ANNUAL REPORT 2001

1.66

1.74

1.56

1.55

1.17

Total Gold Production (millions of ounces)

2001

2000

1999

1998

1997

335.0

335.0

372.0

385.0

450.0

Total Gold Price Realised (US$ per ounce)

2001

2000

1999

1998

1997

190.0

187.0

205.0

218.0

254.0

Total Cash Operating Costs before exceptional items(US$ per ounce)

2001

2000

1999

1998

1997

158.9

203.9

211.2

208.1

171.4

Group Operating Cash Flow before exceptional items(US$ millions)

2001

2000

1999

1998

1997

62.7

30.5

66.1

73.9

58.4

Earnings before exceptional items (US$ millions)

Cover picture: Mrs Kallo Maimouna Maga, Headmistress of the Siguiri Primary School and some of her pupils inan outdoor play session during school vacation

2001

2000

1999

1998

1997

ContentsChairman’s Statement 2Highlights 3Chief Executive’s Review 4Operations Review 8Financial Review 17Production 20Ore Reserves and Mineral Resources 22Financial Statements and Corporate Information 25

Financial CalendarAnnual General Meeting 28 May 2002First Quarter Results May 2002Second Quarter Results July 2002Third Quarter Results October 2002Full Year Results February 2003

65Corporate Information

Registered OfficeGold HousePatrice Lumumba RoadPO Box 2665Accra, GhanaTelephones: (+233-21) 772190

(+233-21) 772235(+233-21) 778160(+233-21) 778167(+233-21) 761311

(Satellite) 874 1562524Fax: (+233-21) 775947(Satellite) 874 1562525Website www.ashantigold.com

Ernest AbankrohCompany SecretaryTelephone: (+233-21) 774977Fax: (+233-21) 778155E-Mail Address ernest.abankroh@ashantigold.com

London Office3rd Floor, Roman HouseWood StreetLondon EC2Y 5BAUnited KingdomTelephone: (+44-20) 7256 9938Fax: (+44-20) 7256 9939

Investor RelationsCorporate OfficeJames AnamanManaging Director, Public AffairsTelephones: (+233-21) 778178

(+233-21) 772190Fax: (+233-21) 778156E-Mail Address james.anaman@ashantigold.com

London OfficeCorinne GaisieUK RepresentativeTelephone: (+44-20) 7256 9938Fax: (+44-20) 7256 9939E-Mail Address corinne.gaisie@ashanti.co.uk

Golin HarrisAllan Jordan (New York)Telephone: (+1-212) 697 9191Fax: (+1-212) 697 3720E-Mail Address ajordan@golinharris.com

Bibiani MinePO Box 98, Bibiani, GhanaTelephone: (+233-51) 20118Satellite Fax: 873 761314865

Freda-Rebecca MinePO Box 70, Bindura, ZimbabweTelephone: (+263-71) 7300/1Fax: (+263-71) 6919

Geita MinePO Box 532Geita, TanzaniaTelephone:Fax:

Iduapriem MinePO Box 283, Tarkwa, GhanaTelephone: (+233-362) 505(Satellite) 873 1627111Fax: (+233-362) 479(Satellite) 873 1627112

Obuasi MinePO Box 10, Obuasi, GhanaTelephones: (+233-582) 494–8

(+233-582) 475Fax: (+233-582) 268

Siguiri Minec/o Société Ashanti Goldfields de GuinéeKM4, Cameroun B.P. 1006Conakry, GuinéeTelephone: (+1-301) 916 53 87Satellite 873 761333884

873 685-51881Fax: (+1-301) 916 53 79Satellite 873 76333885

Ashanti Exploration4, Nortei Ababio StreetRoman RidgePO Box 2665, Accra, GhanaTelephones: (+233-21) 774377

(+233-21) 767335/6Fax: (+233-21) 778739

Ashanti Goldfields Company Limited Registered in Ghana No. 7094 ARBN 074 370 862

Photography by Norman Childs. Designed and produced by THE & FACTOR. Printed in England by royle corporate print

(+255-28) 2520 500(+255-28) 2520 502

is an African-based international gold mining and exploration group with six producing mines in

four African countries: Ghana, Guinea, Tanzania and Zimbabwe.

The mines, in which the Group has interests have 44 million ounces of measured and indicated gold resources and active exploration

projects in seven African countries. The Company is listed on five international stock exchanges.

■ To be a premier precious metals mining company in Africa

Ashanti’s objectives are to:

■ Retain and consolidate its position as a senior tier gold producer and diversify where appropriate

■ To enhance shareholder value for the long term

■ Maintain appropriate levels of hedge protection to assist the Group in meeting its commitments as and when they fall due

■ Reduce and refinance Group debt

■ Participate in the continuing consolidation occuring within the industry

■ Maintain the best mining practices and highest safety standards

Ashanti’s strategy seeks to:

■ Maximise cash generation through strong operational performance at all our mines

■ Continue with the restructuring of the hedge book

■ Continue to maintain cost and performance focus by setting and attaining critical measures in production, cost and profitability

■ Secure operational and financial gains by continually improving internal resources and systems

■ Foster good relations with key stakeholders

■ Maintain and increase ore reserves by focusing on exploration near existing operations

■ Increase asset portfolio with focused exploration in strategically important countries

■ Continue with the high degree of safety-consciousness established among staff with a view to achieving a National Occupational

Safety Award (NOSA) Five-Star rating across the Group

■ Continue to provide social amenities in pursuit of our objectives of good corporate citizenship where we operate

Corporate Profile 1

2 Chairman’s Statement

In 2001, Ashanti made considerable progress in a number of key areas, notably in production and finance, despite thecontinuing challenges that faced the gold industry duringthe year. The performance of the five Ashanti mines and theGeita gold mine, which we operate and own jointly withAngloGold Limited, not only compared favourably withindustry standards of production and efficiency but alsoeither attained or maintained very high ratings by theNational Occupational and Safety Association (NOSA) ofSouth Africa. The Chief Executive’s Review and otherrelevant reports which follow, spell out these achievementsin greater detail.

Stock Market PerformanceAshanti’s shares performed very strongly on the New YorkStock Exchange by the end of the year, having traded fromUS$1.875 on 2 January to US$4.25 on 31 December 2001.This represented a substantial improvement in a difficultinvestment climate.

In order to concentrate on the New York Exchange as themain centre for trading our stock in North America wehave with effect from 31 January 2002 delisted from theToronto Stock Exchange. At home, the Ghana InvestmentPromotion Council presented the Company with twospecial awards for its contributions to the economy and itselection as the country’s number one in a “Club of 100”top corporate bodies in Ghana.

Earnings and DividendAshanti more than doubled its earnings during 2001 fromUS$30.5 million (before exceptional items) in 2000 toUS$62.7 million. As a result of this and a programme ofcost reductions, the Group also generated cash during theyear which resulted in a reduction in its gross debt level byUS$39.8 million.

Although the Company’s liquidity position furtherimproved during the year, the Board is unable torecommend the payment of dividends this year because of its negative reserves and the prevailing restrictions under

the banking covenants and the Board’s overall objective ofreducing the Company’s indebtedness.

Gold IndustryThe gold price remained at historical lows, and a returnabove US$300 per ounce on a sustainable basis was thoughtto be optimistic. In the circumstances, we continued to pursue successful measures to drive down costs, andconsolidate what we have achieved in the immediate past.

Debt RestructuringDuring the year, the Board reviewed the Company’srefinancing options and was pleased to announce, on25 January 2002, a conditional agreement with an ad hoccommittee of holders of the 51/2% ExchangeableGuaranteed Notes due 2003 (the “Existing Notes”)regarding a proposed restructuring of the Existing Notes. Afurther announcement on conditional margin freearrangements and a new revolving credit facility, was madeon 18 March 2002. Further details are set out in theFinancial Review on page 18. Upon successful completionand implementation of Ashanti’s debt restructuring, theCompany’s financial flexibility is expected to improvesubstantially.

Investor RelationsThe progress made on the restructuring and reports on ourstrong operations formed the thrust of the Group’s investorrelations efforts during the year.

Our two major shareholders, Lonmin Plc and the Governmentof Ghana, re-affirmed their support for the Company. HisExcellency, President Kuffour, in particular, has indicatedthat his government saw Lonmin as a strategic partner andLonmin have also confirmed that, although their focus was onplatinum their interest in Ashanti had not waned. We aregrateful to both shareholders for their continued support.Ashanti also held comprehensive briefing sessions with thePresident of Ghana and his cabinet, as well as with relevantparliamentary committees in Ghana during 2001. We counton the continued support of all our shareholders during ourrestructuring efforts and beyond.

M E BECKETT

3

Board of DirectorsDuring the period under review, we appointed Mr T E Aninas a non-executive director on 27 July 2001 and Mr G EHaslam on 8 March 2002. Dr K Duffuor, Mr AAshiabor, Dr D Creed and Mr J N Robinson resigned asdirectors on 23 July, 31 July, 31 August 2001 and 8 March2002, respectively.

We are pleased to report that the Board has requested TrevorSchultz to serve an additional year as Chief OperatingOfficer until 31 December 2003, following his attainment ofthe normal retirement age of 60 years. The extension issubject to shareholders’ approval.

Employees and the CommunityThrough these difficult trading conditions Ashanti’semployees have remained dedicated, loyal and veryresourceful and this has underscored our achievements onsafety, production and finance this year and we thank themfor their outstanding contribution.

The Board maintained incentive schemes and othermeasures to reward the efforts of its employees. In addition,Ashanti joined the Global Compact of the United NationsOrganisation which seeks to promote world-class standardsin human rights, labour policies and environmentalpractices.

FutureIn 2002, we will continue to strive to consolidate on ourachievements during 2001 with a view to ensuring thatAshanti remains a competitive and successful company ableto capitalise on its outstanding natural and human resources.

Salient Features■ Earnings of US$62.7 million – more than double as

compared to last year’s pre-exceptional earnings

■ Strong operational performance resulting in goldproduction of 1.66 million ounces at a cash operating costof US$190 per ounce

■ Group gross debt levels reduced further by US$39.8 million

■ Significant progress made towards refinancingAshanti’s debt

■ All mines achieved superior NOSA safety ratings

Highlights 2001 2000

Financial (US$)Total Turnover 554.4m 582.2mEarnings before exceptional items 62.7m 30.5mEarnings after exceptional items 62.7m (141.1m)Operating cash flow beforeexceptional items 158.9m 203.9mEarnings per share before exceptional items 0.56 0.27Earnings per share after exceptional items 0.56 (1.25)

Gold Production (ounces)Obuasi 528,451 640,988Bibiani 253,052 273,711Iduapriem/Teberebie 205,130 193,868Ayanfuri 11,517 36,316Siguiri 283,199 303,381Freda-Rebecca 102,654 112,164Geita (group share) 272,781 176,836Total 1,656,784 1,737,264

Total Production Costs before exceptional items (US$ per ounce)Cash operating costs 190 187Royalties 8 8Depreciation and amortisation 55 65Total 253 260

Mine Ore Reserves and Mineral Resources (million ounces)*Proved and Probable Ore Reserves 26.1 25.3Measured and Indicated Mineral Resources 44.0 43.3

*includes 100% of Geita

ASHANTI ENDED THE YEAR 2001 ON A VERY STRONG NOTE

M E BeckettChairman

Chief Executive’s Review

OverviewI am pleased to report that Ashanti overcame significantchallenges to end 2001 on a stronger note. Apart fromconfronting a depressed gold price environment, Ashantiinitiated moves to refinance and restructure its 2003 debtobligations.

The Company maintained its focus on cash generation,which it applied to reduce its debt, and continued torestructure its hedge book.

OperationsAshanti’s operations performed well in 2001. Groupproduction and cost targets were exceeded, particularly atIduapriem and Geita. The Group’s total gold production forthe year was 1,656,784 ounces which compares with a totalgold production of 1,737,264 ounces in 2000.

The reduced production in 2001 was mainly due to theclosure of surface mining operations at Obuasi, cessation ofmining at Ayanfuri, and reduced production at Siguiri andBibiani.

Total cash operating costs were US$190 per ounce ascompared to US$187 per ounce in 2000, due to lowerproduction. Obuasi’s cash operating costs however fell by8 per cent from US$208 per ounce in 2000 to US$192 perounce in 2001. Solid operational performance has helped toreduce Group debt levels further.

ExplorationOur exploration efforts centred on replenishing reservesand resources at our mine sites. We were able to delineatefurther reserves and resources at Geita (before depletion)and also increased the reserves at Iduapriem/Teberebie.

While we were unable to replenish fully reserves at Siguiri, atObuasi, we found promising high-grade intersections below50 Level (5,000 feet), suggesting a significant resourcepotential at the mine. The opportunities to undertake furtherexploration to prove up the world-famous Obuasi ore body,remain an exciting prospect for us.

Financial PerformanceDuring the year, the Group’s earnings more than doubled,our hedge book was further restructured and we appliedcash generated from our business to pay down our debtsand provide the basis for growth.

The Group’s gross debt level was reduced further by US$39.8million in 2001. This included a reduction in the amountsowed under the revolving credit facility from US$88.8 millionin 2000 to US$55.0 million. To afford us greater flexibility,we negotiated a US$25.4 million working capital facility for2002 from some of our existing banks on a voluntary basis.

Reduction in debt levels led to a 43 per cent decrease ininterest charges. Corporate administration expenditurewas 16 per cent lower at US$21.2 million. Whilst mine siterelated exploration progressed during the year, non minesite exploration was rationalised during 2001.

Turning to the restructuring of our debt, we are pro-actively implementing a refinancing plan to restructure ourbalance sheet and provide greater financial flexibility. Thisinvolves the proposed restructuring of the Existing Notes(including an equitisation of 25%), ongoing margin freearrangements and a new revolving credit facility. Details ofthese are provided in the Financial Review.

4

opposite: Overview of the world’s largest BIOX® plant and other installations atObuasi at night

5

DURING THE YEAR, THE COMPANY’S EARNINGS MORE THAN DOUBLED . . .

5

6 Chief Executive’s Review

Community RelationsMaintaining good community relations is essential forAshanti’s operations and its African franchise value. Wetherefore continued to discharge our responsibilities to thecommunities and countries in which we operate. AtBibiani, we created opportunities for farming for the localcommunity and assisted them in that regard. A micro-credit scheme and a training programme that we initiatedfor the youth have been extremely successful. A similarprogramme initiated at our Freda-Rebecca mine inZimbabwe was also instrumental in keeping employeemorale high and operations stable in the difficult economicsituation in that country.

In 2001, Ashanti joined the Global Compact, a UnitedNations-sponsored initiative to foster greater responsibilityand participation by the world’s private sector inenhancing corporate governance. Ashanti was the firstcompany to join in Ghana and I am particularly honouredto be serving on the body which advises the UN Secretary-General on Global Compact issues.

Safety, Health and EnvironmentThe Group safety performance in 2001 was within thecorporate target level of 0.8 injuries per 200,000 hours workedand we continue to maintain a world class safety record.

NOSA safety audits, which are internationallyacknowledged in the mining industry, were undertaken atall our mines. With the recent upgrade at Obuasi, allAshanti operations are now internationally rated at fourstars or better.

The Group strives to improve on its standards ofenvironmental protection. Land restoration runs parallelwith mining activities at open pit mining operations withinthe Group.

