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http://www.minesite.com/archives/news_archive/June-2001/asha… Ashanti Expects a Bid From Gold Fields At Any Moment There is a story going the rounds that Gold Fields, the major South African gold producer, may be talking deals with Ashanti Goldfields. Rumours are rife in the mining industry, but this has a ring of truth about it as a number of events have combined to support the story. Probably the most important is that the new government of Ghana has started to clear the way for change in ownership of the company. Last month the finance minister of Ghana said that the sale of its 20 per cent stake in Ashanti was under consideration, although it would probably retain some shares for sentimental reasons. Back in 1999 Lonmin made a bid for Ashanti when the company was practically under water as a result of a gold hedging programme which had exploded in its face in spectacular fashion. The bid was blocked by strong opposition from the then government of Ghana led by Jerry Rawlings. Although Ashanti survived, it still has large obligations to the consortium of banks which rescued it. In recent weeks also Ed Haslam, who took over as chief executive of Lonmin during the past year, said at the time of Lonmin`s interim results that it was a platinum miner pure and simple. His company had no plans to increase its 32 per cent stake and would be willing to sell if the right price could be obtained. Lonmin and the Government of Ghana together hold over 50 per cent of Ashanti, so what better moment for Gold Fields to make a move? If Gold Fields does make a bid its timing could be shrewd. Ashanti, which has seven producing mines in four different African countries, has just produced some encouraging results for the first quarter of its year. On the financial side the hedge book was mark-to-market positive at US$143 million, based on a spot price of US$259 per ounce, and the gross debt had been reduced by US$13 million from year end 2000. Ashanti is still, however, under intense financial pressure. Total production of gold reached 398,992 ounces at cash operating costs at US$195 per ounce which were marginally lower than in the comparable quarter of 2000. Group earnings advanced 30 per cent to US$9.0 million and chief executive Sam Jonah introduced a bit of blue sky with the announcement of high grade intersections with visible gold in quartz below 50 level at the Obuasi mine in Ghana. Obuasi is a world class mine and Gold Fields could make it into an efficient producer. The company is therefore no longer a basket case, but it is still vulnerable and the recent resilience in the gold price will not have done its hedge book much good as it is based on a bearish view of gold. Gold Fields is strong enough financially to take the hit of sorting out the hedging situation on the chin as Chris Thompson is anti-hedging, and the 43 million ozs of measured and indicated gold resource owned by Ashanti is quite a prize. The other advantages to Gold Fields would be its Black African status and its listing on no less than six stock exchanges throughout the world. It is a pity Ashanti had to sell 50 per cent of the Geita mine in Tanzania to AngloGold, but the bankers demanded it . A deal would therefore enable Gold Fields to move out of South Africa swiftly and easily and the South African Government would find it difficult to produce a blocking action as it did at the time of the proposed merger with Franco Nevada. Finally, two other telling points. Ashanti has just changed its brokers in London from HSBC to Williams de Broe. It is strange how often companies do this when faced by the possibility of a bid. Maybe they think that the new people will find some hitherto undiscovered aces in the pack. The pressure is certainly on to extract the best possible price if a bid appears as the shares are well down on the US$ 7/share offered by Lonmin. And Minews is not alone in thinking a bid could be a possibility as analyst John Bridges at bankers JP Morgan has just upgraded the company in anticipation of a change in control. 