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[Sovereign]

DJ Ghana`s Ashanti To Cut Admin Costs By 40% By End Of 2001



ACCRA, Ghana (Dow Jones)--Ghana`s Ashanti Goldfields Co. Ltd. (ASL) intends to cut administration costs by 40% by
the end of 2001, the company said in a statement Thursday.

Ashanti said more than 80 employees at the head office in Accra "have been notified that their services will no longer be
required." Ashanti said it will also "step up its indigenization policy," and not renew the employment contracts of some
expatriates when they expire.

Staff cutbacks are also planned at Ashanti`s largest mine of Obuasi, Ghana, where surface mining operations have come to
an end.

The statement said the company`s hedge book is "being restructured to reflect current gold prices and other realities."

With the continued depression of gold prices, and the sale of a 50% stake in Ashanti`s Geita mine in Tanzania earlier this
year, "such measures are industry-related, and should not come as a surprise," the company said.

Ashanti, in which the government holds a 20% stake, is Ghana`s largest company, and accounts for more than 60% of the
capitalization of the national stock exchange.

-By Nana Yaa Ofori-Atta; Dow Jones Newswires; -225 22 41 38 95; [e-mail]
-0- 08/09/00 10-53G

(END) DOW JONES NEWS 09-08-00

06:53 AM

Fazit: Ich bleibe bei meiner Meinung, daß Ashanti den turnaround schaffen wird und gestärkt aus dem Tal der Tränen heraustreten wird.
Das Management hat m.E. die richtigen Schritte zur Restrukturierung eingeschlagen.
Die aktuell niedrigen Goldpreise werden die Restrukturierung des hedge books auf jeden Fall erleichtern.

Gruß

Sovereign

[Sovereign]

Hier Ashanti`s Präsentation auf der diesjährigen Denver Gold-Konferenz:

Sehr wichtig erscheint mir die Erläuterung des hedge-books :

"At a spot gold price of US$275 per ounce and assuming lease rates of 1.5%, Ashanti`s current hedge book would, if held to maturity, generate in excess of US$550 million in cash and has a mark-to-market value of approximately US$61 million (negative). Six months ago, at a gold spot price of US$276 per ounce, the mark-to-market value of the book was approximately US$146 million negative, some US$85 million more negative than it stands today. This improvement is a result of two factors: time decay and the restructuring that has taken place during that period."

Meiner Meinung nach ist Ashanti klar auf dem richtigen Weg und wird den turn around erfolgreich fortsetzen. Ich bleibe optimistisch und selbstredend voll investiert.

Gruß

Sovereign


Denver Gold Show: Ashanti Presents Situation Report
ACCRA, Ghana--(BUSINESS WIRE)--Oct. 3, 2000--Further to the announcement on 14 September 2000 that Ashanti Goldfields Company Limited (``Ashanti`` or ``the Company``) has secured the consent of its banks for an extension of both the US$100 million Barclays Bridge Facility and the date for completion of the sale of a 50% interest in its Geita gold mine in Tanzania to AngloGold Limited (``AngloGold``) until 31 October, 2000, the Company is today updating delegates at the Denver Gold Show of the following progress, which has been achieved in relation to its current operations, financing arrangements and other developments. The Company is accordingly making this announcement to securityholders of the salient information contained in its presentation this afternoon.

Financial developments

As announced on 14 September, the deadline for completion of Ashanti`s disposal of a 50% interest in its Geita mine to AngloGold has been extended to 31 October 2000. The extension provides further time for the Company and its banks to seek to finalise revisions to Ashanti`s financing arrangements in connection with the Geita transaction, which have already been agreed in principle. These have taken longer to negotiate than was initially anticipated owing partially to inter-creditor issues. The Company will need to obtain a further extension if the remaining inter-creditor issues are not quickly settled. The Company will issue a circular to shareholders seeking approval of the Geita transaction once the financing arrangements with the banks have been agreed and documented and the requisite formal consents to the transaction have been obtained from the banks. Should the Geita sale not be completed by 31 October 2000 (or any later extension thereof) then, unless a standstill or other accommodation was reached, the Company would be in default under the terms of the Bridge Facility. If this were to occur, it would cross default into the Company`s other debt facilities, all of which would become due for repayment. The Company`s ability to continue as a going concern should the Geita sale not be completed by 31 October 2000 (or any later extension thereof) would depend, therefore, entirely upon an extension of the Company`s banking facilities while an alternative solution was sought.

Upon completion of the Geita sale, on the basis of the terms agreed in principle for the relevant debt facilities, the Company expects to repay at least US$300 million of existing debt. As a consequence of these payments, Ashanti will reduce its gross debt to approximately US$400 million. The Barclays Bridge Facility will be retired in full. Tighter mechanisms to conserve and generate free cashflows are working effectively and this has allowed the Company to draw down approximately US$20 million less than was available under the US$100 million Barclays Bridge Facility. A substantial proportion of the Revolving Credit Facility (``RCF``) will also be retired and an additional amount of the RCF will be repaid but will remain redrawable for working capital purposes. This is part of a wider restructuring of the Company`s on-going banking arrangements which is also planned to encompass the inclusion of certain bilateral obligations within the amended RCF. A substantial portion of the proceeds used to repay debt will be sourced from the US$130 million net proceeds of a new project financing at the Geita level. The terms provide for this facility to be non-recourse to Ashanti, although 50% of the drawn amount will be reflected in its consolidated balance sheet within gross liabilities attributable to Geita. Notwithstanding the proposed significant reduction in its debt facilities, the Company will, following the sale, remain reliant on the continuing support of its banks for financing for its ongoing working capital requirements beyond 2001.

Hedge Book

At a spot gold price of US$275 per ounce and assuming lease rates of 1.5%, Ashanti`s current hedge book would, if held to maturity, generate in excess of US$550 million in cash and has a mark-to-market value of approximately US$61 million (negative). Six months ago, at a gold spot price of US$276 per ounce, the mark-to-market value of the book was approximately US$146 million negative, some US$85 million more negative than it stands today. This improvement is a result of two factors: time decay and the restructuring that has taken place during that period.

Ashanti has adopted a new hedge policy, aimed at reducing the levels of over-commitments that currently exist in the book, while at the same time aiming to increase and maintain appropriate levels of protection to withstand low spot prices. Over the next 2-3 years, the Company plans to increase its exposure to any gold price rise, even as the proportion of its unhedged production decreases as a consequence of the disposal of 50% of Geita. Although Ashanti is enjoying a period of margin-free trading that ends on 31 December 2002, it hopes to restructure the book such that the gold price will have to rise significantly to trigger any margin call beyond 2002.

Operations

At Obuasi the high cost surface mining activity has ceased and consequently the Pompora Treatment Plant and the Oxide Treatment Plant have been closed down. The Tailings Treatment Plant will be shut down by 2003, when the old tailings will be depleted. Ashanti will not, as previously planned, increase underground production to replace depleted surface ounces, so plant throughput will reduce from 3.5 million tonnes per annum to 2.5 million tonnes per annum. Consequently, planned gold production will reduce from 850,000 ounces to 550,000 ounces, but at lower cost and will result in improved cash flow. The Company is focusing on the underground mine: the strategy is to maximise hoist capacity, rationalise the mining sequence modify stoping methods to improve productivity, increase recovery and reduce dilution. The Company is also improving its block modelling systems to make reconciliation and feedback to the operation more interactive and improve information analysis and transfer. It has also implemented a number of process initiatives that should improve recoveries at the Sulphide Treatment Plant. Cash operating costs are targeted to reduce below US$200 per ounce by 2002, and annual sustaining capital expenditure is expected to reduce to less than US$40 million annually.

Bibiani is on track to achieve its target of 262,000 ounces at a cash operating cost of US$170 per ounce for the full year. The recently expanded Siguiri mine in Guinea is on track to produce its target of 300,000 ounces at a cash operating cost of US$180 per ounce for the full year. Exploration around the mine site has been particularly successful, and has fully replenished Siguiri`s resources in the last three years. The mine is therefore expected to operate for another seven years at its expanded capacity.

Iduapriem was scheduled to shut down at the end of 2000. However, through Ashanti`s recent acquisition of the adjacent Teberebie mine from the Pioneer Group, the Iduapriem/Teberebie complex is expected to be able to produce 150,000 ounces for the next eight years at a life of mine cash operating cost of approximately US$200 per ounce.

In spite of the problems in Zimbabwe, the Freda-Rebecca mine remains on course to produce 100,000 ounces this year, although cash operating costs may not fall below US$200 per ounce as originally planned. Cash flows generated by Freda-Rebecca will be used to reduce local borrowings with a view to reducing Group debt.

Following its completion, the Geita mine is on track to produce 150,000 ounces this year at a cash operating cost of below US$200 per ounce. This is despite the teething troubles the Company recently encountered with the SAG mill, reflecting commissioning difficulties that often arise in bringing a project of this size on line. From next year, Geita is expected to produce to Ashanti`s account approximately 250,000 ounces annually at an estimated cash operating cost of US$180 per ounce. Once debt service reserves have been built up, as required under the new project finance facility, Ashanti expects to share, with AngloGold and the project financiers, in the surplus cash generated by the mine. As previously announced, the Company has already begun to outline plans with AngloGold to expand mill capacity from 4 million tonnes per annum to 7 million tonnes per annum, with a view to increasing total production to some 750,000 ounces per annum.

