Ashanti Goldfields Company Limited Improves upon First Two Quarters' Performance.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. 30, 2003 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. 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. Company Limited (NYSE NYSE See: New York Stock Exchange :ASL ASL - Algebraic Specification Language ) Highlights -- Earnings (before exceptional gains) of US$20.2 million - down US$2.3 million on last year, but up US$12.4 million on the previous quarter -- Quarter's gold production of 423,231 ounces - up 4% upon last year and up 14% upon the previous quarter -- Cash operating costs operating costs npl → gastos mpl operacionales of US$212 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. up US$13 per ounce on last year, but down US$10 per ounce on previous quarter -- Further reductions achieved in Ashanti's hedgebook commitments and floating lease rate exposure -- Net debt reduced by US$12.6 million during the quarter
3 months 3 months 9 months 9 months
to to to to
30 Sept 03 30 Sept 02 30 Sept 03 30 Sept 02
Financial (US$m) ---------- ---------- ---------- ----------
Total turnover 150.1 141.2 407.3 419.3
Earnings before
exceptional items 20.2 22.5 34.8 58.8
Earnings after
exceptional items 24.9 22.5 46.5 35.3
Total operating profit
before exceptional items 24.9 24.4 50.2 76.9
Group EBITDA before
exceptional items 34.2 37.8 88.9 121.8
Total EBITDA before
exceptional items 46.4 47.9 110.7 149.5
Earnings per share before
exceptional items (US$) 0.15 0.18 0.27 0.50
Earnings per share after
exceptional items (US$) 0.19 0.18 0.36 0.30
Gold Production (ounces)
Total 423,231 407,328 1,175,138 1,220,446
Attributable 403,963 390,410 1,120,099 1,168,153
Gold Price (US$ per
ounce)
Realised by Ashanti 355 347 347 344
Spot price 366 315 356 308
Production Costs (US$ per
ounce)
Cash operating costs 212 199 219 194
Royalties 12 9 11 9
Depreciation and
amortisation 51 58 51 59
Total 275 266 281 262
Overview Ashanti's performance improved during the third quarter after having largely addressed the operational difficulties encountered during the first half of 2003. Earnings (before exceptional gains) were US$20.2 million, down US$2.3 million on the corresponding period last year but up US$12.4 million on the previous quarter. A 14% increase in gold production, a higher average realised gold price and a reduction in unit cash operating costs, relative to the second quarter, helped to improve earnings. Earnings for the quarter, after exceptional gains of US$4.7 million, amounted to US$24.9 million (2002: US$22.5 million). Earnings per share before exceptional gains for the quarter were US$0.15 (2002: US$0.18) and after exceptional items were US$0.19 (2002: US$0.18). The quarter's gold production of 423,231 ounces was in line with Ashanti's 2003 annual target of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.6 million ounces and is 4% better than the 407,328 ounces achieved in the same period last year. With the resolution of the plant expansion difficulties at Iduapriem and the progress achieved at the Nyankanga pit cut back at Geita, both Iduapriem and Geita achieved record quarterly production of 68,014 ounces and 176,487 ounces (Ashanti's 50% share: 88,244 ounces) respectively. 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. , Bibiani Bibiani is a town in Ghana. It is the capital of Bibiani Anhwiaso Bekwai district. 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.
Cash operating costs for the quarter were US$212 per ounce, US$13 per ounce above the US$199 achieved last year. However, this represents a US$10 per ounce decrease on the previous quarter, largely due to higher gold production. The year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. cash operating costs of US$219 per ounce were in line with the previously announced 10% increase on last year's annual cash operating costs of US$199 per ounce. Ashanti took advantage of the sustained high gold price and low lease rate environment to reduce its floating lease rate exposure whilst adding protection to its hedgebook. During the quarter, notional no·tion·al adj. 1. Of, containing, or being a notion; mental or imaginary. 2. Speculative or theoretical. 3. lease rate exposure was reduced from 2.76 million ounces to 1.68 million ounces, 176,063 ounces of protection was added and 2003 commitments were reduced from 617,886 ounces to 175,822 ounces. During the quarter, Ashanti reduced its Group net debt by US$12.6 million from US$206.5 million to US$193.9 million. Operations Review 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. Obuasi Obuasi's gold production for the quarter was 137,564 ounces, approximately 1,500 ounces short of its annualised target but 11,313 ounces above the 126,251 ounces achieved in the third quarter of 2002. The increase in production was due to increased tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. and feed grade 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;. ). At US$207 per ounce, the cash operating cost for the quarter was marginally above the target of US$205 per ounce and below the US$211 per ounce achieved in the third quarter last year. Mining. Underground production of 590,000 tonnes was lower than the 627,000 tonnes reported in the third quarter of 2002 and the shaft shaft (shaft) a long slender part, such as the diaphysis of a long bone. shaft n. 1. An elongated rodlike structure, such as the midsection of a long bone. 2. head grade at 7.42 g/t is a decrease on the 7.60 g/t reported for the same period last year. The reduced tonnage resulted from lower availability of the loader A program routine that copies a program into memory for execution. fleet. Underground infrastructure. During the quarter, excavation excavation In archaeology, the exposure, recording, and recovery of buried material remains. The techniques employed vary by the type of site, but all forms of archaeological excavation require great skill and careful preparation. activities on the 51 level loading pocket, the 26 level skip change out bay and the 24 level discharge bin at Brown Sub-vertical Shaft (BSVS BSVS Back-up Secure Voice System ) were completed, as were civil works on 51 level loading station. BSVS shaft steelwork steel·work n. 1. Something made of steel. 2. steelworks (used with a sing. verb) A plant where steel is made; a foundry. steel procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. was completed and the sections for equipping e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. the head end of the shaft were delivered to site. Erection erection /erec·tion/ (e-rek´shun) the condition of being rigid and elevated, as erectile tissue when filled with blood. e·rec·tion n. 1. of the shaft steel work surface jigs began during the quarter and equipping, starting with the installation of the shaft cables and clamps, is scheduled to begin in November November: see month. 