Ashanti Goldfields preliminary results.NEW YORK--(BUSINESS WIRE)--March 3, 1997--The following are preliminary results for 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. : -0-
ASHANTI GOLDFIELDS COMPANY LIMITED
PRELIMINARY RESULTS FOR THE
15 MONTHS ENDED 31 DECEMBER 1996
Pro-forma (unaudited)
15 MTHS 12 MTHS 12 MTHS 12 MTHS
TO TO TO TO
31 DEC 96 30 SEPT 95 31 DEC 96 31 DEC 95
US$ US$ US$ US$
TURNOVER 564.0m 387.7m 458.7m 405.6m
OPERATING PROFIT 102.5m 112.6m 81.4m 105.9m
PROFIT BEFORE TAX 81.5m 106.2m 60.1m 100.7m
EARNINGS PER SHARE 0.88 1.22 0.64 1.17
DIVIDENDS PER SHARE 0.375 0.375 0.375 0.375
GOLD PRODUCTION
ATTRIBUTABLE (ounces) 1,253,354 932,323 1,024,803 936,738
CASH OPERATING COSTS 252 208 252 222
AVERAGE REALISED PRICE 444 412 443 427
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HIGHLIGHTS
-- Attributable gold production for the 15 months - 1.25
million ounces
-- Reserves and resources increased to 32 million ounces
-- Far reaching action plan implemented at obuasi
-- Operational management team reinforced
-- Six operating mines by the end of 1998 from one in 1995
Chief Executive's Review
1996 saw Ashanti lay a solid foundation for its future growth.
Through its acquisition programme, the Company has been transformed
into a truly multi-national group with four operating mines and two
major mining projects, which are expected to be in production by end
1998. Obuasi's disappointing results notwithstanding, Ashanti is
well positioned to deliver on its promise of sustained growth in
reserves, production and earnings.
Results
With the change in our financial year end, announced in June
1996, the audited results are for the 15 months to 31 December 1996
compared to the 12 months to 30 September 1995. For a more
meaningful comparison, unaudited figures have also been included for
the 12 months to 31 December in each year.
Attributable gold production was 1,024,803 ounces for the
calendar year 1996 compared to 936,738 ounces for 1995. Profit
attributable to shareholders for the same period was US$60.1 million
(1995: US$101.6 million). The directors are recommending a final
dividend of US$0.25 per share making a total of US$0.375 per share,
which is unchanged despite the fall in earnings from 1995. Subject
to approval at this year's Annual General Meeting of a proposed share
dividend plan, shareholders will be able to select to reinvest their
cash dividend in shares.
Strategy for Future Growth
In the course of the year, we successfully transformed the
Company from dependence on a single mine at Obuasi to a mining group
which will have six operating mines by the end of 1998. This assumes
the successful development of Bibiani in Ghana and Siguiri in Guinea.
On top of this, we now have an outstanding exploration portfolio of
thirty-five properties covering the major greenstone belts in twelve
African countries.
This was the culmination of a growth strategy we formulated after
our successful flotation in 1994 to ensure Ashanti's emergence as
Africa's leading multinational gold company. We have an assured
growth potential to create significant shareholder value. Our aim to
establish our credentials as an attractive growth company based on
the world class orebody at Obuasi together with targeted acquisition
and exploration opportunities, has been achieved in less than two
years. Very few gold companies could make such claims in the
particularly difficult year that 1996 turned out to be for the
industry.
Stock Market
Like most other gold producers, the dramatic drop in the gold
price to its lowest level in four years has partly affected our share
performance. This contributed to a reduction in our share price from
its high of US$27 to its current level of around US$15. Other
factors also contributed to our disappointing market performance.
There was a marked increase in cash operating costs at Obuasi. The
production setbacks, which made targets difficult to achieve, and the
sharp increase in the number of shares in issue as a result of our
acquisitions, combined with the unfavourable conditions in the market
place to depress our stock further.
We have implemented an action plan with far reaching measures to
restore our competitiveness at Obuasi. These measures include labour
rationalisation, re-negotiation of major supplies contracts,
elimination of high cost contractors, grade control and other cost
reduction efforts. We will continue with this relentless cost
reduction programme in 1997 and expect to realise the full benefits
in 1998.
Reserves
The future of any mining company is directly related to its
reserve position. Ashanti enters 1997 with more than 32 million
ounces of reserves and resources. While the Group more than replaced
its production with new resources in 1996, an aggressive programme is
continuing to ensure future resources growth to increase shareholder
value.
