6-K 1 y91238e6vk.txt FORM 6-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2003 ASHANTI GOLDFIELDS COMPANY LIMITED (Translation of Registrant's Name Into English) Gold House, Patrice Lumumba Road Roman Ridge, P.O. Box 2665 Accra, Ghana (Address of Principal Executive Offices) (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.) Form 20-F X Form 40-F --- --- (Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.) Yes No X --- --- (If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- . ----- Exhibit 99.1 [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] THIRD QUARTER REPORT 2003 -------------------------------------------------------------------------------- Ashanti improves upon first two quarters' performance Overview Ashanti's performance improved during the third quarter after having largely addressed the operational difficulties encountered during the first half of 2003. Earnings (before exceptional gains) were US$20.2 million, down US$2.3 million on the corresponding period last year but up US$12.4 million on the previous quarter. A 14% increase in gold production, a higher average realised gold price and a reduction in unit cash operating costs, relative to the second quarter, helped to improve earnings. Earnings for the quarter, after exceptional gains of US$4.7 million, amounted to US$24.9 million (2002: US$22.5 million). Earnings per share before exceptional gains for the quarter were US$0.15 (2002: US$0.18) and after exceptional items were US$0.19 (2002: US$0.18). The quarter's gold production of 423,231 ounces was in line with Ashanti's 2003 annual target of approximately 1.6 million ounces and is 4% better than the 407,328 ounces achieved in the same period last year. With the resolution of the plant expansion difficulties at Iduapriem and the progress achieved at the Nyankanga pit cut back at Geita, both Iduapriem and Geita achieved record quarterly production of 68,014 ounces and 176,487 ounces (Ashanti's 50% share: 88,244 ounces) respectively. Obuasi, Bibiani and Siguiri performed broadly in line with expectation whilst operating difficulties continued to impact on Freda-Rebecca's gold production. Cash operating costs for the quarter were US$212 per ounce, US$13 per ounce above the US$199 achieved last year. However, this represents a US$10 per ounce decrease on the previous quarter, largely due to higher gold production. The year-to-date cash operating costs of US$219 per ounce were in line with the previously announced 10% increase on last year's annual cash operating costs of US$199 per ounce. Ashanti took advantage of the sustained high gold price and low lease rate environment to reduce its floating lease rate exposure whilst adding protection to its hedgebook. During the quarter, notional lease rate exposure was reduced from 2.76 million ounces to 1.68 million ounces, 176,063 ounces of protection was added and 2003 commitments were reduced from 617,886 ounces to 175,822 ounces. During the quarter, Ashanti reduced its Group net debt by US$12.6 million from US$206.5 million to US$193.9 million. o Earnings (before exceptional gains) of US$20.2 million - down US$2.3 million on last year, but up US$12.4 million on the previous quarter o Quarter's gold production of 423,231 ounces - up 4% upon last year and up 14% upon the previous quarter o Cash operating costs of US$212 per ounce up US$13 per ounce on last year, but down US$10 per ounce on previous quarter o Further reductions achieved in Ashanti's hedgebook commitments and floating lease rate exposure o Net debt reduced by US$12.6 million during the quarter