At the Head Office, the Company has implemented a rationalisation programme, reducing headcount and streamlining organisational effectiveness which it estimates will save it more than US$5 million annually when fully implemented.

Exploration

Recent drilling below the 5,000-foot level (``50 Level``) at Obuasi has produced some very high-grade intersections, and the prediction of down dip mineralisation based on the upper level history is not unrealistic. The Company is planning, over the course of 2000 and 2001, to complete exploration and conceptual engineering of the resource below ``50 Level``, and should then be in a position to decide upon the most suitable development option for the resource below ``50 Level``.

At Geita, in addition to the 5.5 million ounce reserve that is currently outlined, the Company believes there is the potential for more open pit resources spread out between Nyankanga, Nyamatigata and Nyamulilma Hill (once the latter is contributed by AngloGold to the JV). The Company also believes that there is potential for underground mines at Nyankanga as well as at the Geita, Lone Cone and Kukuluma deposits.

The Company is in the process of developing a strategy for its Kimin property in the Democratic Republic of Congo (DRC). However, given all the problems in the DRC, Ashanti does not expect to start producing gold from Kimin in the near future, even though there is a small mine already in existence, but which is not currently operational. The Company has, however, taken necessary steps to consolidate its position in Kimin and has received a Presidential decree that recognises Kimin`s rights. When the political situation stabilises in the DRC, Ashanti will be poised to participate in the development of one of the most prospective gold districts in Africa.

This announcement contains a number of statements relating to future results of Ashanti that are considered ``forward-looking statements`` as defined in the Private Securities Litigation Reform Act 1995 of the United States of America. Statements that are not historical facts, including statements about Ashanti`s beliefs and expectations, are forward-looking statements. Such statements may include statements regarding anticipated production or construction commencement dates, construction completion dates, working capital, expected costs or production output and the anticipated productive lives of mines.

These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Ashanti can give no assurances that such results, including the actual production or commencement dates, construction completion dates, working capital, costs or production output or anticipated lives of the projects and mines discussed will not differ materially from the statements contained in this announcement. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other 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 announcement. 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 on the timing or feasibility of the developments of a particular project or the expansion of specified 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 profitably produce and transport gold extracted therefrom to applicable markets, the impact of foreign currency exchange rates on the market prices of gold 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.

Forward-looking statements speak only as of the date they are made, and Ashanti undertakes no obligation to update publicly any of them in light of new information or future events.

[Sovereign]

Der Geita-Verkauf ist mit der Zustimmung der Banken nun endlich in trockenen Tüchern!

Tuesday October 24, 10:12 am Eastern Time
Ashanti shores up future with Geita sale
LONDON, Oct 24 (Reuters) - Troubled African miner Ashanti Goldfields Ltd said on Tuesday it had won approval from its lenders to sell half of its Geita gold mine for $335 million in a move aimed at shoring up the company`s balance sheet.

The Ghanaian company said the stake would be sold to AngloGold Ltd and also announced that the prized project would be run as a joint venture between the two.

Ghana`s largest and among Africa`s top gold producers planned the sale after suffering devastating losses on its hedge book. But its banks have taken time to approve the deal.

Wie gehts weiter? Hier meine Prognose: Umschuldung der bestehenden Kreditlinien, Zurückfahren des hedge books mittels des free cash flows aus laufender Produktion, Verkauf des Bulyanhulu-Sout joint venture Anteils an Barrick, Übernahme von Spinifex durch ein cash Gebot...Mein price target für Ashanti ist nach wie vor 7 $ und für Spinifex 0,25 Aus-$ als Mindespreis (0,30 Aus-$ ist wahrscheinlicher).

Gruß

Sovereign ;-)

[Sovereign]

Hier die vollständige Nachricht:

Tuesday October 24, 11:48 am Eastern Time

Press Release

Ashanti Secures Bank Approval for Geita
Transaction. Circular to Shareholders to be
Despatched Shortly

ACCRA, Ghana--(BUSINESS WIRE)--Oct. 24, 2000--Ashanti Goldfields Company Limited (``Ashanti`` or ``the
Company``) announces that it has secured the approval of its Lending Banks to the sale of a 50% interest in the Geita Project to
AngloGold Limited (``AngloGold``), which will realise for the Company US$335 million in cash and for the Company to enter
into a joint venture with AngloGold in respect of the Geita Project (together the ``Transaction``).

The approval is subject to the satisfaction of certain conditions precedent including the consent of Ashanti`s shareholders. The
Company`s two principal shareholders, Lonmin Plc and the Government of Ghana, which together hold 51.4% of the
Company`s issued share capital have undertaken in writing to vote in favour of the Transaction. Closure of the Transaction is
expected to occur by 30 November 2000.

Ashanti and the Bank Group have also agreed and signed the revised banking agreements necessary to enable the sale to
proceed and to provide Ashanti with a working capital facility until the end of 2001. The Transaction will enable the Company
to repay more than US$300 million of its bank borrowings. Ashanti has also confirmed with its hedging counterparties the
continuance of the margin free hedging arrangements to the end of 2002, as previously announced.

If the Transaction does not proceed, then the Company will not have adequate working capital for its present requirements and
by 30 November 2000, a standstill or other accommodation will need to be reached with the Bank Group.

Ashanti`s directors will unanimously recommend to Securityholders to vote in favour of the Transaction. A circular, convening
an EGM for the end of November 2000 will shortly be despatched to shareholders. Further details concerning the Transaction
are set out below. The Company is also taking the opportunity of submitting, for shareholders` approval at the EGM, the
appointment and service contract of Srinivasan Venkatakrishnan (``Venkat``) whom the Board appointed as Chief Financial
Officer on 1 July 2000.

Ashanti has been advised on the Transaction by CIBC World Markets plc. Key points:

1. Ashanti will receive US$335 million in cash on Closure, being

US$205 million in proceeds plus the net proceeds of the Geita

Project financing of US$130 million.

2. This will enable the Company to repay at least US$300 million of

bank borrowings. The Bridge Facility, which is expected to be

drawn as to approximately US$80 million by Closure, and US$151

million due under the Company`s Revolving Credit Facility will be

retired. In addition a further repayment of US$70 million, which

amount may be redrawn for working capital purposes will be repaid

on Closure. The balance of the proceeds will be used to meet taxes

and costs associated with the Transaction and to provide

additional working capital.

3. The Company`s two principal shareholders, Lonmin Plc and the

Government of Ghana, which together hold 51.4% of the Company`s

issued share capital have undertaken in writing to vote in favour

of the Transaction.

4. Ashanti will restructure its banking facilities with effect from

Closure. The total facilities provided under the Amended RCF will

amount to approximately US$189 million of which US$70 million will

constitute the Working Capital Facility, available to be drawn

until 31 December 2001, with the balance being fully drawn.

5. The US$130 million Project Finance Amount is to be provided or

procured by AngloGold by Closure. A term sheet from third party

financiers has been agreed and the finance document is currently

being negotiated. If the third party finance is not available by

Closure, the US$130 million will be provided by AngloGold under

terms already agreed. The Project Finance Amount will permit the

repayment of indebtedness incurred in financing the development of

the Geita mine and the funds will therefore not be retained.

6. Together Ashanti and AngloGold will investigate the possibilities

of expanding the Geita mine beyond its current capacity and will

continue to search actively for additional reserves within the

Geita Project. If Ashanti is unable to provide or procure its

share of any funding requirement, then unless Ashanti so agrees,

there will be no dilution of its interest in the Geita Joint

Venture.

7. Ashanti has confirmed the continuance of margin free trading until

31 December 2002, and thereafter for 2 years at levels higher than

previously available to Ashanti, subject to compliance with

certain covenants. The margin free trading arrangements do not

apply to any hedging conducted in respect of Geita production. In

the event of third party project finance, arrangements have been

agreed, subject to documentation, for the Geita hedging to be

available without margin calls.

8. Repayments of the working capital facility together with a tranche

under the Amended RCF (approximately US$8 million) must begin in

March 2002 and will be made in four quarterly instalments with the

balance of the Amended RCF then still due, repayable by 15 January

2003. The Directors expect that the Company will need, before 31

December 2001, to seek replacement facilities or financing for its

then ongoing working capital requirements.

9. The new bank agreements, together with certain individual hedging

agreements, contain certain covenants, restrictions and events of

default which are tightly drawn and, although not unusual in

similar circumstances, are relatively onerous for the Company.

Consequently, the Directors consider that the Company will

continue to need approvals, waivers or other accommodation from

its Bank Group. If not forthcoming, non-compliance with these

provisions could lead to almost all of the Company`s indebtedness

becoming immediately repayable and its hedging agreements being

terminated. In these circumstances, the Company will be reliant

for the continued availability of its facilities, including the

Working Capital Facility, on the Bank Group`s continued

willingness to provide the facilities.

10. The Amended RCF, like the Revolving Credit Facility it replaces,

restricts the Company from declaring and paying cash dividends.

