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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (44413)	11/1/1999 9:38:00 AM
From: lorne	Read Replies (2) \| Respond to of 116759

FOCUS-Ashanti wins three-year gold margin reprieve (Adds Chief Executive quote, para 6, possible formal Lonmin offer, para 7, Geita mine, para 12) By Ben Hirschler LONDON, Nov 1 (Reuters) - Troubled Ghanaian mining company Ashanti Goldfields Co Ltd , subject of a takeover bid by Lonmin Plc , said on Monday it had a won a three-year reprieve on margin calls from its gold hedging counterparties. In exchange for its exemption from posting collateral against some $280 million of margin calls, Ashanti is issuing counterparties with warrants convertible into Ashanti shares, entitling them to around 15 percent of the company. Africa's third biggest gold producer, which was caught out by a sharp rise in gold prices which flipped its hedge book from profit into loss, said 15 counterparty banks had exempted it from posting margin on its hedge contracts until December 31, 2002. Thereafter, for 2003, Ashanti's margin limits will be twice ,tthe current levels, about $560 million, and for 2004 they will be 1-1/2 times the current limits, or some $420 million. In return, the counterparties will receive warrants to subscribe for notes which exchange into Ashanti shares at a price of $4.75 a share, the closing price of the stock in New York on Friday. If exercised in full, the warrants would generate $94 million for Ashanti. "In taking warrants in return for potentially much higher margin risk, our counterparties are demonstrating their confidence in Ashanti's vision and capacity to deliver its future plans," said Chief Executive Sam Jonah. FORMAL LONMIN OFFER? Industry sources said the long-term standstill deal could also pave the way for Lonmin -- which already owns 32 percent of Ashanti -- to post a formal offer, possibly this week. Lonmin's informal offer, made last month, was conditional on resolving the hedging problem and on support from the Ghana government, which has a 20 percent stake and veto vote in the country's biggest company. Lonmin is offering 16 shares for every 27 Ashanti shares, equivalent to $6 per Ashanti share, valuing the company at $670 million. Other mining companies, including South Africa's AngloGold , are waiting in the wings should Lonmin not succeed. One industry source said the Ghana government -- which has been actively pursuing alternatives -- was still in discussions with a number of parties. "There are more than two other potential bidders interested in all or part of Ashanti's assets," said one person familiar with the situation. Ashanti said it was in talks with existing lenders and others over funding for its promising Geita mine in Tanzania, due to start operations in the third quarter of 2000. Ashanti needs additional funding of $100 million. Ashanti's case for a stay on margin calls has been helped by a decline in gold prices which has reduced the losses on its hedge book to a more manageable level. News that it had secured a long-term reprieve reduced the pressure on gold bullion, which was fixed at $293.85 an ounce on Monday morning from Friday afternoon's $299.10. Initial fears that Ashanti might have to close its hedge helped fuel gold's rally to $340 on October 5, as dealers anticipated enforced short-covering. reuters.com

To: Enigma who wrote (44413)	11/2/1999 1:40:00 AM
From: d:oug	Read Replies (1) \| Respond to of 116759

<<If it's too difficult for me to understand - it must be evil. D>> d, does this mean you consider truth & honesty to be evil ? I realize that those who have done evil try to prevent others from learning of these acts, and one commen method is to present a proclaimation thru an official update about the company to the effect that all is great and wonder and doing very good with excellent projections, and then add at the very bottom of the release that Safe Harbor statement saying the above may not reflect present or future reality and as such this company cannot be held responsible for being Honest and telling you all the Truth. So what Barrick has done and is doing, and what the top insiders of this company know is not available to the shareholders. So what is available to Barrick's shareholders ? Seems like what Barrick wants & wishes it to be, is told them. Imagine what would happen if you met a high ranking Barrick officer, and you identified yourself as a shareholder. He or she would pull out a small piece of paper all officers are required to carry, and read it out loud. "Not anything, but everything I say, can not and will not be used against Barrick." Then this Barrick person will require you to sign a piece of paper stating that you agree. But why ? This person will then run away before talking to you, as he runs to a rest room to empty the inside of his head, as his/her brain did a puke-up upon thinking of the "stuff" they did "in the name of Barrick". Ya ya, we know, the company "forced" you, so you had no choice. Doug