Resources and reserves at our flagship operation at Obuasi,
currently stand at more than 21 million ounces. Obuasi will,
therefore, continue to be our core asset in Africa for a long time to
come. Meanwhile we are transforming the underground operation into a
bulk tonnage mechanised mine with an average grade of over 8 grams
per tonne. The refocused stope and infrastructure development
programme that is now in place should ensure that this higher grade
can be maintained.
Mining Developments
Tonnage from the underground mine is scheduled to almost double
from the current 1.9 million tonnes per year to 3.5 million tonnes by
the year 2001. We have commenced projects which will provide the
necessary hoisting and haulage facilities. These include an
aggressive increase in underground development, the sinking of the
Stonewall Shaft in the south and the upgrading of the Eaton Turner
Shaft in the north to achieve a major increase in hoisting capacity,
and a high speed underground railway to link all the main producing
areas and the hoisting facilities.
In 1996 US$172 million was spent at Obuasi mainly on expansion
programmes underground. Further capital will be required in 1997 and
1998 to complete the expansion, after which there will be a
significant reduction in capital expenditure at Obuasi.
At the Ayanfuri mine, exploration activities have been
intensified on the southern areas of the mine. The objective is to
increase reserves and enable the mine to continue its cash
contribution. We have also achieved further cost reductions by
transferring part of the surface fleet from Obuasi to replace
contract mining at Ayanfuri.
The newly acquired Iduapriem mine in Ghana has completed a new
heap leach plant and the upgrading of the carbon in leach (CIL)
plant. These two projects will result in an improved performance
from the Iduapriem gold mine in 1997 and beyond.
At the Freda-Rebecca Mine in Zimbabwe, both reserves and
production have increased since Ashanti acquired the mine in early
1996. We are currently expanding the CIL treatment plant to improve
recovery. We have also added value by refinancing the long term debt
of the operation, and this has resulted in a saving in interest costs
of US$1.0 million per year. Exploration work has been intensified
around the existing operation.
New Projects
We have started development of the Bibiani project in Ghana and
expect to commission the mine by the second half of 1998. The
completed feasibility study was based on annual production of 170,000
ounces with cash operating costs at $230 an ounce and capital
expenditure of $83 million.
At Siguiri in Guinea, we have begun the development of the $55
million heap leach mine with the signing of the contract for the
improvement of the access road. With completion expected by end 1998
the mine is projected to produce 150,000 ounces per annum at a cash
operating cost of $220 an ounce.
Bibiani and Siguiri will make a strong contribution to the
Ashanti goal of becoming the premier gold mining group in Africa.
Management
We have reinforced our operational management team by recruiting
four senior managers with extensive international and underground
mining experience. A common thread running through their respective
backgrounds is that all of them have long years of working and
managing large mechanised mines including marginal producers where
cost consciousness is essential.
In addition, our acquisitions have brought in new talents and
skills which have impacted positively on our activities at Head
Office as well as the operating mines. The management team now has a
balance of new blood and seasoned Ashanti managers, which together
bring fresh drive and enthusiasm to the Company. We have a workforce
in place which succeeded in propelling Ashanti from a 240,000 ounce
operator in 1986 to over one million ounces within the last ten
years. We have, therefore, developed over the years the taste for
success and achievement, and are fully committed to the new targets
we have set for ourselves.
A vital ingredient in the Ashanti culture is the entrepreneurial
spirit that has become our hallmark. We will continue to reflect the
culture which comes with an innovative and purposeful spirit and
operate with the full attributes of an owner-driven enterprise, all
of which stood us in good stead and made for our successful flotation
in 1994.
We are committed to our federalist management philosophy to
maximise accountability and control at the operating levels.
Divisional boards have been created for each mine with representation
from the Ashanti Board, as well as local management and staff.
Finance
We have strengthened the financial team led by the Chief
Financial Officer, to undertake the Group functions in the areas of
financial planning, resource mobilisation, consolidation, control and
auditing. To ensure that we meet our enlarged reporting and
communication commitments, we have begun to publish quarterly
financial results to ensure our shareholders are better informed and
particularly those in North America who expect this frequency from
all their key investments.
Ashanti's realised price for its gold production has consistently
exceeded the spot price through a sophisticated and profitable
hedging policy. In other areas of financial engineering, we are
particularly proud to be the first African operating company to be
listed on the New York Stock Exchange and to issue registered
securities in the US capital markets.
Exploration
Our exploration portfolio covers Africa's major greenstone belts.
We expect to have the Geita project in Tanzania in feasibility by the
end of 1997 and we have other projects in the pipeline which should
guarantee that we meet our future growth targets.