2003. Commissioning of the shaft is scheduled to take place at the end of 2004. At Sansu, civil works and electrical/mechanical installations were completed in preparation for the sinking sinking, n a process to relax by focusing attention on points of contact between the body and the surface it lies or stands on and imagining the body sinking down into the support surface, with the rhythmic modulation of breaths. and lining of the upper section of the raisebored Sansu waste pass system. Surface. A total of 121,000 tonnes grading 2.35 g/t was mined from the Homase and Kunka kunka caseous granules found in granulomatous lesions of habronemiasis. open pits during the quarter, compared with 163,000 tonnes at 2.81 g/t for the corresponding period in 2002. Processing. Throughput at STP was 619,000 tonnes, 4% above the 593,000 tonnes achieved for the corresponding period of last year whilst the head grade increased to 7.16 g/t from 6.80 g/t and 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 82.7% showed a slight improvement on the corresponding period last year. The quarter's gold production at STP was 117,802 ounces as compared to 107,097 ounces in the third quarter of 2002. Production tonnage was affected by an unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" change out of the ball mill trunion bearing. Despite the increase in throughput from 184,000 tonnes last year to 229,000 tonnes in the third quarter, gold production at 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. Treatment Plant reduced by 1,451 ounces to 7,948 ounces from the 9,399 ounces achieved in the third quarter last year because of the lower grade and more refractory refractory Material that is not deformed or damaged by high temperatures, used to make crucibles, incinerators, insulation, and furnaces, particularly metallurgical furnaces. nature of the ore feed. Over the comparative periods, throughput and metallurgical recovery at the Tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. Treatment Plant increased from 453,000 tonnes to 521,000 tonnes and from 29.5% to 31.0% respectively, resulting in an increase in gold production from 9,755 ounces to 11,814 ounces. Exploration. During the quarter, exploratory drilling activities continued at 50S 173E, 155W, 131W, 42W, 1913, TSAD TSAD T Cell–Specific Adapter TSAD Transportation Safety Analysis Division TSAD Theater Strategic Area Defense TSAD Test System Analysis Directorate TSAD Tower Situational Awareness Display (Australia) SN 32W and 12N 32W crosscuts whilst 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 and development sampling continued within the main mining areas. Above 50 level, an intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. of 20.0 g/t over 31 metres was made on the 10 level horizon from quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. with visible gold of the Ashanti Spur SPUR - An early system on the IBM 650. [Listed in CACM 2(5):16 (May 1959)]. . On the '50L Deeps' project, two intercepts were made during the quarter; one from 50S 131W crosscut which averaged to 18.8 g/t over 2.6 metres on the 55L horizon. The other intercept intercept in mathematical terms the points at which a curve cuts the two axes of a graph. was from 50N 19E crosscut, which was the first intercept from the northern corridor of the 50L Deeps targets, where quartz with graphitic graph·ite n. A soft, steel-gray to black, hexagonally crystallized allotrope of carbon with a metallic luster and a greasy feel, used in lead pencils, lubricants, paints, and coatings, that is fabricated into a variety of forms such as molds, bricks, schist schist (shĭst), metamorphic rock having a foliated, or plated, structure called schistosity in which the component flaky minerals are visible to the naked eye. was intercepted at a grade of 16.1 g/t over 3 metres. Within this zone of intercept, there was a 1 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, zone of 32.1 g/t on the 57 1/2 level horizon. Elsewhere, on 38 level 294 crosscut, just to the north of BSVS, the Obuasi Fissure fissure /fis·sure/ (fish´er) 1. any cleft or groove, normal or otherwise, especially a deep fold in the cerebral cortex involving its entire thickness. 2. a fault in the enamel surface of a tooth. with quartz and mineralised sulphides was intersected on 40 1/2 level horizon at a grade of 18.1 g/t over 4.5 metres. Iduapriem (80% owned)/Teberebie (90% owned) Third quarter gold production at Iduapriem/Teberebie was a record 68,014 ounces compared with 51,843 ounces produced in the same period last year. 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 throughput at 973,000 tonnes was 46% above the 668,000 tonnes achieved in the third quarter of 2002 and the feed grade improved from 2.01 g/t to 2.18 g/t. Plant recovery at 89.8% was below plan and the 96.0% reported the previous year as a result of problems with the inter tank screens and under sized agitator ag·i·ta·tor n. 1. One who agitates, especially one who engages in political agitation. 2. An apparatus that shakes or stirs, as in a washing machine. Noun 1. blades in the 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. and absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. sections. At the end of the quarter, most of the remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. engineering work on the 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 and crusher crusher, machine used to reduce materials such as ore, coal, stone, and slag to particle sizes that are convenient for their intended uses. Crushers operate by slowly applying a large force to the material to be reduced. and overland o·ver·land adj. Accomplished, traversing, or passing over the land instead of the ocean: an overland journey; an overland route. adv. 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. systems had been completed and during the fourth quarter a steady state performance capability of the upgrade should be established. Heap In programming, it refers to a common pool of memory that is available to the program. The management of the heap is either done by the applications themselves, allocating and deallocating memory as required, or by the operating system or other system program. 1. leach gold production for the quarter reduced to 6,648 ounces from 10,399 ounces in the third quarter of 2002 because of lower recovery from the harder, less porous porous /por·ous/ (por´us) penetrated by pores and open spaces. po·rous adj. 1. Full of or having pores. 2. Admitting the passage of gas or liquid through pores. ores. The cash operating cost for the quarter was US$232 per ounce compared with US$209 per ounce for the corresponding period last year. The increase in unit cash operating costs was due to higher ore handling costs and increases in the price of power, diesel and reagents. Bibiani Bibiani produced 55,519 ounces of gold in the third quarter from processing 721,000 tonnes of ore at 3.26 g/t. Metallurgical recovery was 73.5% and the cash operating cost was US$204 per ounce. Production for the corresponding period in 2002 was 61,192 ounces from 680,000 tonnes at 3.64 g/t and a metallurgical recovery of 79.7%, at US$193 per ounce. The increase in unit cash operating costs resulted from lower gold production, cost increases on the mining contract, higher than plan diesel costs, greater than plan material movement in the main pit and increased power costs. Milled tonnage increased as a result of improvements to the plant's 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. circuit, but as expected, the lower mill feed grade and metallurgical recovery, owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the more refractory nature of the ore types being processed, resulted in the reduced gold production. During the quarter, work continued on installing the flotation flotation or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. plant and the regrind mill relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. from Obuasi in the second quarter. Commissioning of this plant, which is designed with a view to improving recovery to over 80%, is now scheduled for the end of the fourth quarter. Good progress was made on the underground decline to access the old workings below the pit and, by the end of the third quarter, the face had been advanced from the portal at the +140RL to the +RL65 elevation elevation, vertical distance from a datum plane, usually mean sea level to a point above the earth. Often used synonymously with altitude, elevation is the height on the earth's surface and altitude, the height in space above the surface. , a distance of approximately 900 metres. Guinea Guinea, archaic term for Africa's west coast 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. Siguiri (85% owned) Siguiri gold