Operations Review [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Ghana Obuasi Obuasi's gold production for the quarter was 137,564 ounces, approximately 1,500 ounces short of its annualised target but 11,313 ounces above the 126,251 ounces achieved in the third quarter of 2002. The increase in production was due to increased tonnage throughput and feed grade at the Sulphide Treatment Plant (STP). At US$207 per ounce, the cash operating cost for the quarter was marginally above the target of US$205 per ounce and below the US$211 per ounce achieved in the third quarter last year. Mining. Underground production of 590,000 tonnes was lower than the 627,000 tonnes reported in the third quarter of 2002 and the shaft head grade at 7.42 g/t is a decrease on the 7.60 g/t reported for the same period last year. The reduced tonnage resulted from lower availability of the loader fleet. Underground infrastructure. During the quarter, excavation activities on the 51 level loading pocket, the 26 level skip change out bay and the 24 level discharge bin at Brown Sub-vertical Shaft (BSVS) were completed, as were civil works on 51 level loading station. BSVS shaft steelwork procurement was completed and the sections for equipping the head end of the shaft were delivered to site. Erection of the shaft steel work surface jigs began during the quarter and equipping, starting with the installation of the shaft cables and clamps, is scheduled to begin in November 2003. Commissioning of the shaft is scheduled to take place at the end of 2004. At Sansu, civil works and electrical/mechanical installations were completed in preparation for the sinking and lining of the upper section of the raisebored Sansu waste pass system. Surface. A total of 121,000 tonnes grading 2.35 g/t was mined from the Homase and Kunka open pits during the quarter, compared with 163,000 tonnes at 2.81 g/t for the corresponding period in 2002. Processing. Throughput at STP was 619,000 tonnes, 4% above the 593,000 tonnes achieved for the corresponding period of last year whilst the head grade increased to 7.16 g/t from 6.80 g/t and metallurgical recovery at 82.7% showed a slight improvement on the corresponding period last year. The quarter's gold production at STP was 117,802 ounces as compared to 107,097 ounces in the third quarter of 2002. Production tonnage was affected by an unscheduled change out of the ball mill trunion bearing. Despite the increase in throughput from 184,000 tonnes last year to 229,000 tonnes in the third quarter, gold production at the Oxide Treatment Plant reduced by 1,451 ounces to 7,948 ounces from the 9,399 ounces achieved in the third quarter last year because of the lower grade and more refractory nature of the ore feed. Over the comparative periods, throughput and metallurgical recovery at the Tailings Treatment Plant increased from 453,000 tonnes to 521,000 tonnes and from 29.5% to 31.0% respectively, resulting in an increase in gold production from 9,755 ounces to 11,814 ounces. Exploration. During the quarter, exploratory drilling activities continued at 50S 173E, 155W, 131W, 42W, 19E, TSAD 5N 32W and 12N 32W crosscuts whilst infill drilling and development sampling continued within the main mining areas. Above 50 level, an intersection of 20.0 g/t over 31 metres was made on the 10 level horizon from quartz with visible gold of the Ashanti Spur. On the '50L Deeps' project, two intercepts were made during the quarter; one from 50S 131W crosscut which averaged to 18.8 g/t over 2.6 metres on the 55L horizon. The other intercept was from 50N 19E crosscut, which was the first intercept from the northern corridor of the 50L Deeps targets, where quartz with graphitic schist was intercepted at a grade of 16.1 g/t over 3 metres. Within this zone of intercept, there was a 1 metre zone of 32.1 g/t on the 57 1/2 level horizon. Elsewhere, on 38 level 294 crosscut, just to the north of BSVS, the Obuasi Fissure with quartz and mineralised sulphides was intersected on 40 1/2 level horizon at a grade of 18.1 g/t over 4.5 metres. Iduapriem (80% owned)/Teberebie (90% owned) Third quarter gold production at Iduapriem/Teberebie was a record 68,014 ounces compared with 51,843 ounces produced in the same period last year. CIL plant throughput at 973,000 tonnes was 46% above the 668,000 tonnes achieved in the third quarter of 2002 and the feed grade improved from 2.01 g/t to 2.18 g/t. Plant recovery at 89.8% was below plan and the 96.0% reported the previous year as a result of problems with the inter tank screens and under sized agitator blades in the leach and absorption sections. At the end of the quarter, most of the remedial engineering work on the CIP plant and crusher and overland conveyor systems had been completed and during the fourth quarter a steady state performance capability of the upgrade should be established. Heap leach gold production for the quarter reduced to 6,648 ounces from 10,399 ounces in the third quarter of 2002 because of lower