Throughout 1996 we continued to develop the resolve and the
aptitude for the greater challenges ahead. We expect to make further
progress by pursuing with determination and enthusiasm the
consolidation of our new acquisitions. We also intend to progress
new developments while retaining a sharp focus on the great orebody
at Obuasi, thereby maintaining Ashanti's competitive position among
the world's leading gold producing companies. Based on our proven
track record and the promise of greater success to come, we are
confident of rewarding you through growth in the value of your
shareholding.
Sam Jonah
Chief Executive
Consolidated Profit and Loss Account
Pro-forma (unaudited)
15 mths to 12 mths to 12 mths to 12 mths to
31 Dec 96 30 Sept 95 31 Dec 96 31 Dec 95
Notes US$m US$m US$m US$m
----------------------------------------------------------------
-------------
Turnover 2
Continuing
operations 498.3 387.7 393.0 405.6
Acquisitions 65.7 - 65.7 -
----------------------------------------------------------------
------------- 564.0 387.7 458.7 405.6
----------------------------------------------------------------
Operating costs 3 (363.0) (213.6) (294.5) (236.2)
Royalties (13.6) (11.5) (10.5) (12.0)
Depreciation,
amortisation
and depletion (84.9) (50.0) (72.3) (51.5)
----------------------------------------------------------------
Total costs (461.5) (275.1) (377.3) (299.7)
----------------------------------------------------------------
Operating profit 4
Continuing
operations 93.3 112.6 72.2 105.9
Acquisitions 9.2 - 9.2 -
----------------------------------------------------------------
102.5 112.6 81.4 105.9
----------------------------------------------------------------
Gain on sale
of investments 0.2 - 0.2 -
Share of earnings
of associated
undertakings 1.1 2.0 0.4 2.7
----------------------------------------------------------------
Profit on ordinary
activities before
interest 103.8 114.6 82.0 108.6
Net interest
payable (22.3) (8.4) (21.9) (7.9)
----------------------------------------------------------------
Profit on ordinary
activities before
taxation 81.5 106.2 60.1 100.7
Taxation (0.1) (0.4) (0.1) 0.9
----------------------------------------------------------------
Profit on ordinary
activities after
taxation 81.4 105.8 60.0 101.6
Minority interests - 0.1 0.1 -
----------------------------------------------------------------
Profit attributable
to shareholders 81.4 105.9 60.1 101.6
Dividends (39.0) (32.6) (39.0) (32.6)
----------------------------------------------------------------
Retained profit
for the period 42.4 73.3 21.1 69.0
----------------------------------------------------------------
Earnings per
share (US$) 6 0.88 1.22 0.64 1.17
Consolidated
Balance Sheet
As at 31 Dec 1996 As at 30 Sept 1995
US$m US$m
----------------------------------------------------------------
Fixed assets
Fixed property,
plant and equipment 960.4 638.1
Investments 2.2 6.1
----------------------------------------------------------------
962.6 644.2
----------------------------------------------------------------
-------------
Current assets
Stocks 104.8 81.2
Debtors 71.2 27.5
Cash 60.3 128.3
Businesses held for resale 31.0 -
----------------------------------------------------------------
267.3 237.0
----------------------------------------------------------------
Creditors: amounts falling due
within one year
Borrowings (23.6) (2.4)
Other creditors (176.7) (94.6)
----------------------------------------------------------------
(200.3) (97.0)
----------------------------------------------------------------
Net current assets 67.0 140.0
Total assets less
current liabilities 1,029.6 784.2
Creditors: amounts falling
due over one year
Borrowings (393.6) (193.3)
Other creditors (71.7) -
Provision for liabilities
and charges (5.2) (5.2)
----------------------------------------------------------------
559.1 585.7
----------------------------------------------------------------
Capital and reserves
Stated capital 489.5 150.3
Profit and loss account 68.3 435.4
----------------------------------------------------------------
Shareholders' funds 557.8 585.7
Equity minority interests 1.3 -
----------------------------------------------------------------
559.1 585.7
----------------------------------------------------------------
Consolidated Cash Flow Statement
Pro forma (unaudited)
15 mths to 12 mths to 12 mths to 12 mths to
31 Dec 96 30 Sept 95 31 Dec 96 31 Dec 95
US$m US$m US$m US$m
------------------------------------------------------------------
Net cash inflow
from operating
activities 174.4 145.4 131.7 160.2
Returns on
investments and
servicing of finance
Interest received 8.0 4.9 6.4 5.9
Interest paid (24.0) (7.1) (22.0) (6.8)
Dividends from
associated undertakings 0.6 0.3 0.5 0.4
Dividends paid (30.5) (31.1) (30.4) (31.2)
------------------------------------------------------------------
Net cash outflow from