EmployeesThe improvement in Ashanti’s performance during 2001would not have been possible without the tireless effortsand loyalty of our employees. I therefore take thisopportunity to thank everyone of them for their hard workand perseverance and count on their support in the future.

S E JonahChief Executive and Group Managing Director

left: Land reclamation after cessation of surface mining at Obuasi

opposite: Heap leach operator at work in Siguiri, Guinea

7

ALL ASHANTI’S OPERATIONS ARE RATED FOUR STARS OR ABOVE BY NOSA OF SOUTH AFRICA

Operations Review8

opposite: The Obuasi 41 level underground train approaches a tipping point

OverviewIn 2001, Management continued to focus on the maintenanceof world class safety and operational and cost efficiencies, whilstenhancing production and sustainability at each operationthrough the implementation of key strategic initiatives.

ObuasiObuasi produced 528,451 ounces, principally fromunderground ore. This compared with the 640,988 ounces themine produced from both underground and surface ores theprevious year. Cash operating costs reduced to US$192 perounce as against US$208 per ounce in 2000. The improvementin cost was achieved through closure of the high cost surfaceoperations as well as cost control measures and re-engineeringof mining and processing operations.

Underground Mining Production from underground mining reached2,507,000 tonnes, 7 per cent more than the 2,348,000 tonnesproduced in 2000. The grade for 2001 at 7.90 g/t, was slightlyahead of the 7.87 g/t achieved in 2000. Production from themain mechanised stoping areas was improved by theintroduction of new trucks and improved layouts. The portionof fully developed reserves was increased to provide greateroperational flexibility. These improvements have led to areduction in unit mining costs.

Major underground project works in 2001 included thefurther development, support and track installation on thehigh volume railway system at the 41 Level main haulage.Development was completed from the Kwesi Mensah Shaft(KMS) through to the Brown Sub-Vertical Shaft (BSVS) in thesouth of the mine and to Blocks 5 and 6 in the north. TheSansu Ventilation Shaft was commissioned. The surfacefoundation work for the 300 south ventilation airway wascompleted in preparation for raise-boring operations in 2002.The development of the decline to the bottom of KMS tofacilitate the removal of rock spillage was completed. At theKwesi Renner Shaft (KRS) excavation for the crusher station

was completed. A new pump station was constructed andcommissioned on 8 Level in the north of the mine to improvemine pumping capacity and water control.

Surface MiningSurface rehabilitation work on landscaping and re-vegetatingthe old pits and waste dumps was ongoing during the year.There was no production from surface mining activity atObuasi in 2001.

ProcessingGold clean up was started in the Pompora Treatment Plant(PTP) and the Oxide Treatment Plant (OTP) remained on careand maintenance. As a result, a total of 4.06 million tonneswere processed compared to 5.33 million tonnes in 2000 whenthe two plants were in operation. At the Sulphide TreatmentPlant (STP), new flotation cleaner cells were introducedresulting in an increase in the concentrate grade from around55 g/t to 85 g/t. Accompanying the increase in precious metalgrade is an increase in the sulphur grade of the concentrateswhich has enhanced the BIOX® process. The plantmodification led to a reduction in concentrate tonnagethroughput, an increase in BIOX® residence time and asignificant reduction in reagent consumption resulting inreduced operating costs. Gold production from the treatmentplant was 482,982 ounces from the processing of 2.39 milliontonnes of ore at a grade of 7.53 g/t and a plant recovery of83.5 per cent. This compares with 412,824 ounces from 2.47million tonnes at a grade of 6.32 g/t and a recovery of 82.1 percent in 2000.

In the financial year 2001, ore throughput at the TailingsTreatment Plant (TTP) was 1.67 million tonnes at a grade of2.46 g/t compared with 1.83 million tonnes in 2000 at a gradeof 2.39g/t. Recovery at 32.7 per cent was an improvement onthe 31.1 per cent achieved in 2000. Despite the 9 per centreduction in processed tonnage, recovered gold fell by only 2 percent from 43,756 ounces in 2000 to 42,999 ounces in 2001 dueto improved grade and recovery. The reduced tonnage

99

MANAGEMENT CONTINUED TO FOCUS ON THE MAINTENANCE OF WORLD CLASS SAFETY ANDOPERATIONAL AND COST EFFICIENCIES

10 Operations Review

throughput resulted from mechanical problems with pumps andexcavators in the second half of the year.

ExplorationAs was the case in 2000, the main objectives of theunderground diamond drilling programme were the upgradingof the resource status across the mine and the delineation ofnew resources in the south section above 41 level, the northsection of the mine above 20 level and below 50 level across thebase of the mine between the Adansi shaft and the BSVS. In thesouth, promising intersections were obtained in the previouslyweak East Lode and at Sansu. Drilling below 50 level providedconsistently good results across strike showing thatmineralisation extended down to the deepest levels drilled.Several plus 20 g/t intersections over mineable widths weremade in quartz material down to 56 level in the vicinity of theKMS. The most significant intersection occurred at 62 levelbelow KMS, where 13.3 metres of quartz with visible goldassayed 66 g/t. This hole confirmed the down dip extension ofthe ore body to at least some 400 metres below the 1,600metres elevation, currently the deepest level of the existing mineinfrastructure.

Ayanfuri Production continued at Ayanfuri on a reduced scale for thefirst half of the year as some small deposits were extracted andold pits cleaned up. A total of 11,517 ounces were producedin 2001 at a cash operating cost of US$243 per ounce. At theend of the 2nd quarter, Ayanfuri’s operations ceased and themine closure plan is currently being implemented.

Iduapriem (80% owned)Gold production for 2001 was 205,130 ounces of gold,exceeding 193,868 ounces of gold in 2000. Cash operatingcosts were reduced to US$214 per ounce from US$223 perounce in 2000.

At 4.85 million tonnes, the ore mined in 2001 wasapproximately the same as the previous year. However, the

mined grade at 1.58 g/t was higher than the 1.25 g/t achievedin 2000. The higher grades resulted from the mining of highergrade material from the Teberebie ore blocks.

Gold production from the Carbon-in-Leach (CIL) plantincreased to 158,103 ounces from 128,374 ounces in 2000.This was largely due to the increased feed grade of 1.92 g/tcompared to 1.58 g/t in 2000. Mill throughput and recoverywere respectively 1.5 per cent and 1.3 per cent higher thanin 2000.

Heap leach gold production was 47,027 ounces compared to38,518 ounces in 2000. The higher heap leach goldproduction was due to a 16 per cent increase in tonnage, anda 16 per cent increase in stacked grade. Recovery at 61.7 percent compares with 67.5 per cent the previous year reflectingthe harder and less leachable nature of the heap leach orecoming from the Teberebie pits.

During 2001, a feasibility study was undertaken on upgradingthe CIL plant capacity to 4.0 million tonnes from its present2.9 million tonnes per annum in order to reduce unit costs.The project includes the installation of an additional SAG mill,upgrading of the elution circuit, conversion from CIL toCarbon-in-Pulp (CIP), and the relocation of crushing activitiesto a larger crusher which is already in operation close to theTeberebie pits. The installation of an overland conveyor totransfer crushed product to the Iduapriem processing plant isalso proposed. The results of the study are positive, improvingcash flow overall and expanding the ore reserves. The projectreached the approval stage at the end of the year and isexpected to be completed during 2002.

left: Boukaria, a village near the Siguiri mine, benefits from potable waterprovided by Ashanti

opposite: Gold pour in Obuasi

1111

THE IMPROVEMENT IN COSTS AT OBUASI WAS ACHIEVEDTHROUGH CLOSURE OF THE HIGH COST SURFACE OPERATIONS AS WELL AS EFFECTIVE COST CONTROL MEASURES

Operations Review12

BibianiBibiani produced 253,052 ounces at a cash cost of US$170 perounce during 2001 compared to 273,711 ounces at a cash costof US$134 per ounce the previous year. The reduction in goldproduction at Bibiani is due to the reduced mill feed grade andlower recovery. This resulted in the higher cash operating costper ounce produced.

Milled throughput for the year was 2.77 million tonnes at afeed grade of 3.46 g/t compared to 2.76 million tonnes at 3.70g/t the previous year. As was the case in previous years thereconciliation between the reserve model and the actual minedgrade and tonnage showed a positive variance and theoperation has continued to exceed performance levelspredicted in the feasibility study and mine plan. Metallurgicalrecovery in 2001 decreased to 83.7 per cent from 86.7 per centin 2000 due to the mining and processing of more refractorytype ore during the second half of the year.

During the year, the evaluation of a trackless underground miningoperation to exploit extensions of the open pit resources to depthcontinued but was not finalised. This work will continue in 2002.Business initiatives to acquire prospective ground withineconomic haulage distance of the processing plant and extendmine life beyond 2004 will also be further progressed in 2002. In 2001 a small deposit, Mpesetia, containing 30,000 reserveounces was acquired and approvals to mine this ore and truckit to Bibiani are being progressed.

Siguiri – Guinea (85% owned)In 2001, Siguiri produced a total of 283,199 ounces at a cashoperating cost of US$220 per ounce compared with 303,381ounces at US$181 per ounce in 2000. Production and cashoperating costs were impacted by lower than expectedmetallurgical recovery from the material stacked during the year.

A total of 8.52 million tonnes of ore were mined compared to10.80 million tonnes in 2000 and the heap leach plant

processed a total of 9.06 million tonnes grading 1.33 g/tcompared with 8.88 million tonnes at 1.34 g/t the previousyear.

Apparent plant recovery for the year reduced to 73.1 per centfrom 79.3 per cent in 2000. This was largely due to solutionreticulation and third layer stacking problems which resulted inlower than anticipated leach rates. During 2001, considerablework was undertaken to solve these problems. The third layerstacking was suspended while the solution management systemwas upgraded and the controls on blending the lateritic andsaprolitic ore types improved.

Freda-Rebecca – ZimbabweFull year production in 2001 was 102,654 ounces at a cashoperating cost of US$222 per ounce compared to 112,164ounces at US$198 per ounce in 2001.

Underground production for the year at 1.16 million tonnes ata head grade of 3.56 g/t was 11 per cent higher than the1.04 million tonnes achieved in 2000. Some 56,000 tonnes of open pit oxide ore were also extracted from the PhoenixPrince pit, adjacent to the processing plant.

Processed tonnage for the year was 1.12 million tonnes at 3.30g/t compared with 1.00 million tonnes at 3.89 g/t in 2000.Plant recovery in 2001, however, was 86.4 per cent comparedto 89.8 per cent the previous year. Processing operations wereaffected by a series of mechanical problems on the SAG millsin the first half of the year, whilst problems with the primarycrushers and leach tank agitator gearboxes impacted onproduction in the second half of the year. Persistentinterruptions to the processing plant combined with reducedleach tank capacity made it difficult to maintain steady stateoperating conditions and gold recovery was adversely affected.The low recovery and lower feed grade therefore accountedfor the decrease in gold production relative to 2000.

left: Water quality tests at Iduapriem

opposite: Medical check up at the Iduapriem mine clinic

13

AS AT 31 DECEMBER 2001, ASHANTI’S HEDGE BOOK HAD A POSITIVE MARK-TO-MARKET VALUE OF US$88.8 MILLIONBASED ON A SPOT PRICE OF US$277 PER OUNCE.

Operations Review14

The economic and political situation in Zimbabwe during2001 continued to pose a series of difficult problems for themanagement team. The lack of foreign exchange and the fixedexchange rate coupled with high inflation put severe pressureon the supply function and operating costs. Towards the endof the year, the foreign exchange problem was alleviatedslightly but the situation remained tight.

Geita (50% J.V.) – TanzaniaGeita mine, in its first full year of production, produced a totalof 545,562 ounces at a cash operating cost of US$143 perounce, of which 50 per cent is attributable to Ashanti.

A total of 4.52 million tonnes of ore grading 3.80 g/t weremined at a strip ratio of 6.0:1. This compares to 1.24 milliontonnes at 3.00 g/t at a strip ratio of 9.6:1 in the previous year.

In 2001, a total of 4.58 million tonnes were processed at agrade of 3.91 g/t and a recovery of 93.0 per cent compared to2.08 million tonnes at 2.94 g/t and a recovery of 92.0 per centin 2000.

In the last quarter of 2001, the haul road between theKukuluma deposit and the processing plant was completedand a haulage contract was signed to commence productionfrom that deposit in the first quarter of 2002.

left: Routine environmental tests at Geita

opposite: The carbon-in-leach processing plant at Bibiani

Summary of production and cash operating costs per ounceFreda- Total/

Obuasi Ayanfuri Iduapriem* Bibiani Siguiri Rebecca Geita** Average

Twelve months to 31 Dec 2001Production (ounces) 528,451 11,517 205,130 253,052 283,199 102,654 272,781 1,656,784Cost per ounce (US$) 192 243 214 170 220 222 143 190

Twelve months to 31 Dec 2000Production (ounces) 640,988 36,316 193,868 273,711 303,381 112,164 176,836 1,737,264Cost per ounce (US$) 208 245 223 134 181 198 145 187

* Iduapriem figures include those of Teberebie.

** This number represents 50% of Geita’s production in 2001; 2000 being 100%.

15

ALL OF ASHANTI’S OPERATING MINES GENERATED POSITIVE CASH FLOWS IN 2001

Operations Review

Exploration Ashanti’s exploration effort continued to focus on and aroundits existing mining operations.

East AfricaTanzania – At Geita, exploration during the year focused onthe identification and evaluation of several prospects withinGeita Gold Mine’s extensive mining and prospecting licences.An indicated resource of 4.5 million tonnes grading 2.2 g/t,equivalent to 313,000 ounces of contained gold wasdelineated at Chipaka, situated 6 kilometres northwest of theplant. Significant mineralisation (including 39 metres grading9.4 g/t from 90 metres) was intersected down plunge from theGeita Hill open pit and will require follow-up. Encouragingresults were also received from the Prospect 30, Samena andNyamatigata prospects.

Infill drilling of the Nyankanga underground resourcecommenced towards the end of the year as part of the fullfeasibility study. Pit optimisations will also be undertaken onthe Roberts and Chipaka resources to seek to delineate openpit reserves.

Elsewhere in Tanzania, Ashanti continued its regionalassessment of the Lake Victoria Goldfields Belt during the year.

West AfricaGuinea – Exploration around the Siguiri mine site was mainlytargeted at locating and defining oxide mineralisation.Saprolite reserves were outlined at Sintroko, 4 kilometressouth of the Kosise pit. Definition drilling of both laterite andsaprolite was also completed at the newly identified andnearby Soukonu deposit and in an area immediately south ofthe current Kosise pit limits.

Côte d’Ivoire – Rotary Air Blast (RAB) and aircore drillingshowed that the 20 kilometre long M’Basso/Bebou and the7 kilometre striking Abrabine gold-in-soil anomalies, in theAllangaou permit of south-eastern Côte d’Ivoire, were related

to minor bedrock mineralisation. Exploration has re-focusedonto a package of permits subject to an agreement signed withRio Tinto in October 2001.

Mali – Follow up geochemical sampling and RAB drillingwere undertaken on a number of prospects in southeasternMali. Additional targets have been identified and are currentlybeing evaluated.

Ghana – Exploration and assessment continued on a numberof prospects on and in the vicinity of the Bibiani, Iduapriemand Obuasi operations.

