2 APRIL 1965, Page 24

COMPANY MEETING

ASHANTI GOLDFIELDS CORPORATION

CRIPPLING BURDEN OF GHANA TAXATION

Tin,. 68th annual general meeting of Ashanti Gold- fields Corporation Limited was held on March-,30 in London.

Major-General Sir Edward L. Spears, Bart., K.B.E., C.D., M.C. (the chairman) presided and, in the course of his speech,. said:

The technical position, of the Mine is excellent, but we are still handicapped as regards increasing pro- duction and profits by the crippling burden of Ghana taxation.

In the year under review out of just under £6,000,000 realised from the sale of °Ur gold, Ghana obtained £3,599,000 in foreign exchange and Share- holders received only £688,000. .

As regards the Mine, for the eighth year in suc- cession, new records have been established in gold production, tonnage mined, and value of gold in the reserves. Unfortunately, in spite of these records, the profit after tax is slightly lower than last year, £741,000, compared to £753,000„ a fall of £12,000.

Last year we had to reduce the dividend from 2/- to 1/6d because of the increased taxation imposed by the Ghana Budget in October 1963. This year, we have to pay £509,727 in Minerals Duty, £1,352,296 in Ghana Taxes and £251.766 for Fuel Oil Tax, making a total of £2,113,789.

In the current year, we expect a modest increase in production of some 20,000 tons and 2,579 ounces of gold. We cannot, however, hope to in- crease our profit unless there is some reduction in taxation. The best we can hope for is that, by making every possible economy in working costs, we can obtain from increased production, profits only a little less than in the Year under review.

Production was 471,421 ounces of gold from 489,611 tons milled, 27,170 ounces more than last year's record.

The value of gold in the reserves, now £41,500,000, is another new record for the Mine.

The programme for the current year is to mill 510,000 tons to yield 474,000 ounces of gold. The results for the first six months show that this pro- gramme is being achieved.