With the new Knelson concentrators and cyclone recovery equipment still not on line, Akrokeri-Ashanti Gold Mines (YAG-V) continues to rack up the losses.
During the three months ended June 30, the company’s net loss came to US$1.3 million (or 3.1 per share), compared with year-ago net income of US$129,300 (0.3 per share). Revenue between the two periods slipped by just less than $1 million to US$3.7 million. Cash consumed by operations was US$129,396, compared with the US$1.3 million generated a year earlier.
For the first half of 2002, the company’ s loss amounted to just short of US$1.8 million, after posting earnings of US$880,301 in the same period of 2001. Revenue shrank to US$7.6 million from US$9.9 million. Cash flow was a meagre US$406,586, compared with the year-ago US$2.9 million.
The company’s Bonte alluvial gold mine in Ghana produced 11,870 oz. during the quarter, down from the 17,512 ounces poured in eth 2001 second quarter. The 33% decrease in production is attributed to poor gold recovery and plant downtime resulting from the installation of the concentrators and recovery equipment.
The Company realized an average of US$313 for each ounce produced during the quarter, better than a year ago. Average mine cash costs came to US$266 per oz., US$100 an ounce more than in 2001 thanks to the lower production.
Despite some setbacks and delays Akrokeri-Ashanti expects the commissioning of the new recovery system to be wrapped up by the end of August.
The recovery problems relate to ore from the mine’s high-grade alluvial zones, which have much finer gold grains than expected. The main sluice recovery system was not able to trap the grains.
At the end of June, the company’s accounts payable and accrued liabilities rose to US$4.8 million.
The company has about 40.8 million common shares outstanding.
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