SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2003.
ASHANTI GOLDFIELDS COMPANY LIMITED
(Translation of Registrant's Name Into English)
Gold House, Patrice Lumumba Road
Roman Ridge, P.O. Box 2665
Accra, Ghana
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F___
(Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes ___ No X
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-_____.
[ASHANTI LOGO]
P R E S S R E L E A S E
FOR IMMEDIATE RELEASE 26 MARCH 2003
ASHANTI GOLDFIELDS COMPANY LIMITED
("ASHANTI")
ASHANTI UPDATES REGULATORY FILINGS
Ashanti announces that, in connection with the forthcoming Rights Issue, it has
updated its regulatory filings for, amongst other things, the results for the
year ended December 31, 2002 and the following matters:
ASHANTI'S HEDGE BOOK
Higher spot prices and gold volatility levels since December 31, 2002 have
allowed Ashanti to make the following principal changes to its hedge book:
o 666,000 ounces of bought call options with strike prices
greater than US$ 430 per ounce were re-struck lower to 232,652
ounces of bought call options with strike prices of US$ 320
per ounce and US$ 330 per ounce;
o Protected ounces were increased by 50,400 with strike prices
of US$ 354 per ounce and US$ 375 per ounce; and
o 401,000 ounces of sold call options were re-struck lower to
match 682,400 ounces of bought put options, thereby converting
the put and call options into forward sales. Value generated
through this restructure was used to purchase a further
232,666 ounces of call options with a strike price of US$330
per ounce.
Although the total number of bought call ounces has been reduced, the above
restructurings have the following advantages:
o Owing to the lower strike prices, the cashflow effect from the
new bought call structure is comparably beneficial to Ashanti
up to gold prices of approximately US$500 per ounce with
respect to these contracts;
o The bought call options now have strike prices and value dates
that match individual sold call options or forward sales;
o Converting bought put and sold call options into forward
sales, simplifies the management of the hedge book;
o The number of protected ounces has increased by 50,400 at
favourable strike prices;
o The average committed price over the life of the book has
improved by US$11 per ounce from US$346 per ounce to US$357
per ounce; and
o Commitments for 2003 have been reduced allowing more
participation in higher spot prices: as at April 1, 2003
commitments will stand at 898,597 ounces, which is a reduction
of 401,057 ounces (31%) as compared to the position as at
December 31, 2002 of 1,299,654 ounces.
Based on existing contracts which have maturity dates on or after April 1, 2003,
Ashanti expects the hedge position to be as follows on April 1, 2003:
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 TOTAL
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FORWARD (OUNCES) 648,522 657,992 648,996 538,000 451,200 358,325 413,450 383,450 268,250 215,313 186,500 4,769,998
SALES
(US$/OUNCE) 346 355 352 359 360 370 362 366 367 374 365 359
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CALLS:
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SOLD (OUNCES) 378,025 496,180 498,728 210,256 230,076 260,535 70,970 28,250 84,250 77,188 28,000 2,362,458
(US$/OUNCE) 341 341 350 366 358 365 368 350 384 387 401 354
BOUGHT (OUNCES) 127,950 101,880 134,000 49,432 64,396 -- -- -- -- -- -- 477,658
(US$/OUNCE) 348 359 352 370 361 -- -- -- -- -- -- 356
SUBTOTAL (OUNCES) 250,075 394,300 364,728 160,824 165,680 260,535 70,970 28,250 84,250 77,188 28,000 1,884,800
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SUMMARY:
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PROTECTED (OUNCES) 648,522 657,992 648,996 538,000 451,200 358,325 413,450 383,450 268,250 215,313 186,500 4,769,998
COMMITTED (OUNCES) 898,597 1,052,292 1,013,724 698,824 616,880 618,860 484,420 411,700 352,500 292,500 214,500 6,654,797
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LEASE RATE 2,367,000 2,587,000 2,251,000 1,915,000 1,579,000 1,318,000 982,000 646,000 310,000 130,000 -- 2,587,000
SWAP
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TOTAL COMMITTED OUNCES AS A PERCENTAGE OF TOTAL FORECAST 50%
PRODUCTION (EXCLUDING GEITA FOR THE PERIOD OF THE PROJECT
FINANCING I.E. 2003-2007)
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DEFERRED (US$M) 10 11 21
HEDGING
INCOME
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There have been no significant changes to lease rate swap ounces or the Geita
hedge book, apart from maturing contracts.
CURRENT TRADING AND PROSPECTS
In 2003 we commenced the commissioning of the expanded CIL plant at
Iduapriem/Teberebie and, although we have experienced unexpected delays in
commissioning, currently anticipate that it will be completed during the second
quarter of the year. The Bibiani mine experienced a slope failure on the western
wall of the pit at the beginning of the fourth quarter of 2002. This is not
expected to materially impact gold production, but will add approximately US$3
million to costs over the first two quarters of 2003. At Siguiri, we have
completed a feasibility study to assess the viability of converting the mine's
processing plant to a hybrid, combining CIP and heap leach, and expect the
conversion to be completed, at a total cost of US$32 million, in the second
quarter of 2004. At the Geita mine, we anticipate that production will be lower
for at least the first two quarters of 2003 as compared to 2002, due to lower
mined grades as waste stripping continues in cut 3 at Nyankanga.
Rising fuel prices, increases in power costs and wages, depreciation of the US
dollar in which our revenues are denominated, the appreciation in currencies of
countries from which we source our major inputs and rising costs of reagents
will impact adversely on our cash operating costs this year. We are taking steps
to minimise this impact but it is still likely that cash operating costs will
increase by approximately 10 per cent this year.
