Ashanti Goldfields Company Limited Second Quarter 1998 Report.NEW YORK--(BUSINESS WIRE)--July 30, 1998-- 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. Announces Another Quarter of Record Production and Lowered Costs Highlights: -- Record production of 374,461 ounces - up 13% from the previous quarter and up 33% from second quarter 1997 -- Cash operating costs operating costs npl → gastos mpl operacionales of US$222 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. - 6% lower than the previous quarter and 17% lower than second quarter 1997 -- Strong cost and production performance and resource increases 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. -- Low operating cost 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.
further expansion planned for 1999 -- Bibiani Bibiani is a town in Ghana. It is the capital of Bibiani Anhwiaso Bekwai district. processing plant now running at design capacity -- Geita 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. nearing completion, with increases in high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. resources at Nyankanga -- Second quarter earnings of US$15.5 million (14 US cents per share) -0-
HIGHLIGHTS
3 Mths 3 Mths 6 Mths 6 Mths
to to to to
30 Jun 30 Jun 31 Jun 30 Jun
98 97 98 97
Financial (US$m)
Turnover 143.6 128.3 277.3 260.6
Operating cashflow 46.2 38.3 89.3 83.2
Profit before tax 15.5 7.9 30.5 24.1
Earnings 15.5 7.7 30.5 22.8
Earnings per share (US$) 0.14 0.07 0.28 0.21
Gold Production (ounces)
Total 374,461 281,980 705,875 571,795
Attributable 358,125 274,033 677,857 556,866
Gold Price (US$ per ounce)
Realised by Ashanti 379 450 389 450
Spot Price 300 343 297 347
Production Costs (per ounce)
Cash operating costs 222 269 229 265
Royalties 8 9 8 9
Depreciation and amortisation 65 83 67 78
Total costs 295 361 304 352
-0-
Overview: Ashantis gold production for the quarter ended 30 June June: see month. increased to a record 374,461 ounces, an annualised rate of 1.5 million ounces. Continued cost reductions at Obuasi and excellent performance at the new low operating cost mines, Siguiri and Bibiani, lowered cash operating cost for the Group to US$222 per ounce, compared with US$269 per ounce in the second quarter of 1997 and US$237 per ounce in the first quarter of 1998. This marks Ashanti's fourth consecutive quarter of production increases and cost reductions. The strong quarterly performance reflects the Company's success in overcoming difficulties associated with Ghana's electrical power shortage, arising from low levels of water in the Volta Volta (vól`tə), river, c.290 mi (470 km) long, formed in central Ghana, W Africa, by the confluence of the Black Volta (or Mouhon, c.840 mi/1,350 km long) and the White Volta (or Nakambe, c. Lake. With the assistance of back-up In cartography, an image printed on the reverse side of a map sheet already printed on one side. Also the printing of such images. generating capacity at Obuasi and Bibiani, Ashanti expects to achieve the production targets for its Ghanaian mines this year. The continued efficiency drive at Obuasi has yielded productivity gains that have more than offset the additional costs of power generation. The overall power situation 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. has eased as a result of Government actions to increase power supply from non-hydro sources. The new 220 MW KMR KMR Kitten Milk Replacement KMR Kwajalein Missile Range (US Army; now Reagan Test Site) KMR Koninklijke Marine Reserve (Dutch) KMR Knowledge Management for Remedy (KMXperts) power plant project remains on track to supply all of Ashanti's power requirements in Ghana, with a target date for first-phase operation by the end of 1999. The Siguiri heap-leach operation, in its first full quarter, produced almost 60,000 ounces