production of 60,437 ounces compared with 60,940 ounces achieved in the third quarter of 2002. Stacked Stacked is an American television sitcom that premiered on Fox on April 13, 2005. On May 18, 2006, Stacked was cancelled, leaving five episodes unaired in the United States. The last episode aired on January 11, 2006. tonnage increased to 2.2 million tonnes from 2.1 million tonnes whilst the feed grade improved to 1.14 g/t from 1.09g/t. Gold recovery for the quarter reduced to 76.1% from 82.9% as a result of abnormally ab·nor·mal adj. Not typical, usual, or regular; not normal; deviant. [Alteration (influenced by ab-1) of obsolete anormal, from Medieval Latin high solution dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. in the month of September September: see month. . The cash operating cost for the quarter was US$263 per ounce compared with US$226 per ounce for the same period last year due to an increased rate of cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. consumption to cater for a higher SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. to CAP ore blend and increased fuel, cement and cyanide cyanide (sī`ənīd'), chemical compound containing the cyano group, -CN. Cyanides are salts or esters of hydrogen cyanide (hydrocyanic acid, HCN) formed by replacing the hydrogen with a metal (e.g., sodium or potassium) or a radical (e.g. prices. The revision of the CIP project 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. and the selection of a new contractor was successfully completed during the quarter. The project is estimated to cost US$72 million with an anticipated commissioning date by the end of the fourth quarter 2004/first quarter 2005, assuming that the project is re-commenced during the next quarter. The country investment climate and the options for financing the project are being reviewed. 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 Freda-Rebecca gold production for the quarter was 13,453 ounces compared with 24,765 ounces in the third quarter of 2002. Although an improvement on the 9,560 ounces produced in the previous quarter, the shortage of higher grade underground ore production resulting from low availability of loaders, haul trucks and blasthole drill rigs caused by a shortage of critical component spares continued to impact on production. Mill throughput in the third quarter was 327,000 tonnes at 1.70 g/t compared with 274,000 tonnes at 3.40 g/t for the corresponding period in 2002. A five-month intensive maintenance programme to improve availability of the mining fleet, a plan to rationalise Verb 1. rationalise - structure and run according to rational or scientific principles in order to achieve desired results; "We rationalized the factory's production and raised profits" rationalize the operation and improve economic performance has been prepared and is being implemented. However, achievement of the key objectives and the timing thereof will depend to a large extent on the timely release of proceeds of the mine's bullion BULLION. In its usual acceptation, is uncoined gold or silver, in bars, plates, or other masses. 1 East, P. C. 188. 2. In the acts of Congress, the term is also applied to copper properly manufactured for the purpose of being coined into money. revenue by the country's 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 . Tanzania Tanzania (tăn'zənē`ə, –zăn`ēə, Swahili tänzänē`ä), officially United Republic of Tanzania, republic (2005 est. pop. Geita (50% owned) Gold production at Geita was 176,487 ounces (Ashanti's share: 88,244 ounces) compared with 164,673 ounces (Ashanti's share 82,337 ounces) produced in the third quarter of 2002. Plant feed for the quarter was 1.43 million tonnes at 4.27 g/t compared to 1.28 million at 4.30 g/t for the corresponding period last year. The improvement in gold production relative to last year was largely due to the higher plant throughput achieved following the plant upgrade, which was commissioned in the first quarter of 2003. The improvement relative to the past three quarters of 2003 was due to full mining access being gained to the higher grade portion of Nyankanga as a result of the Pit 3 cut back, which was prioritised over the past nine months, necessitated by the re-engineering re-engineering - The examination and modification of a system to reconstitute it in a new form and the subsequent implementation of the new form. http://erg.abdn.ac.uk/users/brant/sre. and expansion of the open pit late last year. Cash operating costs rose to US$175 per ounce from US$155 per ounce in the corresponding third quarter of 2002 as a result of the increase in the depth of the pit and higher diesel and power costs.
Summary of Production and Cash Operating Costs Per Ounce
Obuasi Iduapriem Bibiani Siguiri
3 months to 30 September 2003
Production (ounces) 137,564 68,014 55,519 60,437
Cost per ounce (US$) 207 232 204 263
3 months to 30 September 2002
Production (ounces) 126,251 51,843 61,192 60,940
Cost per ounce (US$) 211 209 193 226
9 months to 30 September 2003
Production (ounces) 394,929 172,350 159,657 194,578
Cost per ounce (US$) 205 237 215 258
9 months to 30 September 2002
Production (ounces) 386,398 139,456 182,217 209,159
Cost per ounce (US$) 201 208 187 211
Freda- Total/
Rebecca Geita Average
3 months to 30 September 2003
Production (ounces) 13,453 88,244 423,231
Cost per ounce (US$) 216 175 212
3 months to 30 September 2002
Production (ounces) 24,765 82,337 407,328
Cost per ounce (US$) 212 155 199
9 months to 30 September 2003
Production (ounces) 39,958 213,666 1,175,138
Cost per ounce (US$) 248 194 219
9 months to 30 September 2002
Production (ounces) 75,065 228,151 1,220,446
Cost per ounce (US$) 220 153 194
Exploration East Africa Tanzania Geita During the quarter, exploration drilling continued at Nyankanga West and Geita Hill. At Nyankanga West, infill drilling was completed with some significant intersections being made. Better results included 11 metres grading 20.73 g/t from 167.5 metres and 13 metres grading 66.18 g/t from 183.5 metres in hole NYDD147; and 28 metres of 5.64 g/t from 118 metres in NYDD143. The mineralisation intersected at Nyankanga West is currently being resource-modelled. Downdip drilling at Geita Hill continued to produce positive results. Better intersections during the quarter included: 10 metres grading 3.0 g/t from 188 metres and 8 metres at 9.7 g/t from 204 metres in hole GHDD GHDD Ghosal Hematodiaphyseal Dysplasia 122; 9 metres grading 5.28 g/t from 193 metres in hole GHDD125; 7 metres at 7.01 g/t from 316 metres in hole GHDD127; and 34 metres grading 1.68 g/t from 243 metres in hole GHDD132. Tanzania Regional During the quarter, Ashanti finalised a royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. option agreement with Tan TAN See tax anticipation note (TAN). Range on nine prospecting licences covering 1,095 square kilometres Square kilometre (U.S. spelling: square kilometer), symbol km², is a decimal multiple of the SI unit of surface area, the square metre, one of the SI derived units. 1 km² is equal to:
Southwest or south west may also refer to:
D.R. Congo Congo, river, Africa Congo (kŏng`gō) or Zaïre (zī`ēr, zäēr`), great river of equatorial Africa, c. The build up of United Nations troops at Bunia in Ituri Province Ituri is a province located in the eastern Democratic Republic of the Congo (DRC). The Ituri Rainforest is in this area. Prior to the adoption of the 2006 Constitution of the Democratic Republic of the Congo, the legal status of Ituri was a topic of some dispute. is considered a positive step in the bringing of peace and stability to the area covered by 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. concession CONCESSION. A grant. This word is frequently used in this sense when applied to grants made by the French and Spanish governments in Louisiana. . Ashanti is taking steps to mobilise n. 1. Mobilize. Verb 1. mobilise - call to arms; of military personnel mobilize, rally, call up send for, call - order, request, or command to come; "She was called into the director's office"; "Call the police!" 2. to Mongbwalu where there are immediate drill targets. 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. Burkina Faso Burkina Faso (burkē`nə fä`sō), republic (2005 est. pop. 13,925,000), 105,869 sq mi (274,200 sq km), W Africa. It borders on Mali in the west and north, on Niger in the northeast, on Benin in the southeast, and on Togo, Ghana, and On 9 September 2003, Etruscan Resources Etruscan Resources is a mining company based in Nova Scotia, in Canada, that operates gold and diamond mines in Africa. Etruscan mines gold and diamonds in the West African countries of Burkina Faso, Cote d'Ivoire, Ghana, Mali and Niger. Inc. signed an agreement with Ashanti and Echo Bay Mines Limited The Echo Bay Mines Limited company was organized in 1964 to develop a silver deposit at Great Bear Lake, Northwest Territories, which became known as the Echo Bay Mine. The company leased the old Port Radium settlement from Eldorado Mining and Refining Limited and used the old camp , now part of Kinross Gold Kinross Gold Corporation (TSX: K, NYSE: KGC) is a Canadian gold mining company. It is the seventh largest primary gold producer in the world.[1] See also
1. ^ Kinross Gold. , to purchase the Youga properties for a total cash consideration of US$6.5 million (Ashanti's share of consideration: 50%). Completion of the transaction is scheduled for the end of November 2003. Guinea Exploration drilling continued in the SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. area (the general area surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the Bidini, Eureka Hill, Sanu Tinti and Tubani pits) and north of the Kozan Word kozan can refer to these towns:
Southeast or South East can refer to: Ghana 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. reverse circulation drilling on the Subriso concession, 50 kilometres north of Bibiani, intersected gold mineralisation over a strike length of 700 metres on the Pokukrom prospect. Better drilling results included: 8 metres grading 4.19 g/t from 15 metres; 7 metres at 3.06 g/t from 7 metres; and 10 metres grading 1.56 g/t from 25 metres. Additional deeper follow up drilling will be undertaken during the next quarter. Cote d'Ivoire The political problems in Cote d'Ivoire remain largely unresolved Not completed; not finished; not linked together. See resolve. and start-up Start-up The earliest stage of a new business venture. of exploration fieldwork field·work n. 1. A temporary military fortification erected in the field. 2. Work done or firsthand observations made in the field as opposed to that done or observed in a controlled environment. 3. is now not anticipated until at least the first quarter of 2004. Ashanti will continue to monitor the situation in that country. Mali A planned reduction on the amount of fieldwork due to the rainy rain·y adj. rain·i·er, rain·i·est Characterized by, full of, or bringing rain. rain  i·ness n.Adj. season meant that few results were received in the quarter from exploratory work in Mali. Geochemical sampling in one Authorization The right or permission to use a system resource; the process of granting access. See access control. de Exploration indicated follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan soil sampling and trenching will be required. Sierra Leone Sierra Leone (sēĕr`ə lēō`nē, lēōn`; sēr`ə lēōn), officially Republic of Sierra Leone, republic (2005 est. pop. 6,018,000), 27,699 sq mi (71,740 sq km), W Africa. Infill soil geochemical surveys failed to verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. the previously reported significant gold 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. on AFCAN's Nimini Hills project. Exploration is now being focused on other areas of the concessions.
Gold Production Summary
3 months 3 months 9 months 9 months
to to to to
30 Sept 30 Sept 30 Sept 30 Sept
2003 2002 2003 2002
-------- -------- -------- --------
Obuasi
Underground Mining
Ore production (000 tonnes) 590 627 1,734 1,827
Ore grade (g/t) 7.42 7.60 7.25 7.52
Surface Mining
Ore production (000 tonnes) 121 163 445 192
Ore grade (g/t) 2.35 2.81 2.37 2.76
Waste mined (000 tonnes) 237 1,063 1,539 1,136
Strip ratio 2.0 6.5 3.5 5.9
Sulphide Treatment Plant
Ore processed (000 tonnes) 619 593 1,781 1,758
Head grade (g/t) 7.16 6.80 7.03 7.23
Recovery (%) 82.7 82.6 8.35 84.9
Gold produced (ounces) 117,802 107,097 335,747 346,529
Pompora Treatment Plant
Ore processed (000 tonnes) - - - -
Head grade (g/t) - - - -
Recovery (%) - - - -
Gold produced (ounces) - - - 195
Oxide Treatment Plant
Ore processed (000 tonnes) 229 184 619 184
Head grade (g/t) 2.19 1.98 1.97 1.98
Recovery (%) 49.3 80.1 65.9 80.1
Gold produced (ounces) 7,948 9,399 25,995 9,399
Tailings Treatment Plant
Ore processed (000 tonnes) 521 453 1,474 1,326
Head grade (g/t) 2.27 2.27 2.23 2.29
Recovery (%) 31.0 29.5 31.4 31.0
Gold produced (ounces) 11,814 9,755 33,187 30,275
Obuasi Total Processed
Ore processed (000 tonnes) 1,369 1,230 3,874 3,268
Head grade (g/t) 4.47 4.41 4.29 4.93
Recovery (%) 70.0 72.4 73.9 74.6
Total gold produced (ounces) 137,564 126,251 394,929 386,398
Obuasi Production Distribution
Obuasi underground (ounces) 117,802 107,097 335,747 346,724
Obuasi surface (ounces) 7,948 9,399 25,995 9,399
Obuasi tailings (ounces) 11,814 9,755 33,187 30,275
Obuasi total (ounces) 137,564 126,251 394,929 368,398
Iduapriem/Teberebie
Mining
Ore production (000 tonnes) 1,359 1,238 3,202 3,339
Ore grade (g/t) 1.74 1.65 1.78 1.63
Waste mined (000 tonnes) 5,089 3,632 12,557 11,920
Strip ratio 3.7 2.9 3.9 3.6
CIL Plant
Ore processed (000 tonnes) 973 668 2,728 1,966
Head grade (g/t) 2.18 2.01 1.96 1.96
Recovery (%) 89.8 96.0 90.0 92.5
Gold produced (ounces) 61,366 41,444 154,314 110,945
Heap Leach
Ore stacked (000 tonnes) 480 496 1,058 1,301
Head grade (g/t) 1.41 1.16 1.37 1.12
Recovery (%) 30.5 56.2 38.7 60.9
Gold produced 6,648 10,399 18,036 28,511
Total (ounces) 68,014 51,843 172,350 139,456
3 months 3 months 9 months 9 months
to to to to
30 Sept 30 Sept 30 Sept 30 Sept
2003 2002 2003 2002
-------- -------- -------- --------
Bibiani
Mining
Ore production (000 tonnes) 1,002 882 2,523 1,873
Ore grade (g/t) 3.02 3.95 3.06 3.29
Waste mined (000 tonnes) 1,207 2,717 4,623 8,721
Strip ratio 1.2 3.3 1.8 4.7
CIL Plant
Ore processed (000 tonnes) 721 680 1,954 1,891
Head grade (g/t) 3.26 3.64 3.33 3.75
Recovery (%) 73.5 79.7 76.3 81.2
Gold produced (ounces) 55,519 61,192 159,657 182,217
Siguiri
Mining
Ore production (000 tonnes) 2,156 2,231 7,015 6,609
Ore grade (g/t) 1.17 1.13 1.16 1.19
Waste mined (000 tonnes) 1,747 2,052 5,415 6,080
Strip ratio 0.8 0.9 0.8 0.9
Heap Leach
Ore stacked (000 tonnes) 2,168 2,101 7,198 6,956
Head grade (g/t) 1.14 1.09 1.12 1.14
Recovery (%) 76.1 82.9 75.1 81.7
Gold produced (ounces) 60,437 60,940 194,578 209,159
Freda-Rebecca
Underground Mining
Ore production (000 tonnes) 190 286 458 832
Ore grade (g/t) 2.20 2.84 2.42 3.00
Surface Mining
Ore production (000 tonnes) 9 - 52 110
Ore grade (g/t) 2.14 - 1.95 2.52
Waste mined (000 tonnes) 45 - 262 81
Strip ratio 5.0 - 5.0 0.7
Processing
Ore processed (000 tonnes) 327 274 975 845
Head grade (g/t) 1.70 3.40 1.70 3.36
Recovery (%) 75.0 82.5 75.2 82.4
Gold produced (ounces) 13,453 24,765 39,958 75,065
Geita JV
Surface Mining
Ore mined (000 tonnes) 1,702 1,466 4,055 4,306
Grade (g/t) 3.58 3.80 3.21 3.60
Waste mined (000 tonnes) 14,539 12,269 40,346 27,503
Strip ratio 8.5 8.4 9.9 6.4
Processing
CIL Plant
Ore processed (000 tonnes) 1,432 1,280 4,323 3,718
Head grade (g/t) 4.27 4.30 3.39 4.10
Recovery (%) 91.0 93.0 91.0 93.0
Gold produced (ounces) 176,487 164,673 427,331 456,301
Ashanti's 50% share (ounces) 88,244 82,337 213,666 228,151