14 June 2001 --------------------------------------- http://www.bday.co.za/bday/content/direct/1,3523,869145-6094… SA`s big three gold miners say: Ashanti is not for us Ghana`s insistence on 10% stake and veto powers is likely deterrent, say analysts SA`s three big gold miners are pouring cold water on the possibility of making a move for Ghana`s Ashanti Goldfields Company, even though analysts say it could be a good fit with at least two SA producers. The Ghanaian government and its investors have hinted that they might sell their stakes in Ashanti, but SA reticence could be put down to Ghanaian mining laws, which stipulate that the state maintains a mandatory 10% equity in all local exploration and mining ventures, as well as crucial veto powers over the ownership structure of Ashanti. These strictures are daunting hurdles and could put off any suitor, say analysts, even though its operations look attractive. "We have had no discussions with Ghana`s government about taking a stake in Ashanti," said Chris Thompson, CE of Gold Fields, SA`s second-largest gold miner. "Taking a stake in Ashanti would not do anything for us, it just would not make sense." He said Gold Fields preferred to own the bulk of its underlying assets rather than take a stake in another company. Bernard Swanepoel, Thompson`s counterpart at the thirdlargest producer, Harmony, sounded a similarly dismissive note: "It is not something that we are contemplating at this stage." The only show of interest, and pretty guarded at that, came from SA`s largest producer, AngloGold. Chairman Bobby Godsell said: "I can only say that we have a strategic alliance with Ashanti that does commit us to talk to each other about business opportunities in Africa, including in both SA and Ghana." Despite these denials of interest, both AngloGold and Gold Fields already have ties with Ashanti. AngloGold has a 50-50 joint venture in Ashanti`s Geita Mine in Tanzania, while Gold Fields bought the northern portion of Ashanti`s Teberebie gold concession in Ghana for $4,4m in August last year. Speculation mounted that Ashanti could be in play after Ghana`s finance minister said the government was considering selling part of its 19% stake in Ashanti in a bid to raise much-needed funds to pay off debts. Ghana is saddled with foreign debt totalling $6bn and domestic debt estimated at $1,3bn, and is looking to raise as much as $50m through the sale of its stake in Ashanti and other companies. UK-listed mining company Lonmin said recently it was considering selling its 32% stake in Ashanti as part of its plan to focus on being a platinum producer. But Ghana`s powers over Ashanti`s ownership structure and the government`s mandatory 10% equity in the company may also deter would-be buyers. "Unless the Ghanaian government says it wants to sell all its stake (in Ashanti), and relinquish control over the company, the government will be hard pushed to attract a suitor," said Leon Esterhuizen, a gold analyst at UBS Warburg based in Johannesburg. "AngloGold would not have a problem with the government retaining a stake in the company, but they would prefer to have total management control," he said. Lonmin fell prey to the Ghanaian government`s veto powers in 1999, when then president Jerry Rawlings blocked a takeover bid by Lonmin for Ashanti. Ashanti produces about 1,7million ounces a year, with its operations focused on its flagship mine Obuasi, as well as on the Bibiani, Teberebie and Iduapriem operations in Ghana, Siguiri in Guinea, Freda-Rebecca in Zimbabwe, and Geita in Tanzania. It is best remembered for almost going bust in October 1999 when a sudden spike in bullion prices sank its hedge book and brought it close to collapse. Ashanti`s hedge book, which was mark-to-market positive at $143m as of March 31, is unlikely to tempt Harmony as it prides itself on being an unhedged producer. Analysts say that Ashanti would be a good fit in either AngloGold`s and Gold Fields` portfolio, as both companies look to diversify their operations geographically and focus on producing low-cost ounces. It is AngloGold, though, that local analysts see making a play for Ashanti`s assets, if at all, as it is unlikely to be comfortable with taking a minority stake in the company. A more likely proposition, say analysts, is that AngloGold will bid for the remaining 50% in Ashanti`s Geita mine. "It would certainly make sense for AngloGold to go for Ashanti`s 50% stake in Geita because they know the asset and have management control," said Warburg`s Esterhuizen. He said Ashanti`s Geita was more attractive than its Obuasi operation, which is widely seen as overstaffed and inefficient. Market watchers reckon AngloGold will likely have first refusal on Ashanti`s assets, but for it to take a bigger stake the Ghanaian government will have relinquish its veto powers, which it may not be willing to do. Ashanti`s New York-listed shares ended at $2,65 on Monday, while on the Ghana Stock Exchange they were flat at 18500 cedis. Dow Jones. Jun 14 2001 12:00:00:000AM Business Day 1st Edition |
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| aus der Diskussion: | Wer übernimmt Ashanti? |
| Autor (Datum des Eintrages): | gholzbauer (15.06.01 04:33:38) |
| Beitrag: | 34 von 52 (ID:3742010) |
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