and has a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. cash operating cost of US$176 per ounce. With Siguiri running ahead of previous expectations, Ashanti is confident of exceeding its 1998 production target of 1.4 million ounces and that 1998 cash operating costs will be below US$235 per ounce. Ashanti plans to expand Siguiri to a production level of 250,000 ounces by end of 1999. This expansion forms part of a cost-reduction strategy which is likely to involve the closure of the high-cost Iduapriem mine at the end of 1999. Quarterly earnings of US$15.5 million (14 US cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) slightly exceeded the previous quarter and were double those of second quarter 1997. Earnings benefited from the higher production and lower costs, despite a reduction in the realised gold price to US$379 per ounce, and from a gain on a buy-back of convertible debt. Operations Review GHANA - Obuasi Production and costs: Obuasi gold production and costs were both better than target. Power rationing rationing, allotment of scarce supplies, usually by governmental decree, to provide equitable distribution. It may be employed also to conserve economic resources and to reinforce price and production controls. notwithstanding, Obuasi produced 214,049 ounces at a cash cost of US$241 per ounce, compared with 203,811 ounces at US$277 per ounce for the second quarter of 1997. Unit cash costs, US$5 lower than in the first quarter, continued the downward trend established during 1997. Ten diesel generators A diesel generator is the combination of a diesel engine with an electrical generator (often called an alternator) to generate electric energy. Diesel generators are used in places without connection to the power grid or as emergency power-supply if the grid fails. , together producing 14 MW, are scheduled to be commissioned in October October: see month. and will help to ensure a steady supply of power. Underground mining: At 523,333 tonnes (annualised 2.1 mt), underground production was 15% higher than in the second quarter of 1997 and above last quarter's production of 516,473 tonnes. With good grades from Blocks 1 and 8, good grade control, and high grades from the Eaton Eaton may refer to: Buildings
shaft n. 1. An elongated rodlike structure, such as the midsection of a long bone. 2. Pillar pillar, freestanding columnar supporting member. It is a general term, little used as an exact architectural definition except as applied to an upright support in the medieval styles, consisting of an assemblage of juxtaposed shafts and moldings; unlike the column, , underground grade averaged 8.48g/t. This compares with 8.08 g/t for the second quarter of 1997 and 8.38 g/t for last quarter. Underground grade for the year to date averages 8.43 g/t. The 43 level 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 the first section of the 41 level haulage system, which extends north of the Kwesi Mensah Shaft to stoping blocks 2 and 3, are now in operation. The section south of the shaft system to connect Block 1 will be commissioned by the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Stonewall stone·wall v. stone·walled, stone·wall·ing, stone·walls v.intr. 1. Informal a. Shaft is scheduled for commissioning in the third quarter and will markedly improve the handling of men and materials in the George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Cappendell Shaft. It is also expected that Block 1 will begin producing in the third quarter. Surface mining: A total of 978,000 tonnes of ore, including 408,623 tonnes of oxides at 1.9g/t and 466,613 tonnes of sulphides at 5.33g/t, was produced from surface. The Gyabunsu pit produced its first sulphide sulphide: see sulfide. ore in June. Processing: A total of 2.1 million tonnes was treated through the five treatment plants. 