Group Summary
Managed gold production
(ounces) 334,987 324,991 961,472 992,295
Geita JV 50% (ounces) 88,244 82,337 213,666 228,151
Sub-total 423,231 407,328 1,175,138 1,220,446
Less minority interests
(ounces) 19,268 16,918 55,039 52,293
Group Attributable Total
(ounces) 403,963 390,410 1,120,099 1,168,153
Financial Review Earnings Earnings (before exceptional gains) for the third quarter were US$20.2 million, up US$12.4 million on the US$7.8 million recorded during the previous quarter. The 159% improvement in earnings was due to a 14% increase in gold production, a higher average realised gold price and a reduction in cash operating costs per ounce, relative to the second quarter. The quarter's earnings (before exceptional gains) of US$20.2 million was US$2.3 million lower than the US$22.5 million recorded in 2002, mainly due to higher cash operating costs. Earnings for the quarter, after exceptional gains of US$4.7 million (2002: nil), amounted to US$24.9 million (2002: US$22.5 million). Earnings per share before exceptional items for the quarter were US$0.15 (2002: US$0.18) and after exceptional items were US$0.19 (2002: US$0.18). Earnings before exceptional items for the nine months to 30 September 2003 were US$34.8 million as compared to US$58.8 million in 2002. Earnings after exceptional income of US$11.7 million, were US$46.5 million (2002: US$35.3 million). Revenue Gold production for the quarter of 423,231 ounces generated spot revenue of US$154.9 million, equivalent to US$366 per ounce (2002: US$315 per ounce). Total 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 for the quarter was negative US$4.8 million, comprising US$3.2 million of deferred hedging income from previously closed out hedge contracts and US$8.0 million of net cash payments in respect of maturing hedge contracts for both the Ashanti and Geita hedge books. Total realised price for the quarter was US$355 per ounce (2002: US$347 per ounce). Year to date total revenue of US$407.3 million (2002: US$419.3 million) was equivalent to US$347 per ounce. Hedging Sustained strength in spot gold prices and low lease rate levels, allowed Ashanti to reduce its lease rate exposure whilst adding protection to its hedge book. Notional lease rate exposure has been reduced from 2.76 million ounces as at 30 June June: see month. 2003 to 1.68 million ounces as at 30 September 2003. The value generated from these lease rate fixings was used to purchase a total of 176,063 ounces of put options at an average strike of US$358 per ounce, with maturities ranging from 2004 to 2012. The strikes of these put options were matched against existing sold call options to create forward sales forward sales npl → ventas fpl a término . Please refer to the hedging table on page 12 for a revised lease rate amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. and protection profile. At the quarter end, Ashanti had 4.6 million ounces protected at an average price of US$361 per ounce, with commitments to deliver 5.9 million ounces at an average price of US$359 per ounce. Ashanti's outstanding commitments for 2003 stood at 175,822 ounces as at 30 September 2003. The mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. valuation of the Ashanti hedge book moved from negative US$108 million as at 30 June 2003 to negative US$329.8 million at 30 September 2003, based on a spot price of US$384 per ounce. The movement in mark-to-market was principally owing to the increased spot price and US interest rates. Ashanti's share of the Geita hedge book was negative US$61.9 million. Cash Operating Costs Total cash operating costs for the quarter were US$212 per ounce, up US$13 per ounce on last year but represented a US$10 per ounce improvement on the previous quarter, largely due to higher production. Total cash operating costs for the year to date amounted to US$219 per ounce (2002: US$194 per ounce). Profit Total 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. for the quarter was US$24.9 million (2002: US$24.4 million). Non-mine site exploration expenditure expensed in the quarter was US$0.8 million bringing year to date expenditure to US$2.4 million. Corporate administration expenditure for the quarter was US$5.7 million and year to date expenditure was US$18.0 million. Interest charge for the quarter (before exceptional items) was US$4.0 million, US$0.6 million lower than the previous quarter. Exceptional Items During the quarter Ashanti received insurance proceeds of US$3.0 million for the Company's damaged aircraft, which has since been scrapped. This resulted in an exceptional gain of US$2.0 million. In September, the Company re-negotiated the terms of the Kimin loans. In consideration for Ashanti extending the terms of the guarantee currently in place in favour Favor or favour (see spelling differences) may be
2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. , it secured a reduction in the amounts owed from US$7.7 million to US$5.0 million. This reduction of US$2.7 million has been recognised as an exceptional gain within interest payable. Cash Flows 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 US$29.1 million (2002: US$13.2 million) and US$61.2 million for the year to date (2002: US$58.2 million). Net interest payments in the quarter were US$2.4 million compared to US$4.4 million last year. Capital expenditure for the quarter of US$19.1 million (2002: US$15.5 million) included US$11.1 million at Obuasi, US$1.8 million at Iduapriem and US$4.1 million at Siguiri. During the quarter, a further 200,000 warrants were exercised raising US$0.6 million. As at 30 September 2003, stated capital stated capital See legal capital. stood at 131.0 million shares and 2.3 million warrants remained outstanding. Group debt as at 30 September (excluding the 50% share of the non-recourse Geita project finance loan) stood at US$239.3 million, down US$6.4 million from 30 June 2003 due principally to the reduction of the Kimin loans of US$2.7 million and repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of the aircraft loan from the insurance proceeds. Net debt was US$12.6 million lower at US$193.9 million (30 June 2003: US$206.5 million). Proposed Merger Arrangement On 4 August 2003, Ashanti announced the terms of a recommended merger with 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. Limited ("AngloGold"). As announced on 14 October October: see month. and reaffirmed on 27 October 2003, the Board of Ashanti (the "Board") has received an improved final merger offer ("Revised Merger Proposal") from AngloGold at a ratio of 29 AngloGold shares for every 100 Ashanti ordinary shares or global depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. securities. The Board has resolved to recommend the Revised Merger Proposal to Ashanti's shareholders. The Revised Merger Proposal is conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. on the support of the Government of Ghana (the "Government") as shareholder and regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. of Ashanti, the approval of the scheme of arrangement required to implement the transaction by Ashanti shareholders and the High Court of Ghana and certain other regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals and third party consents as detailed in the 4 August announcement. Ashanti welcomes the announcement of the Government of Ghana on 28 October 2003, indicating its decision to support the Board's recommendation of the Revised Merger Proposal. Ashanti and AngloGold have agreed to extend the time limit for the receipt of formal Government approvals to 14 November 2003, or such later date as Ashanti and AngloGold may agree. There can be no assurance that a transaction with AngloGold will be completed. Consequently, shareholders of Ashanti are advised to exercise caution when dealing in the relevant securities.
