AGC reports huge loss for first quarter of 2000
AGC acquires Pioneer Goldfields Limited
Bank of Ghana withdraws sales receipt books of
forex bureaux
Accra (Greater Accra Region) 16 May 2000
Ashanti Goldfields Company (Ashanti) on Thursday reported a huge loss in earnings for the first quarter of 2000 despite a slight increase in production.
It said in its first quarter report released in Accra that earnings for the period were 6.9 million dollars, which were 4.6 million dollars lower than the same period last year although production went up to 417,849 ounces, up by 15,698 ounces (four per cent) on production for the corresponding period last year. The target for the first quarter was 403,000 ounces.
Ashanti said Group cash operating cost was 197 dollars per ounce, seven per cent lower than the 211 dollars for the same period last year.
"Despite strong production and operating cost performance, earnings were 14.6 million dollars lower than the first quarter of 1999, due entirely to lower realised gold price of 345 dollars per ounce. (It was 380 dollars per ounce on March 31).
"The realised price was nevertheless 55 dollars per ounce higher than the average price for the quarter due to the proceeds of Ashanti's hedging programme."
The report said Obuasi produced 181,164 ounces, which was lower than the 210,171 ounces achieved for the same period last year but 1,164 ounces above target.
Anyanfuri had 10,744 ounces, Siguiri in Guinea 95,996 ounces and Freda-Rebecca in Zimbabwe 21,618 ounces.
Ashanti said the pace of construction at the Geita mines in Tanzania accelerated and was 90 per cent complete at the end of the period. It is expected to be commissioned in late May and the first gold would be produced by the end of the second quarter.
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Accra (Greater Accra Region) 16 May 2000
Mondex Ghana Limited (MXG), a joint venture company established by Ghana Commercial Bank (GCB) and the Agricultural Development Bank (ADB), on Thursday entered into an agreement with Hitachi for the supply of a smart card and an electronic banking system.
The deal, worth about two million dollars, will involve the deployment of Mondex Electronic-Cash system in the banking sector and is expected to form the bedrock of an e-cash banking project in West Africa.
The scheme, which will be in phases, will start with an initial 5,000 cards being issued to the staff of the GCB and ADB and some selected merchants.
The second phase will be the launch of a closed campus in Accra with a target of 50,000 consumers and over 500 merchants and vending machine points.
Mr William Panford Bray, Managing Director of the GCB, said at a press conference on Thursday that, with only about 10 per cent of the population having bank accounts, there was a limited merit to implementing a traditional transaction based on an electronic banking system.
"By using an electronic cash, the member banks of Mondex Ghana are able to leapfrog these systems and competition in the market place in the most cost-effective way," he said.
Dr. Percival A. Kuranchie, Managing Director of the ADB, said the company chose Hitachi because it could provide a one-stop solution to their operational issues. "Hitachi have set realistic roll-out and management plans and the project will be live in the second half of year 2000," he said.
Mr Ian Tait, Executive General Manager, Hitachi Europe, said the contract in Ghana is the first of its kind in the West Africa sub-region. "This is a strategic win for us and firstly represents our commitment to working with organisations to make e-commerce and e-banking work," he said.
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Accra (Greater Accra) 16 May 2000
Ashanti Goldfields (AGC) on Friday said its wholly owned subsidiary, Ashanti Goldfields Teberebie Limited, has acquired 100 per cent interest in Pioneer Goldfields Limited (PGL) following an agreement with the Pioneer Group Incorporated.
A statement in Accra said the acquisition of the Tereberie mine would result in an increase to the Group's ore reserves of at least 1.6 million ounces and enable the Ashanti Group to increase its ore reserves by 1.6 million ounces.
This will have the effect of extending the life span of the Iduapriem mines by about eight years at a production rate of over 150,000 ounces per year and at a cash operating cost of around 200 dollars per ounce.
The statement said under the terms of the agreement, Ashanti will make an initial cash payment of five million dollars and a deferred consideration of 13.8 million dollars payable over five years.
"The terms of agreement also include the potential for contingent consideration cash payments of up to five million dollars dependent upon minimum gold prices and production levels."
Ashanti's Chief Executive, Dr Sam Jonah said the acquisition of Tereberebie gold mine transforms a mine slated for shutdown next year into a lifelong mine with competitive cost.
"Acquiring Teberebie contributes to meeting Ashanti's objective of maintaining annual production at approximately 1.6 million ounces for the next 10 years."
The statement said in a related transaction, Ashanti has also reached agreement in principle with Goldfields Ghana Limited, a wholly owned subsidiary of Gold Fields Limited of South Africa, to sell certain assets of Teberebie Goldfields Limited including the Teberebie mine's north pit and gyratory crusher.
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Accra (Greater Accra) 15 May 2000
The Bank of Ghana (BOG) is withdrawing all sales receipt books issued to forex bureaux following new measures on foreign exchange transactions as part of efforts to check the slump of the cedi.
A statement by the BOG in Accra on Saturday said all old sales receipt books are to be surrendered to the head of the Non-bank Financial Institutions Department at Cedi House by Monday, May 15, for new ones. Forex bureaux operating in the regions are to contact the regional offices of the bank for new receipt books.
There has been public outcry against the slump of the cedi, especially around Easter, when the dollar dried up in the system and a dollar was being bought at between 5,500 and 6,000 cedis. This led to high prices of goods and services, prompting the public and opposition to apply pressure on the government to take measures to stem the decline.
Mr Kwame Peprah, Minister of Finance, announced a series of measures to stabilise the cedi. He also said 50 million dollars from the donor community had been received and another 150 million dollars was expected.
In wide-ranging measures being adopted to streamline the conduct of foreign exchange business in Ghana, the Central Bank reminded forex bureau operators that they are authorised to engage in "spot transactions" only.
"They should desist from accepting either cedis or foreign exchange deposits from any person or corporate bodies with the intent of obtaining or supplying foreign exchange or the cedi equivalent wholly or in part at a future date."
The bank said forex bureaux should desist from engaging in high volume Transactions, saying they are required to submit particulars of foreign exchange buyers to the Central bank at the end of every month.
"The returns should reach the Bank not later than 10 working days after the end of the month for which the report is being submitted."
The BOG reminded the bureaux that they shall not conduct business transactions at exchange rates different from those advertised on their notice boards.
The bank said all persons who buy foreign currency from forex bureaux will be required to provide identification in the form of either a passport, driving licence or voter's identification card.
"Such document would be verified by the bureau official who would also record the relevant particulars from it."
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