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. was above plan at both the Sulphide 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;. ) and 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. ), although STP recovery, at 76.8%, was down because of power disruptions and a high percentage of transitional ore. STP processing costs fell further to about US$15 per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. and with the completion of various modifications, mill relining work and the commissioning of a new 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. pipeline, further cost and recovery benefits can be expected. The additional BIOX tank is on track for commissioning in the third quarter. This should boost throughput and recovery from the BIOX circuit. PTP produced 93,335 ounces, nearly 8,000 ounces above the second quarter of 1997. The Tailings Treatment Plant produced 12,421 ounces, 2,543 ounces below second quarter 1997 but slightly above the last quarter. 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 production of 19,875 ounces was down because of power cuts and a SAG (1) A momentary drop in voltage from the power source. Contrast with spike. (2) (SAG) (SQL Access Group) See CLI. mill reline reline /re·line/ (re-lin´) to resurface the tissue side of a denture with new base material in order to achieve a more accurate fit. . Exploration: Underground drilling continued to yield very good intersections. Examples from the Brown Sub-vertical Shaft (BSVS BSVS Back-up Secure Voice System ) north area include 15.6g/t over 18 metres and 13.7g/t over 29.6 metres. The indicated resource for BSVS north is now 3.5 million tonnes, thus increasing by 600,000 ounces to one million ounces. Further development is being carried out on 41 and 50 levels. Surface exploration delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. a potential oxide deposit of 350 metres along strike on the Binsere Trend and trenching has begun on this area. Ayanfuri Ayanfuri produced 9,561 ounces, slightly below target, at a cash cost of US$251 per ounce. Contributing to the shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. were lower grades from the pits and 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. solution grades. Year-to-date gold production, at 24,598 ounces is only marginally below target. The Esuaja deposit, which had been 900,000 tonnes at 1.5 g/t, was infill-drilled and re-modelled to create a larger resource (2.6 million tonnes at 1.28 g/t). Bibiani Bibiani produced 32,784 ounces of gold at a cash cost of US$168 per ounce. Frequent power disruptions limited plant throughput to about 50% capacity. However, six diesel generators providing 4MW were commissioned in May to supplement grid power and enable the processing plant to run at design capacity. June production was 14,716 ounces at US$191/oz, which includes the cost of additional power (estimated at US$36 per ounce compared to a budget of US$18 per ounce). Bibiani's energy needs are now under control and the mine will focus on increasing production and reducing costs. At 41,578 ounces, year-to-date production is on target because of the plants early commissioning. Iduapriem Gold production at Iduapriem was significantly affected by power rationing and at 32,038 ounces, was 19% below the second quarter of 1997. Operational performance was, nevertheless, excellent. Through close control of mining rates and voluntary salary cuts across the board, cash costs were held to US$268 per ounce. Mining operations were restricted to higher-grade and lower strip ratio areas of the pits. An experiment to send fine feed directly to the ball mill increased 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. throughput by 15%. 