Heavy rains at its 85%-owned Bonte mine in Ghana caused a production shortfall for
Production at the alluvial gold operation slowed to 17,512 oz. from the quarterly record of 19,858 oz. set in the first three months of this year. The reduction reflects flooding of high-grade portions of the deposit, as well as poorer recoveries in the sluice box arising from an increase in the distribution of small gold particles.
Despite the sneeze, combined production for the quarters was a record for any 6-month period since mining began in 1991. Furthermore, the mine is still expected to meet its 2001 production forecast of 76,000 oz.
Cash costs for the first half of the year averaged US$159 per oz.
The Bonte mine now employs its own fleet of earth-moving equipment and has been connected to the 33-kV power line at the previous production site. A Knelson concentrator will be erected in early 2002 to replace the sluice box, which, combined with the other improvements, should result in lower unit costs.
Earnings in the second quarter totalled US$282,477 (or 7 per share), bringing the 6-month total to US$869,356 (2 per share). Revenue for the periods was US$4.7 million and US$9.9 million, respectively.
This compares with earnings of $435,688 (1 per share) on US$4.7 million and US$773,404 (1.9 per share) on US$9.7 million in the comparable periods of 2000.
Cash flow between the 6-month periods rose to US$2.9 million from US$2.5 million.
Meanwhile, the maturity date for Akrokeri-Ashanti’s $4.2 million in convertible debentures has been changed to Oct. 31, 2003, or April 30, 2004, or Oct. 31, 2004, depending on the price of gold. Repayments of principal are now geared to anticipated future cash flow, with compulsory partial redemptions of at least 25% of the principal to be made in 6-month intervals.
Starting in November, the debentures will carry interest at 14%, payable monthly. Furthermore, the notes are now secured against the company’s subsidiaries, behind holders of the company’s secured notes.
Also, the debenture-holders no longer retain the right to convert their notes at a reduced rate during the 30 days preceeding maturity. Instead, the strike price is 65 per share, regardless of when the notes are converted.
On June 30, Akrokeri-Ashanti had US$940,644 in cash.
Be the first to comment on "Akrokeri weathers shortfall"