11. As part of negotiations to secure additional working capital, the

Company has closed out certain forward sales to offset a forward

purchase which would, unless extended, have been due for

settlement at the end of December 2000 and was estimated to amount

to US$23 million. This has resulted in a net amount due of

approximately US$15 million, US$8 million of which has been rolled

into the Amended RCF, and has crystallised an exceptional loss of

approximately US$15 million, which will be accounted for in the

fourth quarter of this year.

12. If the Transaction does not proceed then the Company will not have

adequate working capital for its present requirements and by 30

November 2000, a standstill or other accommodation will need to be

reached with the Bank Group.

This summary and key points should be read in conjunction with, and in the context of, the full text of this announcement.

CIBC World Markets plc, which is regulated in the United Kingdom by the Securities and Futures Authority Limited, is acting
exclusively as financial adviser to Ashanti and no one else in relation to the Transaction and will not be responsible to anyone
other than Ashanti for providing the protections afforded to customers of CIBC World Markets plc or for providing advice in
relation to the Transaction.

[1Meyer]

Nur der Vollständigkeit halber die Homepage von Ashanti:

http://www.ashantigold.com/

Grüße

[jeffery2]

@sovereign.
Du kämpfst ja wie ein Loewe für Deine Ashanti. Bewundernswert wie da so tolle Statments zusammenkommen. Habe mir nicht die Mühe gemacht das alles zu lesen, da mein Englisch zwar brauchbar aber mühevoll ist. Kenne mich ein bischen aus mit Afrikanern, sie reden viel und glauben das manchmal sogar ,und wenn sie erst schreiben können.!!! Na ja wir sind ja auch nicht besser. Also, es gibt nur 2 Möglichkeiten, Ashanti und Cambior und ich glaube da war ja noch Spinnefix (sagt der Berliner zu jemanden mit dürrem Knochenbau) steigen oder der Jaguar wird gegen einen rasanten Daihatsu getauscht. Es reicht nicht, sich die Braut schön zu saufen, es muß schon etwas dran sein. Also, wir werden es gnadenlos sehen was Ashanti taugt. Am Kurszettel!!! Natürlich wünsche ich Dir Glück, hänge ja auch ein bischen am Golde.
J2

[1Meyer]

@Sovereign,

erstmal danke für Deine Beiträge.



Das Kursziel könnte unter günstigen Umständen durchaus im zweistelligen Bereich liegen.

Grüße

[Sovereign]

Und Deine Interpretation des Charts?
Bodenbildung abgeschlossen?
Das will ich doch mal schwer hoffen...

Gruß

Sovereign

P.S.: Ach ja, die außerordentliche HV auf der der AngloGold-Geita-Deal genehmigt werden soll (reine Formsache: Die Großaktionäre Lonmin und Ghana haben bereits zugestimmt) ist für den 27.11. terminiert. Vielleicht läßt Ashanti zu diesem Zeitpunkt ein paar psoitive Nachrichten vom Stapel (z.B. Rückführung des hedge books).

[1Meyer]

Die Bodenbildung ist abgeschlossen.

Im Langfristchart ist der Bereich um 7 USD schon vom ersten Blick her das nächste Ziel.

Spannend wird Ashanti bei einem Ausbruch aus der jetzigen Seitwärtsbewegung. Dazu ein 6-Monats-Chart:



Weitergehende Kursziele können dann zu gegebener Zeit diskuttiert werden.

Ashanti wird noch Geduld und Zeit brauchen und die habe ich

Grüße

[Sovereign]

Wie die Buschtrommeln aus Ghana verlauten wird Ashanti am kommenden Montag die Zahlen des 3.Quartals veröffentlichen.
Hoffen wir mal das Beste...

Gruß

Sovereign

[Sovereign]

Folgender Satz beschreibt die derzeitige Erwartungshaltung der Märkte gegenüber Ashanti m.E. treffend:

Wer immer nur das Schlimmste erwartet, kann nur positiv überrascht werden! (Die Zyniker-Variante des Optimismus)

Gruß

Sovereign

[Sovereign]

Hier die Quartalszahlen, die wie ich meine operativ sehr gut ausgefallen sind (man beachte die cash Kosten je Unze). Das hedge book wurde gegenüber dem 2. Quartal "nur" um 500.000 Oz zurückgefahren, doch es ist bereits angekündigt, daß hier bald etwas signifikantes passieren wird (Ashanti plant im 4. Quartal 15 Mio. $ dafür aufzuwenden). Das Mark to market value war am 30.6 mit 221 Mio. $ negativ, am 30.9. warens 61 Mio. negativ und aktuell ist es "POSITIV": Da können sich die gehedgten Aussis ne Scheibe von abschneiden!

Gruß

Sovereign (vielleicht klappt`s mit meinem Kusrziel von 7 $ auf Sicht von 6 Monaten)


Third Quarter Report 2000
Ashanti Posts Record Production And Lowest Operating Cost Since 1996
HIGHLIGHTS
ACCRA, Ghana--(BUSINESS WIRE)--Nov. 6, 2000-- - Group gold production of 448,208 ounces - a new quarterly
record
 Cash operating costs 17% lower than third quarter 1999 and 8% better than second quarter 2000
 Total production cost of US$254 per ounce - lowest since 1996
 Obuasi records lowest operating cost per ounce since 1995 at US$195
 Continued progress in restructuring of hedge book. Ashanti`s hedge book turned mark-to-market positive at end October 2000 - first time for over 12 months
 Bank approval for sale of 50% interest in Geita obtained. Closure scheduled for 30 November 2000
 Bibiani awarded NOSA five-star grading for safety - the first mine north of Zimbabwe to receive this
-0-
Highlights 3 months to 3 months to 9 months to 9 months to
30 Sept 2000 30 Sept 1999 30 Sept 2000 30 Sept 1999
Financial (US$m)
Turnover 146.4 144.4 435.8 428.5
Operating cash flow 51.8 41.0 152.9 137.8
Profit before tax 9.8 8.0 25.3 47.0
Earnings 7.5 8.0 20.8 45.9
Earnings per share (US$) 0.07 0.07 0.18 0.40

Gold Production (ounces)
Total 448,208 379,543 1,299,108 1,124,314
Attributable 429,141 365,834 1,242,403 1,076,547

Gold Price (US$ per ounce)
Realised by Ashanti 327 380 335 380
Spot price 276 268 283 274