Southern AfricaZimbabwe – At the RAN project near Freda-Rebecca, aninitial resource of 2.8 million tonnes grading 2.6 g/t gold and0.42 per cent copper was outlined, a portion of which shouldbe amenable to open pit mining. A feasibility study is currentlybeing undertaken. In addition a small open pit oxide reservewas delineated at the Phoenix Prince prospect.

Central AfricaD.R.Congo – During the year, Ashanti increased its Kiminconcession by 6,000 square kilometres. The concession nowcovers most of the historically productive Kilo greenstone belt.Exploration will commence as soon as the unrest in that part of the country is finally curbed to ensure the safety of our employees.

16

left: The Vice-President of Ghana, Alhaji Aliu Mahama, presents a special awardfor Ashanti’s contribution to the Ghanaian economy to James Anaman,Managing Director, Public Affairs

17Financial Review

Summary■ Annual gold production of 1.66 million ounces

■ Average cash operating cost of US$190 per ounce

■ Earnings of US$62.7 million – more than doubled ascompared to last year’s pre-exceptional earnings

■ Group gross debt level reduced by US$39.8 million toUS$325.9 million

■ Working capital facility of US$25.4 million secured for 2002

■ Conditional agreement reached with an ad hoc committee ofnoteholders to a proposed restructuring of the Existing Notes

■ New conditional margin free trading arrangements agreedwith all but one active hedge counterparty

■ Conditional agreement reached with a syndicate of four banksto underwrite a new US$100 million revolving credit facility

RevenueTotal revenue for the year of US$554.4 million was 5 per centlower than last year’s level of US$582.2 million, due to lowerproduction. The average gold price realised during the year ofUS$335 per ounce was in line with the price obtained in 2000.

Spot revenue amounted to US$455.8 million (2000: US$485.2million). Hedging income totalled US$98.6 million, comprisingUS$41.6 million realised from the close-outs of maturing hedgingcontracts and US$57.0 million released from income frompreviously closed-out hedging contracts (deferred hedging income).

In accordance with the Group’s accounting policy, income fromearly close-outs is credited to revenue for the originally designateddelivery period. At 31 December 2001, deferred hedging incometotalled US$65.6 million (2000: US$120.0 million) of whichUS$35.0 million will be credited to revenue in 2002.

HedgingThe table given below shows the changes to Ashanti’s hedge bookover a two-year period from 31 December 1999:

31 December 31 December Reduction1999 2001 achievedoz m oz m oz m

Protection 8.1 5.1 3.0(Average price:

US$362/oz)

Commitments 12.2 7.5 4.7(Average price:

US$347/oz)

Lease rates 7.6 5.0 2.6

Prevailing spot price US$289/oz US$277/oz

Mark-to-Market Negative PositiveValuation (US$) 253 million 88.8 million

During the two-year period ended on 31 December 2001, Ashantireduced its commitment levels and lease rate exposure by 4.7million ounces and 2.6 million ounces respectively.

As at 31 December 2001, Ashanti’s hedge book had a positivemark-to-market value of US$88.8 million based on a spot price ofUS$277 per ounce (2000: positive mark-to-market value ofUS$29.1 million based on a spot price of US$273 per ounce).Ashanti’s 50 per cent share of the Geita hedge book (which ismargin free) had a negative mark-to-market value ofUS$2.4 million at the year end.

Ashanti had 5.1 million ounces of protection at an average rate ofUS$362 per ounce at 31 December 2001. Over the life of thehedge book, Ashanti has 40 per cent of total forecast productionprotected and 61 per cent of total forecast production committed.

The Ashanti hedge book’s mark-to-market has benefited significantlyover the past two years from a lower US interest rate environmentand the time decay of the book. The lease rate spike during April/May2001 did not have a material impact and cashflows generated from lease rate swaps over the year were positive.

During 2001, two significant restructurings on the book led to an improvement in committed levels and the simplificationof the lease rate swaps. The first entailed the acceleratedconversion of a convertible structure, which led to a reduction of554,400 ounces of commitments. The second restructuring entailedthe removal of the spot indexing feature of one of the gold leaserate swaps which will benefit Ashanti at higher spot prices.

S VENKATAKRISHNAN

Financial Review18

Cash Operating CostsTotal cash operating costs were US$190 per ounce as compared toUS$187 per ounce in 2000, primarily due to lower production atSiguiri and Bibiani. Obuasi’s cash operating costs fell by 8 per centfrom US$208 per ounce in 2000 to US$192 per ounce in 2001.Cash operating costs for the individual mines are set out on page 14.

Exploration and Corporate AdministrationExploration expenditure during the year was lower at US$6.5million (2000: US$14.2 million) due to rationalisation of non-mine site exploration expenditure. Corporate Administrationexpenditure for the year was also lower by 16 per cent at US$21.2million (2000: US$25.3 million) due to our cost reduction efforts.

DepreciationTotal depreciation and amortisation charge (before exceptionalitems) for the year was lower at US$94.9 million (2000: US$114.8million) due to the asset impairment recorded in 2000.

Total CostsTotal costs before exceptional items, but including depreciationand amortisation for the year, amounted to US$457.6 million(2000: US$493.1 million). The total cost per ounce fell fromUS$284 per ounce in 2000 to US$276 per ounce in 2001. In cashflow terms, despite lower production, total costs (excludingdepreciation and amortisation but including capital expenditure)were unchanged at US$252 per ounce.

Financing CostsTotal interest charges fell by 43 per cent from US$51.3 million in2000 to US$29.4 million in 2001. This significant reduction wasdue primarily to lower debt levels as compared to 2000.

TaxationTotal taxation charged to the profit and loss account amounted toUS$6.8 million (2000: US$8.8 million). This includedUS$6.6 million of corporate tax for the current year, US$8.2million in respect of prior years and a credit for release of deferredtax of US$8.0 million.

EarningsEarnings for the year were more than double the level recorded lastyear at US$62.7 million (2000: Earnings before exceptional items atUS$30.5 million). This was due to lower depreciation and interestcharges partly off-set by lower production. Earnings per share wasUS$0.56 (2000: US$0.27 per share before exceptional items).

DividendThe Group is in the process of strengthening its financial positionby restructuring its balance sheet. The banking covenantspresently prohibit the payment of cash dividends until grossborrowings fall below US$300 million. Given these reasons andthe deficit in Ashanti’s reserves, no dividend is proposed for 2001.

Cash FlowThe net cash inflow from operating activities was US$95.4 million(2000: US$149.4 million). The reduction in 2001 was due to thenon-consolidation of Geita following the sale of a 50 per centinterest in December 2000 and lower cash flows from otheroperations. Net interest paid was US$22.4 million (2000:US$56.4 million) and capital expenditure was US$49.6 million(2000: US$145.6 million).

Capital ExpenditureGroup capital expenditure decreased from US$145.6 million in2000 to US$49.6 million primarily due to the completion of theGeita project in 2000. The Group’s capital expenditure during2001 included US$30.1 million at Obuasi and US$19.5 million atthe other mines, excluding Geita. Ashanti’s 50 per cent share ofGeita’s 2001 capital expenditure amounted to US$7.5 million.

Debt The Group’s gross debt fell by US$39.8 million, from US$365.7million in 2000 to US$325.9 million in 2001. The Group’s netdebt level as at 31 December 2001 was US$270.7 million (2000:US$292.1 million). These amounts exclude the 50 per cent shareof the US$124.3 million non-recourse Geita project finance loan.

No drawings were made under the Group’s revolving creditfacility (“Existing RCF”) during 2001. The amounts outstandingunder this Facility fell from US$88.8 million in 2000 to US$55.0million in 2001.

Ashanti has also secured an extension of its working capitalfacilities, on a voluntary basis from certain of its current lendingbanks, of US$25.4 million which is available for drawing, pursuantto the terms of the Existing RCF, up to 30 December 2002.

Proposed Restructuring, Margin Free Arrangements and New Revolving Credit FacilityOn 25 January 2002, Ashanti announced that it had agreed termsin principle with an Ad Hoc Committee (“Ad Hoc Committee”) ofthe holders of 51⁄2% Exchangeable Guaranteed Notes due 15March 2003 (“Existing Notes”) representing approximately 62 percent of the outstanding principal of US$218.6 million to aProposed Restructuring (“Proposed Restructuring”) of the ExistingNotes. The principal terms of the proposed restructuring are:

■ Equitisation of US$54,642,750 of the Existing Notes(representing 25 per cent of the Existing Notes) by the issue ofordinary shares in Ashanti (“Ashanti Shares”) at US$3.70 perAshanti Share.

■ Exchange of US$163,928,250 of the Existing Notes(representing 75 per cent of the Existing Notes) forUS$163,928,250 of 7.95% Exchangeable Guaranteed Notesdue 30 June 2008 (“New Exchangeable Notes”).

■ The New Exchangeable Notes will be exchangeable by theholders into Ashanti Shares at any time at an exchange priceof US$5.75.

■ The New Exchangeable Notes will be mandatorily redeemableby Ashanti in semi-annual instalments of US$12 millioncommencing on 31 December 2003 to the extent not alreadyexchanged. The balance of any New Exchangeable Notes notexercised or redeemed will be repayable in full on 30 June2008. Ashanti also has the option on each semi-annualredemption date to redeem an additional US$12 million of NewExchangeable Notes.

■ Ashanti will, upon completion of the Proposed Restructuring,pay to the then holders of the Existing Notes an exchange feeof 2 per cent of the face value of the then outstanding ExistingNotes. In aggregate, this payment will amount toapproximately US$4.37 million.

The Proposed Restructuring, which is intended to be implementedby way of a scheme of arrangement to be sanctioned by the GrandCourt of Cayman Islands, is subject to the satisfaction of anumber of conditions including: the preparation and despatch offormal documentation; listing of the new securities to be issued onthe relevant stock exchanges; the approval of the requisitemajorities of the holders of the Existing Notes, Ashanti’s

Financial Review 19

shareholders and its hedge counterparties; and the approval of itslending banks or repayment of the Existing RCF. The members ofthe Ad Hoc Committee have undertaken to vote in favour of thescheme of arrangement to implement the Proposed Restructuring,subject to Ashanti complying with certain obligations andsatisfying certain conditions within certain time limits. Inparticular, the formal documentation to implement the ProposedRestructuring must be posted by 31 May 2002 and the relevantscheme meetings held by no later than 31 August 2002.

A pre-condition to the Ad Hoc Committee being bound by a writtenundertaking to vote in favour of the Proposed Restructuring wasAshanti entering into appropriate ongoing margin freearrangements with its hedge counterparties, other than CreditSuisse First Boston International (“CSFB”). Interim margin freeagreements (“Interim Margin Free Agreements”) have now beensigned by all of Ashanti’s active hedge counterparties other thanCSFB (the “Relevant Hedge Counterparties”). However, one of theInterim Margin Free Agreements (signed by a Relevant HedgeCounterparty, which has agreed to novate half of its hedge book toStandard Bank London Limited conditionally only upon the InterimMargin Free Agreements becoming effective prior to 15 March2003), is being held by Ashanti’s lawyers subject to an escrowagreement. This Interim Margin Free Agreement will be releasedfrom escrow to Ashanti on Ashanti certifying, prior to 15 March2003, that it believes (acting in good faith) that, should the relevantInterim Margin Free Agreement be released from escrow, all theconditions to the Interim Margin Free Agreements will becomeeffective unless, prior to that date, Ashanti has been notified thatthere has been an event of default resulting in an early terminationevent under the ISDA Master Agreement between suchcounterparty and Standard Bank London Limited.

All of the Interim Margin Free Agreements are now conditionalupon satisfaction of the following conditions (the “Conditions”)prior to 15 March 2003:

■ the Proposed Restructuring (or such other restructuring as isapproved by an appropriate majority of hedge counterparties)being completed;

■ release from escrow to Ashanti of the Interim Margin FreeAgreement currently held in escrow; and

■ Ashanti having available to it loan facilities in an amount ofnot less than US$25 million available for drawing for workingcapital purposes for a period of not less than 15 months fromthe date of posting of the documentation to shareholders inrelation to the Proposed Restructuring.

If the Conditions are satisfied at a stage when CSFB has not signedthe Interim Margin Free Agreement then, subject to Ashanticomplying with certain covenants and no events of default beingdeclared, Ashanti will benefit in the period after 31 December2002 from ongoing margin free trading arrangements unless CSFBis entitled to, and actually does, call for margin. Based on CSFB’scurrent hedgebook with Ashanti and current market conditions,Ashanti believes that CSFB would only be entitled to call formargin after 31 December 2002 as a result of breaching theenhanced margin limits if the gold price exceeded approximatelyUS$370 per ounce. It should be noted however that the thresholdfor a triggering of the margin limits in respect of CSFB will alsovary as a result of changes in US interest rates, gold lease rates andgold price volatility.

Once the Interim Margin Free Agreements have become effectiveand have been signed by CSFB, the Interim Margin FreeAgreements will terminate and the Existing Margin Free TradingLetter with its hedge counterparties dated October 2000 (“Existing

MFTL”) will be amended and restated to provide for margin freetrading on an ongoing basis, subject only to certain limitedtermination rights.

As part of the implementation of the Proposed Restructuring,Ashanti has mandated four banks to arrange a new US$100 millionfive year revolving credit facility (“New RCF”) for the AshantiGroup. Those banks or their affiliates have also agreed to underwritethe New RCF. The underwriting and the facility are conditional interalia on (i) Interim Margin Free Agreements being signed by all theRelevant Hedge Counterparties; (ii) execution of a facility agreementby no later than 15 June 2002; (iii) the non-occurrence of certainmaterial adverse changes; (iv) the Proposed Restructuring being completed and (v) appropriate regulatory approvals.

The Refinance Plan (containing the Proposed Restructuring,Interim Margin Free Agreements and New RCF) which Ashantisubmitted to its hedge counterparties and its lending banks underthe terms of its Existing RCF and Existing MFTL has not beenobjected to by either the hedge counterparties or the lendingbanks within the period permitted for objections.

The above restructuring, once implemented, will improveAshanti’s balance sheet (by decreasing debt and increasing equity),extend the maturity profile of Group debt and increase Ashanti’sfinancial flexibility.

Going Concern Ashanti has secured an extension of its working capital facilities,within the Existing RCF, on a voluntary basis from certain of itscurrent lending banks of US$25.4 million. The working capitalfacility is available for drawing only up to 30 December 2002.This working capital facility, if drawn, falls due for repayment on30 December 2002. The outstanding balance of the Existing RCFfalls due for repayment on 15 January 2003 and the ExistingNotes fall due for repayment on 15 March 2003. Under theExisting MFTL, Ashanti benefits from margin free trading with itshedge counterparties only until 31 December 2002 and fromincreased margin thresholds until 31 December 2004, subject ineach case, to compliance with covenants and no event of defaultbeing declared. The above matters raise substantial doubt aboutthe Group’s ability to continue as a going concern.