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 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. production, although less affected by the power cuts, was lower than target 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 inability to pump pregnant solution to the CIL plant during periods of power rationing but the heap leach plant achieved record mechanical availability throughout the quarter. Extensive reviews of Iduapriem indicate that, in the current gold price environment, it does not make economic sense to continue production beyond the end of 1999. Accordingly, plans are being considered for the likely closure of the operation at the end of next year. Asikam Midras Mining produced 2,497 ounces at US$240 per ounce. Plant throughput has increased significantly. Year-to-date production is 4,086 ounces at US$245 per ounce. Power Supply The power situation in Ghana has eased as a result of Government actions to increase power supply from non-hydro sources. These include increased imports from Cote d'Ivoire, expansion of the Takoradi Takoradi: see Sekondi-Takoradi, Ghana. thermal plant and power generation from new diesel/liquid fuel generators. Collectively, these sources will supply up to 300 MW by year-end, which will compensate for the shortfall in hydro hy·dro adj. Hydroelectric. n. pl. hy·dros 1. Hydroelectric power. 2. A hydroelectric power plant. power. The 220 MW KMR power plant project is scheduled for completion by the end of 1999 and should supply all of Ashanti's power needs in Ghana. 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 produced 24,003 ounces, 9% lower than the second quarter of 1997, although year-to-date production of 50,002 ounces at US$194 per ounce is on target. At US$212 per ounce, cash costs were US$24 per ounce lower than the same period last year. Mine grade was lower than expected, affecting production. The mine produced 348,000 tonnes of ore at a grade of 2.80g/t, all from underground, now that the Freda open-pit reserves have been depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d . This was a 93% increase over the corresponding quarter in 1997. 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 The Siguiri mine had an excellent quarter, with production of 59,529 ounces, higher than target by 10,000 ounces, and a cash operating cost of US$158 per ounce. The performance reflected the high standard of project design and construction as well as better grades than had been expected. The plant continued to perform well: slightly more than 1 million dry tonnes of ore were stacked Stacked is an American television sitcom that premiered on Fox on April 13, 2005. On May 18, 2006, Stacked was cancelled, leaving five episodes unaired in the United States. The last episode aired on January 11, 2006. at a grade of 2.68g/t. At 60%, average recovery from the stacked material is consistent with forecast. Mining operations also went well. A total of 1.15 million tonnes of ore averaging 2.85g/t were mined from the Korangbe and Sanu Tinti pits. Mining at Sanu Tinti was accelerated to take advantage of the relatively high ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly and to get ahead before the rainy rain·y adj. rain·i·er, rain·i·est Characterized by, full of, or bringing rain. rain  i·ness n.Adj. season. -0-
SUMMARY OF PRODUCTION AND CASH OPERATING COST PER OUNCE:
Obuasi Obuasi Obuasi Obuasi
Underground Tailings Surface Total
3 months to 30 June 1998
Production (ounces) 114,891 12,421 86,737 214,049
Cost per ounce (US$) 215 150 282 241
3 months to 30 June 1997
Production (ounces) 98,856 14,964 89,991 203,811
Cost per ounce (US$) 259 127 328 276
6 months to 30 June 1998
Production (ounces) 227,828 24,669 180,129 432,626
Cost per ounce (US$) 220 151 283 244
6 months to 30 June 1997