recovery from the harder, less porous ores. The cash operating cost for the quarter was US$232 per ounce compared with US$209 per ounce for the corresponding period last year. The increase in unit cash operating costs was due to higher ore handling costs and increases in the price of power, diesel and reagents. Bibiani Bibiani produced 55,519 ounces of gold in the third quarter from processing 721,000 tonnes of ore at 3.26 g/t. Metallurgical recovery was 73.5% and the cash operating cost was US$204 per ounce. Production for the corresponding period in 2002 was 61,192 ounces from 680,000 tonnes at 3.64 g/t and a metallurgical recovery of 79.7%, at US$193 per ounce. The increase in unit cash operating costs resulted from lower gold production, cost increases on the mining contract, higher than plan diesel costs, greater than plan material movement in the main pit and increased power costs. Milled tonnage increased as a result of improvements to the plant's crushing circuit, but as expected, the lower mill feed grade and metallurgical recovery, owing to the more refractory nature of the ore types being processed, resulted in the reduced gold 2 Ashanti Goldfields, Third Quarter 2003 Operations Review [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] production. During the quarter, work continued on installing the flotation plant and the regrind mill relocated from Obuasi in the second quarter. Commissioning of this plant, which is designed with a view to improving recovery to over 80%, is now scheduled for the end of the fourth quarter. Good progress was made on the underground decline to access the old workings below the pit and, by the end of the third quarter, the face had been advanced from the portal at the +140RL to the +RL65 elevation, a distance of approximately 900 metres. Guinea Siguiri (85% owned) Siguiri gold production of 60,437 ounces compared with 60,940 ounces achieved in the third quarter of 2002. Stacked tonnage increased to 2.2 million tonnes from 2.1 million tonnes whilst the feed grade improved to 1.14 g/t from 1.09g/t. Gold recovery for the quarter reduced to 76.1% from 82.9% as a result of abnormally high solution dilution in the month of September. The cash operating cost for the quarter was US$263 per ounce compared with US$226 per ounce for the same period last year due to an increased rate of cement consumption to cater for a higher SAP to CAP ore blend and increased fuel, cement and cyanide prices. The revision of the CIP project feasibility study and the selection of a new contractor was successfully completed during the quarter. The project is estimated to cost US$72 million with an anticipated commisioning date by the end of the fourth quarter 2004/first quarter 2005, assuming that the project is re-commenced during the next quarter. The country investment climate and the options for financing the project are being reviewed. Zimbabwe Freda-Rebecca Freda-Rebecca gold production for the quarter was 13,453 ounces compared with 24,765 ounces in the third quarter of 2002. Although an improvement on the 9,560 ounces produced in the previous quarter, the shortage of higher grade underground ore production resulting from low availability of loaders, haul trucks and blasthole drill rigs caused by a shortage of critical component spares continued to impact on production. Mill throughput in the third quarter was 327,000 tonnes at 1.70 g/t compared with 274,000 tonnes at 3.40 g/t for the corresponding period in 2002. A five-month intensive maintenance programme to improve availability of the mining fleet, a plan to rationalise the operation and improve economic performance has been prepared and is being implemented. However, achievement of the key objectives and the timing thereof will depend to a large extent on the timely release of proceeds of the mine's bullion revenue by the country's regulatory authorities. Tanzania Geita (50% owned) Gold production at Geita was 176,487 ounces (Ashanti's share: 88,244 ounces) compared with 164,673 ounces (Ashanti's share 82,337 ounces) produced in the third quarter of 2002. Plant feed for the quarter was 1.43 million tonnes at 4.27 g/t compared to 1.28 million at 4.30 g/t for the corresponding period last year. The improvement in gold production relative to last year was largely due to the higher plant throughput achieved following the plant upgrade, which was commissioned in the first quarter of 2003. The improvement relative to the past three quarters of 2003 was due to full mining access being gained to the higher grade portion of Nyankanga as a result of the Pit 3 cut back, which was prioritised over the past nine months, necessitated by the re-engineering and expansion of the open pit late last year. Cash operating costs rose to US$175 per ounce from US$155 per ounce in the corresponding third quarter of 2002 as a result of the increase in the depth of the pit and higher diesel and power costs. Summary of production and cash operating costs per ounce

