Pace falls off for Akrokeri-Ashanti

Thanks to lower gold prices and grades, Akrokeri-Ashanti Gold Mines (YAG-V) wasn’t able to keep up the record-setting pace it attained in the first quarter of 2001. The company still posted a profit.

During the three-month period ended June 30, Akrokeri-Ashanti produced 17,512 oz. gold, down from the record 19,858 oz. produced in the first quarter. The decrease is attributed to heavy rains, which the company says hindered access to higher-grade ore.

The company also notes that the ore blocks mined since May exhibited a higher distribution of smaller gold particles, making recovery more difficult. So far in 2001, Akrokeri produced a record 37,370 oz. gold.

Cash costs at the Bonte mine in Ghana for the first half of the year rang in at US$159 per oz. The company’s realized price for its production during the recent half-year fell US$20 per oz. from the previous year.

Despite lower production during June and July, the company expects still expects to produce its original forecast of 76,000 oz. gold in 2001.

During the second quarter, Akrokeri posted net income of US$282,477 (or 0.7 per share) on revenue of US$4.7 million, compared with year-ago net income of US$435,688 (1 per share) on US$4.7 million. Cash flow from operations, before changes in non-cash working capital, was US$1.3 million, up from US$1.1 million a year earlier.

Year-to-date net income amounts to US$869,356 (2 per share), compared with the year-ago income of US$773,404 (1.9 per share). Revenue between the two periods climbed by about US$245,000 to US$9.9 million. Cash flow grew to US$2.9 million from US$2.5 million.

At the end of June, the company had US$940,644 in cash, up from US$643,927 a year earlier.

During the latest quarter, the company finished replacing all of its rented earth-moving gear with new equipment via operating or finance leases. It also completed the extension of the 33KV power line from its old mine site on the Esaase property to the Jeni plant site, which is expected to reduce fuel costs.

Akrokeri-Ashanti plans to replace the sluice box at the Bonte mine in early 2002. A Knelson concentrator gold recovery module will up efficiency and recovery rates. Work to expand reserves at Bonte, and on neighbouring properties, continues.

The gold producer has three Ghanaian subsidiaries, including an 85%-owned company that operates the Bonte mine. The others hold nearby properties.