Production (ounces) 203,973 30,265 182,810 417,048
Cost per ounce (US$) 254 132 324 274
SUMMARY OF PRODUCTION AND COST PER OUNCE (CONT.)
Ayanfuri Iduapriem Freda- Bibiani
Rebecca
3 months to 30 June 1998
Production (ounces) 9,561 32,038 24,003 32,784
Cost per ounce (US$) 251 268 212 168
3 months to 30 June 1997
Production (ounces) 12,118 39,734 26,317 --
Cost per ounce (US$) 248 269 236 --
6 months to 30 June 1998
Production (ounces) 24,598 68,713 50,002 41,578
Cost per ounce (US$) 215 265 194 178
6 months to 30 June 1997
Production (ounces) 29,062 74,646 51,039 --
Cost per ounce (US$) 223 256 234 --
SUMMARY OF PRODUCTION AND COST PER OUNCE (cont.)
Siguiri Asikam Total/Average
3 months to 30 June 1998
Production (ounces) 59,529 2,497 374,461
Cost per ounce (US$) 158 240 222
3 months to 30 June 1997
Production (ounces) -- -- 281,980
Cost per ounce (US$) -- -- 269
6 months to 30 June 1998
Production (ounces) 84,272 4,086 705,875
Cost per ounce (US$) 176 245 229
6 months to 30 June 1997
Production (ounces) -- -- 571,795
Cost per ounce (US$) -- -- 265
GOLD PRODUCTION SUMMARY:
3 Mths 3 Mths 6 Mths 6 Mths
to to to to
30/6/98 30/6/97 30/6/98 30/6/97
Obuasi
Underground Mining
Ore production
(000 tonnes mined) 523 456 1,040 950
Ore grade (g/t) 8.48 8.08 8.43 8.10
Surface Mining
Ore production
(000 tonnes mined) 978 1,137 2,233 2,049
Ore grade (g/t) 3.18 2.94 3.13 2.90
Waste mined (000 tonnes) 7,218 6,707 14,423 14,171
Strip Ratio 7.38 5.90 6.46 6.92
Sulphide Treatment Plant
Ore processed
(000 tonnes mined) 661 552 1,242 1,208
Head grade (g/t) 5.38 5.49 5.42 5.45
Recovery (%) 76.8 80.1 78.0 79.8
Gold produced (ounces) 87,785 78,168 168,940 168,894
Pompora Treatment Plant
Ore processed
(000 tonnes mined) 426 395 861 733
Head grade (g/t) 8.43 8.18 8.48 8.09
Recovery (%) 80.8 82.2 81.0 82.5
Gold produced (ounces) 93,335 85,444 190,323 157,608
Oxide Treatment Plant
Ore processed
(000 tonnes mined) 512 630 1,127 1,262
Head grade (g/t) 1.71 1.95 1.75 2.12
Recovery (%) 70.8 58.0 74.7 64.1
Gold produced (ounces) 19,875 22,875 47,335 54,986
Tailings Treatment Plant
Ore processed
(000 tonnes mined) 454 438 913 891
Head grade (g/t) 2.72 3.15 2.76 3.25
Recovery (%) 31.3 33.8 30.5 32.4
Gold produced (ounces) 12,421 14,964 24,669 30,265
Heap Leach Plant
Ore stacked (000 tonnes) 73 196 168 438
Head grade (g/t) 0.85 0.67 0.73 0.72
Gold produced (ounces) 633 2,360 1,359 5,295
Obuasi Total Processed
Ore processed
(000 tonnes mined) 2,126 2,210 4,312 4,532
Head grade (g/t) 4.38 4.07 4.33 4.06
Recovery (%) 71.5 70.5 72.1 70.4
Total Gold Produced (ounces) 214,049 203,811 432,626 417,048
Obuasi Production Distribution
Obuasi underground (ounces) 114,891 98,856 227,828 203,973
Obuasi surface (ounces) 86,737 89,991 180,129 182,810
Obuasi tailings (ounces) 12,421 14,964 24,669 30,265
Obuasi total (ounces) 214,049 203,811 432,628 417,048
Ayanfuri
Mining
Ore production (000 tonnes) 264 319 575 736
Ore grade (g/t) 1.54 1.94 1.52 2.02
Waste mined (000) tonnes 819 1,224 1,315 2,616
Strip ratio 2.35 3.84 2.29 3.56
Heap Leach Plant
Ore stacked (000 tonnes) 331 296 711 643
Head grade (g/t) 1.40 1.72 1.47 1.67
Recovery (%) 64.3 74.4 73.5 84.4
Gold produced (ounces) 9,561 12,118 24,598 29,062
Iduapriem
Mining
Ore production (000 tonnes) 814 1,081 1,721 2,107
Ore grade (g/t) 1.48 1.29 1.47 1.32
Waste mined (000) tonnes 1,461 2,827 3,640 6,409
Strip ratio 1.80 2.6 2.12 3.00
CIL Plant
Ore processed (000 tonnes) 426 579 931 1,153
Head grade (g/t) 1.94 1.77 1.89 1.77
Recovery (%) 93.1 94.7 92.6 94.7
Gold produced (ounces) 26,422 30,987 56,055 52,337
Heap Leach
Ore stacked (000 tonnes) 571 518 1,048 942
Head grade (g/t) 0.89 1.00 0.91 1.00
Recovery (%) 34.4 52.5 41.2 40.5
Gold produced (ounces) 5,616 8,747 12,658 12,309
Iduapriem total (ounces) 32,038 39,734 68,713 74,646
Bibiani
Mining
Ore production (000 tonnes) 397 -- 886 --