Ashanti is proposing to implement the Proposed Restructuring,the Interim Margin Free Agreements and the New RCF in orderto ensure the Company’s continued operational existence. Thereremain a number of conditions which need to be satisfied in orderfor the Proposed Restructuring to become effective and theInterim Margin Free Agreements and the New RCF to becomeunconditional. There can be no guarantees that these conditionswill be satisfied. Should any of the relevant conditions not besatisfied or if the Proposed Restructuring is withdrawn for anyreason, then it is possible that, unless a standstill or otheraccommodation is reached with its bank group, hedgecounterparties and in due course the holders of its Existing Notes,Ashanti might not be able to meet its debts as they fall due. If theProposed Restructuring is not successfully implemented duringthe current financial year, there will be uncertainty as to whetherthe Group will be able to continue in operational existence for atleast the next 12 months. However, taking into account theprogress which Ashanti has achieved in relation to the ProposedRestructuring, the Interim Margin Free Agreements and the NewRCF and other relevant factors, the Directors have formed thejudgement, at the time of approving these financial statements,that it is appropriate to continue to use the going concern basis inpreparing these financial statements.

20

12 months to 12 months to31 Dec 2001 31 Dec 2000

ObuasiUnderground MiningOre production (’000 tonnes) 2,507 2,348Ore grade (g/t) 7.90 7.87Surface MiningOre production (’000 tonnes) – 891Ore grade (g/t) – 4.20Waste mined (’000 tonnes) – 8,907Strip ratio – 10.0

Sulphide Treatment PlantOre processed (’000 tonnes) 2,394 2,466Head grade (g/t) 7.53 6.32Recovery (%) 83.5 82.1Gold produced (ounces) 482,982 412,824

Pompora Treatment PlantOre processed (’000 tonnes) – 787Head grade (g/t) – 8.01Recovery (%) – 82.4Gold produced (ounces) 2,470 167,725

Oxide Treatment PlantOre processed (’000 tonnes) – 245Head grade (g/t) – 2.85Recovery (%) – 74.2Gold produced (ounces) – 16,683

Tailings Treatment PlantOre processed (’000 tonnes) 1,666 1,831Head grade (g/t) 2.46 2.39Recovery (%) 32.7 31.1Gold produced (ounces) 42,999 43,756

Obuasi Total ProcessedOre processed (’000 tonnes) 4,060 5,329Head grade (g/t) 5.45 5.06Recovery (%) 74.3 73.9Gold produced (ounces) 528,451 640,988

Distribution of Obuasi Production (ounces)Underground 485,452 493,926Surface – 103,306Tailings 42,999 43,756Total 528,451 640,988

AyanfuriMiningOre production (’000 tonnes) 332 884Ore grade (g/t) 1.50 1.50Waste mined (’000 tonnes) 1,059 2,988Strip ratio 3.2 3.4

Heap LeachOre stacked (’000 tonnes) 329 1,121Head grade (g/t) 1.20 1.21Recovery (%) 90.8 83.3Gold produced (ounces) 11,517 36,316

IduapriemMiningOre production (’000 tonnes) 4,852 4,824Ore grade (g/t) 1.58 1.25Waste mined (’000 tonnes) 13,839 14,954Strip ratio 2.9 3.1

CIL PlantOre processed (’000 tonnes) 2,731 2,691Head grade (g/t) 1.92 1.58Recovery (%) 94.6 93.4Gold produced (ounces) 158,103 128,374

Gold Production Summary 2001

21

12 months to 12 months to31 Dec 2001 31 Dec 2000

Iduapriem (continued)Heap LeachOre stacked (’000 tonnes) 2,633 2,264Head grade (g/t) 0.91 0.78Recovery (%) 61.7 67.5Gold produced (ounces) 47,027 38,518Total Gold Produced (ounces) 205,130 166,892

TeberebieGold Produced (ounces) – 26,976

BibianiMiningOre production (’000 tonnes) 2,560 2,368Ore grade (g/t) 3.58 3.38Waste mined (’000 tonnes) 13,981 15,223Strip ratio 5.5 6.4

CIL PlantOre processed (’000 tonnes) 2,769 2,761Head grade (g/t) 3.46 3.70Recovery (%) 83.7 86.7Gold produced (ounces) 253,052 273,711

SiguiriMiningOre production (’000 tonnes) 8,517 10,804Ore grade (g/t) 1.34 1.33Waste mined (’000 tonnes) 5,268 5,333Strip ratio 0.6 0.5

Heap LeachOre stacked (’000 tonnes) 9,064 8,878Head grade (g/t) 1.33 1.34Recovery (%) 73.1 79.3Gold produced (ounces) 283,199 303,381

Freda-RebeccaUnderground MiningOre production (’000 tonnes) 1,156 1,042Ore grade (g/t) 3.56 3.69

Surface MiningOre processed (’000 tonnes) 56 –Ore grade (g/t) 2.10 –

ProcessingOre processed (’000 tonnes) 1,121 1,003Head grade (g/t) 3.30 3.89Recovery (%) 86.4 89.8Gold produced (ounces) 102,654 112,164

GeitaMiningOre production (’000 tonnes) 4,522 1,240Ore grade (g/t) 3.80 3.00Waste mined (’000 tonnes) 27,215 11,852Strip ratio 6.0 9.6

CIL PlantOre processed (’000 tonnes) 4,582 2,075Head grade (g/t) 3.91 2.94Recovery (%) 93.0 92.0Gold produced (ounces) 545,562 176,836Ashanti’s share (ounces) 272,781 176,836

Group Summary (ounces)Managed gold production 1,384,003 1,737,264Geita JV 50% (ounces) 272,781 –Total gold production 1,656,784 1,737,264Less minority interests 73,249 81,584

Total Attributable (ounces) 1,583,535 1,655,680

Gold Production Summary 2001

Measured and Indicated Mineral Resources as at 31 December 2001

Measured Indicated TotalTonnes Grade Tonnes Grade Tonnes Grade

Location (million) (g/t) (million) (g/t) (million) (g/t)

ObuasiUnderground 22.5 11.2 34.8 9.5 57.3 10.1Surface 17.8 3.0 1.6 2.8 19.4 3.0Tailings 15.1 2.0 5.3 2.2 20.4 2.1

Sub Total 55.4 6.1 41.8 8.3 97.2 7.0

Other LocationsIduapriem (80%)/Teberebie (90%) 58.8 1.6 37.6 1.6 96.4 1.6Bibiani surface 1.4 1.9 6.8 3.2 8.2 3.0Bibiani tailings 4.4 1.1 0.4 0.9 4.8 1.1Siguiri (85%) 28.7 1.1 56.1 1.2 84.8 1.1Freda-Rebecca 12.3 2.5 2.8 2.8 15.1 2.5Geita (50%) 43.3 3.7 45.0 4.1 88.4 3.9Youga (45%) – – 7.4 3.0 7.4 3.0

Sub Total 148.9 2.2 156.1 2.3 305.0 2.3

Total 204.3 3.2 197.9 3.6 402.2 3.4

2000 Total 184.3 3.4 204.0 3.6 388.3 3.5

Proved and Probable Ore Reserves as at 31 December 2001

Proven Probable TotalTonnes Grade Tonnes Grade Tonnes Grade

Location (million) (g/t) (million) (g/t) (million) (g/t)

ObuasiUnderground 5.0 7.9 37.3 8.0 42.3 8.0Surface 1.3 5.2 – – 1.3 5.2Tailings 15.1 2.0 5.3 2.2 20.4 2.1

Sub Total 21.4 3.6 42.6 7.3 64.0 6.0

Other LocationsIduapriem (80%)/Teberebie (90%) 31.4 1.7 7.2 1.7 38.6 1.7Bibiani surface 1.4 1.9 6.1 3.2 7.5 3.0Bibiani tailings 4.4 1.1 0.4 1.0 4.8 1.1Siguiri (85%) 20.9 1.1 35.8 1.2 56.7 1.2Freda-Rebecca 4.3 2.5 1.1 2.4 5.4 2.5Geita (50%) 37.7 3.4 25.0 4.5 62.7 3.8Youga (45%) – – 5.0 3.2 5.0 3.2

Sub Total 100.0 2.2 80.5 2.5 180.5 2.4

Total 121.4 2.5 123.2 4.2 244.6 3.3

2000 Total 107.5 2.6 128.3 4.0 235.8 3.3

EquityOunces (million)

10.90.21.3

12.4

1.70.70.21.80.43.90.2

8.9

21.3

20.4

GoldOunces

(million)

10.90.21.3

12.4

2.10.70.22.10.47.70.5

13.7

26.1

25.3

EquityOunces (million)

18.71.91.4

21.9

4.00.80.22.61.25.50.3

14.7

36.6

35.6

GoldOunces

(million)

18.71.91.4

21.9

5.00.80.23.11.2

11.10.7

22.1

44.0

43.3

Ore Reserves and Mineral Resources22

Notes on the Ore Reserves and Mineral Resources Statement

1. This ore reserve and mineral resource statement is classified according to the Australasian Code for the Reporting ofIdentified Mineral Resources and Ore Reserves issued by the Joint Committee for the Australasian Institute of Geoscientistsand the Australian Mining Industry Council (JORC).

2. All Identified Mineral Resources are reported as in situ or contained resources utilising JORC guidelines and are inclusiveof the stated Ore Reserve.

Ore Reserves and Mineral Resources 23

3. The Proved and Probable Ore Reserves contained withinthe Identified Mineral Resources have been estimated usingguidelines of the JORC code and are reported asrecoverable ore reserves to which appropriate factors havebeen applied to allow for mining loss and dilution.

4. For economic studies and the determination of cut-offgrades, a gold price of US$300 (2000: US$300) per ouncewas assumed.

5. The Ore Reserves and Identified Mineral Resourcesreported represent 100 per cent of the Ore Reserves andMineral Resources at the respective properties and noallowance has been made for minority interests or JointVenture interests. Ashanti’s percentage interest is shownin brackets for properties where Ashanti has less than 100per cent ownership and the corresponding entity ouncesare disclosed accordingly.

6. Inferred identified mineral resources are not reported in thestatement.

7. The competent persons who have overseen the estimationof the Ore Reserves and Identified Mineral Resources arelisted as follows:

Mine Resources Reserves

Obuasi J Amanor J ChamberlandIduapriem K Osei S NdedeBibiani C de Vente J SeawardSiguiri A Pardey A PardeyFreda-Rebecca J Chinyaukira V UteteGeita R Adofo/J Hill J YellandYouga D Bansah T Obiri-Yeboah

8. At a gold price of US$275 per ounce, it is estimated that theore reserves will decrease by approximately 5 per cent.

9. Data may not compute exactly due to rounding.

Reconciliation for the year ending 31 December 2001

Measured and Indicated Mineral Resources Proved and Probable Ore Reserves(Ounces million) (Ounces million)

Net NetOpening (Depletion)/ Closing Opening (Depletion)/ Closing

Location 31 Dec 2000 Additions 31 Dec 2001 31 Dec 2000 Additions 31 Dec 2001

Obuasi 20.0 1.9 21.9 11.1 1.3 12.4Ayanfuri 0.1 (0.1) – – – –Iduapriem (80%) 5.1 (0.1) 5.0 2.2 (0.1) 2.1Bibiani 1.1 (0.1) 1.0 1.0 (0.1) 0.9Siguiri (85%) 3.3 (0.2) 3.1 2.3 (0.2) 2.1Freda-Rebecca 1.3 (0.1) 1.2 0.4 – 0.4Geita (50%) 11.7 (0.6) 11.1 7.8 (0.1) 7.7Youga (45%) 0.7 – 0.7 0.5 – 0.5

Total 43.3 0.7 44.0 25.3 0.8 26.1

24 Glossary of Terms

adit A tunnel driven horizontally into a mountainside providing access to anore deposit.

BIOX® Gencor’s registered name for its bio-oxidation leaching process.

bio-oxidation The use of bacterial activity to oxidise sulphide minerals.

carbon-in-leach (CIL) process A modification of CIP whereby carbon is addeddirectly into the slurry during leaching as opposed to CIP where carbon is addedafter leaching is complete.

carbon-in-pulp (CIP) process A process used to recover dissolved gold froma cyanide leach slurry. Coarse activated carbon particles are moved counter-current to the slurry, absorbing the gold as it passes through the circuit. Loadedcarbon is removed from the slurry by screening. The gold is recovered from theloaded carbon by stripping in a caustic cyanide solution followed by electrolysisor by zinc precipitation.

cash operating cost A measure of the average cost of producing an ounce ofgold, calculated by dividing the total cash operating costs in a period by the totalgold production over the same period.

contained ounces Represents ounces in the ground without reduction due tomining loss or dilution.

cyanide leaching The extraction of a precious metal from an ore by itsdissolution in a cyanide solution.

decline An inclined underground access way.

diamond drilling or core drilling A drilling method, where the rock is cut witha diamond bit, usually to extract cores.

dilution Waste which is commingled with ore in the mining process.

feasibility study A detailed technical and economic analysis of the viability of aproject covering all aspects from geology, environmental and legal matters tomining, processing and operations.

flotation A recovery process by which valuable minerals are separated fromwaste to produce a concentrate. Selected minerals are induced to becomeattached to air bubbles and to float.

forward sales The sale of a commodity for delivery at a specified future dateand price, usually at a premium to the spot price.

geochemical sampling Samples of soils, stream sediments or rock chips taken toensure the quantities of trace and minor elements.

grade The relative quality or percentage of ore metal content.

heap leaching A low-cost technique for extracting metals from ore bypercolating leaching solutions through heaps of ore placed on impervious pads.Generally used on low-grade ores.

indicated mineral resource That part of a Mineral Resource which has beenexplored, sampled and tested through appropriate techniques at locations whichare too widely or inappropriately spaced to confirm geological and/or gradecontinuity but which are spaced closely enough for continuity to be assumed,and from which data have been collected to allow tonnage, densities, shape,physical characteristics, grade and mineral content to be estimated with areasonable level of confidence.

inferred mineral resource That part of a Mineral Resource inferred fromgeological evidence and assumed but not verified geological and/or gradecontinuity, where information gathered through appropriate techniques fromlocations such as outcrops, trenches, pits, workings and drill holes is limited orof uncertain quality and reliability and on the basis of which tonnage, grade andmineral content can be estimated with a low level of confidence.

measured mineral resource That part of a Mineral Resource which has beenexplored, sampled and tested through appropriate techniques at locations suchas outcrops, trenches, pits, workings and drill holes which are spaced closelyenough to confirm geological and/or grade continuity, and from which detailedreliable data have been collected to allow tonnage, densities, shape, physicalcharacteristics, grade and mineral content to be estimated with a high level ofconfidence.

milling/mill The comminution of the ore, although the term has come to coverthe broad range of machinery inside the treatment plant where the gold isseparated from the ore.

mineralised zone Any mass of host rock in which minerals, at least one ofwhich has commercial value occur.

mtpa Million tonnes per annum.

ore Material that contains one or more minerals, at least one of which hascommercial value and which can be recovered at a profit.

open pit/open cut Surface mining in which the ore is extracted from a pit.The geometry of the pit may vary with the characteristics of the orebody.

orebody A continuous well defined mass of material of sufficient ore content tomake extraction economically feasible.

oxide That portion of a mineral deposit within which sulphide minerals havebeen oxidised, usually by surface weathering processes.

pre-stripping Removal of overburden in advance of beginning operations toremove ore in an open pit operation.

probable ore reserve That mineable part of a Measured and/or IndicatedMineral Resource, inclusive of diluting materials and allowing for losses whichmay occur when the material is mined, on which appropriate assessments havebeen carried out, including consideration of and modification by realisticallyassumed mining, metallurgical, economic, marketing, legal, environmental,social and governmental factors, to demonstrate at the time of reporting thatextraction could reasonably be justified.

prospect A mineral deposit with insufficient data available on themineralisation to determine if it is economically recoverable, but warrantingfurther investigation.

prospecting licence An area for which permission to explore has been granted.

proved ore reserve That mineable part of a Measured Mineral Resource,inclusive of diluting materials and allowing for losses which may occur when thematerial is mined, on which appropriate assessments have been carried out,including consideration of and modification by realistically assumed mining,metallurgical, economic, marketing, legal, environmental, social andgovernmental factors, to demonstrate at the time of reporting that extractioncould reasonably be justified.

reclamation The process by which lands disturbed as a result of mining activityare reclaimed back to a beneficial land use.

recoverable ounces Represents ounces in the ground factored for mining lossand dilution.

recovery A term used to indicate the proportion of valuable material obtainedduring the mining or processing of an ore. The recovery is generally expressedas a percentage of the material recovered compared to the total material present.

reverse circulation drilling A drilling method employing double walled drillrods. The drilling fluid (usually air or water) is pushed down the annulusbetween the rods. The cuttings are blown up the middle.

spot price The current price of a metal for immediate delivery.

stope The underground excavation from which ore is extracted.

strike length Horizontal distance along the direction that a structural surfacetakes as it intersects the horizontal.

stripping The process of removing overburden to expose ore.

strip ratio The ratio of overburden and segregable waste to ore in an open pitoperation.

sulphide A mineral characterised by the linkages of sulphur with a metal orsemi-metal, iron sulphide. Also a zone in which sulphide minerals occur.

tailings The waste material from ore after the economically recoverable metals orminerals have been extracted. Changes in the metal prices and improvements intechnology can sometimes make the tailings economic to reprocess at a later date.

trenching Making elongated open-air excavations for the purposes of mappingand sampling.

waste Rock lacking sufficient grade and/or other characteristics of ore to beeconomic.

