.4) (12.1)
(43.3) (3.4) (17.3) (20.5)
Cash outflow
from financing 36.6 7.5 52.0 29.9
Other (0.2) (0.2) 3.7 (0.7)
Movement in net
debt (6.9) 3.9 38.4 8.7
Net debt at
beginning
of period (225.4) (287.3) (270.7) (292.1)
Net debt at
end of period (232.3) (283.4) (232.3) (283.4)
Notes to the Financial Information 1. Basis of Preparation The unaudited results for the nine months ended 30 September 2002 have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the accounting policies set out in the Annual Report and Accounts for the year ended 31 December 2001. Deferred Taxation in accordance with Financial Reporting Standard 19 ("FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 19"), which is required to be implemented for accounting periods ending on or after 23 January January: see month. 2002, will be implemented by the Company in the 2002 annual accounts. Deferred tax is currently provided only to the extent that a liability is expected to crystallise Verb 1. crystallise - make free from confusion or ambiguity; make clear; "Could you clarify these remarks?"; "Clear up the question of who is at fault" crystalise, crystalize, shed light on, sort out, crystallize, elucidate, illuminate, enlighten, straighten out, . FRS 19 requires deferred tax to be provided for on a full provision basis. Adoption of FRS 19 will require the comparative figure for the tax on operating profit on ordinary activities for 2001 to be restated from the previously reported amount of US$6.8 million to US$9.6 million. This adjustment will be reflected in the 2002 annual accounts. For the nine months to 30 September 2002 there would have been a tax credit under FRS 19 of US$4.0 million compared to nil.
2. Operating Profit Analysis by Business Area before exceptional items
9 months to 30 September 2002 Idua-
Obuasi priem Bibiani Siguiri
Production ounces 386,398 139,456 182,217 209,159
US$ million
Revenue - spot 118.5 42.9 56.2 64.3
- hedging - - - -
- government support
price - - - -
118.5 42.9 56.2 64.3
Cash operating costs (77.7) (29.1) (34.1) (44.2)
Other costs - (0.7) (0.3) (3.3)
Royalties (3.5) (1.3) (1.7) (2.2)
EBITDA 37.3 11.8 20.1 14.6
Depreciation and
amortisation (26.9) (2.8) (9.3) (13.1)
Operating profit/(loss) 30.9.2002 10.4 9.0 10.8 1.5
30.9.2001 (2.7) 2.9 6.0 (5.4)
9 months to 30 September 2002 Freda- Hedging Explora- Corp.
Rebecca income tion Admin
Production ounces 75,065 - - -
US$ million
Revenue - spot 23.2 - - -
- hedging - 38.6 - -
- government support
price 8.6 - - -
31.8 38.6 - -
Cash operating costs (16.5) - - -
Other costs - - (3.4) (12.5)
Royalties - - - -
EBITDA 15.3 38.6 (3.4) (12.5)
Depreciation and
amortisation (9.6) - - (1.0)
Operating profit/
(loss) 30.9.2002 5.7 38.6 (3.4) (13.5)
30.9.2001 4.1 63.1 (4.4) (15.9)
9 months to 30 September 2002
Group Geita Total
Production ounces 992,295 228,151 1,220,446
US$ million
Revenue - spot 305.1 70.3 375.4
- hedging 38.6 (3.3) 35.3
- government support price 8.6 - 8.6
352.3 67.0 419.3
Cash operating costs (201.6) (34.8) (236.4)
Other costs (20.2) (2.4) (22.6)
Royalties (8.7) (2.1) (10.8)
EBITDA 121.8 27.7 149.5
Depreciation and amortisation (62.7) (9.9) (72.6)
Operating profit/(loss) 30.9.2002 59.1 17.8 76.9
30.9.2001 47.7 17.6 65.3
3 months to 30 September 2002 Idua-
Obuasi priem Bibiani Siguiri
Production ounces 126,251 51,843 61,192 60,940
US$ million
Revenue - spot 39.7 16.4 19.3 19.1
- hedging - - - -
- government support
price - - - -
39.7 16.4 19.3 19.1
Cash operating costs (26.6) (10.9) (11.8) (13.8)
Other costs - (0.2) (0.1) (2.7)
Royalties (1.1) (0.5) (0.6) (0.7)
EBITDA 12.0 4.8 6.8 1.9
Depreciation and amortisation (9.1) (1.1) (1.8) (4.2)
Operating profit/(loss) 30.9.2002 2.9 3.7 5.0 (2.3)
30.9.2001 0.4 1.0 1.5 (0.6)