Group Profit and Loss Account
Unaudited
3 months to
30 Sept 2003
Before After
exceptional Exceptional exceptional
items items items
Note US$m US$m US$m
------ --------- ----------- ------------
Turnover: Group and share of
joint venture 2 150.1 - 150.1
Less share of joint venture (29.7) - (29.7)
Group turnover 120.4 - 120.4
Cash operating costs 2 (74.4) - (74.4)
Other costs (8.0) - (8.0)
Royalties (3.8) - (3.8)
Depreciation and
amortisation (17.3) - (17.3)
Refinancing and
restructuring costs - - -
Other income - - -
Total costs (103.5) - (103.5)
Operating profit 2 16.9 - 16.9
Share of operating profit of
joint venture 8.0 - 8.0
Total operating profit 24.9 - 24.9
Profit on sale of investment - - -
Profit on sale of fixed
assets - 2.0 2.0
Profit before interest and
taxation 24.9 2.0 26.9
Net interest payable: group (3.0) 2.7 (0.3)
joint venture (1.0) - (1.0)
Profit before taxation 20.9 4.7 25.6
Tax: group - - -
joint venture (0.4) - (0.4)
Profit after taxation 20.5 4.7 25.2
Minority interests (0.3) - (0.3)
Profit attributable to
shareholders 20.2 4.7 24.9
Dividends - - -
Retained profit for the
period 20.2 4.7 24.9
Earnings per share (US$) 0.15 0.04 0.19
3 months to
30 Sept 2002
Before
exceptional
Group items
Note US$m US$m
---- ----- -----
Turnover: Group and share of
joint venture 2 141.2 407.3
Less share of joint venture (24.5) (68.3)
Group turnover 116.7 339.0
Cash operating costs 2 (68.3) (216.1)
Other costs (7.7) (23.5)
Royalties (2.9) (10.5)
Depreciation and amortisation (19.9) (51.8)
Refinancing and restructuring costs - -
Other income 8.8 -
Total costs (90.0) (301.9)
Operating profit 2 26.7 37.1
Share of operating profit of joint venture (2.3) 13.1
Total operating profit 24.4 50.2
Profit on sale of investment - -
Profit on sale of fixed assets - -
Profit before interest and taxation 24.4 50.2
Net interest payable: group (4.0) (10.0)
joint venture (1.4) (3.3)
Profit before taxation 19.0 36.9
Tax: group 3.9 (0.2)
joint venture - (1.2)
Profit after taxation 22.9 35.5
Minority interests (0.4) (0.7)
Profit attributable to shareholders 22.5 34.8
Dividends - -
Retained profit for the period 22.5 34.8
Earnings per share (US$) 0.18 0.27
9 months to 9 months
30 Sept 2003 to
30 Sept
2002
After
Exceptional exceptional
items items Group
Note US$m US$m US$m
---- ----- ----- -----
Turnover: Group and share of
joint venture 2 - 407.3 419.3
Less share of joint venture - (68.3) (67.0)
Group turnover - 339.0 352.3
Cash operating costs 2 - (216.1) (201.6)
Other costs - (23.5) (20.2)
Royalties - (10.5) (8.7)
Depreciation and amortisation - (51.8) (62.7)
Refinancing and restructuring
costs - - (23.5)
Other income - - 8.8
Total costs - (301.9) (307.9)
Operating profit 2 - 37.1 44.4
Share of operating profit of
joint venture - 13.1 9.0
Total operating profit - 50.2 53.4
Profit on sale of investment 7.8 7.8 -
Profit on sale of fixed assets 2.0 2.0 -
Profit before interest and
taxation 9.8 60.0 53.4
Net interest payable: group 2.7 (7.3) (14.1)
joint venture - (3.3) (3.6)
Profit before taxation 12.5 49.4 35.7
Tax: group (0.8) (1.0) -
joint venture - (1.2) -
Profit after taxation 11.7 47.2 35.7
Minority interests - (0.7) (0.4)
Profit attributable to
shareholders 11.7 46.5 35.3
Dividends - - -
Retained profit for the period 11.7 46.5 35.3
Earnings per share (US$) 0.09 0.36 0.30
Group Balance Sheet
Unaudited
As at 30 Sept
2003 As at As at
30 Sept 31 Dec
Interest 2002 2002
in
Group joint
venture Total Group Group
US$m US$m US$m US$m US$m
----- ----- ---- ---- ----
Fixed assets
Intangible assets 15.6 52.3 67.9 17.5 17.3
Tangible assets 608.2 109.6 717.8 597.5 602.7
Investments
- Geita joint venture 99.8 (99.8) - 96.0 91.2
- Loans to joint venture and
other investments 31.1 - 31.1 32.6 32.6
754.7 816.8 743.6 743.8
Current assets
Stocks 72.6 12.6 85.2 74.8 76.6
Debtors due within one year 16.5 17.4 33.9 11.6 14.0
Debtors due after more than
one year 12.7 - 12.7 8.8 8.8
Cash 45.4 14.1 59.5 35.8 41.3
147.2 44.1 191.3 131.0 140.7
Creditors: amounts falling
due within one year
Creditors (116.6) (16.8) (133.4) (124.0) (131.1)
Borrowings (6.7) (10.8) (17.5) (5.7) (2.7)
(123.3) (27.6) (150.9) (129.7) (133.8)
Net current assets 23.9 16.5 40.4 1.3 6.9
Total assets less current
liabilities 778.6 857.2 744.9 750.7