Ore grade (g/t) 2.42 -- 2.14 --
Waste mined (000) tonnes 3,914 -- 7,449 --
Strip ratio 9.90 -- 8.4 --
CIL Plant
Ore processed (000 tonnes) 399 -- 572 --
Head grade (g/t) 2.8 -- 2.75 --
Recovery (%) 85.0 -- 85.0 --
Gold produced (ounces) 32,784 -- 41,578 --
Midras - Asikam
Ore processed (000 BCM) 99 -- 178 --
Head grade (g/BCM) 0.89 -- 0.82 --
Gold recovered (ounces) 2,497 -- 4,086 --
Siguiri
Mining
Ore production (000 tonnes) 1,159 -- 2,675 --
Ore grade (g/t) 2.85 -- 2.71 --
Waste mined (000) tonnes 1,418 -- 2,871 --
Strip ratio 1.22 -- 1.07 --
Heap Leach
Ore stacked (000 tonnes) 1,024 -- 1,997 --
Head grade (g/t) 2.68 -- 2.66 --
Recovery (%) 59.5 -- 50.5 --
Gold produced (ounces) 59,529 -- 84,272 --
Freda - Rebecca
Underground Mining
Ore production (000 tonnes) 348 180 579 346
Ore grade (g/t) 2.80 3.25 2.81 3.12
Surface Mining
Ore production (000 tonnes) -- 91 57 157
Ore grade (g/t) -- 4.03 2.87 3.63
Waste mined (000) tonnes -- 95 -- 132
Strip ratio -- 1.04 -- 0.80
Processing
Ore processed (000 tonnes) 294 278 586 557
Head grade (g/t) 2.86 3.38 3.03 3.28
Recovery (%) 89.0 87.2 89.5 87.2
Gold produced (ounces) 24,003 26,317 50,002 51,039
Group Summary
Managed gold
production (ounces) 374,461 281,980 705,875 571,795
Less Minority
interests (ounces) 16,336 7,974 28,018 14,929
Group attributable
total (ounces) 358,125 274,033 677,857 556,866
-0- PROJECT DEVELOPMENT AND EXPLORATION Project Development Siguiri: Ashanti is planning to expand the Siguiri mine to 8 million tonnes per year, which will give it an estimated gold production capacity of 250,000 ounces a year by the end of 1999 and should further reduce the mines already low operating costs. At that rate, Siguiri will still have an 8-year life, which may be extended through aggressive exploration of the lease areas, totaling 1,500 sq. km. Geita: The feasibility study of Geita is expected to be completed in the third quarter. 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. and extension drilling continued at Nyankanga to fully delineate this deposit. Drilling results this quarter included 56 metres at 10.6g/t and 28 metres of 8.4g/t. The Nyankanga resource has increased from 0.9 million ounces to more than 1.2 million ounces. A development decision is expected to be made in the third quarter, with a view to starting construction early in 1999 and gold production in 2000. Exploration Ashanti continued 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 its exploration activities and to focus on projects in the main producing gold belts of the continent, especially in the vicinity of its existing and future operations. 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. : At the Youga project in southern 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 , drilling continued on new mineralised zones in the vicinity of the A2 prospect, where a resource of 5.1 million tonnes grading 2.9g/t had already been outlined. In eastern Senegal Senegal, country, Africa Senegal (sĕnĭgôl`, sĕn`ĭgôl), officially Republic of Senegal, republic (2005 est. pop. 11,127,000), 76,124 sq mi (197,161 sq km), W Africa. , drilling at Bambadji outlined an 800-metre-long mineralised zone at the KB East prospect, with 8-metre to 24-metre drill intercepts averaging 2.9g/t. The zone remait 4.9g/t. In Niger Niger, country, Africa Niger (nī`jər, nēzhâr`), officially Republic of Niger, republic (2005 est. pop. 11,666,000), 489,189 sq mi (1,267,000 sq km), W Africa. , attention was focused on the Libiri prospect in the Saoura permit. Drilling in th In Guinea, exploration continued on the concessions around Siguiri. At Mandiana, infill drilling results from Koulekoun were discouraging dis·cour·age tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es 1. To deprive of confidence, hope, or spirit. 