Accra | Wednesday
GHANAIAN mining giant Ashanti Goldfields Company Ltd (AGC) on Tuesday said profits after tax for the third quarter of the current year zoomed 93% to $14,5-million.
A statement from AGC said profits after tax in the third quarter a year ago stood at 7.5 million dollars.
Sam Jonah, AGC chief executive, meanwhile, said the company was engaged in stepping up production.
”Despite our strong third quarter performance, the gold industry worldwide is having a downturn in fortunes. The AGC is continuing its efforts to drill for more gold,” Jonah said.
Ashanti has seven mines spread throughout Africa, with four mines in Ghana including Obuasi, Eduapraim, Teberebre and Bibiani; Siguiri in Guinea; Frida-Rebecca in Zimbabwe and Geita in Tanzania.
Jonah also said that the company was keen that the Ghana government gave up its commanding ”golden” shareholding in the company and was in talks over the issue.
”We are in consultation with the government of President John Kufuor to give up Ghana’s golden share.
”We think it is a sort of red flag and we believe the government will give it deep thought,” he said.
The government’s 19,5% stake in AGC gives it the power to veto any decision which it considers unfavourable to its interest.
Analysts say this acts a deterrent to the company’s expansion plans.
The largest shareholder in Ashanti is Lonmin, which owns 32% of the company, together with Canadian companies Barrick Gold and Placer Dome.
The AGC report said cash operating cost for the group for the third quarter was 189 per ounce — an eight dollar increase over the previous year.
The report also said ”the quarter’s gold production of 411 532 ounces was lower than 448 208 ounces produced in the corresponding quarter of last year” due to the closure of a mine in Obuasi and lower grades in another.
It said the company was currently engaged in exploration in neighbouring Ivory Coast with ”geological mapping, pitting and drill-site preparation undertaken … near Zaranou, Ehuasso, Bebou and M’Basso Agni.” -Sapa-AFP