Metric Conversion

1 tonne = 1 t = 1.10231 tons1 gramme = 1 g = 0.03215 ounces1 gramme per tonne = 1 g/t = 0.02917 ounces per ton1 hectare = 1 ha = 2.47105 acres1 kilometre = 1 km = 0.621371 miles1 metre = 1 m = 3.28084 feet

All tons are short tons of 2,000 pounds.All ounces are troy ounces: 29.166 troy ounces equal one ton.

Contents of Financial Statements and Corporate Information

Board of Directors 26Report of the Directors 27Corporate Governance 29Directors’ Responsibilities 31Independent Auditors’ Report 31Group Profit and Loss Account 32Group Balance Sheet 33Group Cash Flow Statement 34Reconciliation of Movements in

Group Shareholders’ Funds 35Company Balance Sheet 36Notes to the Financial Statements 37Hedging Appendix 54Five Year Financial Summary 58Shareholder Information 59Officers 61Notice of Annual General Meeting 62Forward Looking Statements 64Corporate Information 65

25

Board of Directors

Michael Ernest Beckett* (1,2)Chairman of the Board and Chairman of the Audit andFinance Committee.Age 65. British. Appointed a director in March 1994. Chairmanof Clarkson Plc and Watts Blake Bearne Limited. Director of otherpublic companies.

Theophilus Ernest Anin* (1,2,3)Age 69. Ghanaian. Joined the Board on 27 July 2001. Aprofessional banker and solicitor with over 30 years’ experience in banking, financial management, and consulting in the publicand private sectors. A director of the Bank of Ghana.

Merene Mamaa Botsio-Phillips (5)General CounselAge 44. Ghanaian. Appointed in October 1996. Director of The Air Transport Licensing Authority of Ghana. Formerly adirector and Company Secretary of Ghana Airways Limited.

The Rt. Hon. The Baroness Chalker of Wallasey PC* (3)Chairman of the Corporate Governance Committee.Age 60. British. She was appointed to the Board in March 2000.Advisory Director of Unilever Plc and N.V. Non-ExecutiveDirector and President of South African Business Initiative,President and Chairman of the Boards of Management of theBritish Executive Service Overseas and the London School ofHygiene and Tropical Medicine. Director of other public companies.

Dr Chester Arthur Crocker* (1,2,3)Chairman of the Management Development and RemunerationCommittee.Age 61. American. Appointed in February 2000. Professor ofStrategic Studies at Georgetown University’s School of ForeignService. Chairman of the Board of United States Institute of Peaceand an advisor on strategy and negotiations to a number of USand European Companies. Former US Assistant Secretary of Statefor African Affairs.

Thomas Richard Gibian* (1,2)Age 48. American. Mr Gibian is a non-Executive Director andManaging Director of Emerging Markets Partnership and ChiefOperating Officer of AIG, African Infrastructure Fund. He is alsoa director of Interwave. He was appointed to the Board inMarch 2000.

Gordon Edward HaslamAge 57. British. Appointed to the Board in March 2002. Directorand Chief Executive of Lonmin Plc. Director of other publiccompanies.

Sam Esson Jonah (4) Chief Executive and Group Managing Director; Chairman of theRisk Management Committee. Age 52. Ghanaian. Appointed in May 1982. Director of LonminPlc, Commonwealth Africa Investment Fund Limited and EcobankTransnational Incorporated. Chairman of Ghana Airways Limited,Chancellor of the University of Cape Coast, Ghana. Member ofthe UN Global Compact on Governance. Member of the AdvisoryCommittee, Termite Fund which focuses on the mining and energyindustries in Africa in seeking investor interest. Member of theInternational Investment Advisory Council of the President ofSouth Africa.

Dr Michael Peter Martineau* (2)Age 57. British. Appointed in February 2000. Director, Presidentand Chief Executive Officer of Carpathian Gold Limited and adirector of Adryx Mining & Metals Limited. Former director ofseveral mining and exploration companies in Africa, Australia,United Kingdom and USA including Cluff Resources Plc andSAMAX Resources Limited.

Nicholas Jeremy Morrell* (2)Age 54. British. Appointed to the Board in February 1997. FormerDirector and Chief Executive of Lonmin Plc.

Eleanor Darkwa Ofori AttaExecutive Director, Corporate RelationsAge 58. Ghanaian. Appointed in March 1994. She is responsiblefor corporate services including human resources.

Trevor Stanley Schultz (4)Chief Operating OfficerAge 60. American/Australian. Appointed in October 1996. Director of Diamond Fields International Limited. Formerly Vice President of BHP Minerals International responsible forResources Development.

Srinivasan Venkatakrishnan (Venkat) (4)Chief Financial OfficerAge 36. British. He joined the Board in July 2000 from Deloitte &Touche where he was a Director in the Reorganisation Services Division.

* Non-executive

(1) Audit and Finance Committee Member(2) Management Development and Remuneration Committee Member(3) Corporate Governance Committee Member(4) Risk Management Committee Member(5) Substitute director to E D Ofori Atta

Board CommitteesAudit and Finance CommitteeThe Audit and Finance Commitee reviews and reports to theBoard on the compliance, integrity and major judgemental aspectsof the Group’s published financial statements, the scope andquality of the internal and external audit and the adequacy of theGroup’s internal controls.

Management Development and Remuneration CommitteeThe Management Development and Remuneration Committee isresponsible for the appointment of directors, determination of thelevel and structure of executive directors’ remumeration, and thereview of their performance and service agreements. It then makesrecommendations to the Board on these matters in accordancewith its terms of reference and reviews and approves successionprogrammes with respect to top management.

Corporate Governance CommitteeThe Corporate Governance Committee is responsible for themonitoring of the general conduct of directors in line with bestpractice and screens individuals proposed for appointment to theBoard. It is also responsible for the non-financial aspects of theGroup’s safety, health and environmental issues and makesrecommendations, as appropriate, to the Board.

Risk Management CommitteeThe Risk Management Committee reviews and monitorsexecution of risk management policies of the Group withparticular focus on financial risks, including hedging, and wherenecessary make recommendations to the Board.

26

The directors present their report and the audited financialstatements for the year ended 31 December 2001.

Principal ActivitiesThe principal activities of the Group are the exploration,development and mining of gold. The progress of the businessduring the year and likely future developments are reported in theChairman’s Statement, the Chief Executive’s Review, OperationsReview and the Financial Review.

Results and DividendsThe results for the year are set out on page 32. The Board does notrecommend paying a dividend for the year ended 31 December 2001(2000: nil).

DirectorsDetails of the directors of the Company as at the date of this report are given on page 26. All the directors shown servedthroughout the year, with the exception of Mr T E Anin who wasappointed on 27 July 2001 and Mr G E Haslam who was appointedon 8 March 2002. Each of them will retire in accordance with theCompany’s Regulations and being eligible, offer themselves forelection at the Annual General Meeting.

During the year, Dr K Duffuor, Mr A Ashiabor and Dr D R Creedresigned as directors on 23 July, 31 July and 31 August 2001respectively. Mr John Neil Robinson also resigned as a director on8 March 2002.

The directors retiring by rotation at the Annual General Meeting areThe Rt. Hon. The Baroness Chalker of Wallasey PC, Dr C A Crocker,Mr T R Gibian and Dr M P Martineau, who being eligible offerthemselves for re-election.

Directors’ InterestsThe interests of the directors holding office at the end of the year inthe ordinary shares of the Company are shown in note 22 to thefinancial statements.

None of the directors had any interests in the shares of any of theCompany’s subsidiaries at any time during the year. None of thedirectors had a material interest in any contract of significance withthe Group during the year, other than Mr S E Jonah, who had aninterest in a Technical Services Agreement dated 14 March 1994between the Company and Lonmin Plc. Under this agreement,Lonmin Plc has agreed to provide, to Ashanti, technical services andthe services of Mr S E Jonah. As remuneration for such services, theCompany paid Lonmin Plc a total of US$0.7 million during the year(2000: US$1.8 million).

Employee Relations and Employment PoliciesAshanti values its employees and attaches high importance toemployee relations and welfare. To ensure employee commitment itmaintains regular communication and consultation throughpersonal contact and the Company’s internal communicationsystems. The Company’s quarterly and annual reports aredisseminated to employees.

Workers and staff are represented on Divisional Boards, the highestdecision making bodies at the operating level. The Companypractices an open door policy across the Group, which allowsworkers to discuss issues of concern to them.

Ashanti does not discriminate on the basis of race, colour, religion, sexor disability and is committed to providing equal opportunities, safeand clean working conditions and attractive remuneration to staff.

Policies on employment are developed and reviewed to suit prevailingconditions and the Group has comprehensive policy guidelines onHIV/AIDS awareness, prevention and control programmes.

The Company recognises teamwork and endeavours to attract andretain the best talents by rewarding superior performance andproviding them with opportunities to develop their skills and applytheir creativity.

Employee Incentive SchemesSince flotation in 1994, the Company has operated the AGC SeniorManagement Share Option Scheme (the “Option Scheme”) and the1994 Employee Share Scheme (the “Employee Share Scheme”). On25 April 2001, the Option Scheme and the Employee Share Schemewere re-adopted at the Annual General Meeting (each withmodifications). The Company also operates the Bonus Co-Investment Scheme that was introduced in 1999. Notes 21 and 22to the accounts on pages 48 to 51 detail the employee share schemesand other schemes currently in place.

Share CapitalDetails of the changes in the share capital during the year, includingtreasury shares, are shown in note 21 to the financial statements.

As has been our annual practice, the directors are seeking renewal,at the Annual General Meeting, of the authority to allot shares forcash with a disapplication of pre-emption rights. The directors haveno present intention of exercising the authority to allot additionalshares. Similarly, authority for the Company to purchase its ownshares, as and if appropriate, is being sought.

DonationsCharitable donations for the year amounted to US$0.2 million. Nodonations were made for political purposes.

Substantial ShareholdersDetails of the Company’s 20 largest shareholders are shown onpage 59.

Proposed Restructuring, Margin Free Arrangements and New Revolving Credit FacilityOn 25 January 2002, Ashanti announced that it had agreed termsin principle with an Ad Hoc Committee (“Ad Hoc Committee”) ofthe holders of 51/2% Exchangeable Guaranteed Notes due15 March 2003 (“Existing Notes”) representing approximately62% of the outstanding principal of US$218.6 million to aProposed Restructuring (“Proposed Restructuring”) of the ExistingNotes. The principal terms of the proposed restructuring are:

■ Equitisation of US$54,642,750 of the Existing Notes(representing 25% of the Existing Notes) by the issue of ordinary shares in Ashanti (“Ashanti Shares”) at US$3.70 perAshanti Share.

■ Exchange of US$163,928,250 of the Existing Notes(representing 75% of the Existing Notes) for US$163,928,250of 7.95% Exchangeable Guaranteed Notes due 30 June 2008(“New Exchangeable Notes”).

■ The New Exchangeable Notes will be exchangeable by theholders into Ashanti Shares at any time at an exchange price ofUS$5.75.

■ The New Exchangeable Notes will be mandatorily redeemableby Ashanti in semi-annual instalments of US$12 millioncommencing on 31 December 2003 to the extent not alreadyexchanged. The balance of any New Exchangeable Notes notexercised or redeemed will be repayable in full on 30 June 2008.Ashanti also has the option on each semi-annual redemptiondate to redeem an additional US$12 million of NewExchangeable Notes.

■ Ashanti will, upon completion of the Proposed Restructuring,pay to the then holders of the Existing Notes an exchange fee of2% of the face value of the then outstanding Existing Notes. Inaggregate, this payment will amount to approximately US$4.37million.

The Proposed Restructuring, which is intended to be implemented byway of a scheme of arrangement to be sanctioned by the Grand Courtof Cayman Islands, is subject to the satisfaction of a number ofconditions including: the preparation and despatch of formaldocumentation; listing of the new securities to be issued on the relevantstock exchanges; the approval of the requisite majorities of the holdersof the Existing Notes, Ashanti’s shareholders, and its hedgecounterparties; and the approval of its lending banks or repayment of

Report of the Directors 27

Report of the Directors

the Existing RCF. The members of the Ad Hoc Committee haveundertaken to vote in favour of the scheme of arrangement toimplement the Proposed Restructuring, subject to Ashanti complyingwith certain obligations and satisfying certain conditions within certaintime limits. In particular, the formal documentation to implement theProposed Restructuring must be posted by 31 May 2002 and therelevant scheme meetings held by no later than 31 August 2002.

A pre-condition to the Ad Hoc Committee being bound by a writtenundertaking to vote in favour of the Proposed Restructuring wasAshanti entering into appropriate ongoing margin free arrangementswith its hedge counterparties, other than Credit Suisse First BostonInternational (“CSFB”). Interim margin free agreements (“InterimMargin Free Agreements”) have now been signed by all of Ashanti’sactive hedge counterparties other than CSFB (the “Relevant HedgeCounterparties”). However, one of the Interim Margin FreeAgreements (signed by a Relevant Hedge Counterparty, which hasagreed to novate half of its hedge book to Standard Bank LondonLimited conditionally only upon the Interim Margin Free Agreementsbecoming effective prior to 15 March 2003), is being held by Ashanti’slawyers subject to an escrow agreement. This Interim Margin FreeAgreement will be released from escrow to Ashanti on Ashanticertifying, prior to 15 March 2003, that it believes (acting in goodfaith) that, should the relevant Interim Margin Free Agreement bereleased from escrow, all the conditions to the Interim Margin FreeAgreements will become effective unless, prior to that date, Ashantihas been notified that there has been an event of default resulting in anearly termination event under the ISDA Master Agreement betweensuch counterparty and Standard Bank London Limited.

