Anglogold is not taking over AGC - Jonah

Sam Jonah, Chief Executive, Ashanti Goldfields Company (AGC) Group has denied that Anglogold, a South African mining giant, was in the process of taking over AGC.

He said there was no claim or knowledge of any approaches by AngloGold or any other gold major for that matter over Ashanti.

"It's just speculation," he said, referring to a report put up by "Mineweb" of market intelligence, that the South African major has been on Ashanti's premises lately conducting a due diligence survey for the takeover.

Mr Jonah believed that the only way to prepare for corporate activity was to improve the company's share price, an activity in which the company had been long involved.

Indeed, "much has been achieved in the past year to this end," he said. "Firstly, Ashanti's $219 million bond, aimed at partly saving the company from liquidation, was fully redeemed at par and ahead of schedule."

The company's cost cutting measures and restructuring has been reduced by three times to $193 million from $693 million, while debt levels at Ashanti are at an eight-year low.

In addition, the company's hedge book counter-parties no longer make margin calls.

After nearly going under in 1999, the year in which Ashanti was almost ruined by its hedge book, "there has been a 47 per cent reduction in commitment levels, such that the company is increasingly able to participate in the upside of the gold price," Mr Jonah said.

Mr Jonah's sights now is about operational growth in exploration and reserves at all gold mines as well as new Platinum Group Metals (PGM) operations in South Africa.

He expressed seriousness in discussions with other potential PGM Partners in South Africa, saying; "we are still seeking PGM opportunities in South Africa.

Mr Jonah said Ashanti has been approached by a number of parties confirming that Ashanti was well placed to help in the development of grassroots PGM exploration projects.

In anticipation of lasting peace in the Democratic Republic of Congo (DRC), Ashanti Goldfields has had its title over gold-bearing prospects expanded in that country.