Ashanti Goldfields, Third Quarter 2003 3 Operations Review [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Exploration East Africa Tanzania Geita During the quarter, exploration drilling continued at Nyankanga West and Geita Hill. At Nyankanga West, infill drilling was completed with some significant intersections being made. Better results included 11 metres grading 20.73 g/t from 167.5 metres and 13 metres grading 66.18 g/t from 183.5 metres in hole NYDD147; and 28 metres of 5.64 g/t from 118 metres in NYDD143. The mineralisation intersected at Nyankanga West is currently being resource-modelled. Downdip drilling at Geita Hill continued to produce positive results. Better intersections during the quarter included: 10 metres grading 3.0 g/t from 188 metres and 8 metres at 9.7 g/t from 204 metres in hole GHDD122; 9 metres grading 5.28 g/t from 193 metres in hole GHDD125; 7 metres at 7.01 g/t from 316 metres in hole GHDD127; and 34 metres grading 1.68 g/t from 243 metres in hole GHDD132. Tanzania Regional During the quarter, Ashanti finalised a royalty option agreement with Tan Range on nine prospecting licences covering 1,095 square kilometres southwest of the Ushirombo belt in the Lake Victoria Goldfields. Exploration will commence once permitting has been completed. D.R. Congo The build up of United Nations troops at Bunia in Ituri Province is considered a positive step in the bringing of peace and stability to the area covered by Ashanti's Kilo concession. Ashanti is taking steps to mobilise to Mongbwalu where there are immediate drill targets. West Africa Burkina Faso On 9 September 2003, Etruscan Resources Inc. signed an agreement with Ashanti and Echo Bay Mines Limited, now part of Kinross Gold, to purchase the Youga properties for a total cash consideration of US$6.5 million (Ashanti's share of consideration: 50%). Completion of the transaction is scheduled for the end of November 2003. Guinea Exploration drilling continued in the SEK area (the general area surrounding the Bidini, Eureka Hill, Sanu Tinti and Tubani pits) and north of the Kozan pit. At the Kalamagna prospect, southeast of Bidini, better drilling results included: 21 metres grading 1.54 g/t from 14 metres; 19 metres at 2.51 g/t from 14 metres; and 16 metres of 2.20 g/t from 28 metres. Ghana Shallow reverse circulation drilling on the Subriso concession, 50 kilometres north of Bibiani, intersected gold mineralisation over a strike length of 700 metres on the Pokukrom prospect. Better drilling results included: 8 metres grading 4.19 g/t from 15 metres; 7 metres at 3.06 g/t from 7 metres; and 10 metres grading 1.56 g/t from 25 metres. Additional deeper follow up drilling will be undertaken during the next quarter. Cote d'Ivoire The political problems in Cote d'Ivoire remain largely unresolved and start-up of exploration fieldwork is now not anticipated until at least the first quarter of 2004. Ashanti will continue to monitor the situation in that country. Mali A planned reduction on the amount of fieldwork due to the rainy season meant that few results were received in the quarter from exploratory work in Mali. Geochemical sampling in one Authorization de Exploration indicated follow-up soil sampling and trenching will be required. Sierra Leone Infill soil geochemical surveys failed to verify the previously reported significant gold anomaly on AFCAN's Nimini Hills project. Exploration is now being focused on other areas of the concessions. 4 Ashanti Goldfields, Third Quarter 2003 Gold Production Summary [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO]