returns on
investments and
servicing of finance (45.9) (33.0) (45.5) (31.7)
------------------------------------------------------------------
Taxation
Corporate tax paid - (2.5) - (2.5)
------------------------------------------------------------------
Investing activities
Purchase of property,
plant and equipment (237.3) (176.9) (210.2) (189.3)
Proceeds from sale of
fixed assets 4.7 2.5 3.6 3.6
Net cash outflow on
purchase of subsidiary
and associated
undertakings (103.3) - (59.5) (43.8)
------------------------------------------------------------------
Net cash outflow from
investing activities (335.9) (174.4) (266.1) (229.5)
------------------------------------------------------------------
Net cash outflow before
financing (207.4) (64.5) (179.9) (103.5)
------------------------------------------------------------------
Financing activities
Proceeds from share
issue 1.5 60.3 1.5 60.3
Proceeds of 5.5%
Exchangeable Notes 243.8 - 243.8 -
Loans drawn down 233.4 193.0 233.4 193.0
Loan repayments (339.3) (167.0) (339.1) (160.7)
------------------------------------------------------------------
Net cash inflow from
financing activities 139.4 86.3 139.6 92.6
------------------------------------------------------------------
(Decrease)/increase in
cash and cash
equivalents (68.0) 21.8 (40.3) (10.9)
------------------------------------------------------------------
Notes
1 Basis of preparation of accounts
Accounting standards and policies
The Company has carried out a review of the accounting standards
under which it prepares its financial statements. Following this
review, the Board has decided to adopt United Kingdom Accounting
Standards in preparing its financial statements with effect from 1
October 1995.
As a result of changing to UK GAAP the accounting policies used
in preparing the financial statements are consistent with those used
by the Company in its accounts for the year ended 30 September 1995.
Pro-forma financial information
Following the change in financial period end to 31 December,
pro-forma unaudited consolidated profit and loss and segmental
information has been provided for the twelve months ended 31 December
1996 and 1995, together with cash flow information for the same
period, in order to provide a better understanding of the Group's
performance on an annualised basis.
2 Turnover
15 MTHS TO 12 MTHS TO 12 MTHS TO 12 MTHS TO
31 DEC 96 30 SEPT 95 31 DEC 96 31 DEC 95
US$M US$M US$M US$M
Bullion revenue 486.2 357.8 397.5 361.7
Gain on hedging
transactions 73.0 26.7 58.6 38.5
Silver 0.4 0.3 0.4 0.3
Other 0.1 0.3 0.1 0.3
Non-gold mining
activities 4.3 2.6 2.1 4.8
-------------------------------------------------------------------
564.0 387.7 458.7 405.6
-------------------------------------------------------------------
3 Operating Costs
15 months to 31 Dec 96 12 months to 30 Sept 95
US$Cost/Oz US$Cost/Oz
15 months to 31 Dec 96
Analysis by business
group:
Gold mining
- Cash operating cost 316.5 252 194.2 208
- Corporate admin. 30.5 24 18.0 19
- Adjustments 3.2 - - -
-----------------------------------------------------------------
Sub Total 350.2 276 212.2 227
Non-gold mining
activities 3.3 - 1.4 -
Exploration expenses
written off 9.5 - 2.8 -
Environmental provision - - (2.8) -
-----------------------------------------------------------------
Total 363.0 276 213.6 227
-----------------------------------------------------------------
Pro-forma (unaudited)
12 months 12 months
to 31 Dec 96 to 31 Dec 95
US$ Cost/Oz US$ Cost/Oz
12 months to 31 Dec 96
Analysis by business
group:
Gold mining
- Cash operating cost 259.4 252 208.0 222
- Corporate admin. 25.8 25 20.6 22
Adjustments - - 3.2 -
--------------------------------------------------------------------
Sub Total 285.2 277 231.8 244
Non-gold mining
activities 1.8 - 2.4 -
Exploration expenses
written off 7.5 - 4.8 -
Environmental provision - - (2.8) -
--------------------------------------------------------------------
Total 294.5 277 236.2 244
------------------------------------------------------------------
4 Operating Profit Analysis by Business Area
Freda
12 months to 31 Dec 96 Obuasi Rebecca Ayanfuri Iduapriem
(pro-forma unaudited)
---------------------------------------------------------------------
Production ozs 860,384 95,905 53,338 18,970
---------------------------------------------------------------------
Revenue US$m-spot 332.3 37.0 20.7 8.0
Revenue US$m-hedging 58.6 - - -
Revenue US$m-other - - - -
---------------------------------------------------------------------
390.9 37.0 20.7 8.0
Operating costs (219.1) (21.2) (13.4) (5.7)
Royalties (9.6) (0.1) (0.6) (0.2)
Depreciation (59.4) (6.1) (3.8) (1.6)
---------------------------------------------------------------------
Operating profit 31/12/96 102.8 9.6 2.9 0.5
Operating profit 31/12/95 127.7 - - -
---------------------------------------------------------------------
Explor- Corp.