3 months to 30 September
2002 Freda- Hedging Explora- Corp.
Rebecca income tion Admin
Production ounces 24,765 - - -
US$ million
Revenue - spot 7.9 - - -
- hedging - 11.5 - -
- government support price 2.8 - - -
10.7 11.5 - -
Cash operating costs (5.2) - - -
Other costs - - (1.1) (3.6)
Royalties - - - -
EBITDA 5.5 11.5 (1.1) (3.6)
Depreciation and amortisation (3.4) - - (0.3)
Operating profit/(loss) 30.9.2002 2.1 11.5 (1.1) (3.9)
30.9.2001 2.3 19.9 (1.1) (5.3)
3 months to 30 September 2002
Group Geita Total
Production ounces 324,991 82,337 407,328
US$ million
Revenue - spot 102.4 25.9 128.3
- hedging 11.5 (1.4) 10.1
- government support price 2.8 - 2.8
116.7 24.5 141.2
Cash operating costs (68.3) (12.8) (81.1)
Other costs (7.7) (0.8) (8.5)
Royalties (2.9) (0.8) (3.7)
EBITDA 37.8 10.1 47.9
Depreciation and amortisation (19.9) (3.6) (23.5)
Operating profit/(loss) 30.9.2002 17.9 6.5 24.4
30.9.2001 18.1 6.0 24.1
Hedging Commitments
The table below shows all forward and option positions that
Ashanti had as at 30 September 2002:
2002 2003 2004 2005 2006
Forward Sales
(ounces) 132,299 754,392 529,992 520,996 410,000
(US$/ounce) 334 345 352 347 355
Puts:
Bought (ounces) 37,500 50,000 111,200 111,200 111,200
(US$/ounce) 385 354 370 370 370
Calls:
Sold (ounces) 323,175 640,692 628,972 425,528 312,056
(US$/ounce) 331 337 339 344 377
Bought (ounces) 45,000 240,000 280,000 60,000 172,996
(US$/ounce) 336 429 444 380 418
Subtotal
(ounces) 278,175 400,692 348,972 365,528 139,060
Summary:
Protected
(ounces) 169,799 804,392 641,192 632,196 521,200
Committed (ounces) 410,474 1,155,084 878,964 886,524 549,060
Total committed ounces
as a percentage of total
forecast production
(excluding Geita production
for the period of the project
finance, 2002-2007)
Lease Rate
Swap - 2,412,000 2,272,000 2,374,500 2,038,500
Deferred
Hedging Income (US$m) 11 14 13 - -
2007 2008 2009 2010 2011
Forward Sales
(ounces) 340,000 279,125 334,250 304,250 268,250
(US$/ounce) 357 367 358 362 367
Puts:
Bought (ounces) 111,200 79,200 79,200 79,200 -
(US$/ounce) 370 378 378 378 -
Calls:
Sold (ounces) 391,076 349,535 123,970 84,250 84,250
(US$/ounce) 372 374 383 384 384
Bought (ounces) 172,996 - - - -
(US$/ounce) 418 - - - -
Subtotal (ounces) 218,080 349,535 123,970 84,250 84,250
Summary:
Protected (ounces) 451,200 358,325 413,450 383,450 268,250
Committed (ounces) 558,080 628,660 458,220 388,500 352,500
Total committed ounces
as a percentage of total
forecast production
(excluding Geita
production for the
period of the project
finance, 2002-2007)
Lease Rate Swap 1,702,500 1,441,500 1,105,500 769,500 433,500
Deferred
Hedging Income (US$m) - - - - -
2012 2013 Total
Forward Sales
(ounces) 215,313 186,500 4,275,367
(US$/ounce) 374 365 355
Puts:
Bought (ounces) - - 769,900
(US$/ounce) - - 372
Calls:
Sold (ounces) 77,188 28,000 3,468,692
(US$/ounce) 387 401 355
Bought (ounces) - - 970,992
(US$/ounce) - - 422
Subtotal (ounces) 77,188 28,000 2,497,700
Summary:
Protected (ounces) 215,313 186,500 5,045,267
Committed (ounces) 292,500 214,500 6,773,066
Total committed ounces as a
percentage of total
forecast production
(excluding Geita production
for the period of the
project finance, 2002-2007) 60%
Lease Rate Swap 195,0000 52,500
Deferred
