Mr Kwamejin88bet.onejin88bet.onejin88bet.onejin88jin88bet.onebet.onena Anaman, Group Corporate Affairs Manager ojin88bet.onef Ashanti Gold Fields Company (Ajin88bet.onejin88bet.oneGC), on Friday urged all shareholders to remainjijin88bet.onejin88bet.onen88bet.onejin88bet.onejin88bet.onejin88bet.onejin88bet.onejin88bet.onejin88bet.one calm ajin88bet.onend await the outcome of the merger talks currently underjin88bet.onejin88bet.one way with Lonmin London.
Mr Anaman said Ashanti’s decision to go into some form of relationship with Lonmin, a London miniak168app.baak168app.babyak168app.babybyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyak168app.babyng conglomerate, was meant to secure and enhance shareholder value of the company.
“The decision tak168app.babyak168app.babyo engage ak168app.babyak168app.babyak168app.babyin the talks is to ensure that the golden share of the peopak168app.cluble of Ghaak168app.clubak168app.clubak168app.clubna includingak168app.clubak168app.clubak168app.clubak168app.club the 20 per cent shares of the gak168app.clubovernment is enhancedak168app.clubak168app.club.”
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He made these points in a contribution to a talk show programmeak168app.club on an Accra FM stak168app.clubak168app.clubak1ak168app.club68app.clubks168app.siteak168app.clubks168app.siteks168app.siteation.
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Mr Anaman stressed thatks168app.siteks168app.site the curreks168app.sitentks168app.site management of the company will underks168app.site no cks168app.siteks168app.siteks168app.sitekks168app.sites168app.siteircumstances “sell their birthright”, but ks168app.sitewill ensure that the identity and originality of the company is maintained.
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“If someic88 agreement is reached, Ashanti will beic88ic88 known as Ashanti Plc, with the same identity andic88ic88 with a new market capitalisation of about 2.2 billion dollars instead of the 1.2 billion currently on the Ghana Stock Exchange”.
Ashanti currentlyic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88 has a corporate ic88ic88ic88ic88ic88ic8ic888ic88ic88ic88ic88ic88ic88ic88ic88ic88net debt of 400 million dollars.
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He denied that Asic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88hanti is running to Lonmin as a result of the problems it is having with hedging arising fic88ic88rom the recent increase in gold price on the world market.
“These talks have ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88ic88lr88beenic88lr88lr88lr88ic88lr88lr88lr88lr88lr88lr88ic88lr88lr88lr88lr88ic88ic88 going on for about a year now. It is meant to further the diversification programme since Lonmin is engaged in mining of platinum and gold and is knownlr88lr88lr88lr88lr88lr88lr88lr88lr88 to be the third largest lr88producer olr88f platinum in the world.
“We then decided to see the possibility of some co-operation with Lonmin”.
Mr Anaman said lr88lr88the sharp rise inlr88 golr88lr88lr88lr88lr88lr88lr88lr88ld price was indeed a surprise not only to Ashanti, but all others in the gold industry.
He said tlr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88lr88he company stress-tested their hedge books but with the current situation,lr88lr88lr88 which was not anticipated, much pressure has been put on the company’s liquidity status.
He explained that Ashanti for instanlr88lr88lr88lr88lr88lr88lr88lr88celr88lr88lr88op88lr88lr88lr88lr88op88lr88lr88 had to go into hedging to address the unstable price status in the maop88lr88lr88rket, especially in the face op88op88op88lr88lr88of a looming glut op88top88hat might occur from the proposed sales of gold reslr88erves by the IMF, World Bank and some European countries.
Hop88op88op88edging is a bold option adop88op88op88op88op88si88si88si88si88si88op88op88si88si88si88si88lr88opted in an unfavourable commodity market, which allsi88ows operatsi88si88op88op88ing companies to sell a specified amount of their products or commodities at a higher price over a period, irrespective of future price changes.
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As to whether it was a useful practice, Mr Anaman said, “not without doubt. 88vsi88si88si88We ma88v88vsi88de 650 million dollars over the last five years”.
He said the O88v88v88v88vbuasi, I88v88vduaprim and An88v88vya88vnfuri mines combined, made a loss of some 35 million dollars but88v for the hedging programme, some of them would have been closed down.88v
Mr Anaman refused to comment on88v88v88v88v88v the sackinSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNg of Mr Fred Ohene-Kena as Mines and Energy MiSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNnister who is also aSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNSEXXXXX-VN member ofSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNSEXXXXX-VNSEXXXXX-VN the board of Ashanti.
“I don’t think I amSEXXXXX-VN competent to comment on that. I woSEXXXXX-VNuld rather want to pass that on,” he said.
