Akrokeri-Ashanti Gold Mines (YAG-V) wrapped up 2001 with a net loss of US$2.8 million thanks in large to a drop in production from the Bonte Mine alluvial gold mine in Ghana.
The loss compares with year-ago net income of US$1.6 million. On a per-share basis, the loss was US7, compared with net per-share income of US4 a year earlier. Revenue between the two periods slid to US$17.7 million from US$19.1 million. Cash flow amounted to US$3.2 million, well of the previous year’s US$5.6 million
During the first three months of 2002, the picture was no brighter. The company posted a net loss of US$536,135 (or 1.3 per share), compared with net income of US$751,001 (1.8 per share). Revenue was US$3.9 million, down from US$5.2 million. Cash flow trickled to US$535,982 from US$1.7 million.
During 2001, gold production tallied to 65,289 oz., off 3,334 oz. from 2000. The decrease is attributed to gold recovery problems at the Bonte Mine. The Company realized an average of US$271 per oz. for its production.
The recovery problems at Bonte continued into the first quarter and pushed production down to 13,245 oz., well below the 19,858 ounces poured during the first quarter of 2001. The quarter’s average selling price was US$291 per oz.
Bonte’s recovery problems are related to flat and fine-grained gold grains. The company figures a combination of Knelson concentrators and cyclones should solve the problems. The concentrators were commissioned in April and an upgrade of the cyclone is slated for June. Gold production is expected to recover steadily over the subsequent months.
For the balance of the year, Akrokeri plans on resuming exploration for additional reserves on the Jeni property with an eye toward extending the life of the Bonte Mine. The company also intends to forge ahead with the development of the Goldenrae properties.
The company also plans on meeting with its Canadian creditors in mid-June to reschedule its debt repayments in light of anticipated cash flow.
The company has about 40.8 million shares outstanding.
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