Hedging Income (US$m) - - 38
Forward Sales forward sales npl → ventas fpl a término : A total of 4.28 million ounces have been sold forward at an average price of US$355 per ounce. Put Options: Ashanti has purchased 769,900 ounces of put options that give Ashanti the right, but not the obligation, to sell gold at certain strike prices. The average strike price is US$372 per ounce. Call Options: Ashanti has sold 3.47 million ounces of call options at an average strike price of US$355 per ounce. As a partial offset, Ashanti has bought 0.97 million ounces of call options at an average strike price of US$422 per ounce. Gold Lease Rate Swaps: As of 30 September 2002, a maximum of 2.41 million ounces of Ashanti's hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. production will be exposed to the floating 3 month lease rate at any one time. The lease rate swaps can be broken down into the following types (under all of these contracts Ashanti receives a certain lease rate income, which can be regarded as compensation for the floating lease rate exposure that Ashanti takes on).
Volume (ozs) Fixed Rate Description
2,437,000 1.80% Ashanti pays a quarterly floating
rate and receives a quarterly
weighted average fixed rate of
1.80%.
340,000 2.00% Ashanti pays a quarterly floating
rate and receives a fixed amount of
dollars at maturity. The quarterly
amount is rolled until maturity of
each forward contract. The fixed
amount for each contract is
calculated using the formula:
Volume*Years To Maturity*302*2.00%.
The next rate set is in 2003.
Total
2,777,000
Hedging Commitments Marked-to-market valuations On 30 September 2002, the portfolio had a negative marked-to-market value of US$46.0 million. This valuation was based on a spot price of US$323 and the then prevailing applicable US interest rates, gold forward rates, volatilities and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. provided by the Risk Management Committee of the Board. The delta at that time was negative 5.9 million ounces. This implies (logic) implies - (=> or a thin right arrow) A binary Boolean function and logical connective. A => B is true unless A is true and B is false. The truth table is A B | A => B ----+------- F F | T F T | T T F | F T T | T It is surprising at first that A => that a US$1 increase in the price of gold would have a US$5.9 million negative impact (approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. ) on the marked-to-market valuation of the hedge book. Movements in US interest rates, gold lease rates, volatilities and time will also have a sizeable impact on the marked-to-market value. All these variables can change significantly over short time periods and can consequently materially affect the marked-to-market valuation. The approximate breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. by type of the marked-to-market valuation at 30 September 2002 was as follows:
US$m
Forward contracts 6.3
European Put options (net bought) 31.4
European Call options (net sold) (80.7)
Lease rate swaps (3.0)
(46.0)
Geita Hedging Commitments The table below shows Ashanti's portion of hedging commitments for Geita as at 30 September 2002. This represents half of Geita's hedge commitments.