Ashanti Goldfields, Third Quarter 2003 5 Gold Production Summary [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO]

6 Ashanti Goldfields, Third Quarter 2003 Financial Review [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Earnings Earnings (before exceptional gains) for the third quarter were US$20.2 million, up US$12.4 million on the US$7.8 million recorded during the previous quarter. The 159% improvement in earnings was due to a 14% increase in gold production, a higher average realised gold price and a reduction in cash operating costs per ounce, relative to the second quarter. The quarter's earnings (before exceptional gains) of US$20.2 million was US$2.3 million lower than the US$22.5 million recorded in 2002, mainly due to higher cash operating costs. Earnings for the quarter, after exceptional gains of US$4.7 million (2002: nil), amounted to US$24.9 million (2002: US$22.5 million). Earnings per share before exceptional items for the quarter were US$0.15 (2002: US$0.18) and after exceptional items were US$0.19 (2002: US$0.18). Earnings before exceptional items for the nine months to 30 September 2003 were US$34.8 million as compared to US$58.8 million in 2002. Earnings after exceptional income of US$11.7 million, were US$46.5 million (2002: US$35.3 million). Revenue Gold production for the quarter of 423,231 ounces generated spot revenue of US$154.9 million, equivalent to US$366 per ounce (2002: US$315 per ounce). Total hedging income for the quarter was negative US$4.8 million, comprising US$3.2 million of deferred hedging income from previously closed out hedge contracts and US$8.0 million of net cash payments in respect of maturing hedge contracts for both the Ashanti and Geita hedge books. Total realised price for the quarter was US$355 per ounce (2002: US$347 per ounce). Year to date total revenue of US$407.3 million (2002: US$419.3 million) was equivalent to US$347 per ounce. Hedging Sustained strength in spot gold prices and low lease rate levels, allowed Ashanti to reduce its lease rate exposure whilst adding protection to its hedge book. Notional lease rate exposure has been reduced from 2.76 million ounces as at 30 June 2003 to 1.68 million ounces as at 30 September 2003. The value generated from these lease rate fixings was used to purchase a total of 176,063 ounces of put options at an average strike of US$358 per ounce, with maturities ranging from 2004 to 2012. The strikes of these put options were matched against existing sold call options to create forward sales. Please refer to the hedging table on page 12 for a revised lease rate amortisation and protection profile. At the quarter end, Ashanti had 4.6 million ounces protected at an average price of US$361 per ounce, with commitments to deliver 5.9 million ounces at an average price of US$359 per ounce. Ashanti's outstanding commitments for 2003 stood at 175,822 ounces as at 30 September 2003. The mark-to-market valuation of the Ashanti hedge book moved from negative US$108 million as at 30 June 2003 to negative US$329.8 million at 30 September 2003, based on a spot price of US$384 per ounce. The movement in mark-to-market was principally owing to the increased spot price and US interest rates. Ashanti's share of the Geita hedge book was negative US$61.9 million. Cash Operating Costs Total cash operating costs for the quarter were US$212 per ounce, up US$13 per ounce on last year but represented a US$10 per ounce improvement on the previous quarter, largely due to higher production. Total cash operating costs for the year to date amounted to US$219 per ounce (2002: US$194 per ounce). Profit Total operating profit for the quarter was US$24.9 million (2002: US$24.4 million). Non-mine site exploration expenditure expensed in the quarter was US$0.8 million bringing year to date expenditure to US$2.4 million. Corporate administration expenditure for the quarter was US$5.7 million and year to date expenditure was US$18.0 million. Interest charge for the quarter (before exceptional items) was US$4.0 million, US$0.6 million lower than the previous quarter. Exceptional Items During the quarter Ashanti received insurance proceeds of US$3.0 million for the Company's damaged aircraft, which has since been scrapped. This, resulted in an exceptional gain of US$2.0 million. In September, the Company re-negotiated the terms of the Kimin loans. In consideration for Ashanti extending the terms of the guarantee currently in place in favour of the lender, it secured a reduction in the amounts owed from US$7.7 million to US$5.0 million. This reduction of US$2.7 million has been recognised as an exceptional gain within interest payable. Cash Flows and Balance Sheet Cash inflow from operating activities for the quarter was US$29.1 million (2002: US$13.2 million) and US$61.2 million for the year to date (2002: US$58.2 million). Net interest payments in the quarter were US$2.4 million compared to US$4.4 million last year. Capital expenditure for the quarter of US$19.1 million (2002: US$15.5 million) included US$11.1 million at Obuasi, US$1.8 million at Iduapriem and US$4.1 million at Siguiri. During the quarter, a further 200,000 warrants were exercised raising US$0.6 million. As at 30 September 2003, stated capital stood at 131.0 million shares and 2.3 million warrants remained outstanding. Group debt as at 30 September (excluding the 50% share of the non-recourse Geita project finance loan) stood at US$239.3 million, down US$6.4 million from 30 June 2003 due principally to the reduction of the Kimin loans of US$2.7 million and repayment of the aircraft loan from the insurance proceeds. Net debt was US$12.6 million lower at US$193.9 million (30 June 2003: US$206.5 million). Proposed Merger Arrangement On 4 August 2003, Ashanti announced the terms of a recommended merger with AngloGold Limited ("AngloGold"). As announced on 14 October and reaffirmed on 27 October 2003, the Board of Ashanti (the "Board") has received an improved final merger offer ("Revised Merger Proposal") from AngloGold at a ratio of 29 AngloGold shares for every 100 Ashanti ordinary shares or global depositary securities. The Board has resolved to recommend the Revised Merger Proposal to Ashanti's shareholders. The Revised Merger Proposal is conditional on the support of the Government of Ghana (the "Government") as shareholder and regulator of Ashanti, the approval of the scheme of arrangement required to implement the transaction by Ashanti shareholders and the High Court of Ghana and certain other regulatory approvals and third party consents as detailed in the 4 August announcement. Ashanti welcomes the announcement of the Government on 28 October 2003, indicating its decision to support the Board's recommendation of the Revised Merger Proposal. Ashanti and AngloGold have agreed to extend the time limit for the receipt of formal Government approvals to 14 November 2003, or such later date as Ashanti and AngloGold may agree. There can be no assurance that a transaction with AngloGold will be completed. Consequently, shareholders of Ashanti are advised to exercise caution when dealing in the relevant securities. Ashanti Goldfields, Third Quarter 2003 7 Group Profit and Loss Account [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Unaudited