12 months to 31 Dec 96 ation Admin Non-gold Total
(pro-forma unaudited)
---------------------------------------------------------------------
Production ozs - - - 1,028,597
---------------------------------------------------------------------
Revenue US$m-spot - - - 398.0
Revenue US$m-hedging - - - 58.6
Revenue US$m-other - - 2.1 2.1
---------------------------------------------------------------------
- - 2.1 458.7
Operating costs (7.5) (25.8) (1.8) (294.5)
Royalties - - - (10.5)
Depreciation (0.7) - (0.7) (72.3)
---------------------------------------------------------------------
Operating profit 31/12/96 (8.2) (25.8) (0.4) 81.4
Operating profit 31/12/95 (4.8) (19.4) 2.4 105.9
---------------------------------------------------------------------
5 Three months results to 31 December 1996
The results for the three months ended 31 December 1996
by business area are summarised as follows:
Operating Average
Production Revenue Profit Cost per
ozs US$m US$m oz US$
Obuasi 205,082 96.9 26.3 270
Freda Rebecca 22,498 8.6 2.0 236
Ayanfuri 18,187 6.6 2.1 203
Iduapriem 18,970 8.0 0.5 300
Exploration - - (3.7) -
Corporate Admin - - (7.5) -
Non Gold - 1.8 (0.6) -
--------------------------------------------------------------------
Total/Average 264,737 121.9 19.1 265
---------------------------------------------------------------
6 Earnings per share The calculation of earnings per share for the 15 months to 31 December December: see month. 1996 is based upon the profit after tax and minority interest of US$81.4 million (1995: US$105.9 million) using the weighted average number of shares during the period of 92.8 million (1995: 86.9 million). Dividend The directors recommend a final dividend of US$0.25 per share for the 15 months ended 31 December 1996 to be paid on 30 April 1997 to those members on the register at the close of business on 18 March 1997. The final dividend will be paid in new shares instead of cash to shareholders who elect to take shares under the Share Dividend Plan, subject to approval of the Plan at the Annual General Meeting. Annual General Meeting The Annual General Meeting will be held at the Len Clay Stadium Len Clay Stadium is a multi-use stadium in Obuasi, Ghana. The new stadium, opened April 17, 2005, has the one of the best playing surface in the Ghana, and is home to Ashanti Gold Sporting Club. It has capacity for 30,000 people. , 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. , 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. on Wednesday Wednesday: see week. 23 April 1997 at 10.30 a.m. CONTACT: Ashanti Goldfields Company Limited Dr. John Clarke
John Clarke (8 October, 1609– 20 April, 1676) was a medical doctor, Baptist minister, co-founder of the colony of Rhode Island and author of its charter, and a leading advocate of religious Executive Director Tel:00 233 21 777075 or Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Townsend Group Finance Manager Tel:00 233 21 778161 or John Goold (Shandwick Shandwick, a village near Tain in Easter Ross, Scotland. Hilton, Balintore, and Shandwick are known collectively as the Seaboard Villages. It is well-known because of the nearby Clach a' Charridh or Shandwick Stone, a Class II Pictish stone. Consultants - London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. ) Tel: 0171 329 0096 or Allan Allan can refer to:
Jordan, officially Hashemite Kingdom of Jordan, kingdom (2005 est. pop. 5,760,000), 35,637 sq mi (92,300 sq km), SW Asia. It borders on Israel and the West Bank in the west, on Syria in the north, on Iraq in the northeast, and on Saudi (Golin/Harris - New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ) Tel:(212) 697 9191 or Allan Reynolds (Continental Communications - Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing ) Tel: (416) 964 6444 or Terence Terence (Publius Terentius Afer) (tĕr`əns), b. c.185 or c.195 B.C., d. c.159 B.C., Roman writer of comedies, b. Carthage. As a boy he was a slave of Terentius Lucanus, a Roman senator, who brought him to Rome, educated him, and gave him his Maher Maher may refer to: People Caste
(IPR IPR Intellectual Property Rights IPR Inprocess/Inprogress Review IPR Industrial Property Rights IPR Institute for Policy Research (Northwestern University and University of Cincinnati) IPR Institute of Public Relations - Melbourne Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. ) Tel:(61)39209 9333 |
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