2002 2003 2004 2005
Forward Sales (ounces) 62,221 189,598 195,558 174,828
(US$/ounce) 283 285 289 294
Puts:
Bought (ounces) 5,034 26,735 25,586 24,350
(US$/ounce) 292 291 291 291
Summary:
Protected (ounces) 66,948 216,333 221,144 199,178
Committed (ounces) 61,914 189,598 195,558 174,828
Lease Rate Swap 200,964 156,301 116,774 76,301
Lease Rate Proceeds 307
2006 2007 Total
Forward Sales (ounces) 94,576 120,938 837,718
(US$/ounce) 296 298 291
Puts:
Bought (ounces) 18,115 23,390 123,210
(US$/ounce) 291 292 291
Summary:
Protected (ounces) 112,691 144,328 960,621
Committed (ounces) 94,576 120,938 837,411
Lease Rate Swap 41,240 - -
Lease Rate Proceeds
Marked-to-Market Valuation On 30 September 2002, the Geita portfolio had a negative marked-to-market value of US$65.2 million (Ashanti's portion - US$32.6 million). This valuation was based on a spot price of US$323 per ounce and the then prevailing US interest rates, gold forward rates, volatilities and guidelines provided by the Risk Management Committee of the Board. Forward Looking Statements This report contains a number of statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans, forecasts and future results of Ashanti Goldfields Company Limited ("Ashanti") that are considered "forward looking statements" as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 1995 of the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, including but not limited to future working capital, future production levels, operating costs and plans for diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. . Ashanti may also make written or oral forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in its presentations, periodic reports and filings with the various regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , in its annual report to shareholders, in its offering circulars Offering Circular An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue. Notes: An offering circular allows investors to access information regarding a new issue. and prospectuses, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These forward looking statements include statements about our beliefs, hopes, projections and expectations, and may include statements regarding future plans, objectives or goals, anticipated production or construction commencement dates, construction completion dates, working capital, expected costs, production output, the anticipated productive life of mines, projected cashflows, debt levels, and mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. values of and cashflows from the hedgebook. Such statements are based on current plans, information, intentions, estimates and projections and certain external factors which may be beyond the control of Ashanti and, therefore, undue reliance should not be placed on them. Forward looking statements speak only as of the date they are made, and Ashanti undertakes no obligation to update publicly any of them in light of new information or future events. These statements are subject to risks and uncertainties that could cause actual occurrences to differ materially from the forward looking statements, such as the risks that Ashanti may not be able to achieve the levels of production and operating costs it has projected. Additional risk factors affecting Ashanti are set out in Ashanti's filing with the US Securities and Exchange Commission. Ashanti can give no assurances that such results, including the actual production or commencement dates, construction completion dates, costs or production output or anticipated life of the projects and mines, projected cashflows, debt levels, and marked-to-market values of and cashflows from the hedgebook, will not differ materially from the forward seeking statements contained in this report. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors collectively referred to as "Risk Factors", many of which are beyond the control of Ashanti, which may cause actual results to differ materially from those expressed in the statements contained in this report. These Risk Factors include leverage, gold price volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the , changes in interest rates, hedging operations, reserves estimates, exploration and development, mining, yearly output, infrastructure, Ghanaian political risks, environmental regulation, labour relations labour relations (US), labor relations npl → relations fpl dans l'entreprise labour relations labour npl → Beziehungen pl , general political risks, control by principal shareholders, Ghanaian Statutory provisions, dividend flows and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . For example, future revenues from projects or mines described herein will be based in part upon the market price of gold, which may vary significantly from current levels. Such variations, if materially adverse, may impact the timing or feasibility fea·si·ble adj. 1. Capable of being accomplished or brought about; possible: a feasible plan. See Synonyms at possible. 2. of the developments of a particular project or the expansion of specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. mines. Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of mines include the ability to produce profitably and transport gold extracted therefrom there·from adv. From that place, time, or thing. Adv. 1. therefrom - from that circumstance or source; "atomic formulas and all compounds thence constructible"- W.V. to applicable markets, the impact of foreign currency exchange rates, the impact of any increase in the costs of inputs, and activities by governmental authorities where such projects or mines are being explored or developed, including increases in taxes, changes in environmental and other regulations and political uncertainty. Likewise the cashflows from and marked-to-market values of the hedgebook can be affected by, inter alia [Latin, Among other things.] A phrase used in Pleading to designate that a particular statute set out therein is only a part of the statute that is relevant to the facts of the lawsuit and not the entire statute. , gold price volatility, US interest rates, gold lease rates and active management of the hedgebook. Forward looking statements speak only as of the date they are made, and except as required by law, or unless required to do so by the Listing Rules of the UK Listing Authority, Ashanti undertakes no obligation to update publicly any of them in light of new information or future events. |
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