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03.02.2006 Business & Finance

Abosso Goldfields pays dividend of ø9.2bn


Accra, Feb. 3, GNA - Abosso Goldfields Damang Mine, a subsidiary of Goldfields Ghana on Friday presented a cheque for 9.2 billion cedis (1 million dollars) as its share dividend to government for the financial year 2005/2006.

Mr Mike Ezan, Executive Director, Goldfields Ghana, who presented the cheque on behalf of the company said the company and its mother counterpart has, since 2002 till date declared a total dividend of 92 billion cedis to government.

He said during the acquisition of the Damang mines in 2002, little did Goldfields Ghana expect to make profits with the estimation of the mine life ending in 2007.

"However, through prudent management and hard work, dedication and commitment of our workforce, and the Damang Cut Back, Abosso Goldfields experienced an unexpected turn around to close the financial year 2005-2006 with a modest estimated profit of 16 million dollars. "The Company has subsequently declared an interim dividend of 92 billion cedis ($10 million) for the period of which, the government is entitled to 10 per cent," Mr Ezan, who is also the president of the Ghana Chamber of Mines said.

He said last year alone, the Board of Gold Fields made an investment of approximately 415 billion cedis to the Damang mine with the view to extending its life.

"Results received so far are exciting and suggest a possible extension of the life of the Damang mine even beyond 2011," Mr Ezan said.

This, he indicated, meant the company would still be in a position to maintain its levels of employment, continue to pay taxes and royalties as well as dividends to government.

Mr Ezan said in spite of the Black Stars' recent setback at the African Cup of Nations tournament in Egypt, the company would still fulfil its pledge of providing a three-year sponsorship package of 27 billion cedis to the senior national team.

Ms Rita Iddi, Deputy Minister of Lands, Forestry and Mines, in-charge of Mines who received the cheque congratulated the company for its performance and urged it not to focus on gold production alone but it should also ensure that it engaged in a sustainable livelihood programmes for the communities in which it operated. 3 Feb. 06