GRi reports about Ashanti Goldfields Company

Not so long ago, the threat of a takeover was hanging ominously on the neck of Ghana's Ashanti Goldfields Company. The predator was South Africa's JCI under Mzi Khumalo who was poised to take over Lonrho and effectively Lonrho's 41 per cent stake in Ashanti.

Now, after the last Akwasidae of 1997 on 30th November, the Asante gods must have turned the table. With JCI now valued at ?385m and Lonrho at ?707m, the former is under the threat of a takeover by Lonrho. A blessing for Ashanti?

Next While Ashanti may have lots of gold still under the houses in Obuasi and elsewhere, the precious metal appears to be losing its allure, and very rapidly indeed. At an all time low price of $289 an ounce last Thursday, and there could be worse to come. Many believe the price will drop beneath the previous low of $284 in 1984.

And in which direction will Ashanti head?

Now read the Sunday Times reports of 7th December 1997