By strategically shifting its 1997 production to the Jeni property in Ghana from the adjoining Esaase property, Akrokeri-Ashanti Gold Mines (AAGM-C) has managed to alleviate the effects of low gold prices.
For the year ended Dec. 31, 1997, the Toronto-based company incurred a loss of US$27,963 (or nil per share) on revenue of US$9.4 million, compared with a loss of US$737,730 (2 cents per share) on revenue of US$8.2 million in the previous year.
Cash flow from operations in 1997 totalled US$1.9 million, up from US$496,436 in 1996. Chairman Cliff Rand notes that the company has responded to fallen gold prices by controlling costs more efficiently. He says the turning point came in late 1997, when the company shifted its production from Esaase to Jeni and completed a US$600,000 hydroelectric line to its Bonte mine.
The increase in production from the higher-grade Jeni deposit, combined with the savings in power costs, is reflected in a strong first quarter. For the three months ended March 31, Akrokeri-Ashanti turned a profit of US$709,048 (2 cents per share) on revenue of US$3.1 million, compared with a year-ago loss of US$31,187 (nil per share) on US$2.4 million.
The company hopes to crank out 38,000 oz. of the yellow metal in 1998, during which time it will explore for replacement reserves on the Jeni property and acquire additional exploration ground.
In other company news, Michael Cawood has replaced Blair Howard as president.
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