Creditors: amounts falling
due after more than one
year
Creditors (15.0) (39.9) (54.9) (41.9) (24.0)
Borrowings (232.6) (35.2) (267.8) (262.4) (254.2)
Provisions for liabilities
and charges (25.5) (3.5) (29.0) (21.6) (25.0)
505.5 505.5 419.0 447.5
Capital and reserves
Stated capital 599.0 588.2 588.2
Reserves (95.4) (171.6) (141.9)
Equity shareholders' funds 503.6 416.6 446.3
Equity minority interests 1.9 2.4 1.2
505.5 419.0 447.5
Group Cash Flow Statement
Unaudited
3 3 9 9
months months months months
to to to to
30 Sept 30 Sept 30 Sept 30 Sept
2003 2002 2003 2002
US$m US$m US$m US$m
---- ---- ---- ----
Cash inflow from operating activities 29.1 13.2 61.2 58.2
Returns on investments and servicing
of finance
Interest received 0.3 0.2 0.6 0.5
Interest paid (2.7) (4.6) (7.6) (18.0)
Net cash outflow from returns on
investments and service of finance (2.4) (4.4) (7.0) (17.5)
Taxation
Corporate tax paid (1.1) - (1.1) (1.7)
Capital expenditure and financial
investments
Purchase of tangible fixed assets (19.1) (15.5) (56.7) (46.1)
Proceeds from sale of fixed assets 3.0 - 3.0 -
Proceeds from sale of investment - - 9.5 -
Net cash outflow from capital
expenditure and financial investment (16.1) (15.5) (44.2) (46.1)
Cash inflow/(outflow) before use of
liquid resources and financing 9.5 (6.7) 8.9 (7.1)
Management of liquid resources (1.9) 1.8 6.6 13.4
Cash inflow/(outflow) before
financing 7.6 (4.9) 15.5 6.3
Financing
Loans drawn down - - - 265.0
Loan repayments (3.3) (36.6) (15.6) (317.0)
Issue of shares 0.6 - 10.8 41.8
Net cash outflow from financing (2.7) (36.6) (4.8) (10.2)
Increase/(decrease) in cash 4.9 (41.5) 10.7 (3.9)
Reconciliation of net cash flow to
movement in net debt
Increase/(decrease) in cash 4.9 (41.5) 10.7 (3.9)
Increase/(decrease) in liquid
resources 1.9 (1.8) (6.6) (13.4)
6.8 (43.3) 4.1 (17.3)
Cash outflow from financing 3.3 36.6 15.6 52.0
Other 2.5 (0.2) 2.0 3.7
Movement in net debt 12.6 (6.9) 21.7 38.4
Net debt at beginning of period (206.5) (225.4) (215.6) (270.7)
Net debt at end of period (193.9) (232.3) (193.9) (232.3)
Notes to the Financial Information
1. Basis of Preparation
The unaudited results for the nine months ended 30 September 2003
have been prepared in accordance with the accounting policies set out
in the Annual Report and Accounts for the year ended 31 December 2002.
9 months to 30 September 2003 Idua-
Obuasi priem Bibiani Siguiri
Production ounces 394,929 172,350 159,657 194,578
US$ million
Revenue - spot 140.3 61.4 56.7 69.1
- hedging - - - -
140.3 61.4 56.7 69.1
Operating costs (80.8) (40.9) (34.3) (50.2)
Other costs - (0.9) (0.2) (2.0)
Royalties (4.7) (1.8) (1.7) (2.3)
EBITDA 54.8 17.8 20.5 14.6
Depreciation and amortisation (23.9) (4.9) (7.4) (10.4)
Operating profit/(loss)
30.9.2003 30.9 12.9 13.1 4.2
30.9.2002 10.4 9.0 10.8 1.5
9 months to 30 September 2003 Freda- Hedging Explora- Corp.
Rebecca income tion Admin
Production ounces 39,958 - - -
US$ million
Revenue - spot 14.2 - - -
- hedging - (2.7) - -
14.2 (2.7) - -
Operating costs (9.9) - - -
Other costs - - (2.4) (18.0)
Royalties - - - -
EBITDA 4.3 (2.7) (2.4) (18.0)
Depreciation and amortisation (4.5) - - (0.7)
Operating profit/(loss)
30.9.2003 (0.2) (2.7) (2.4) (18.7)
30.9.2002 5.7 38.6 (3.4) (37.0)*
9 months to 30 September 2003
Group Geita Total
Production ounces 961,472 213,666 1,175,138
US$ million
Revenue - spot 341.7 76.2 417.9
- hedging (2.7) (7.9) (10.6)
339.0 68.3 407.3
Operating costs (216.1) (41.5) (257.6)
Other costs (23.5) (2.7) (26.2)
Royalties (10.5) (2.3) (12.8)
EBITDA 88.9 21.8 110.7
Depreciation and amortisation (51.8) (8.7) (60.5)
Operating profit/(loss)
30.9.2003 37.1 13.1 50.2
30.9.2002 35.6 17.8 53.4
*Includes refinancing and restructuring costs of US$23.5 million.
3 months to 30 September 2003 Idua-
Obuasi priem Bibiani Siguiri
Production ounces 137,564 68,014 55,519 60,437
US$ million
Revenue - spot 50.3 25.0 20.1 22.1
- hedging - - - -
50.3 25.0 20.1 22.1
Operating costs (28.5) (15.8) (11.3) (15.9)
Other costs - (0.3) - (1.2)
Royalties (1.7) (0.7) (0.6) (0.8)
EBITDA 20.1 8.2 8.2 4.2
Depreciation and amortisation (8.5) (2.0) (2.7) (2.6)
Operating profit/(loss) 30.9.2003 11.6 6.2 5.5 1.6
30.9.2002 2.9 3.7 5.0 (2.3)
3 months to 30 September 2003 Freda- Hedging Explora- Corp.