All of the Interim Margin Free Agreements are now conditionalupon satisfaction of the following conditions (the “Conditions”)prior to 15 March 2003:

■ the Proposed Restructuring (or such other restructuring as isapproved by an appropriate majority of hedge counterparties)being completed;

■ release from escrow to Ashanti of the Interim Margin FreeAgreement currently held in escrow; and

■ Ashanti having available to it loan facilities in an amount of notless than US$25 million available for drawing for workingcapital purposes for a period of not less than 15 months fromthe date of posting of the documentation to shareholders inrelation to the Proposed Restructuring.

If the Conditions are satisfied at a stage when CSFB has not signed theInterim Margin Free Agreement then, subject to Ashanti complyingwith certain covenants and no events of default being declared, Ashantiwill benefit in the period after 31 December 2002 from ongoingmargin free trading arrangements unless CSFB is entitled to, andactually does, call for margin. Based on CSFB’s current hedgebookwith Ashanti and current market conditions, Ashanti believes thatCSFB would only be entitled to call for margin after 31 December2002 as a result of breaching the enhanced margin limits if the goldprice exceeded approximately US$370 per ounce. It should be notedhowever that the threshold for a triggering of the margin limits inrespect of CSFB will also vary as a result of changes in US interest rates,gold lease rates and gold price volatility.

Once the Interim Margin Free Agreements have become effectiveand have been signed by CSFB, the Interim Margin Free Agreementswill terminate and the Existing Margin Free Trading Letter with itshedge counter parties dated October 2000 (“Existing MFTL”) willbe amended and restated to provide for margin free trading on anongoing basis, subject only to certain limited termination rights.

As part of the implementation of the Proposed Restructuring, Ashantihas mandated four banks to arrange a new US$100 million five yearrevolving credit facility (“New RCF”) for the Ashanti Group. Thosebanks or their affiliates have also agreed to underwrite the New RCF.The underwriting and the facility are conditional inter alia on (i)Interim Margin Free Agreements being signed by all the RelevantHedge Counterparties; (ii) execution of a facility agreement by nolater than 15 June 2002; (iii) on the non-occurrence of certainmaterial adverse changes; (iv) the Proposed Restructuring beingcompleted and (v) appropriate regulatory approvals.

The Refinance Plan (containing the Proposed Restructuring, InterimMargin Free Agreements and New RCF) which Ashanti submitted

to its hedge counterparties and its lending banks under the terms ofits Existing RCF and Existing MFTL has not been objected to byeither the hedge counterparties or the lending banks within theperiod permitted for objections.

The above restructuring, once implemented, will improve Ashanti’sbalance sheet (by decreasing debt and increasing equity), extend thematurity profile of Group debt and increase Ashanti’s financialflexibility.

Going Concern Ashanti has secured an extension of its working capital facilities,within the Existing RCF, on a voluntary basis from certain of itscurrent lending banks of US$25.4 million. This working capitalfacility is available for drawing only up to 30 December 2002. Thisworking capital facility, if drawn, falls due for repayment on30 December 2002. The outstanding balance of the Existing RCF fallsdue for repayment on 15 January 2003 and the Existing Notes falldue for repayment on 15 March 2003. Under the Existing MFTL,Ashanti benefits from margin free trading with its hedgecounterparties only until 31 December 2002 and from increasedmargin thresholds until 31 December 2004, subject in each case, tocompliance with covenants and no event of default being declared.The above matters raise substantial doubt about the Group’s abilityto continue as a going concern.

Ashanti is proposing to implement the Proposed Restructuring, theInterim Margin Free Agreements and the New RCF in order toensure the Company’s continued operational existence. There remaina number of conditions which need to be satisfied in order for theProposed Restructuring to become effective and the Interim MarginFree Agreements and the New RCF to become unconditional. Therecan be no guarantees that these conditions will be satisfied. Shouldany of the relevant conditions not be satisfied or if the ProposedRestructuring is withdrawn for any reason, then it is possible that,unless a standstill or other accommodation is reached with its bankgroup, hedge counterparties and in due course the holders of itsExisting Notes, Ashanti might not be able to meet its debts as theyfall due. If the Proposed Restructuring is not successfullyimplemented during the current financial year, there will beuncertainty as to whether the Group will be able to continue inoperational existence for at least the next 12 months. However,taking into account the progress which Ashanti has achieved inrelation to the Proposed Restructuring, the Interim Margin FreeAgreements and the New RCF and other relevant factors, theDirectors have formed the judgement, at the time of approving thesefinancial statements that it is appropriate to continue to use the goingconcern basis in preparing these financial statements.

AuditorsDeloitte & Touche have agreed to continue as the Company’sauditors. A resolution to authorise the Board to determine theirremuneration will be proposed at the Annual General Meeting.

Annual General MeetingThe Annual General Meeting of the Company will be held at theLen Clay Stadium, Obuasi, Ghana on Tuesday 28 May 2002 at11.00 a.m. Full details are given in the Notice of Meeting onpage 62 .

Corporate GovernanceA statement on corporate governance under the Combined Code onCorporate Governance is set out at page 29.

The Company has also joined the Global Compact of the UnitedNations Organisation (UNO), initiated by the UNO which isseeking wide participation from a diverse group of business andother organisations to promote and uphold core values in the areasof human rights, labour standards and environmental practices. Fulldetails of the principles are set out on page 30.

By order of the Board

M E Beckett Sam E JonahChairman Chief Executive and

Group Managing Director28 March 2002

28

Corporate Governance

The Combined Code (the “Combined Code”) detailing thePrinciples of Good Corporate Governance and Code of BestPractice was published in June 1998.

Statement of Compliance with the provisions of the CombinedCodeAll companies listed on the London Stock Exchange, otherthan overseas companies such as Ashanti, are required toreport on their compliance with the Combined Code whichforms part of the Listing Rules of the Financial ServicesAuthority. Notwithstanding this dispensation, the Boardreports that the Company, in applying the principles of goodgovernance, has complied throughout the year with theprovisions of Sections 1 and 2 of the Combined Code, exceptfor paragraphs A.2.1, A.3.2, A.6.2 and B.1.6, B.1.7, B.3.1,B3.2, B3.3 and B.3.5 where the requirements differ fromgeneral practice in Ghana.

Statement of Appliance of the Principles of the Combined CodeThe Board of directors, which currently comprises fiveexecutive and eight non-executive directors, meets formally atleast five times a year.

There is a clear separation between the roles of the Chairmanand the Chief Executive. The Chairman is responsible for theeffectiveness of the Board, the balance of membership and forensuring that all directors’ views are heard. The ChiefExecutive is responsible for the day-to-day operation of thebusiness and for developing future strategies. In this, he isassisted by his fellow executive directors and the other seniormanagers who, together, form the Chief Executive’sCommittee as detailed on page 61.

Biographical details of the Board of directors and a briefdescription of the roles and functions of the principal boardcommittees are given on page 26. The Board’s primary role is to determine the Group’s long-term direction and strategyand to monitor the management of the business to ensure thatagreed performance targets are achieved. The Board is guidedby matters that it has specifically reserved for its decision.These include major acquisitions and disposals, the approval of financial statements, authority levels forexpenditure, succession plans, and key staff incentivisation.The Board pays particular attention to key areas of riskincluding safety, health and environment.

The strong representation of non-executive directors on theBoard, who are drawn from a wide variety of independentbackgrounds, brings a broad diversity of experience to thebusiness.

Board practices and CommitteesCertain aspects of the Board’s role are carried out throughcommittees, namely Audit & Finance Committee, Management

Development & Remuneration Committee, CorporateGovernance Committee and Risk Management Committee.Each of the committees meets formally at least four times ayear. The respective charter of these committees is outlined atpage 26.

Relations with ShareholdersFollowing announcements of quarterly and annual results,tele-conference calls are organised which are open to themarket, including shareholders providing them a forum forquestions. In addition, meetings are held with institutionalshareholders, fund managers, brokers and analysts, which alsoinclude visits to the Company’s operations.

Shareholders’ interests and the Group’s assets are safeguardedby a system of internal control overseen by the Audit &Finance Committee.

Internal ControlThe directors continued throughout the year with an ongoingprocess of identifying, evaluating and managing the significantrisks faced by the Group progressively throughout the year.This process is regularly reviewed by the Board and accordswith the Turnbull guidance on internal control.

Information on the Group’s significant risks, together with therelevant control and monitoring procedures, is reviewed forcompleteness and accuracy by the Group’s managementcommittees. The information is presented to the Board ofdirectors to assess the effectiveness of the system on internalcontrol. In addition, the committees of the Board monitor theGroup’s significant risks on an ongoing basis.

Assurance functions, including internal auditors, health andsafety auditors and environmental auditors, perform reviews ofcontrol activities and provide regular written and oral reportsto the Board, Audit & Finance, Risk Management andCorporate Governance committees. The managing directors ofbusiness units complete an internal control report which seeksto confirm that internal controls are operating effectively at theoperational level. The results of this process are reviewed bythe Group Risk Management Committee and are thenpresented to the Board as a further part of the Group’s internalcontrols. The whole risk management process, including theprogress on embedding, is reviewed and strengthened asappropriate in order to assist the need for continuousimprovement.

The Board is responsible for the effectiveness of the Group’ssystem of internal control and for the review of itseffectiveness. Such a system is designed to manage rather thanto eliminate the risk of failure to achieve the Group’sobjectives and can only provide reasonable but not absoluteassurance against misstatement or loss.

29

Corporate Governance

The controls and procedures include:

Organisational StructureThe Group operates through a clearly defined organisationalstructure. The Board of directors, which meets regularly, isresponsible for overall strategy, while the Chief Executive andGroup Managing Director, assisted by the Chief Executive’sCommittee, has day to day operational responsibility. TheBoard is also responsible for monitoring the Group’sperformance which is measured against approved budgets andprior year performance.

Financial ReportingBudgets are prepared annually for financial performance,operating costs and capital expenditure. Financial informationis produced monthly and monitored against budgets. Variancesare considered by the relevant management and appropriateaction taken. Financial information is reviewed in relation tocomprehensive information regarding production, primarilyquantities and grades. Unaudited Accounts are published everyquarter together with a report on production performance.

Approval ProceduresSystems are in place to ensure that transactions in respect ofmajor areas of risk are subject to approval procedures. Theseinclude approval of the Group budget by the Board, approvalof significant expenditure at the mines by the respectivedivisional Boards and approval of the Hedge Policy by theBoard, upon recommendation from the Risk ManagementCommittee.

Controls over Hedging TransactionsThe Group has a Board approved hedge policy. The Groupcarries out its hedging activities in accordance with theguidelines stated in the policy, which are overseen by the RiskManagement Committee.

Monitoring of ControlsAn internal audit function monitors the control procedures ofthe Group. The Audit & Finance Committee, comprising thenon-executive directors, monitors the adequacy of the Group’ssystems of internal financial control.

Global CompactAshanti has joined the Global Compact which was initiatedand sponsored by the UN. Ashanti fully embraces the nineprinciples on governance promulgated by the Global Compact which are:

1. to support and respect the protection of internationalhuman rights within their sphere of influence;

2. to make sure our company is not complicit in human rightsabuses;

3. to uphold freedom of association and the effectiverecognition of the right to collective bargaining;

4. to uphold the elimination of all forms of forced andcompulsory labour;

5. to uphold the effective abolition of child labour; 6. to uphold the elimination of discrimination in respect of

employment and occupation;7. to support a precautionary approach to environmental

challenges;8. to undertake initiatives to promote greater environmental

responsibility; and9. to encourage the development and diffusion of

environmentally friendly technologies.

Ashanti is the first company in Ghana to join the GlobalCompact and plans to take a leading role in progressing withthe advancement of the principles in Ghana by workingclosely with the local office of the United NationsDevelopment Programme.

30

Directors’ Responsibilities/Independent Auditors’ Report

Directors’ ResponsibilitiesThe Ghana Companies Code, 1963 (Act 179) (“the CompaniesCode”) requires that for each financial period the directorsmust prepare financial statements which give a true and fairview of the state of affairs of the Company and the Group as at the end of the financial year and of the profit or loss of the Group for that period. In preparing those financialstatements, the directors are required to:

■ select suitable accounting policies and then apply themconsistently;

■ make judgements and estimates that are reasonable andprudent;

■ state whether applicable accounting standards have beenfollowed; and

■ prepare the financial statements on a going concern basisunless it is inappropriate to presume that the Group willcontinue in business.

The directors are responsible for ensuring that the Groupkeeps accounting records which disclose, with reasonableaccuracy, the financial position of the Company and theGroup and which enable them to ensure that the financialstatements comply with the Companies Code. They are alsoresponsible for taking such reasonable steps that are open tothem to safeguard the assets of the Company and the Groupand to prevent and detect fraud and other irregularities.

The above statement should be read in conjunction with thestatement of the auditors’ responsibilities set out below.

31

We have audited the financial statements of Ashanti GoldfieldsCompany Limited for the year ended 31 December 2001which comprise the profit and loss account, the balance sheets,the cash flow statement and the related notes 1 to 29. Thesefinancial statements have been prepared under the accountingpolicies set out therein.

Respective responsibilities of directors and auditorsAs described in the statement of directors’ responsibilities, theCompany’s directors are responsible for the preparation of thefinancial statements in accordance with Ghanaian law. Thefinancial statements are prepared in accordance with UnitedKingdom accounting standards. Our responsibility is to auditthe financial statements in accordance with relevant Ghanaianlegal and regulatory requirements, and the Listing Rules of theUnited Kingdom Financial Services Authority. The audit of thefinancial statements is carried out in accordance with UnitedKingdom auditing standards.

We report to you our opinion as to whether the financialstatements give a true and fair view and are properly preparedin accordance with the Ghana Companies Code, 1963(Act 179). We also report whether, in our opinion, the financialstatements are in agreement with the books, whether the bookshave been properly kept, whether we obtained the informationand explanations we required and if, in our opinion, thedirectors’ report is not consistent with the financial statements.

We review whether the corporate governance statement reflectsthe Company’s compliance with the seven provisions of theCombined Code specified for our review by the Listing Rulesand we report if it does not. We are not required to considerwhether the Board’s statements on internal control cover allrisks and controls, or form an opinion on the effectiveness ofthe Group’s corporate governance procedures or its risk andcontrol procedures.

We read the directors’ report and the other informationcontained in the Annual Report for the above year as describedin the contents section and consider the implications for ourreport if we become aware of any apparent misstatement ormaterial inconsistencies with the financial statements.

Basis of Audit OpinionWe conducted our audit in accordance with United Kingdomauditing standards issued by the United Kingdom AuditingPractices Board. An audit includes examination, on a testbasis, of evidence relevant to the amounts and disclosures inthe financial statements. It also includes an assessment of thesignificant estimates and judgements made by the directors in the preparation of the financial statements, and of whetherthe accounting policies are appropriate to the circumstances of the Company and the Group, consistently applied andadequately disclosed.

We planned and performed our audit so as to obtain all theinformation and explanations which we considered necessaryin order to provide us with sufficient evidence to givereasonable assurance that the financial statements are freefrom material misstatement, whether caused by fraud or otherirregularity or error. In forming our opinion we also evaluatedthe overall adequacy of the presentation of information in thefinancial statements.

Going ConcernThe accompanying financial statements have been preparedassuming that the Group will continue as a going concern. Note 1details the refinancing requirements of the Group and the Group’srefinancing plans. These matters raise substantial doubt about theGroup’s ability to continue as a going concern and in view ofthis we consider that it should be drawn to your attention, butour opinion is not qualified in this respect. The financialstatements do not include any adjustments that might resultshould the Group be unable to continue as a going concern.

OpinionThe financial statements are in agreement with the books,which in our opinion have been properly kept. In our opinion,we have obtained the information and explanations werequired. In our opinion, the financial statements give a trueand fair view of the state of affairs of the Company and theGroup as at 31 December 2001 and of the profit of the Groupfor the year then ended and have been properly prepared inaccordance with the Companies Code, 1963 (Act 179).

Deloitte & ToucheAccra, Ghana28 March 2002

Independent Auditors’ Reportto the members of Ashanti Goldfields Company Limited

2001 2000Interest Before Afterin joint exceptional Exceptional exceptional

Group venture Total items items itemsNote US$m US$m US$m US$m US$m US$m

Turnover 2 477.7 76.7 554.4 582.2 – 582.2

Cash operating costs 4 (276.3) (38.9) (315.2) (324.3) – (324.3)Other costs 3, 4 (31.7) (2.8) (34.5) (40.3) (21.7) (62.0)Royalties 4 (10.8) (2.2) (13.0) (13.7) – (13.7)Depreciation and amortisation 3, 4 (82.3) (12.6) (94.9) (114.8) (193.5) (308.3)

Total operating costs (401.1) (56.5) (457.6) (493.1) (215.2) (708.3)

Operating profit/(loss) 4 76.6 20.2 96.8 89.1 (215.2) (126.1)

Share of operating profit of joint venture 20.2 – – –

Total operating profit/(loss) 96.8 89.1 (215.2) (126.1)Profit on sale of businesses 5 – – 46.6 46.6

Profit/(loss) before interest 96.8 89.1 (168.6) (79.5)Net interest payable: group 7 (21.6) (51.3) – (51.3)Net interest payable: joint venture 7 (7.8) – – –

Profit/(loss) before taxation 67.4 37.8 (168.6) (130.8)Taxation 8 (6.8) (5.8) (3.0) (8.8)

Profit/(loss) after taxation 60.6 32.0 (171.6) (139.6)Minority interests 2.1 (1.5) – (1.5)

Profit/(loss) attributable to shareholders 62.7 30.5 (171.6) (141.1)Dividends 9 – – – –

Retained profit/(loss) for the year 62.7 30.5 (171.6) (141.1)

Earnings per share (US$) 10 0.56 0.27 (1.52) (1.25)Diluted earnings per share (US$) 10 0.55 0.27 (2.06) (1.79)

Group Profit and Loss AccountFor the year ended 31 December

32

2001 2000Interest Interestin joint in joint

Group venture Total Group venture TotalNote US$m US$m US$m US$m US$m US$m

Fixed AssetsIntangible assets 11 18.8 59.2 78.0 21.5 63.7 85.2Tangible assets 12 612.9 103.4 716.3 645.8 103.9 749.7InvestmentsInvestments – Geita joint venture 13 81.7 (81.7) – 69.3 (69.3) –Investments – Loans to joint venture and other

investments 13 32.6 – 32.6 32.6 – 32.6

746.0 826.9 769.2 867.5

Current assetsStocks 14 73.5 8.8 82.3 77.8 5.9 83.7Debtors 15 16.1 9.6 25.7 15.6 3.4 19.0Cash 16 55.2 9.2 64.4 73.6 2.1 75.7

144.8 27.6 172.4 167.0 11.4 178.4

Creditors: amounts falling due within one yearCreditors 17 (155.0) (13.1) (168.1) (169.0) (9.4) (178.4)Borrowings 18 (25.3) (10.8) (36.1) (7.2) (9.6) (16.8)

(180.3) (23.9) (204.2) (176.2) (19.0) (195.2)

Net current (liabilities)/assets (35.5) 3.7 (31.8) (9.2) (7.6) (16.8)

Total assets less current liabilities 710.5 795.1 760.0 850.7

Creditors: amounts falling due over one yearCreditors 17 (49.8) (31.1) (80.9) (98.2) (31.1) (129.3)Borrowings 18 (300.6) (51.3) (351.9) (358.5) (57.9) (416.4)

Provisions for liabilities and charges 20 (19.8) (2.2) (22.0) (24.5) (1.7) (26.2)

340.3 340.3 278.8 278.8

Capital and reserves

Stated capital 21 545.2 544.3Reserves 23 (206.9) (269.6)

Equity shareholders’ funds 338.3 274.7Equity minority interests 2.0 4.1

340.3 278.8

The financial statements were approved by the Board of directors on 28 March 2002 and signed on its behalf by:

S E Jonah S VenkatakrishnanDirector Director

Group Balance SheetAs at 31 December

33

Group Cash Flow StatementFor the year ended 31 December

34

2001 2000Note US$m US$m

Cash inflow from operating activities 24 95.4 149.4

Returns on investments and servicing of financeInterest received 2.0 4.7Interest paid (24.4) (61.1)

Net cash outflow from returns on investments andservicing of finance (22.4) (56.4)

TaxationCorporate tax paid (2.9) (5.8)

Capital expenditure and financial investmentPurchase of tangible fixed assets (49.6) (145.6)Sale of tangible fixed assets – 0.9Purchase of investments – (1.5)

Net cash outflow from capital expenditure and financial investment (49.6) (146.2)Acquisitions and disposals 25 – 230.3

Cash inflow before use of liquid resources and financing 20.5 171.3Management of liquid resources 9.7 13.3

Cash inflow before financing 30.2 184.6Financing 26 (40.6) (186.3)

Decrease in cash (10.4) (1.7)

Reconciliation of net cash flow to movement in net debtDecrease in cash (10.4) (1.7)Decrease in liquid resources (9.7) (13.3)

(20.1) (15.0)Cash outflow from financing 40.6 186.3Other 0.9 29.5

Movement in net debt 21.4 200.8Net debt at 1 January (292.1) (492.9)

Net debt at 31 December 27 (270.7) (292.1)

2001 2000US$m US$m

Profit/(loss) for the year 62.7 (141.1)Dividend – –

62.7 (141.1)New share capital issued 0.9 –Goodwill written back on disposal – 24.6

63.6 (116.5)Opening shareholders’ funds 274.7 391.2

Closing shareholders’ funds 338.3 274.7

There are no recognised gains or losses other than as disclosed in the Group Profit and Loss Account.

Reconciliation of Movements in Group Shareholders’ FundsFor the year ended 31 December

35

36

2001 2000Note US$m US$m

Fixed AssetsTangible assets 12 447.0 460.0Investments 13 261.6 278.5

708.6 738.5

Current assetsStocks 14 32.9 36.9Debtors 15 123.6 151.2Cash 16 11.7 19.2

168.2 207.3

Creditors: amounts falling due within one yearCreditors 17 (53.1) (55.4)Borrowings 18 (4.3) (4.3)

(57.4) (59.7)

Net current assets 110.8 147.6

Total assets less current liabilities 819.4 886.1

Creditors: amounts falling due over one yearCreditors 17 (669.6) (714.7)Borrowings 18 (5.7) (6.8)

Provisions for liabilities and charges 20 (5.8) (5.8)

138.3 158.8

Capital and reservesStated capital 21 545.2 544.3Reserves 23 (406.9) (385.5)

Equity shareholders’ funds 138.3 158.8

The financial statements were approved by the Board of directors on 28 March 2002 and signed on its behalf by:

S E Jonah S VenkatakrishnanDirector Director

Company Balance SheetAs at 31 December

1 Accounting policiesThe principal accounting policies adopted by the Group and used in the preparation of these financial statements are set out below.The accounting policies used in preparing the financial statements are consistent with those used by the Group in its financialstatements for the year ended 31 December 2000.

Going concernAshanti has secured an extension of its working capital facilities, within the Existing RCF, on a voluntary basis from certain of itscurrent lending banks of US$25.4 million. This working capital facility is available for drawing only up to 30 December 2002. Thisworking capital facility, if drawn, falls due for repayment on 30 December 2002. The outstanding balance of the Existing RCF falls duefor repayment on 15 January 2003 and the Existing Notes fall due for repayment on 15 March 2003. Under the Existing MFTL,Ashanti benefits from margin free trading with its hedge counterparties only until 31 December 2002 and from increased marginthresholds until 31 December 2004, subject in each case to compliance with covenants and no event of default being declared. Theabove matters raise substantial doubt about the Group’s ability to continue as a going concern.

Ashanti is proposing to implement the Proposed Restructuring, the Interim Margin Free Agreements and the New RCF (as outlined inthe Financial Review) in order to ensure the Company’s continued operational existence. There remain a number of conditions whichneed to be satisfied in order for the Proposed Restructuring to become effective and the Interim Margin Free Agreements and the NewRCF to become unconditional. There can be no guarantees that these conditions will be satisfied. Should any of the relevant conditionsnot be satisfied or if the Proposed Restructuring is withdrawn for any reason, then it is possible that, unless a standstill or otheraccommodation is reached with its bank group, hedge counterparties and in due course the holders of its Existing Notes, Ashanti mightnot be able to meet its debts as they fall due. If the Proposed Restructuring is not successfully implemented during the current financialyear there will be uncertainty as to whether the Group will be able to continue in operational existence for at least the next 12 months.However, taking into account the progress which Ashanti has achieved in relation to the Proposed Restructuring, the Interim MarginFree Agreements and the New RCF and other relevant factors, the Directors have formed the judgement, at the time of approving thesefinancial statements, that it is appropriate to continue to use the going concern basis in preparing this financial information.

The financial statements do not include any adjustments that might result should the Group be unable to continue as a going concern.

Basis of accountingThe financial statements have been prepared under the historical cost convention and in accordance with applicable United KingdomAccounting Standards.

Because the Group earns all its revenue in US dollars and the majority of its transactions are in US dollars, or based on them, theGroup’s functional and reporting currency is US dollars.

Basis of consolidationThe Group financial statements comprise a consolidation of the results, assets and liabilities of the Company, its subsidiaryundertakings and joint ventures. The results and cash flows of subsidiaries acquired or disposed of in the year are included in theconsolidated profit and loss account and the consolidated cash flow statement from the date of acquisition or up to the date ofdisposal.

GoodwillGoodwill, arising from the purchase of subsidiary undertakings and interests in associates and joint ventures represents the excessof the fair value of the purchase consideration over the fair value of the net assets acquired. Goodwill in accordance with FinancialReporting Standard (FRS) 10 is capitalised and amortised over the life of the underlying mine assets. Prior to 1 January 1998,goodwill was charged to reserves in the year of acquisition.

On the subsequent disposal or termination of a previously acquired business, the profit or loss on disposal or termination iscalculated after charging or crediting the amount of any goodwill previously charged to reserves or capitalised and not yet chargedto the profit and loss account.

Joint venturesA joint venture is an entity in which the Group holds a long-term interest and which is jointly controlled by the Group and one ormore ventures under a contractual arrangement. The results of joint ventures are accounted for using the gross equity method ofaccounting.

Transactions in other currenciesMonetary assets and liabilities denominated in currencies other than the US dollar are translated at the rates of exchange ruling atthe year end. Transactions denominated in currencies other than US dollars are translated at the rates ruling at the dates of thetransactions. All translation differences are taken to the profit and loss account.

Revenue recognitionSale of bullion is recognised when doré is produced in the gold room. The proceeds from sales of bullion produced prior to the yearend but which have not been received are included as ‘gold in transit’ within cash balances.

Exploration costsExploration costs incurred prior to the establishment of a commercially mineable deposit are charged against profits.

37Notes to the Financial Statements

1 Accounting policies (continued)

Tangible fixed assetsTangible fixed assets are recorded at cost less accumulated depreciation. Repairs and maintenance expenditures are charged againstprofits as incurred. Major improvements and replacements that extend the useful life of an asset are capitalised.

Once it has been established that a commercially minable deposit exists, mine development costs, including interest costs, arecapitalised as tangible fixed assets. Mine development costs consist of those expenditures necessary to gain access to ore bodies priorto production and to extend production in an existing ore body, including costs of removing overburden, constructing undergroundshaft stations, and extending tunnels.

Tangible fixed assets are depreciated as follows:

Development costs, plant and equipment and processing plants are depreciated over the life of the mine using the unit of productionmethod based on proved and probable reserves, or on a straight-line basis over their estimated useful lives if shorter. Buildings aredepreciated on a straight-line basis. Following are the estimated useful lives of assets that are depreciated using the straight-line basis:

Externally purchased software 3 yearsVehicles 5 yearsPlant and equipment 5 to 15 yearsBuildings up to 30 years

Estimated useful lives are reviewed on an annual basis in conjunction with the life-of-mine plans. Tangible fixed assets are reviewed forimpairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. At such time, in accordancewith FRS 11, Impairment of fixed and assets and goodwill (“FRS 11”) the net present value of the expected future cash flows attributableto the asset or its disposal value, if higher, is compared to the carrying value and an impairment charge is recorded if necessary.

StocksStocks are valued at the lower of cost and net realisable value (which includes an appropriate proportion of production overheads).

Interest and finance costsInterest is capitalised in respect of mine developments as part of tangible fixed assets from the time that it has been determined that acommercially minable deposit exists up to the commencement of production. All other interest costs are charged against profits as incurred.

Front-end fees, commitment fees and other costs associated with the initial loan are deferred and amortised over the life of the loanto give a constant rate of return on the outstanding loan balance.

Derivative financial instrumentsThe Group uses derivative instruments to hedge its exposures to fluctuations in gold prices. In order to protect against the impactof falling gold prices, the Group enters into hedging transactions which provide a minimum price for production and allow theGroup to take advantage of increases in gold prices. Instruments are accounted for as a hedge when they have been entered into tomanage gold prices and are within limits established by the Board of Directors.

Hedging transactions are used as part of the Group’s protection and commitment programme. Protected ounces represent futuresales of gold for which the future price of gold has been fixed. Committed ounces represent future obligations of the Group to delivergold at an agreed upon maximum price.

Receipts and payments on interest rate instruments are recognised on an accruals basis over the life of the instrument. Gains or losseson other hedging contracts, including premiums receivable and payable on options, are recognised in the profit and loss account asdesignated production is delivered. In the case of earlier settlement of hedge contracts, gains or losses are deferred and brought intoincome at the originally designated delivery date.

Deferred taxationProvision is made for deferred taxation only to the extent that it is probable that a liability or asset will crystallise in the foreseeablefuture.

Environmental and site restoration obligationsThe expected costs of any committed decommissioning or other site restoration programmes incurred during the construction phase,discounted at the weighted average cost of capital, are provided for and capitalised at the beginning of each project and amortisedover the life of the mine using the units of production method. Additional provisions are recorded during the production phase asenvironmental liabilities arise with a corresponding charge to operating results. Such costs are estimated based on studies performedby independent environmental specialists and represent management’s best current estimate of amounts that are expected to beincurred when the remediation work is performed within current laws and regulations or the terms of respective mining licenses.