8 Ashanti Goldfields, Third Quarter 2003 Group Balance Sheet [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Unaudited

Ashanti Goldfields, Third Quarter 2003 9 Group Cash Flow Statement [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Unaudited

10 Ashanti Goldfields, Third Quarter 2003 Notes to the Financial Information [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] 1. Basis of Preparation The unaudited results for the nine months ended 30 September 2003 have been prepared in accordance with the accounting policies set out in the Annual Report and Accounts for the year ended 31 December 2002. 2. Operating Profit Analysis by Business Area 9 months to 30 September 2003

* Includes refinancing and restructuring costs of US$23.5 million. 3 months to 30 September 2003

3. Reconciliation of Total Costs

* Includes Geita's costs of US$21.7 million (2002: US$26.8 million) for three months to 30 September 2003 and US$55.2 million (2002: US$58.0 million) for the nine months to 30 September 2003. Ashanti Goldfields, Third Quarter 2003 11 Hedging Commitments [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] The table below shows all forward and option positions that Ashanti had as at 30 September 2003:

Forward Sales: A total of 4.61 million ounces have been sold forward at an average price of US$361 per ounce. Call Options: Ashanti has sold 1.72 million ounces of call options at an average strike price of US$352 per ounce. As a partial offset, Ashanti has bought 0.4 million ounces of call options at an average strike price of US$357 per ounce. Gold Lease Rate Swaps: As at 30 September 2003, a maximum of 1.27 million ounces of Ashanti's hedged production will be exposed to the floating 3 month lease rate at any one time. The lease rate swaps can be broken down into the following types (under all of these contracts Ashanti receives a certain lease rate income, which can be regarded as compensation for the lease rate exposure that Ashanti takes on).

12 Ashanti Goldfields, Third Quarter 2003 Hedging Commitments [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Mark-to-market valuations On 30 September 2003, the portfolio had a negative mark-to-market value of US$329.8 million. This valuation was based on a spot price of US$384 and the then prevailing applicable US interest rates, gold forward rates, volatilities and guidelines provided by the Risk Management Committee of the Board. The delta at that time was 5.3 million ounces. This implies that a US$1 increase in the price of gold would have a US$5.3 million negative impact (approximate) on the mark-to-market valuation of the hedge book. Movements in US interest rates, gold lease rates, volatilities and time will also have a sizeable impact on the mark-to-market. All these variables can change significantly over short time periods and can consequently materially affect the mark-to-market valuation. The approximate breakdown by type of the mark-to-market valuation at 30 September 2003 was as follows:

Geita Hedging The table below shows Ashanti's portion of hedging commitments for Geita as at 30 September 2003. This represents half of Geita's hedge commitments.

