Akrokeri rebounds in third quarter

Earnings for Akrokeri-Ashanti Gold Mines (AAGM-C) rose slightly in the third quarter.

The Toronto-based company raked in US$270,000 (or 0.01cents per share) for the period, compared with a loss of US$185,000 (the same amount per share) in the equivalent period last year. Revenue in the recent quarter was US$2.3 million, up US$300,000 from the corresponding period of 1996.

For the first nine months of 1997, the company earned US$40,800 on revenue of US$7.3 million, compared with US$50,000 on US$6.4 million a year ago.

Gold production for the 9-month period was 21,969 oz., a 37% increase over the 16,083 oz. produced during the first nine months of 1996.

Although production was higher, low gold prices detracted from third-quarter earnings. Akrokeri-Ashanti responded by cutting costs and increasing production at its 85%-owned Esaase alluvial mine in Ghana. Also, its processing plant was recently connected to the country’s national power grid.

Meanwhile, bedrock trenching continues at the company’s adjacent Jeni River property. Initial results are described as disappointing, as only trace amounts of gold have been detected. However, an independent assessment has confirmed that a small alluvial gold reserve does exist.

The plant serving Esaase will soon be relocated to the Jenni River property and begin processing the material.

Akrokeri owns 100% of the surface rights at Jeni and 50% of the hardrock rights.