Our group production target for the year is approximately 1.6 million ounces,
broadly in line with last year's actual production. This assumes that the
stripping schedule for cut 3 at Nyankanga is completed by the end of July and
that the CIL plant at Iduapriem/Teberebie is fully commissioned by the end of
June. We expect our production for the first quarter of 2003 to be in the region
of 375,000 ounces. This is 8 per cent. below the pro-rata figure for our
annualised production target, primarily due to lower mined grades as waste
stripping continues in Geita, and unexpected delays caused by the commissioning
of the plant expansion at Iduapriem/Teberebie. Due to these factors, group
production for the second quarter is likely to continue at the same level as for
the first quarter, with the shortfall planned to be made up in the second half
of the year. The reduced production levels anticipated for the first two
quarters will have a consequential adverse impact on our unit cash operating
costs for these quarters, as compared to the annualised level. However, the
directors believe that the long term prospects of the business are good.
EXERCISE OF WARRANTS
Of the total 19,835,001 warrants issued in January 2000, 15,155,031 warrants
have been exercised to date and 4,679,970 warrants remain outstanding. The total
number of shares in issue (ie. excluding 559,405 shares held in Treasury) has
increased from 126.89 million to 128.10 million.
END
ENQUIRIES:
ASHANTI GOLDFIELDS COMPANY LIMITED
Srinivasan Venkatakrishnan, Chief Financial Officer Tel: +233 21 778 171
Ernest Abankroh, Company Secretary Tel: +233 21 774 977
Mark Arnesen, MD - International Treasury Tel: +44 207 256 9938
NORTH AMERICAN CONTACT
GOLIN HARRIS
Allan Jordan Tel: +1 212 697 9191
These regulatory filings may be viewed upon the US Securities and Exchange
Commission website, EDGAR, and on the UK Listing Authority's document viewing
facility.
A registration statement relating to certain securities has been filed with the
Securities and Exchange Commission but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective. This release shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall there be any
sale of the securities in any jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
This announcement contains a number of statements relating to plans, forecasts
and future results of Ashanti Goldfields Company Limited ("Ashanti") that are
considered "forward looking statements" as defined in the Private Securities
Litigation Reform Act 1995 of the United States of America including but not
limited to future working capital, future production levels, operating costs and
plans for diversification. Ashanti may also make written or oral forward-looking
statements in its presentations, periodic reports and filings with the various
regulatory authorities, in its annual report to shareholders, in its offering
circulars and prospectuses, in press releases and other written materials and in
oral statements made by its officers, directors or employees to third parties.
These forward looking statements include statements about our beliefs, hopes,
projections and expectations, and may include statements regarding future plans,
objectives or goals, anticipated production or construction commencement dates,
construction completion dates, working capital, expected costs, production
output, the anticipated productive life of mines, projected cashflows, debt
levels, and mark-to-market values of and cashflows from the hedgebook.
Such statements are based on current plans, information, intentions, estimates
and projections and certain external factors which may be beyond the control of
Ashanti and, therefore, undue reliance should not be placed on them. Forward
looking statements speak only as of the date they are made,
and, except as required by law, or unless required to do so by the Listing Rules
of the UK Listing Authority, Ashanti undertakes no obligations to update
publicly any of them in light of new information or future events. These
statements are subject to risks and uncertainties that could cause actual
occurrences to differ materially from the forward looking statements, such as
the risks that Ashanti may not be able to achieve the levels of production and
operating costs it has projected. Additional risk factors affecting Ashanti are
set out in Ashanti's filings with the US Securities and Exchange Commission.
Ashanti can give no assurances that such results, including the actual
production or commencement dates, construction completion dates, costs or
production output or anticipated life of the projects and mines, projected
cashflows, debt levels, and marked-to-market values of and cashflows from the
hedgebook, will not differ materially from the forward looking statements
contained in this announcement. Such forward looking statements are not
guarantees of future performance and involve known and unknown risks,
uncertainties and other factors collectively referred to as "Risk Factors", many
of which are beyond the control of Ashanti, which may cause actual results to
differ materially from those expressed in the statements contained in this
announcement. These Risk Factors include leverage, gold price volatility,
changes in interest rates, hedging operations, reserves estimates, exploration
and development, mining, yearly output, infrastructure, Ghanaian political
risks, environmental regulation, labour relations, general political risks,
control by principal shareholders, Ghanaian statutory provisions, dividend flows
and litigation. For example, future revenues from projects or mines will be
based in part upon the market price of gold, which may vary significantly from
current levels. Such variations, if materially adverse, may impact the timing or
feasibility of the developments of a particular project or the expansion of
specified mines.
Other factors that may affect the actual construction or production commencement
dates, costs or production output and anticipated lives of mines include the
ability to produce profitably and transport gold extracted therefrom to
applicable markets, the impact of foreign currency exchange rates, the impact of
any increase in the costs of inputs, and activities by governmental authorities
where such projects or mines are being explored or developed, including
increases in taxes, changes in environmental and other regulations and political
uncertainty. Likewise the cashflows from the marked-to-market values of the
hedgebook can be affected by, inter alia, gold price volatility, US interest
rates, gold lease rates and active management of the hedgebook.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: March 26, 2003 ASHANTI GOLDFIELDS COMPANY LIMITED
By: /s/ Ernest Abankroh
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Name: Ernest Abankroh
Title: Company Secretary