Production Costs
(US$ per ounce)
Cash operating costs 181 218 191 213
Royalties 8 7 8 8
Depreciation and
amortisation 65 67 69 65
Total costs 254 292 268 286
OVERVIEW
Ashanti registered a record quarter for gold production and further lowered cash operating costs. Total production costs were reduced to US$254 per ounce, US$17 per ounce lower than second quarter 2000 and US$38 per ounce lower than the costs for the corresponding period in 1999. This is the best cost performance since 1996.
Gold production for the quarter ended 30 September 2000 was a record 448,208 ounces, 4% above the 433,050 ounces reported for the previous quarter and 18% over the 379,543 ounces recorded for third quarter 1999. Year to date gold production of 1,299,108, ounces was 7% above the 1,218,000 ounce target and 16% above the 1,124,314 ounces produced during the nine months ended 30 September 1999.
Obuasi showed good progress as it continued its transition, posting cash operating costs of US$195 per ounce. This is the lowest in Obuasi since 1995. All the other mines reported good results in the quarter.
The Group`s cash operating costs fell 17% to US$181 per ounce for third quarter 2000 from US$218 per ounce in third quarter 1999. Cash operating costs for the year has come down to US$191 per ounce compared to US$213 for the corresponding period in 1999. This represents a 10% improvement.
Earnings of US$7.5 million (US$0.07 per share) were US$1.1 million up on the last quarter but US$0.5 million lower than the corresponding period last year. This increase in earnings has been achieved, despite a fall in the realised gold price, due to sustained efforts at lowering cash costs, which were 8% below the previous quarter. Earnings for the year to date were, therefore, US$20.8 million (US$0.18 per share).
The Geita mine was officially commissioned by President Benjamin Mkapa of Tanzania on 3 August. On 24 October 2000, Ashanti announced that it had secured the approval of its lending banks to the sale of a 50% interest in the Geita project to AngloGold, which will realise US$335 million in cash and for the Company to enter into a joint venture with AngloGold in respect of the Geita Project. The sale is subject to shareholder approval which will be sought at the Company`s Extraordinary General Meeting to be held on 27 November 2000.
Operations Review
Ghana
Obuasi
Production and costs Obuasi achieved a significant cash operating cost reduction bringing the cost per ounce from US$235 for third quarter 1999 down to US$195 per ounce this quarter. The 17% drop in quarter-on-quarter operating cash cost as compared to the corresponding period last year is in line with the objective of ensuring optimum production volume at competitive costs. Consequently gold production of 149,363 ounces was lower than third quarter 1999 bringing year-to-date production to 503,849 ounces, slightly lower than the 505,000-ounce target and the 545,711 ounces recorded for the corresponding period in 1999.
Processing With the announced closure of the Pompora Treatment Plant at the end of the second quarter this year, total ore processed for the quarter was 1,136,000 tonnes compared with 1,769,000 tonnes for the corresponding period in 1999. Head grade was at 8.36 g/t from the underground mine.
The Sulphide Treatment Plant achieved a recovery of 84.1% for the quarter, well above the 83% assumed in the new life of mine plan.
As the result of the surface operations coming to an end and the associated infrastructure closing, 480 employees were made redundant during the quarter.
Ayanfuri
The Ayanfuri mine, which is coming to the end of its life, produced 10,110 ounces during the quarter at a cash operating cost of US$226 per ounce. Year to date production stands at 29,955 ounces at a cash operating cost of US$224 per ounce compared to 33,875 ounces at US$203 per ounce for the same period in 1999.
The mine closure which was scheduled to take place in August has now been rescheduled to December. Subject to economic evaluation of the delineated Besem Gap and Chirawewa resource and the results of ongoing exploration work at the Dadieso prospect, the mine life may be further extended beyond December.
Iduapriem (80%)
Gold produced for the quarter was 42,888 ounces at a cash operating cost of US$225 per ounce compared to 41,791 ounces at US$223 per ounce in third quarter 1999. Gold produced year to date is 124,230 ounces at a cash operating cost of US$233 per ounce compared to 126,293 ounces at US$249 per ounce for the corresponding period in 1999. Reduced plant availability due to power outages and harder ore from the Teberebie south pit negatively impacted Iduapriem`s production.
Teberebie (90%)
Teberebie produced 9,700 ounces of gold at a cash operating cost of US$171 per ounce during the quarter from the continued heap leaching of previously stacked ore. Year to date production stands at 22,945 ounces at a cash operating cost of US$175 per ounce.
Trial milling of Teberebie ore was successfully completed at Iduapriem and the Iduapriem mine plan is being revised to feed higher grade Teberebie ore to the mill.
Bibiani
Bibiani turned in another good performance producing 69,040 ounces of gold in the third quarter at a cash operating cost of US$140 per ounce - the lowest recorded for any quarter since the mine commenced operations. The operating cash cost was US$19 per ounce below the US$159 per ounce target. The comparative figures for the same period last year were 71,700 ounces at US$169 per ounce. The mine has produced 207,585 ounces year to date at a cash operating cost of US$147 per ounce compared with 188,715 for the corresponding period last year at US$176 per ounce.
Guinea
Siguiri (85%)
Siguiri produced 63,464 ounces for the quarter exceeding its target by 4,792 ounces. Year to date gold production was 239,737 ounces compared with 150,056 ounces for the flood affected 1999. Cash operating costs for the quarter was US$206 per ounce compared to US$269 per ounce for the comparative period last year.
Zimbabwe
Freda-Rebecca
Gold production of 28,607 ounces was above both third quarter 1999 production and third quarter 2000 target. Cash operating costs, however, increased from US$166 per ounce in third quarter 1999 to US$205 per ounce in the third quarter 2000. The sharp increase in unit costs related to external factors arising from politico-economic developments in the country, and the over valuation of the Zimbabwe dollar which has recently been devalued by 25%. The devaluation has contributed to a reduction in the cash operating cost which compares with US$223 per ounce reported in the previous quarter.
Tanzania
Geita
The Geita mine produced 75,036 ounces of gold at a cash operating cost of US$131 per ounce this quarter.
Production was affected by a failure of the SAG mill liners which resulted in a five-week shut down of the mill. Since recommissioning, the mill has operated autogenously achieving design capacity with a blend of hard and soft ore. Apart from this, commissioning of the mine and plant has been successfully completed.
Exploration
East Africa
At Geita in Tanzania, an accelerated drilling programme continued at Nyankanga to in-fill drill the inferred deep pit and underground resources. Drilling results included 8.8m at 30.4g/t, 17m at 14.7g/t and 18.7m at 7.1g/t. On the Spinifex joint venture, drilling continued on a number of prospects. Drilling was also undertaken on the Busulwangili licence (Pangea joint venture).
West Africa
In Burkina Faso, drilling was completed at Youga and Bitou. A revision of the resources and reserves is currently being undertaken.
At Siguiri in Guinea, exploration concentrated on in-pit and near-pit drilling at Kami, Kosise, Soloni and Tubani, generally to increase the drill hole density. Gold mineralisation was found in bedrock in an area proposed as the waste dump site for Tubani. Gold mineralisation in laterite was also outlined in a new zone named Sintoko, located south east of the plant site.
Southern Africa
Drilling continued on the copper/gold mineralisation to the east of Bindura near Freda-Rebecca in Zimbabwe.
Summary of production and cash operating costs per ounce

Obuasi Obuasi Obuasi
Underground Surface Tailings
3 months to 30 September 2000
Production (ounces) 132,290 6,213 10,860
Cost per ounce (US$) 191 542 108

3 months to 30 September 1999
Production (ounces) 128,189 52,552 10,935
Cost per ounce (US$) 217 298 143

9 months to 30 September 2000
Production (ounces) 369,354 102,598 31,897
Cost per ounce (US$) 204 263 118

9 months to 30 September 1999
Production (ounces) 356,923 156,204 32,584
Cost per ounce (US$) 217 284 149

Obuasi
Total Ayanfuri Iduapriem
3 months to 30 September 2000
Production (ounces) 149,363 10,110 42,888
Cost per ounce (US$) 195 226 225

3 months to 30 September 1999
Production (ounces) 191,676 11,659 41,791
Cost per ounce (US$) 235 194 223

9 months to 30 September 2000
Production (ounces) 503,849 29,955 124,230
Cost per ounce (US$) 210 224 233

9 months to 30 September 1999
Production (ounces) 545,711 33,875 126,293
Cost per ounce (US$) 232 203 249


Summary of production and cash operating costs per ounce continued


Teberebie Bibiani Siguiri
3 months to 30 September 2000
Production (ounces) 9,700 69,040 63,464
Cost per ounce (US$) 171 140 206

3 months to 30 September 1999
Production (ounces) -- 71,700 35,671
Cost per ounce (US$) -- 169 269

9 months to 30 September 2000
Production (ounces) 22,945 207,585 239,737
Cost per ounce (US$) 175 147 181

9 months to 30 September 1999
Production (ounces) -- 188,715 150,056
Cost per ounce (US$) -- 176 193

Freda- Total/
Rebecca Geita Average

3 months to 30 September 2000
Production (ounces) 28,607 75,036 448,208
Cost per ounce (US$) 205 131 181

3 months to 30 September 1999
Production (ounces) 27,046 -- 379,543
Cost per ounce (US$) 166 -- 218

9 months to 30 September 2000
Production (ounces) 79,241 91,566 1,299,108
Cost per ounce (US$) 217 129 191

9 months to 30 September 1999
Production (ounces) 79,664 -- 1,124,314
Cost per ounce (US$) 161 -- 213


Gold Production Summary

3 months to 3 months to 9 months to 9 months to
30 Sept 2000 30 Sept 1999 30 Sept 2000 30 Sept 1999

Obuasi
Underground Mining
Ore production
(`000 tonnes) 589 607 1,760 1,719
Ore grade (g/t) 8.36 7.98 7.90 8.03

Surface Mining
Ore production
(`000 tonnes) 28 758 891 2,494
Ore grade (g/t) 3.87 3.61 4.20 3.14
Waste mined (`000 tonnes) 1,132 4,510 8,907 16,599
Strip ratio 39.8 5.95 10.0 6.66

Sulphide Treatment Plant
Ore processed (`000 tonnes) 636 601 1,866 1,692
Head grade (g/t) 7.90 5.11 5.90 4.94
Recovery (%) 84.1 77.0 81.0 77.0
Gold produced (ounces) 135,549 76,092 287,982 207,002

Pompora Treatment Plant
Ore processed (`000 tonnes) - 407 787 1,188
Head grade (g/t) - 8.42 8.01 8.20
Recovery (%) - 82.9 82.4 83.0
Gold produced (ounces) - 91,388 167,287 259,769

Oxide Treatment Plant
Ore processed (`000 tonnes) 52 309 245 1,244
Head grade (g/t) 2.92 1.69 2.85 1.61
Recovery (%) 57.4 79.1 74.2 72.0
Gold produced (ounces) 2,823 13,261 16,683 46,274

Tailings Treatment Plant
Ore processed (`000 tonnes) 449 452 1,366 1,299
Head grade (g/t) 2.47 2.33 2.37 2.36
Recovery (%) 30.4 32.3 30.6 33.0
Gold produced (ounces) 10,860 10,935 31,897 32,584

Obuasi Total Processed
Ore processed
(`000 tonnes) 1,136 1,769 4,264 5,424
Head grade (g/t) 5.52 4.58 4.98 3.96
Recovery (%) 74.1 73.6 73.9 79.0
Total Gold produced
(ounces) 149,383 191,676 503,849 545,711

Obuasi Production
Distribution
Obuasi underground
(ounces) 132,290 128,189 369,354 356,923
Obuasi surface (ounces) 6,213 52,552 102,598 156,204
Obuasi tailings (ounces) 10,860 10,935 31,897 32,584
Obuasi total (ounces) 149,363 191,676 503,849 545,711


3 months to 3 months to 9 months to 9 months to
30 Sept 2000 30 Sept 1999 30 Sept 2000 30 Sept 1999
Ayanfuri
Mining
Ore production
(`000 tonnes) 212 374 652 1,004
Ore grade (g/t) 1.54 1.16 1.52 1.29
Waste mined (`000 tonnes) 805 267 2,407 1,149
Strip ratio 3.8 0.71 3.7 1.14