2. To hamper by discouraging; deter. 3. and, as a result, exploration has been curtailed. Project generation continued in Co Africa: In northern Tanzania, explorationd 80. For many years he was closely associated INANCIAL REVIEW Earnings: Earnings in(1997: US$22.8 million), with gold production une 1998 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. hedging income totalled US$105 has hedged about 62% of expected gold productioeraged US$222 per ounce, down 6% on the previouper ounce respectively (US$178 per ounce and US$176 per ounce year to date). Obuasi continued lowering its costs to US$241 per ounce, a 12% reduction compared to last year. Year to date group cash operating costs were US$229 per ounce, 14% down on last year. An analysis of production and cash operating costs is set out below. Profit: 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 second quarter was US$21.1 million (19ing in an operating profit from gold operationsxpenses for the quarter were US$6.7 million and osts is a credit of US$3.3 million (US$5.4 million year to date) for the capital gain realised on buying back part of the Exchangeable Notes. Cash Flows and Balance Shon was spent on completing Bibiani and Siguiri. Capital expenditure for the six months totalled US$72.6 million. Ashanti has acquired through market purchases 5.5lion (net). Net gearing was equivalent to 73%, paid in cash and the equivalent of US$3.0 milli With Bibiani and Siguiri fully in producti Siguiri mine, further growth in low-cost production is anticipated during 1999. -0-
Group Profit and Loss Account
Note 3 Mths to 3 Mths Rationalisation costs -- (2.52) (10.2)
(14.7)
Profit on ordinary
activities before taxation
15.5 7.9 30.5 24.1
Taxation -- (0.1) -- (1.1)
Profit on ordinary
activities after taxation
15.5 7.8 30.5 23.0
Minority interests -- (0.1) -- (0.2)
Profit attributable
to shareholders 15.5 7.7 30.5 22.8
Dividends -- (13.6) -- (13.6)
Retained profit/(loss)for
the period 15.5 (5.9) 30.5 9.2
Earnings per share (US$) 0.14 0.07 0.28 0.21
GROUP BALANCE SHEET
As at As at As at
31/6/98 30/6/97 002.5 1,101.2
Current assets
Stocks 93.1 105.9 95.7
Debt26.1) (179.0)
Borrowings ssets less
current liabilities 1,181.8 1,086.0 1,153.0
Creditors: amounts falling due
over one year
Creditors (115. 518.6 511.5 515.6
Profit an 0.9
554.6 586.8 521.1
GROUP CASH FLOW STATEMENT
3 Mths 3 Mths 6 Mths 6Returns on investments and
servicing of financ5.7) (16.2) (11.3)
Taxation
Corporatety dividends paid (5.2) (19.3) (5.2) (19.3)
Cash flow before financing (9.7) (29.4) (0.7) (9.7)
Financing
Loans drawn down 9.2 12.9
NOTES TO THE FINANCIAL STATEMENTS
1. Operating Profit Analysis by Business Area
6 months to 30 June 1998:
Obuasi-- --
- other es (3.9) (0.2) (10.6) (0.5) (2.3) 0.
6
Operating profit 30.6.97 (8.4) 1.2 (0.8) 1.7
6 months to 30 June 1998 (cont):
0.1 -- --
-- --
Operating cash flow 4.6 9.6 0.2 64.3
Depreciation (1.8) (3.7) (0.2) --
Operating
Production ounces -- -- -- 705,875
Revenue - spot -- -- -- 210.4
- hedging -- Operating cash flow (6.7) (12.3) 7 (5.2) (11.4) 1.2
38.8
2. Commitments and Hedging
The Group has commitments for future sales of gold bullion
arising from its hedging which mature as follows:
ed forward contracts:
Amount hedged (000s ounce 300 300
Average price (US$/ounce) hort Term Spot Deferred
contracts:
Amounts hedged (000s ounces) 255 -- -- --
Average price (US$/ounce) 314 -- -- --
Call options written:
Amount hedged (000s ounces) 211 ounces) 628 464 369 30ounce)
376 37
6 376 --
913 689 554 408
Avce (US$/ounce) -- -- -- --
Call options written:
Amount hedged (000s ounces) 396
(ii) Fixed forward contracts:
Amount hedged (000s ounces) -- -- -- 808
Average price (US$/ounce) -- -- -- 92
(iii) Short Term Spot Deferred
contracts:) 360 360 345 2,900
Averocated to the periods in which they expire.