Marked-to-market valuation: On 30 September 2003, the Geita portfolio had a negative mark-to-market value of US$123.8 million (Ashanti's portion: negative US$61.9 million). This valuation was based on a spot price of US$384 per ounce and the then prevailing US interest rates, gold forward rates, volatilities and guidelines provided by the Risk Management Committee of the Board. Ashanti Goldfields, Third Quarter 2003 13 Forward Looking Statements [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] This report contains a number of statements relating to plans, forecasts and future results of Ashanti Goldfields Company Limited ("Ashanti") that are considered "forward looking statements" as defined in the Private Securities Litigation Reform Act 1995 of the United States of America including but not limited to those related to future working capital, future production levels, operating costs and plans for diversification. Ashanti may also make written or oral forward-looking statements in its presentations, periodic reports and filings with the various regulatory authorities, in its annual report to shareholders, in its offering circulars and prospectuses, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These forward looking statements include statements about our beliefs, hopes, projections and expectations, and may include statements regarding future plans, objectives or goals, anticipated production or construction commencement dates, construction completion dates, working capital, expected costs, production output, the anticipated productive life of mines, projected cashflows, debt levels, and marked-to-market values of and cashflows from the hedgebook. Such statements are based on current plans, information, intentions, estimates and projections and certain external factors which may be beyond the control of Ashanti and, therefore, undue reliance should not be placed on them. These statements are subject to risks and uncertainties that could cause actual occurrences to differ materially from the forward looking statements, such as the risks that Ashanti may not be able to achieve the levels of production and operating costs it has projected. Additional risk factors affecting Ashanti are set out in Ashanti's filings with the US Securities and Exchange Commission. Ashanti can give no assurances that such results, including the actual production or commencement dates, construction completion dates, costs or production output or anticipated life of the projects and mines, projected cashflows, debt levels, and marked-to-market values of and cashflows from the hedgebook, will not differ materially from the forward looking statements contained in this report. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors collectively referred to as "Risk Factors", many of which are beyond the control of Ashanti, which may cause actual results to differ materially from those expressed in the statements contained in this report. These Risk Factors include leverage, gold price volatility, changes in interest rates, hedging operations, reserves estimates, exploration and development, mining, yearly output, power supply, Ghanaian political risks, environmental regulation, labour relations, general political risks, control by principal shareholders, Ghanaian statutory provisions, dividend flows and litigation. For example, future revenues from projects or mines described herein will be based in part upon the market price of gold, which may vary significantly from current levels. Such variations, if materially adverse, may impact the timing or feasibility of the developments of a particular project or the expansion of specified mines. Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of mines include the ability to produce profitably and transport gold extracted therefrom to applicable markets, the impact of foreign currency exchange rates, the impact of any increase in the costs of inputs, and activities by governmental authorities where such projects or mines are being explored or developed, including increases in taxes, changes in environmental and other regulations and political uncertainty. Likewise the cashflows from and marked-to-market values of the hedgebook can be affected by, inter alia, gold price volatility, US interest rates, gold lease rates and active management of the hedgebook. Forward looking statements speak only as of the date they are made, and except as required by law, or unless required to do so by the Listing Rules of the UK Listing Authority, Ashanti undertakes no obligation to update publicly any of them in light of new information or future events. 14 Ashanti Goldfields, Third Quarter 2003 Corporate Information [ASHANTI GOLDFIELDS COMPANY LIMITED LOGO] Ashanti Goldfields Company Limited Registered in Ghana No. 7094 Corporate Office Gold House Patrice Lumumba Road PO Box 2665 Accra, Ghana Telephones: (+233-21) 772190 (+233-21) 772235 (+233-21) 778160 (+233-21) 778167 (+233-21) 761311 Fax: (+233-21) 775947 Satellite Telephone: 874 1562524 Satellite Fax: 874 1562525 Website: www.ashantigold.com Ernest Abankroh Company Secretary Telephone: (+233-21) 774977 Fax: (+233-21) 778155 E-Mail Address ernest.abankroh@ashantigold.com London Office 3rd Floor, Roman House Wood Street London EC2Y 5BA United Kingdom Telephone: (+44-20) 7256 9938 Fax: (+44-20) 7256 9939 Corinne Gaisie UK Representative and European contact E-Mail Address corinne.gaisie@ashanti.co.uk -------------------------------------------------------------------------------- Investor Relations Corporate Office Kwaku Akosah-Bempah Acting Managing Director, Public Affairs Telephones: (+233-21) 778172 Fax: (+233-21) 774981 E-Mail Address kwaku.akosah-bempah@ashantigold.com European contact: Corinne Gaisie Telephone: (+44-20) 7256 9938 Fax: (+44-20) 7256 9939 E-Mail Address corinne.gaisie@ashanti.co.uk North American contact: Allan Jordan Telephone: (+1-646) 284 9400 Fax: (+1-646) 284 9494 E-Mail Address ajordan@hfgcg.com -------------------------------------------------------------------------------- Shareholder Enquiries: International Registrars' UK Transfer Office Capita IRG Plc Bourne House, 34 Beckenham Road Beckenham, Kent BR3 4TU Telephone: (+44-20) 8639 2000 Fax: (+44-20) 8639 3430 Ghana Registrars NTHC Limited Registrar/Custodial Unit Martco House Off Kwame Nkrumah Avenue PO Box KIA 9563 Airport Accra, Ghana Telephone: (+233-21) 235817 Fax: (+233-21) 240243 Zimbabwe Registrars Syfrets Corporate and Merchant Bank 1st Floor 99 Jason Moyo Avenue PO Box 2540 Harare, Zimbabwe Telephone: (+263-4) 736011 Fax: (+263-4) 736022 GDR Holder Enquiries: The Bank of New York ADR Department 101 Barclay Street, 22nd Floor New York, NY 10286 Telephone: (+1-212) 815 2209 Fax: (+1-212) 571 3050 Ashanti Goldfields, Third Quarter 2003 15 A copy of this release is available at http://www.ashantigold.com/release.htm Exhibit 2 (ASHANTI LOGO) PRESS RELEASE FOR IMMEDIATE RELEASE 30 OCTOBER 2003 CORRECTION TO THIRD QUARTER REPORT 2003 Ashanti wishes to correct a typographical error in the Operations Review section of its Press Release on the Third Quarter Results which was released to the market earlier today. The second paragraph of the commentary relating to exploration at Obuasi (page 2): "Above 50 level, an intersection of 20.0g/t over 31 metres was made on the 10 level horizon from quartz with visible gold of Ashanti spur" should instead read: "ABOVE 50 LEVEL, AN INTERSECTION OF 20.0G/T OVER 3.1 METRES WAS MADE ON THE 10 LEVEL HORIZON FROM QUARTZ WITH VISIBLE GOLD OF ASHANTI SPUR". ENDS ENQUIRIES: ASHANTI GOLDFIELDS COMPANY LIMITED T S Schultz - Chief Financial Officer Tel: +44 7798503049 E Abankroh - Company Secretary Tel. +442072569938 K Akosah-Bempah - Acting MD, Public Affairs Tel: +233 21778172 UK CONTACT Corinne Gaisie - Ashanti London Office Manager Tel: +44 207 256 9938 NORTH AMERICAN CONTACT Allan Jordan - Golin Harris International Tel: +1 646 284 9400 A copy of this release is available at http://www.ashantigold.com/releases.htm SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: October 31, 2003 ASHANTI GOLDFIELDS COMPANY LIMITED By: /s/ Ernest Abankroh ------------------------------ Name: Ernest Abankroh Title: Company Secretary

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