Rebecca income tion Admin
Production ounces 13,453 - - -
US$ million
Revenue - spot 5.0 - - -
- hedging - (2.1) - -
5.0 (2.1) - -
Operating costs (2.9) - - -
Other costs - - (0.8) (5.7)
Royalties - - - -
EBITDA 2.1 (2.1) (0.8) (5.7)
Depreciation and amortisation (1.4) - - (0.1)
Operating profit/(loss) 30.9.2003 0.7 (2.1) (0.8) (5.8)
30.9.2002 2.1 11.5 (1.1) (3.9)
3 months to 30 September 2003
Group Geita Total
Production ounces 334,987 88,244 423,231
US$ million
Revenue - spot 122.5 32.4 154.9
- hedging (2.1) (2.7) (4.8)
120.4 29.7 150.1
Operating costs (74.4) (15.4) (89.8)
Other costs (8.0) (1.0) (9.0)
Royalties (3.8) (1.1) (4.9)
EBITDA 34.2 12.2 46.4
Depreciation and amortisation (17.3) (4.2) (21.5)
Operating profit/(loss) 30.9.2003 16.9 8.0 24.9
30.9.2002 17.9 6.5 24.4
3 months 3 months 9 months 9 months
to to to to
30 30 30 30
September September September September
3. Reconciliation of
Total Costs 2003 2002 2003 2002
US$m US$m US$m US$m
---- ---- ---- ----
Cash operating costs
Obuasi 28.5 26.6 80.8 77.7
Iduapriem 15.8 10.9 40.9 29.1
Bibiani 11.3 11.8 34.3 34.1
Siguiri 15.9 13.8 50.2 44.2
Freda-Rebecca 2.9 5.2 9.9 16.5
Geita (50%) 15.4 12.8 41.5 34.8
Total cash operating costs 89.8 81.1 257.6 236.4
Corporate administration
costs 5.7 3.6 18.0 12.5
Exploration costs 0.8 1.1 2.4 3.4
Other costs 2.5 3.8 5.8 6.7
Royalties 4.9 3.7 12.8 10.8
Depreciation and
amortisation 21.5 23.5 60.5 72.6
Exceptional costs - - - 23.5
Total costs* 125.2 116.8 357.1 365.9
* Includes Geita's costs of US$21.7 million (2002: US$26.8
million) for three months to 30 September 2003 and US$55.2 million
(2002: US$58.0 million) for the nine months to 30 September 2003.
Hedging Commitments
The table below shows all forward and option positions that
Ashanti had as at 30 September 2003:
2003 2004 2005 2006
Forward Sales
(ounces) 173,058 657,992 677,246 566,250
(US$/ounce) 349 355 352 358
Calls:
Sold (ounces) 55,550 496,180 470,478 182,006
(US$/ounce) 331 341 350 368
Bought (ounces) 50,550 101,880 134,000 49,432
(US$/ounce) 345 359 352 370
Subtotal (ounces) 5,000 394,300 336,478 132,574
Lease Rate Swap oz due 2,236 - - -
Summary:
Protected (ounces) 170,822 657,992 677,246 566,250
Committed (ounces) 175,822 1,052,292 1,013,724 698,824
Lease Rate Swap (ounces) 546,000 866,000 788,000 1,245,000
Deferred Hedging Income (US$m) 3 11 -
2007 2008 2009 2010
Forward Sales
(ounces) 507,450 400,450 413,450 383,450
(US$/ounce) 360 369 362 366
Calls:
Sold (ounces) 173,826 218,410 70,970 28,250
(US$/ounce) 357 365 368 350
Bought (ounces) 64,396 - - -
(US$/ounce) 361 - - -
Subtotal (ounces) 109,430 218,410 70,970 28,250
Lease Rate Swap oz due - - - -
Summary:
Protected (ounces) 507,450 400,450 413,450 383,450
Committed (ounces) 616,880 618,860 484,420 411,700
Lease Rate Swap (ounces) 1,267,000 1,084,000 826,000 568,000
Deferred Hedging Income - - - -
2011 2012 2013 Totals
Forward Sales
(ounces) 324,250 292,500 214,500 4,610,596
(US$/ounce) 373 378 369 361
Calls:
Sold (ounces) 28,250 - - 1,723,920
(US$/ounce) 350 - - 352
Bought (ounces) - - - 400,258
(US$/ounce) - - - 357
Subtotal (ounces) 28,250 - - 1,323,662
Lease Rate Swap oz due 2,236
Summary:
Protected (ounces) 324,250 292,500 214,500 4,608,360
Committed (ounces) 352,500 292,500 214,500 5,932,022
Total committed ounces as a
percentage of total forecast
production (excluding Geita
for the period of the project
finance, 2003-2007) 47%
Lease Rate Swap (ounces) 310,000 130,000 - -
Deferred Hedging Income - - - 14
Forward Sales: A total of 4.61 million ounces have been sold forward at an average price of US$361 per ounce. Call Options: Ashanti has sold 1.72 million ounces of call options at an average strike price of US$352 per ounce. As a partial offset, Ashanti has bought 0.4 million ounces of call options at an average strike price of US$357 per ounce. Gold Lease Rate Swaps: As at 30 September 2003, a maximum of 1.27 million ounces of Ashanti's hedged 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 lease rate exposure that Ashanti takes on).
Volume (ozs) Fixed Description
Rate
1,361,000 1.80% Ashanti pays a quarterly floating rate and
receives a quarterly weighted average fixe
rate of 1.80%.
320,000 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*YearsToMaturity*302*2.00%. The next rate
set is in 2006.
Total 1,681,000
Mark-to-market valuations On 30 September 2003, the portfolio had a negative mark-to-market value of US$329.8 million. This valuation was based on a spot price of US$384 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 5.3 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$5.3 million negative impact (approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. ) on the mark-to-market valuation of the hedge book. Movements in US interest rates, gold lease rates, volatilities and time will also have a sizeable impact on the mark-to-market. All these variables can change significantly over short time periods and can consequently materially affect the mark-to-market valuation. The approximate breakdown by type of the mark-to-market valuation at 30 September 2003 was as follows:
US$m
Forward contracts (218.2)
European Call options (net sold) (96.4)
Lease rate swaps (15.2)
(329.8)
Geita Hedging The table below shows Ashanti's portion of hedging commitments for Geita as at 30 September 2003. This represents half of Geita's hedge commitments.
2003 2004 2005
Forward Sales (ounces) 50,931 195,558 174,828
(US$/ounce) 264 289 294
Puts:
Bought (ounces) 2,674 25,586 24,350
(US$/ounce) 286 291 291
Lease Rate Swap oz due (ounces) 258
Summary:
Protected (ounces) 53,347 221,144 199,178
Committed (ounces) 50,673 195,558 174,828
Lease Rate Swap 156,301 116,774 76,301
2006 2007 Total
Forward Sales (ounces) 94,576 120,938 636,831
(US$/ounce) 296 298 291
Puts:
Bought (ounces) 18,115 23,390 94,115
(US$/ounce) 291 292 291
Lease Rate Swap oz due (ounces) 258
Summary:
Protected (ounces) 112,691 144,328 730,688
Committed (ounces) 94,576 120,938 636,573
Lease Rate Swap 41,420 - -
Marked-to-market Marked-to-market An arrangement whereby the profits or losses on a futures contract are settled each day. valuation: On 30 September 2003, the Geita portfolio had a negative mark-to-market value of US$123.8 million (Ashanti's portion: negative US$61.9 million). This valuation was based on a spot price of US$384 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 those related 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, 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 marked-to-market 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. 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 filings 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 looking 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, power supply, 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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