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Gold/Mining/Energy : Birim Goldfields Inc. (BGI-T) -- Ignore unavailable to you. Want to Upgrade?

To: Bat Man who wrote (557)	5/14/2000 1:57:00 PM
From: russwinter	Read Replies (1) \| Respond to of 922

Note reference to ASL and Mampon in this Northern Miner article. Although BGI is not really a ASL play, it doesn't hurt to see a healther ASL: Ashanti puts troubles behind, posts lower earnings 05/12/2000 Denver -- Higher gold production and an increased pace of construction at the Geita project in Tanzania are allowing Ashanti Goldfields (ASL-N) to leave its troubles behind. The Ghana-based company reported production of 417,849 oz. gold, 4% above the corresponding period in 1999. As a result, cash operating costs fell to US$197 per oz., down from US$211 a year ago. However, lower realized gold prices resulted in lower earnings. Ashanti received US$345 per oz. gold in the first quarter, down from US$380 per oz. a year ago. It posted earnings of US$6.9 million (or 6½ per share), compared with US$21.5 million (20½ per share) in the first quarter of 1999. Meanwhile, construction at Geita is 90% complete. It had been in jeopardy in the fourth quarter of last year, when the company ran into trouble over its overly aggressive hedging policy. The project got a boost early in the new year, when Ashanti landed a US$100-million bridge loan to complete construction. Anglogold (AU-N) won the bid for a 50% interest in the operation and stepped in with US$205 million in cash and US$130 million in financing. Ashanti will use the cash to pay down the bridge loan and reduce its debt. At full production, Geita should produce 500,000 oz. gold annually at cash operating costs of US$180 per oz. Back in Ghana, first-quarter production at Obuasi was 181,164 oz. gold -- above target, but below last year's first-quarter production of 210,171 oz. Cash costs showed an improvement to US$222 per oz., down from US$225 a year ago. Costs would have been lower but for unplanned contract mining costs due to a slope failure in the Anyinam pit. Ashanti's other operations reported strong performances. At the Bibiani mine in Ghana, production exceeded target, reaching 70,240 oz. gold, while cash costs fell to US$148 per oz. The Ayanfuri mine contributed 10,774 oz. at US$213 per oz., while the 80%-owned Iduapriem gold mine produced 38,057 oz. at US$248 per oz. The other 20% of Iduapriem is owned by the International Finance Corp. In Guinea, Ashanti saw record production of 95,996 oz. from the 85%-held Siguiri mine. Cash costs for the quarter were US$157 per oz. A week-long strike at the Freda-Rebecca mine in Zimbabwe combined with a failure at the mill to hurt first-quarter production, resulting in 21,618 oz. gold at US$224 per oz., compared with 26,742 oz. at US$153 per oz. a year ago. On the exploration front, Ashanti is advancing the Youga joint venture with Echo Bay Mines (ECO-T) in Burkina Faso and the Mampon project in Ghana. Ashanti also announced that its wholly owned subsidiary, Ashanti Goldfields Teberebie, has acquired Pioneer Goldfields. Pioneers' principal asset is its 90% interest in Teberebie Goldfields, which owns the Teberebie mine in Ghana. It is adjacent to the Iduapriem mine. The acquisition ups Iduapriem's life by about eight years, producing 150,000 oz. gold per year at a cash cost of US$200 per oz. The mine had been slated for shutdown next year. Higher-grade Teberebie ore will be trucked 3 km to Iduapriem's carbon-in-leach plant for processing. Ashanti will pay US$5 million on closing the deal plus US$13.8 million over five years. Depending upon minimum gold prices and production levels, the company may also be responsible for further cash payments of up to US$5 million. Ashanti has also reached agreement in principle to immediately sell certain assets of Teberebie Goldfields, including the Teberebie mine's north pit and gyratory crusher, to South African Gold Fields (GOLD-Q).