Heap Leach
Ore stacked (`000 tonnes) 306 343 917 1,049
Head grade (g/t) 1.24 1.17 1.26 1.14
Recovery (%) 82.9 90.4 80.6 88.1
Gold produced (ounces) 10,110 11,659 29,955 33,875

Iduapriem (80% owned)
Mining
Ore production
(`000 tonnes) 812 1,256 3,772 3,781
Ore Grade (g/t) 1.60 1.19 1.16 1.16
Waste mined (`000 tonnes) 3,841 2,703 11,316 10,026
Strip ratio 3.1 2.20 1.41 2.65

CIL Plant
Ore processed (`000 tonnes) 662 727 1,997 2,187
Head grade (g/t) 1.69 1.48 1.51 1.49
Recovery (%) 93.4 93.9 93.4 94.5
Gold produced (ounces) 33,855 32,614 92,243 99,220

Heap Leach
Ore stacked (`000 tonnes) 542 658 1,837 1,889
Head grade (g/t) 0.81 0.78 0.76 0.79
Recovery (%) 64.0 61.0 71.3 56.7
Gold produced (ounces) 9,033 10,095 31,987 27,073
Iduapriem Total (ounces) 42,888 41,791 124,230 126,293

Teberebie
Heap Leach gold produced
(ounces) 9,700 - 22,945 -

Bibiani
Mining
Ore production
(`000 tonnes) 675 680 1,703 2,131
Ore Grade (g/t) 3.45 3.90 3.25 3.88
Waste mined (`000 tonnes) 4,813 3,526 11,578 9,485
Strip ratio 7.2 5.2 6.8 4.4


3 months to 3 months to 9 months to 9 months to
30 Sept 2000 30 Sept 1999 30 Sept 2000 30 Sept 1999
CIL Plant
Ore processed
(`000 tonnes) 729 618 2,051 1,783
Head grade (g/t) 3.58 3.87 3.83 3.86
Recovery (%) 82.4 81.4 87.3 84.4
Gold produced (ounces) 69,040 71,700 207,585 188,715

Siguiri (85% owned)
Mining
Ore production
(`000 tonnes) 2,235 1,665 7,783 4,467
Ore grade (g/t) 1.28 1.93 1.35 1.86
Waste mined (`000 tonnes) 3,402 485 3,505 3,261
Strip ratio 0.5 0.29 0.5 0.73

Heap Leach
Ore stacked (`000 tonnes) 1,754 1,355 6,517 4,100
Head grade (g/t) 1.40 1.82 1.35 1.70
Recovery (%) 80.4 45.0 84.8 67.0
Gold produced (ounces) 63,464 35,671 239,737 150,056

Freda-Rebecca
Underground Mining
Ore production
(`000 tonnes) 273 246 726 744
Ore Grade (g/t) 3.61 3.36 3.63 3.73

Processing
Ore processed (`000 tonnes) 252 297 737 854
Head grade (g/t) 3.51 3.18 3.67 3.25
Recovery (%) 90.3 89.1 89.8 89.3
Gold produced (ounces) 28,607 27,046 79,241 79,664

Geita
Surface Mining
Ore production
(`000 tonnes) 672 - 693 -
Grade (g/t) 2.98 - 4.98 -
Waste mined (`000 tonnes) 5,699 - 6,311 -
8.7 - 9.1 -
Strip ratio
Processing
Ore processed CIL
(`000 tonnes) 785 - 980 -
Head grade (g/t) 3.12 - 3.12 -
Recovery (%) 95.2 - 93.0 -
Gold produced (ounces) 75,036 - 91,566 -

Group Summary
Managed gold production
(ounces) 449,208 379,543 1,299,108 1,124,314
Less minority interests 19,067 13,709 56,705 47,767
Gold attributable total
(ounces) 429,141 365,834 1,242,403 1,076,547
FINANCIAL REVIEW
Earnings
Earnings for the third quarter were US$7.5 million (US$0.07 per share), an increase of US$1.1 million as compared to the previous quarter. This was principally due to lower cash costs (an 8% improvement on the previous quarter), offset by a lower realised gold price.
For the year to date, earnings were US$20.8 million (US$0.18 per share), a reduction of US$25.1 million on last year due to a reduction in the realised gold price of US$45 per ounce, increased depreciation and interest charges, mitigated by reduced cash costs.
Revenue
Gold production for the quarter of 448,208 ounces generated spot revenue of US$123.7 million, equivalent to US$276 per ounce. Hedging income for the quarter was US$22.7 million, of which US$10.4 million was realised from the close out of regular hedges and US$12.3 million was released from deferred hedging income to give a realised price of US$327 per ounce. The year to date realised gold price was US$335 per ounce. Deferred hedging income at the quarter end totalled US$123 million.
Hedging
Details of hedging contracts outstanding at 30 September 2000 are set out in note 3 to the financial statements. Contracts providing gold price protection covered 6.0 million ounces at an average price of US$365 per ounce. The mark-to-market valuation of the portfolio at the quarter end was negative US$61 million and at the end of October 2000 was mark-to-market positive for the first time in over 12 months. In the year to date, US$38 million has been realised from the hedge book.
At the time of the crises in October 1999, as part of a series of transactions, the Company entered into a substantial forward purchase with one of its hedge counterparties with a view to neutralising the Company`s sold position with that counterparty. Based on a spot price of US$275 per ounce, the Company would have been required to pay approximately US$23 million to that counterparty on 29 December 2000. Following negotiations in respect of its banking arrangements, an agreement was reached such that all the Company`s hedge positions with the said counterparty were closed out on 3 October, resulting in an amount due to the counterparty on 29 December 2000 of approximately US$15 million. Due to the exceptional nature surrounding the close out, this will be accounted for as an exceptional loss in the fourth quarter.
The Company is continuing to restructure its hedge book with the aim of protecting it against any material fall in the spot price while permitting it to participate in the benefits of a price rise.
Operating Costs
Cash operating costs for the third quarter were US$181 per ounce, an 8% improvement over the previous quarter and a 17% improvement on the corresponding period last year. Year to date cash operating costs were US$191 per ounce. An analysis of production and cash operating costs by mine is set out on page 3.
Profit
Operating profit for the quarter was US$22.4 million, up US$2 million from last quarter and up US$7.1 million from last year.
Exploration expenditure in the quarter was significantly higher than the previous two quarters at US$5.1 million due to increased drilling, particularly on the Pangea property in Tanzania. Year to date exploration expenditure totalled US$9.1 million.
Corporate administration costs for the quarter were US$4.7 million bringing the year to date to US$14.9 million (US$11 per ounce).
Net interest cost for the quarter was US$12.6 million after interest income of US$1 million. Tax charged in the quarter of US$2.3 million related to settlement of prior years` tax.
Cash Flows and Balance Sheet
EBITDA for the three and nine months ended 30 September 2000 was US$51.8 million and US$152.9 million respectively. Net interest paid in the quarter at US$17.9 million was higher than the charge due to timing differences on the settlement of interest on the RCF and Exchangeable Notes.
Capital expenditure in the quarter of US$35.9 million included US$21.2 million in respect of Geita for the completion of the construction and US$8.5 million at Obuasi. Year to date capital expenditure of US$121.8 million includes US$79.9 million for Geita and US$22.4 million for Obuasi.
Net debt at 30 September 2000 increased by US$22.6 million to US$598.6 million due principally to a US$19 million draw down under the US$100 million bridge facility to cover interest. The amount outstanding at 30 September under the bridge facility was US$75 million. Net gearing after writing back goodwill written off in previous years was 66%.
In August 2000, the Company sold certain assets (which formed part of the Teberebie acquisition) to Gold Fields Ghana Limited for US$5 million.
Sale of 50% Interest in Geita
On 24 October 2000, Ashanti announced that it had secured the approval of its Lending Banks to the sale of a 50% interest in the Geita Project to AngloGold, which will realise US$335 million in cash and for the Company to enter into a joint venture with AngloGold in respect of the Geita Project.
The approval is subject to the satisfaction of certain conditions precedent including the consent of Ashanti`s shareholders. The Company`s two principal shareholders, Lonmin Plc and the Government of Ghana, which together hold 51.4% of the Company`s issued share capital have undertaken in writing to vote in favour of the transaction. An Extraordinary General Meeting to approve the transaction is scheduled for 27 November 2000. Closure of the transaction is expected to occur by 30 November 2000.
Group Profit and Loss Account

3 months to 3 months to 9 months to 9 months to
30 Sept 2000 30 Sept 1999 30 Sept 2000 30 Sept 1999
US$m US$m US$m US$m

Turnover 146.4 144.4 435.8 428.5
Operating costs (91.0) (90.7) (272.4) (264.7)
Exceptional operating costs - (10.0) - (17.4)
Royalties (3.6) (2.7) (10.5) (8.6)
Depreciation and
amortisation (29.4) (25.7) (92.0) (74.2)

Total costs (124.0) (129.1) (374.9) (364.9)

Operating profit 22.4 15.3 60.9 63.6
Exceptional items - - - 0.5

Profit before interest 22.4 15.3 60.9 64.1
Net interest payable (12.6) (7.3) (35.6) (17.1)

Profit before taxation 9.8 8.0 25.3 47.0
Taxation (2.3) - (3.8) -

Profit after taxation 7.5 8.0 21.5 47.0
Minority interests - - (0.7) (1.1)

Profit attributable to
shareholders 7.5 8.0 20.8 45.9
Earnings per share (US$) 0.07 0.07 0.18 0.40


Group Balance Sheet

As at As at As at
30 Sept 2000 30 Sept 1999 31 Dec
1999
US$m US$m US$m

Fixed assets
Property, plant and
equipment 1,056.9 1,172.7 1,008.0
Intangible assets 142.5 131.5 131.5
1,199.4 1,304.2 1,139.5
Current assets
Stocks 87.1 97.9 76.4
Debtors 39.1 61.4 31.8
Cash 86.9 95.2 89.7
213.1 254.5 197.9

Creditors: amounts falling
due within one year
Creditors (167.3) (188.9) (181.6)
Borrowings (230.4) (135.0) (159.4)
(397.7) (323.9) (341.0)
Net current liabilities (184.6) (69.4) (143.1)

Total assets less current
liabilities 1,014.8 1,234.8 996.4

Creditors: amounts falling
due over one year
Creditors (120.9) (167.0) (155.4)
Borrowings (455.1) (420.4) (423.2)
Provisions for liabilities and
charges (24.7) (21.5) (25.5)
414.1 625.9 392.3
Capital and reserves
Stated capital 544.3 544.3 544.3
Profit and loss account (132.3) 76.7 (153.1)

Equity shareholders` funds 412.0 621.0 391.2
Equity minority interests 2.1 4.9 1.1
414.1 625.9 392.3

Group Cash Flow Statement

3 months to 3 months to 9 months to 9 months to
30 Sept 2000 30 Sept 1999 30 Sept 2000 30 Sept 1999
US$m US$m US$m US$m

Net cash inflow from
operating activities 36.0 27.8 99.8 91.2
Returns on investments
and servicing of finance
Interest received 0.8 2.0 3.2 3.8
Interest paid (18.7) (11.0) (45.4) (21.3)
(17.9) (9.0) (42.2) (17.5)
Taxation
Corporate tax paid (1.7) - (4.0) -

Capital expenditure and
financial investments
Purchase of property,
plant and equipment (35.9) (55.1) (121.8) (143.6)

Acquisitions and disposals 4.6 1.5 - 6.2
Equity dividends paid - - - (7.5)

Outflow before financing (14.9) (34.8) (68.2) (71.2)

Financing
Loans drawn down 19.0 26.7 75.0 270.0
Loan repayments (3.1) (5.6) (9.6) (216.5)

Net cash inflow from
financing 15.9 21.1 65.4 53.5

Increase/(decrease) in
cash 1.0 (13.7) (2.8) (17.7)
NOTES
1. BASIS OF PREPARATION
The unaudited results for the nine months ended 30 September 2000 have been prepared in accordance with the accounting policies set out in the Annual Report and Accounts for the year ended 31 December 1999 (``the Accounts``).
As with the Accounts, after making enquiries, the directors have formed a judgement, at the time of approving these unaudited financial results, that there is reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.
It should be noted, however, that the Group has significant commitments in 2000 under the terms of the banking arrangements, including the need to raise at least US$200 million by 30 September 2000 subsequently extended to 30 November 2000 from asset sales, in order to retire a US$100 million bridge loan facility and repay US$151 million of the US$326 million RCF by 31 December 2000. The Group expects to repay these facilities from the proceeds of the sale of a 50% interest in the Geita project in Tanzania. In that connection, on 26 June 2000, the Company announced that it had signed an agreement for the acquisition by AngloGold of a 50% interest in the Group`s Geita gold project.The two companies have also agreed the terms of a joint venture agreement which will govern how the two partners will jointly operate the Geita project.
On 24 October 2000, Ashanti announced that it had secured the approval of its lending banks to the sale of a 50% interest in the Geita Project to AngloGold, which will realise for the Company US$335 million in cash and for the Company to enter into a joint venture with AngloGold in respect of the Geita Project. The approval is subject to the satisfaction of certain conditions precedent including the consent of Ashanti`s shareholders. The Company`s two principal shareholders, Lonmin Plc and the Government of Ghana, which together hold 51.4% of the Company`s issued share capital have undertaken in writing to vote in favour of the transaction. Closure of the transaction is expected to occur by 30 November 2000.
Ashanti and the Bank Group (consisting of the lending banks and the hedging counterparties) have also agreed and signed the revised banking agreements necessary to enable the sale to proceed and to provide Ashanti with a working capital facility until the end of 2001. The transaction will enable the Company to repay more than US$300 million of its bank borrowings. Ashanti has also confirmed with its hedging counterparties the continuance of the margin free hedging arrangements to the end of 2002, as previously announced. If the transaction does not proceed, then the Company will not have adequate working capital for its present requirements and by 30 November 2000, a standstill or other accommodation will need to be reached with the Bank Group.
2. Operating Profit Analysis by Business Area


9 months to 30 September 2000

Obuasi Ayanfuri Iduapriem Teberebie Bibiani Siguiri

Production ounces 503,849 29,955 124,230 22,945 207,585 239,737

Revenue - spot 142.8 8.4 35.0 6.4 58.8 68.0
- hedging - - - - - -
142.8 8.4 35.0 6.4 58.8 68.8
Operating costs (105.9) (6.7) (29.0) (4.0) (30.5) (43.3)
Royalties (4.3) (0.2) (1.0) (0.2) (1.8) (2.3)

Operating cash flow 32.6 1.5 5.0 2.2 26.5 22.4
Depreciation and
amortisation (42.1) (3.7) (2.5) - (14.7) (13.3)

Operating profit
30.9.00 (9.5) (2.2) 2.5 2.2 11.8 9.1
30.9.99 (37.2) (2.8) 1.9 - 4.6 2.5



9 months to 30 September 2000

Freda Hedging Explora- Corp
Rebecca Geita income tion Admin Total

Production
ounces 79,241 91,566 - - - 1,299,108

Revenue - spot 22.4 25.4 - - - 367.2
- hedging - - 68.6 - - 68.6
22.4 25.4 68.6 - - 435.8
Operating costs (17.2) (11.8) - (9.1) (14.9) (272.4)
Royalties - (0.7) - - - (10.5)

Operating cash flow 5.2 12.9 68.6 (9.1) (14.9) 152.9
Depreciation and
amortisation (7.2) (6.1) - (0.3) (2.1) (92.0)

Operating profit
30.9.00 (2.0) 6.8 68.6 (9.4) (17.0) 60.9
30.9.99 3.9 - 116.9 (8.3) (17.9) 63.6


3. Hedging commitments

The Group had commitments at 30 September 2000 for future sales of
gold bullion arising from hedging, and these will mature as follows:

2000 2001 2002 2003 2004

Forward Sales
(ounces) (35,498) 431,758 477,500 808,746 539.996
Forward Sales
(US$/ounce) 318.70 354.50 350.26 348.61 363.94

Puts:
Bought (ounces) 102,500 190,003 270,000 50,000 -
Bought (US$/ounce) 313.41 321.05 349.54 354.00 -

Sold (ounces) 12,500 50,000 50,000 50,000 50,000
Sold (US$/ounce) 270.00 270.00 270.00 270.00 270.00

Subtotal (ounces) 90,000 140,003 220,000 - (50,000)

Calls:
Sold (ounces) 41,275 972,104 938,500 770,892 492,892
Sold (US$/ounce) 362.67 334.63 342.79 365.31 372.84

Bought (ounces) - - 60,000 240,000 280,000
Bought (US$/ounce) - - 380.00 429.13 444.43

Subtotal (ounces) 41,275 972,104 878,500 530,892 212,892

Convertible Structures:
Put Protection (ounces) - - - - 79,200
Put Protection (US$/ounce) - - - - 377.50

Forward Commitment
(ounces) - - - - -
Forward Commitment
(US$/ounce) - - - - -

Call Commitment (ounces) - - - - 79,200
Call Commitment
(US$/ounce) - - - - 380.00

Summary:
Protected (ounces) 54,502 571,761 97,500 808,746 569,196

Committed (ounces) 5,777 1,403,862 1,356,000 1,339,638 832,088

Lease Rate Swap
(ounces) 5,424,500 5,398,750 5,291,625 4,994,125 4,396,400
Amortising Volume

2005 2006 2007 2008 2009

Forward Sales
(ounces) 534,996 248,000 240,000 255,000 230,000
Forward Sales
(US$/ounce) 356.87 349.35 352.96 358.51 357.70

Puts:
Bought (ounces) - - - - -
Bought (US$/ounce) - - - - -

Sold (ounces) - - - - -
Sold (US$/ounce) - - - - -

Subtotal (ounces) - - - - -

Calls:
Sold (ounces) 305,900 315,620 287,840 287,840 96,220
Sold (US$/ounce) 357.32 361.25 366.48 366.48 362.38

Bought (ounces) 60,000 173,000 173,000 - -
Bought (US$/ounce) 380.00 418.44 418.44 - -

Subtotal (ounces) 245,900 142,620 114,840 287,840 96,220

Convertible Structures:
Put Protection
(ounces) 79,200 179,200 179,200 179,200 179,200
Put Protection
(US$/ounce) 377.50 390.47 390.47 390.47 390.47

Forward Commitment
(ounces) - 200,000 200,000 200,000 100,000
Forward Commitment
(US$/ounce) - 400.75 400.75 400.75 400.75

Call Commitment
(ounces) 79,200 79,200 79,200 79,200 179,200
Call Commitment
(US$/ounce) 380.00 380.00 380.00 380.00 391.58

Summary:
Protected (ounces) 614,196 427,200 419,200 434,200 409,200

Committed (ounces) 860,096 669,820 634,040 822,040 605,420

Lease Rate Swap
(ounces) 3,695,200 3,029,400 2,410,375 1,891,675 1,377,650
Amortising Volume



2010 2011 2012 2013 Total

Forward Sales
(ounces) 140,000 140,000 120,000 120,000 4,250,498
Forward Sales
(US$/ounce) 346.86 346.86 348.00 348.00 353.86

Puts:
Bought (ounces) - - - - 612,503
Bought (US$/ounce) - - - - 335.02

Sold (ounces) - - - - 212,500
Sold (US$/ounce) - - - - 270.00

Subtotal (ounces) - - - - 400,003

Calls:
Sold (ounces) 56,500 56,500 56,500 56,500 4,735,083
Sold (US$/ounce) 350.00 350.00 350.00 350.00 353.87

Bought (ounces) - - - - 986,000
Bought (US$/ounce) - - - - 423.74

Subtotal (ounces) 56,500 56,500 56,500 56,500 3,749,083

Convertible Structures:
Put Protection
(ounces) 179,200 100,000 100,000 50,000 1,304,400
Put Protection
(US$/ounce) 390.47 400.75 400.75 401.00 390.88

Forward Commitment
(ounces) 100,000 100,000 100,000 50,000 1,050,000
Forward Commitment
(US$/ounce) 400.75 400.75 400.75 401.00 400.76

Call Commitment
(ounces) 179,200 100,000 100,000 50,000 1,004,400
Call Commitment
(US$/ounce) 391.58 400.75 400.75 401.00 389.31

Summary:
Protected (ounces) 319,200 240,000 220,000 170,000 5,954,901

Committed (ounces) 475,700 396,500 376,500 276,500 10,053,981

Lease Rate Swap
(ounces) 994,470 675,250 393,750 146,000 5,424,500
Amortising Volume
The hedge table breaks the above structures into protected and committed ounces. The ``Put Protection`` represents the amount of ounces that may be sold should gold continue trading at current levels. Under certain conditions these puts may cease to exist and may be replaced by forward sales and/or calls sold (``Forward Commitment`` and ``Call Commitment``).
Forward Sales:
A total of 4.25m ounces have been sold forward at an average price of US$353.86 per ounce. This increase from last quarter can be largely explained by the conversion of 300,000 ounces of contango locks into forward sales as well as restructuring part of the convertible options into forward sales.
Put Options:
Ashanti has purchased 612,503 ounces of put options that give Ashanti the right, but not the obligation, to sell gold at certain strike prices. The average strike price is US$335.02 per ounce. Ashanti has also sold 212,500 ounces of put options at an average strike price of US$270 per ounce.
Call Options:
Ashanti had sold 4.74m ounces of call options at an average strike price of US$342.21 per ounce. As a partial offset, Ashanti had bought 986,000 ounces of call options at an average strike price of US$423.74 per ounce.
Convertible Structures:
The portfolio contains 3 types of convertible structures:
1. Ashanti has sold 554,400 ounces of call options at a strike
price of US$380 per ounce for the period March 2004 to
December 2010. These call options convert to bought put
options (with a strike price of US$377.50 per ounce) if gold
trades below predetermined barrier levels on specified dates
starting from 2002. The average barrier level is US$347.
2. Ashanti owns 300,000 ounces of put options for the period
March 2006 to December 2008 with strike prices of US$401 per
ounce. Each option has a conversion level and a strip of
conversion dates associated with it. If the conversion occurs
the put options convert into twice the amount of forward sales
at the same strike price.
3. Ashanti owns 450,000 ounces of put options for the period
March 2009 to December 2013 with strike prices of US$401 per
ounce. Each option has a conversion level and a strip of
conversion dates associated with it. If the conversion occurs
each put option converts into 1 ounce of forward sales and 1
ounce of (sold) call options.
The average conversion level for convertibles 2 and 3 is US$362.
The hedge table breaks the above structures into protected and committed ounces. The ``Put Protection`` represents the amount of ounces that may be sold should gold continue trading at current levels. Under certain conditions (given above) these puts may cease to exist and may be replaced by forward sales and/or calls sold (``Forward Commitment`` and ``Call Commitment``).
Gold Lease Rate Swaps:
As of 30 September 2000, 5.42 million ounces of Ashanti`s hedged production (equivalent to approximately 71% of the delta of the hedge book) were exposed to the floating 1, 3 and 6 month lease rates. This quantity amortises each year.
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 Fixed
(ounces) Rate Description

33,500 2.00% Ashanti pays a monthly floating rate and receives
a monthly fixed rate of 2.00%

396,000 2.10% Ashanti pays a semi-annual floating rate and
receives a semi-annual fixed rate of 2.10%

1,150,000 2.00% Ashanti pays a semi-annual floating rate and
receives a semi-annual fixed rate of 2.00%.

1,920,000 1.80% Ashanti pays a quarterly floating rate and
receives a quarterly fixed rate of 1.80%.
The fixed amount of ounces is converted to
dollars at a fixed spot price of US$300.

920,000 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:

765,000 1.75% Volume Years To Maturity 3022.00%
Ashanti pays a quarterly floating rate and
receives a fixed rate ranging from 1.75%
to 0% depending on where gold fixes.

Gold Fix Fixed Rate Received
Spot less than US$345 1.75%
US$345 less than Spot less than US$400 Linearly interpolated
between 1.75% and 0%
US$400 less than Spot 0%

240,000 2.25% Ashanti pays a quarterly floating rate and
receives a fixed rate ranging from 2.25% to 0%
depending on where gold fixes.

Gold Fix Fixed Rate Received
Spot less than US$360 2.25%
US$360 less than Spot less than US$400 Linearly interpolated
between 2.25% and 0%
US$400 less than Spot 0%

Total
5,424,500
Mark-to-Market Valuations
On 30 September 2000 the portfolio had a negative mark-to-market value of US$61 million. This valuation was based on a spot price of US$275 and the then prevailing mid US interest rates, gold forward rates and volatilities. The delta at that time was 7.64 million ounces. This implies that a US$1 increase in the price of gold would have a US$7.64 million negative impact (approximate) on the mark-to-market valuation of the hedge book. Movements in US interest rates, gold lease rates, volatilities and time will also have a sizeable impact on the mark-to-market. All these variables can change significantly over short time periods and can consequently materially affect the mark-to-market valuation.
The approximate breakdown by type of the mark-to-market valuation at 30 September 2000 was as follows:
US$m
Forward contracts 54
European Put options (net bought) 25
European Call options (net sold) (76)
Convertible structures (10)
Lease rate swaps (54)
(61)
Projected Realised Prices and Cash Flows:
The following summary table shows, as at 30 September 2000, the ounces delivered, average prices and future hedge cash flows at the assumed spot price indicated. A quarterly lease rate of 1.5% is assumed throughout.
30 September 2000
Average Price
Spot Price Ounces delivered per Ounce Cashflow
US$250 5.955 million US$371.35 US$722.6 million
US$300 6.167 million US$366.23 US$408.5 million
US$350 7.25 million US$355.31 US$38.5 million
US$400 10.228 million US$356.22 US$(447.8) million

The number of ounces delivered in this table indicates how many
ounces Ashanti would sell through forward sales, as well as calls and
puts, bought and sold, which would be exercised under the various
assumed spot prices. The effects off all lease rate swap rate-sets (at
1.5%) have been included in the average price and cashflows
calculation.

[Sovereign]

Hier noch mal ne Analystenmeinung:

Ashanti says hedge book in the black
(UPDATE: Recasts with details of results)

LONDON, Nov 6 (Reuters) - Troubled African gold miner Ashanti Goldfields Ltd said on Monday its hedge book, source of immense financial grief, was showing a gain for the first time in a year and that production costs had hit a four-year low.

Ashanti, which in October sold a half stake in its prized Geita mine in Tanzania to shore up its balance sheet, also reported record quarterly production of 448,208 ounces for the three months ended September 30, up from 379,543 a year earlier.

The Ghanaian company reported group cash production costs of $181 per ounce, down 17 percent from a year earlier, and total productions costs, including non-cash expenses like depreciation, of $254 per ounce, Ashanti`s lowest since 1996.

The spot gold price averaged about $278 in the quarter.

Ashanti`s old mother lode, the Obuasi in Ghana, led the way in cutting costs, reporting cash operating costs of $195 per ounce -- it`s best performance since 1995.

The fall in costs helped lift pre-tax earnings to $9.8 million, up from $8 million in the same 1999 quarter.

``This increase in earnings has been achieved, despite a fall in the realised gold price, due to sustained efforts at lowering cash costs, which were eight percent below the previous quarter,`` Ashanti said in its results statement.

Mining analyst Charles Kernot of BNP Paribas said the results looked broadly positive for shareholders.

``It`s a relatively good situation,`` he told Reuters, citing the state of the hedge book and cut in operating costs.

``It`s something they have been striving towards.``

Last month, Ashanti won approval from its lenders to sell half of its new Geita gold mine to AngloGold Ltd in a deal worth $335 million.

Ashanti, Ghana`s largest and among Africa`s top gold miners, planned the sale after suffering devastating losses on its hedge book last year.

The company had lost heavily in its attempts to protect itself against market fluctuations when the gold price unexpectedly spiked higher a year ago.

But its banks took time to approve the deal, having delayed the deadline for finalisation by a month to October 31.

[Goldhotline]

Nach diesem Quartalsbericht ist Ashanti wieder ein klarer (seit Dezember 1999 vorsichtiger) Kauf und kann wieder normal gewichtet werden.

Die Goldhotline

[Sovereign]

Und was macht der Kurs heute in NY?...gar nichts! Bleibt festgenagelt bei 2 11/16 $ und einem Miniumsatz.
Na ja, irgendwann müssen sich die Fundamentals ja mal durchsetzen. Warten wir erst mal den Abschluß
des Geita-Verkaufs in diesem Monat und die weitere Rückführung des hedge books ab.
Mit etwas Glück ist alles bis zum Jahresende in trockenen Tüchern.
Was mir allerdings aufgefallen ist, ist die Meldung, daß ca. 5 Mio $ für die Exploration in Tansania ausgegeben wurden, ohne über die Ausweitung von Ressourcen zu berichten.
Meine Meinung: Da aktuell noch die Refinanzierung abgewartet werden muß, bis ein cash Gebot für Spinifex möglich erscheint, versucht Ashanti den Spinifex-Kurs bis dahin möglichst niedrig zu halten und gibt keine Explorationsergebnisse bekannt.
Was bin mal gespannt, was Spinifex selber für Zahlen im 3. Quartal bekanntgibt...

Gruß

Sovereign

[jeffery2]

@Sovereign! Weißt Du , wann die Spinifexzahlen kommen?
Gruß J2

[Sovereign]

Und nochmal Ashanti:

Ashanti trims its hedge policy
Bloomberg
November 07 2000
Accra - Ashanti Goldfields, Africa`s fourth-largest gold company, said yesterday it would sell less gold at prearranged prices, limiting the chance of losses should the gold price rise unexpectedly.

For the first time in more than a year, Ashanti would be able to cancel forward sales arrangements and make a profit. At one point last year, it would have lost about $550 million because of wrong-way bets on gold prices.

Those bets made it liable for collateral payments it could not meet. To stave off bankruptcy, the company had to comply with creditors` demands and reduce reliance on prearranged sales. It also had to give creditors the right to buy 15 percent of the company at a discount.

The hedge book, covering forward sales arrangements, "is in the black for the first time in almost 15 months,`` said James Leahy, at Canaccord Capital in London. "We have a `buy` on the company; now there is no hesitation.``

Ashanti`s output surged 18 percent in the quarter ended June 30 from the same period the year before to 448 000 ounces, and production costs fell 13 percent to $254 an ounce.

Ashanti will also take a $15 million charge in the fourth quarter as a result of cancelling some sales contracts.

Auch wenn der Kurs (noch) nicht anspringt, mir gefallen diese news!
Der kanadische Broker Canaccord liefert m.E. das umfassenste Research-Material zu Rohstoffaktien. Auf eine Empfehlung dieser Adresse für eine Goldaktie gebe ich persönlich mehr als auf eine von Merrill oder Goldman.

Gruß

Sovereign

P.S.:@jeffery2: Schau doch mal in den Spinifex-thread; dort habe ich die neuen Spinifex-Zahlen gepostet.

[Sovereign]

Monday November 27, 10:36 am Eastern Time

Press Release

Ashanti Secures Shareholders` Approval for Geita Sale

ACCRA, Ghana--(BUSINESS WIRE)--Nov. 27, 2000--Ashanti Goldfields Company
Limited (``Ashanti`` or the ``Company``) (NYSE:ASL - news; TSE:AHD.U - news) announces that it has secured the approval
of its shareholders, at an Extraordinary General Meeting held at Obuasi, Ghana, on Nov. 27, 2000, for the sale of a 50%
interest in its Geita gold mine in Tanzania to AngloGold Limited (``AngloGold``) and for the parties to enter into a joint venture
to jointly operate and manage the Geita Project (together the ``Transaction``).

Ashanti and AngloGold jointly announced their agreement to enter into the Transaction on June 26, 2000 subject to, inter alia,
the approval of Ashanti`s banks and of its shareholders. The approval of Ashanti`s banks was announced on Oct. 24, 2000
subject to certain conditions precedent including the consent of the Company`s shareholders.

It is expected that the Transaction will be completed in the near future when a further announcement will be made.

Certain of the statements made in this announcement are forward-looking in nature. By their nature, forward-looking statements
involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These
factors include, but are not limited to, statements made elsewhere in this announcement. In addition, risk factors relating to
Ashanti can be found in its public SEC filings. Ashanti undertakes no obligation to update publicly any forward-looking
statements whether as a result of new information, future events or otherwise. Any statements should be evaluated in light of
these factors.

[Sovereign]

Unter folgendem link ist eine Analyse über Ashanti abrufbar: http://www.africafinancereview.com/archive/2000/11/features_…

Mein Tip: Trotz des großen Umfangs des Berichts unbedingt lesen! Ich beschäftige mich seit mehr als 2 Jahren mit Ashanti und dies ist m.E. die beste Hintergrundanalyse zu dieser Firma, die ich bisher gelesen habe.

Gruß

Sovereign

[DrLupo]

@Sovereign: Kannst Du bitte den Link klickbar darstellen???????ß

Irgendwelche Fonds müssen Ashanti zu Spottpreisen raushauen

oder der Fisch stinkt vom Kopf her!!!!!!!!!!!!!!!!!!!!!

cu DrLupo

[golden-bear]

Hier eine Meldung zu Cambior, die ja ähnliche Probleme habne wie Ashanti

Thursday December 28, 1:25 pm Eastern Time
Press Release
SOURCE: Cambior Inc.
Extension of the Deadline for the Simultaneous Closing of the New Credit Facility and Prepaid Gold Forward Until January 12, 2001
All amounts are expressed in US dollars
MONTREAL, Dec. 28 /PRNewswire/ - Cambior continues the extensive legal process in preparation for the simultaneous closing of the new $65 million credit facility and the $55 million prepaid gold forward sale agreement in order to complete its financial restructuring plan. All material conditions have been already fulfilled, such as the payment of $35 million to the creditors on December 8, 2000 from the proceeds of the sale of the La Granja copper property, and the conversion of Jipangu`s first rank mortgage into a $3.7 million subordinated debt and equity through a private placement of a $6.3 million as announced on December 21, 2000.

However, final legal documentation and perfection of certain security on Cambior`s assets were delayed by the complexity of the transactions involving multiple parties and jurisdictions and disruption caused by the Holiday Season. Consequently, Cambior and its new creditors agreed to extend the committed financial restructuring plan and postpone the simultaneous closing of the new credit facility and the prepaid gold forward sale agreement, initially scheduled for late December 2000, to or prior to January 12, 2001.

Accordingly, Cambior`s current lenders agreed to a two-week extension for the completion of the financial restructuring plan, with no additional financial charge or cost to Cambior other than the interest rates disclosed in the press release dated September 29, 2000.

Cambior Inc. is an international gold producer with operations, development projects and exploration activities throughout the Americas. Cambior`s shares trade on the Toronto and American (AMEX) stock exchanges under the symbol ``CBJ``.

This press release contains certain ``forward-looking statements``, as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such risks and uncertainties are disclosed under the heading ``Risk Factors`` in Cambior`s Annual Information Form (AIF) filed with the Ontario Securities Commission, the Quebec Securities Commission, the United States Securities and Exchange Commission (Form 20-F) and other regulatory authorities.

SOURCE: Cambior Inc.

[Sovereign]

Bzgl. der Cambior-Meldung:
Alle Bedingungen für den Abschluß der Refinanzierung sind erfüllt.
Die VERSCHIEBUNG bis zum 12.01.01 ist darauf zurückzuführen, daß Cambior die schriftliche Zustimmung u.a. aller 11 beteiligten Banken einholen muß.
Durch die Weihnachtstage hat sich die anwaltlich durchzuführende Dokumentation des Refinanzierungsdeals nun mal um 1 oder 2 Wochen verschoben.
Daraus ergibt sich keine Gefahr für Cambior: Die verbleibenden Schulden i.H.v. 115 Mio. US-$ werden für weitere 5 Jahre finanziert.
Wenn jemand noch auf Schnäppchensuche ist: An der AMEX hauen z.Z. viele Institutionen ihre Cambior-Aktien raus, um eine Steuergutschrift einzuheimsen.
Für 25 US-cents kann man z.Z. ne Menge Stücke einsammeln.
Cambior ist auf jeden Fall die aktuell am meisten unterbewertete produzierende Goldminengesellschaft in Nordamerika.
Der Hebel auf den Goldpreis dürfte sich ca. bei 100 belaufen.

Gruß

Sovereign