Tel: (233) 21 778171 or Trevor Schultz Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. olds Continental Communications - is Gary Townsend (Group Finance Manager) with Hyperlinks to your home page. URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com 39 per diluted share for the second quarter of 7. Total revenues were $472.5 million for the s. Commenting on the overall results, R. Ricd specific initiatives on certain PPA's (Power evenues you need to take action on the operating structure and reduce overhead accordingly. We commenced this activity during the quarter and we will continue to do so during the second half of 1998." For the second quarter, the Entertainment group reported a 19% increase in reveo $218.0 million from $185.0 million, and totalbeverage businesses, as well as continued improon group reported increased revenues of $118.2 million versus $94.1 million a year ago; while total income increased to $26.6 million from $11.0 million for the same peron versus $194.5 million a year ago; while totan stated, "The most significant event during the quarter was the successful disposition of our catering business. Key new locations came online including Ogden's ground handling operations at the new Hong Kong International Airport Hong Kong International Airport (IATA: HKG, ICAO: VHHH) is the main airport in Hong Kong. It is colloquially known as Chek Lap Kok Airport, due to the fact that it was built on the island of Chek Lap Kok by land reclamation. , the opening of the second runway runway: see airport. at the Eldorado International Airport in Bogota, Colombia, and our consortium -- Aeropuertos Argentina 2000 -- taking over operational control of Buenos Aires' international airport (Ministro Pistarini) at Ezeiza." The Energy group reported a 17% increase in revenues to $206.2 million versus $176.5 million in the second quarter of 1997; while total income increased 9% to $31.3 million versus $28.6 million a year ago. For the six-month period, total revenues were $389.5 million versus $341.8 million; while total income rose 16% to $47.3 million versus $40.7 million for the same period a year ago. "Overall, the Energy group continues to perform very well," said Mr. Ablon. "During the quarter, we made significant progress on a number of opportunities which will enhance the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. outlook for Ogden. Most notable of the transactions were the recently announced buydown Buydown A mortgage-financing technique with which the buyer attempts to obtain a lower interest rate for at least the first few years of the mortgage, but possibly its entire life. of the Haverhill, Massachusetts Haverhill (IPA Pronounciation /ˈheɪ.vrɪl/) is a city in Essex County, Massachusetts, United States. The population was 58,969 at the 2000 census. Haverhill is home to Northern Essex Community College. energy sales agreement and the smaller energy sales buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. , and related shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of the Lawrence, Massachusetts Lawrence is a city in Essex County, Massachusetts on the Merrimack River. As of the 2000 census, the city had a total population of 72,043. Surrounding communities include Methuen to the north, Andover to the southwest, and North Andover to the southeast. facility. While both transactions will impact the Energy group's short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. going forward, the income resulting from investments made with the proceeds will more than offset these lost earnings. In addition, we obtained a buyout of an energy sales agreement with respect to a 50%-owneuarter was marginally negative at $0.7 million versus a loss of $2.1 million for the same period a year ago. During the second quarter, Ogden also reported that Corporate Unallocated Expenses were sharply higher due to a series of expenses including 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). , certain legal mconcerning Ogden's financial results for the qu 212-868-5712/6158 to register for the call. 612.
OGDEN CORPORATION
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, ========== ========== ========== =========
Interests 423
425 913 ====== ========== ==========
BASIC EARNINGS $ 0.52 $ 0.39 $ 0.75 $ 0.60
========== ========== ========== ==========
AVERAGE SHARES OUTSTANDING
- Basic EPS 50,206,000 49,984,000 50,283,000 49,901,000
-- Diluted EPS housands of dollars)
REVENUES 1998
Entertainment $ 124,701
Aviation SS) EQUITY IN NET
AND EQUITY IN NET INCOME FROM INCOME(LOSS) OF TOTAL
(LOSS) OF JOINT VENTURES: OPERATIONS JOINT VENTURES INCOME(LOSS)
------------ ------------ ------------
Entertain - (694)
TOTAL OPERATING ANDNET (4,793)PLEMENTAL
INFORMATION
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(in thousands of dollars)
REVENUES 1997
Entertainment $ 105,143
Aviation L REVENUES VENTURES INCOME (LOSS)
-------------- --------------- ------------
Entertainment $ 7,088 $ (348) $ 6,740
Aviation 10,478 501 10,979
EneALLOCATED
EXPENSES - NET $ 35,849
-0-
VENUES 389,453
Other Y IN NET INCOME FROM INCOME(LOSS) OF $ (2,436) $ 12,380
Aviation TOTAL OPERATING AND
JOINT VENTURE INCOME (9,849)
CONSOLIDATED INCOME
CONTACT: Ogden Corporation EFENSE ENERGY EARNINGS |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion