Categories: Stories

Ashanti records poor performance in first quarter

Though Ashanti Goldfields’s production for the first quarter of this year was 7 percent below that of the first quarter of last year, net profit was less than half that for the same period.

The company realised a net profit of US$6.8 million down from last year’s US$16.5million. Gold production had only declined from 409 384 ounces to 380 929 ounces.

Turnover was down from US$136.9 million to US$128.9 million but operating profit dropped from US$24.3 million to US$11.7 million.

The company realised a price of US$338 an ounce which was less than the spot price of US$351 an ounce.

Last year it realised US$334 an ounce which was higher than the spot price of US$301 an ounce. Operating costs for this year shot up by US$34 an ounce to US$224 an ounce.

The company says exploration at Obuasi and Geita continues to yield encouraging results.

(20 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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