Pre-stripping and stripping costsPre-stripping costs are the costs of removing overburden to expose ore after it has been determined that a commercially minabledeposit exists. These costs are capitalised as tangible fixed assets and, upon commencement of production, depreciated using theunit of production method based on probable and proven reserves.

Stripping costs incurred during the production phase to remove additional waste are deferred and charged to operating costs on thebasis of the average life of mine stripping ratio.

InvestmentsIn the Company balance sheet, investments in subsidiary undertakings are stated at cost less provision for any permanent diminutionin value.

Leased assetsAssets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in borrowings. Operatinglease rentals are charged to the profit and loss account in equal amounts over the period of the lease.

Notes to the Financial Statements38

39

2 Turnover 2001 2000

US$m US$m

Bullion revenue 381.7 485.2Cash realised on maturing hedging contracts 39.0 54.4Deferred hedging income 57.0 42.6

477.7 582.2Share of turnover of joint venture 76.7 –

554.4 582.2

3 Exceptional operating costs 2001 2000

US$m US$m

Obuasi redundancy and related costs – 7.0Hedge close out (note a) – 14.7Tangible fixed assets impairment (note b) – 193.5

– 215.2

a. In October 2000 Ashanti agreed as part of its negotiations with its banks and hedge counterparties during the period leadingup to the Geita sale to close out certain hedge positions resulting in an exceptional loss of US$14.7 million.

b. A review of the carrying value of fixed assets of the Group was carried out in 2000 under FRS 11 by comparing futureprojected cash flows discounted at 9.3% with net asset value. This resulted in an exceptional charge in 2000 of US$193.5million, comprising US$150.0 million at Obuasi, US$35.0 million at Freda-Rebecca and US$8.5 million at Kimin.

4 Operating profit analysis by business area before exceptional operating costs12 months to 31 December 2001

Freda- Geita Hedging Explor- Corp. GeitaObuasi Ayanfuri Iduapriem Bibiani Siguiri Rebecca (100%) Income ation Admin. Group (50%) Total

Production ozs 528,451 11,517 205,130 253,052 283,199 102,654 – – – – 1,384,003 272,781 1,656,784

US$ millionRevenue – spot 143.5 3.1 55.8 68.7 76.6 34.0 – – – – 381.7 74.1 455.8

– hedging – – – – – – – 96.0 – – 96.0 2.6 98.6

143.5 3.1 55.8 68.7 76.6 34.0 – 96.0 – – 477.7 76.7 554.4Cash operating

costs (101.4) (2.8) (44.0) (43.1) (62.2) (22.8) – – – – (276.3) (38.9) (315.2)Other costs – (1.0) (0.8) (2.2) – – – – (6.5) (21.2) (31.7) (2.8) (34.5)Royalties (4.3) (0.1) (1.7) (2.1) (2.6) – – – – – (10.8) (2.2) (13.0)

EBITDA 37.8 (0.8) 9.3 21.3 11.8 11.2 – 96.0 (6.5) (21.2) 158.9 32.8 191.7Depreciation and

amortisation (37.5) (0.5) (4.9) (13.8) (18.6) (3.9) – – (1.9) (1.2) (82.3) (12.6) (94.9)

Operating profit – 31.12.01 0.3 (1.3) 4.4 7.5 (6.8) 7.3 – 96.0 (8.4) (22.4) 76.6 20.2 96.8– 31.12.00 (5.0) (3.9) 6.1 21.9 7.7 (2.6) 9.9 97.0 (14.6) (27.4) 89.1 – 89.1

Costs include audit fees of US$0.4 million (2000: US$0.4 million)

Notes to the Financial Statements

40

5 Profit on sale of businesses2001 2000

US$m US$m

Profit on disposal of 50% interest in Geita – 51.2Loss on disposal of 50% interest in Carmeuse Lime Products (Ghana) Ltd – (4.6)

– 46.6

6 Employees2001 2000

The average number of employees during the year was as follows: No. No.Underground mining 4,777 4,854Surface mining 543 859Processing 1,896 1,706Administration 2,973 3,010

10,189 10,429

Remuneration paid to directors of the Company (excluding amounts paid to Lonmin Plc in respect of Technical Services andthe services of Mr S E Jonah) amounted to US$2.5 million (2000: US$3.3 million).

7 Net interest payable & similar charges 2001 2000US$m US$m

Exchangeable Notes 12.0 12.0Revolving Credit Facility 8.0 29.0Other loans and finance charges 7.0 19.4

27.0 60.4Interest capitalised – (4.4)

27.0 56.0Interest receivable (5.4) (4.7)

21.6 51.3Share of interest payable by joint venture 7.8 –

29.4 51.3

8 Taxation 2001 2000US$m US$m

Corporate tax – current year 6.6 0.5– in respect of prior years 8.2 4.5

Deferred tax (8.0) 0.8

Tax charge on profit on ordinary activities 6.8 5.8Tax on the profit on disposal of Geita – 3.0

6.8 8.8

Notes to the Financial Statements

41

9 DividendNo dividends were paid or proposed for the year (2000: Nil).

10 Earnings per shareThe calculation of earnings per share is based on earnings after tax and minority interests and the weighted average numberof shares outstanding during the year of 112.1 million (2000: 112.9 million). Earnings per share has been shown before andafter exceptional items in order to show the impact of the exceptional items on the underlying results of the business.

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on theassumption of conversion of all dilutive potential ordinary shares. The Company has three categories of dilutive potentialordinary shares being, warrants (under the agreement with the Company’s hedge counterparties), share options (under theSenior Management Share Option Scheme) where the exercise price is more than the average price of the Company’s ordinaryshares during the period and employee share incentive plans where shares are issued free to senior management providedcertain criteria are met.

2001 2000

Before exceptional items

Basic and diluted earnings attributable to ordinary shareholders (US$m) 62.7 30.5

Weighted average number of ordinary shares (millions) 112.1 112.9Dilutive warrants (millions) 0.8 –Dilutive share options (millions) 0.8 –Dilutive employee share incentive plans (millions) 0.5 –

Adjusted weighted number of ordinary shares (millions) 114.2 112.9

Basic earnings per share (US$) 0.56 0.27Diluted earnings per share (US$) 0.55 0.27

After exceptional items

Basic and diluted earnings attributable to ordinary shareholders (US$m) 62.7 (141.1)

Weighted average number of ordinary shares (millions) 112.1 112.9Dilutive warrants (millions) 0.8 (2.8)Dilutive share options (millions) 0.8 (31.1)Dilutive employee share incentive plans (millions) 0.5 –

Adjusted weighted number of ordinary shares (millions) 114.2 79.0

Basic earnings/(loss) per share (US$) 0.56 (1.25)Diluted earnings/(loss) per share (US$) 0.55 (1.79)

11 Intangible assetsGroup Goodwill

US$m

CostAt 1 January 2001 and 31 December 2001 21.9

AmortisationAt 1 January 2001 0.4Charge for the year 2.7

At 31 December 2001 3.1

Net book valueAt 31 December 2001 18.8At 31 December 2000 21.5

Notes to the Financial Statements

42

12 Tangible assets

Mine shafts, Assets in thedevelopment and Plant and Processing course of

pre-production equipment plants Buildings construction TotalUS$m US$m US$m US$m US$m US$m

GroupCostAt 1 January 2001 800.5 529.4 414.3 90.9 8.5 1,843.6Additions 29.8 6.4 0.8 0.2 10.1 47.3Disposals – (3.8) (0.1) – – (3.9)Transfers 6.0 5.9 4.3 – (16.2) –

At 31 December 2001 836.3 537.9 419.3 91.1 2.4 1,887.0

DepreciationAt 1 January 2001 569.8 339.3 238.2 50.5 – 1,197.8Charges 23.1 28.2 21.9 6.4 – 79.6Disposals – (3.3) – – – (3.3)

At 31 December 2001 592.9 364.2 260.1 56.9 – 1,274.1

Net book valueAt 31 December 2001 243.4 173.7 159.2 34.2 2.4 612.9At 31 December 2000 230.7 190.1 176.1 40.4 8.5 645.8

CompanyCostAt 1 January 2001 492.7 427.4 313.1 85.0 5.8 1,324.0Additions 19.5 6.4 0.4 0.1 – 26.4Disposals – (2.4) – – – (2.4)Transfers 1.9 3.8 0.1 – (5.8) –

At 31 December 2001 514.1 435.2 313.6 85.1 – 1,348.0

DepreciationAt 1 January 2001 378.7 252.5 188.5 44.3 – 864.0Charges 7.4 22.4 5.1 4.0 – 38.9Disposals – (1.9) – – – (1.9)

At 31 December 2001 386.1 273.0 193.6 48.3 – 901.0

Net book valueAt 31 December 2001 128.0 162.2 120.0 36.8 – 447.0At 31 December 2000 114.0 174.9 124.6 40.7 5.8 460.0

The net book value of tangible assets in the Group and Company includes US$4.1 million (2000: US$4.8 million) in respectof assets held under finance leases included within buildings.

2001 2000US$m US$m

Capital commitmentsContracts placed but not provided for 2.7 4.0

Notes to the Financial Statements

43Notes to the Financial Statements

13 InvestmentsGroupThe Group’s investment in joint ventures is in respect of its 50 per cent interest in the Geita mine in Tanzania. This interestis accounted for under the gross equity basis of accounting.

Investment Loans toin joint joint Other

ventures ventures investments TotalUS$m US$m US$m US$m

CostAt 1 January 2001 69.3 31.1 1.5 101.9Share of retained profit for the year 12.4 – – 12.4

At 31 December 2001 81.7 31.1 1.5 114.3

CompanySubsidiary Joint Other

undertakings ventures investments Total

US$m US$m US$m US$m

CostAt 1 January 2001 and 31 December 2001 387.0 85.6 1.5 474.1

ProvisionsAt 1 January 2001 195.6 – – 195.6Provided in year 16.9 – – 16.9

At 31 December 2001 212.5 – – 212.5

Net book value At 31 December 2001 174.5 85.6 1.5 261.6At 31 December 2000 191.4 85.6 1.5 278.5

The principal subsidiary undertakings are:Class of Group interest

Company and country of incorporation Principal activities Shares held per cent

GhanaAshanti Goldfields (Bibiani) Limited Gold Mining Ordinary 100

No par valueGhanaian-Australian Goldfields Limited Gold Mining Ordinary 80

No par valueTeberebie Goldfields Limited Gold Mining Ordinary 90

No par value

GuineaSociété Ashanti Goldfields de Guinée S.A. Gold Mining Ordinary 85

ZimbabweAshanti Goldfields Zimbabwe Limited Gold Mining Ordinary 100

Isle of ManAshanti Treasury Services Limited Treasury Ordinary 100Geita Treasury Services Limited Treasury Ordinary 100

Cayman IslandsAshanti Capital Limited Financing Ordinary 100Ashanti Finance (Cayman) Limited Financing Ordinary 100Ashanti Capital (Second) Limited Financing Ordinary 100

44

14 Stocks Group Company2001 2000 2001 2000

US$m US$m US$m US$m

Mine stores 52.6 56.1 30.4 35.0Ore in stockpiles 16.2 17.3 – –Gold in process 4.7 4.4 2.5 1.9

73.5 77.8 32.9 36.9

15 Debtors Group Company2001 2000 2001 2000

US$m US$m US$m US$m

Sundry debtors 10.8 10.9 0.8 2.2Prepayments 2.4 2.2 1.6 0.7Deferred expenses 2.9 2.5 0.1 –Amounts due from subsidiary undertakings – – 121.1 148.3

16.1 15.6 123.6 151.2

16 Cash Group Company2001 2000 2001 2000

US$m US$m US$m US$m

Cash at bank and in hand 32.8 48.3 3.8 8.2Gold and cash in transit 22.4 25.3 7.9 11.0

55.2 73.6 11.7 19.2

Cash at bank includes US$8.7 million (2000: US$15.5 million) on deposit with Standard Chartered Bank in Ghana ascollateral for a loan to Ashanti Goldfields Zimbabwe Limited.

17 Creditors Group Company2001 2000 2001 2000

US$m US$m US$m US$m

Amounts falling due within one year:Trade creditors 40.5 43.7 13.9 17.8Deferred purchase consideration 7.3 7.3 – –Accruals and deferred income 107.2 118.0 39.2 37.6

155.0 169.0 53.1 55.4

Amounts falling due over one year:Deferred purchase consideration 8.8 16.1 – –Accruals and deferred income 41.0 82.1 13.2 13.4Amounts due to subsidiary undertakings – – 656.4 701.3

49.8 98.2 669.6 714.7

The total deferred purchase consideration of US$16.1 million comprises US$11.3 million in respect of Teberebie andUS$4.8 million in respect of the acquisition of Golden Shamrock Mines Limited in 1996.

Accruals and deferred income of US$148.2 million includes US$65.6 million (2000: US$120.0 million) in respect of deferredhedging income arising from the early close out of hedging contracts.

Notes to the Financial Statements

45Notes to the Financial Statements

18 Borrowings Group Company

2001 2000 2001 2000US$m US$m US$m US$m

51/2 per cent Exchangeable Notes 217.5 216.6 – –Revolving Credit Facility 55.0 88.8 – –Bank loans and overdrafts 21.6 26.6 3.2 3.0Project finance loans 25.0 25.6 – –Suppliers’ credit – 0.2 – 0.2Finance leases 4.1 4.8 4.1 4.8Aviation loans 2.7 3.1 2.7 3.1

325.9 365.7 10.0 11.1

Repayments falling due:Between one year and two years 267.7 11.6 1.1 1.1Between two and five years 31.9 336.6 3.6 3.5After five years 1.0 10.3 1.0 2.2

After more than one year 300.6 358.5 5.7 6.8Within one year 25.3 7.2 4.3 4.3

325.9 365.7 10.0 11.1

US$217.5 million (2000: US$216.6 million) of Exchangeable Notes is stated net of deferred loan fees of US$1.1 million(2000: US$2.0 million) which is being amortised over the period of the Notes.

Details of the conversion rights of the 51/2 per cent Exchangeable Notes are set out in note 21. Details of the proposedrestructuring of the Notes are set out in the Financial Review on page 18.

The Revolving Credit Facility carries a margin over US LIBOR of 250 basis points. US$47.2 million of the amount drawn isdue for repayment on 15 January 2003 and US$7.8 million is repayable in four equal quarterly instalments commencing on31 March 2002.

Certain of the tranches of the Revolving Credit Facility are secured on certain offshore bank accounts and certain othercontracts and arrangements with hedging counterparties outside Ghana.

The project finance loans of US$25.0 million are in respect of loans provided to subsidiaries Ghanaian-Australian GoldfieldsLimited and Teberebie Goldfields Limited and are secured by fixed and floating charges over their respective assets.

The Group under its Revolving Credit Facility had undrawn committed borrowing facilities of US$25.4 million as at31 December 2001 (2000: US$100 million) which is available for drawing until 30 December 2002. The provisions of theRevolving Credit Facility include tightly drawn restrictions on usage of drawdowns under this facility.

46 Notes to the Financial Statements

19 Financial instrumentsDebtors and creditors arising directly from the Group’s operations and gold in transit are excluded from the following disclosures.

Interest rate profile of financial liabilitiesThe interest rate profiles of the Group’s financial liabilities at 31 December 2001 and 31 December 2000, which arepredominately US dollar denominated, were as follows:

Fixed rate borrowingsWeighted average

Floating rate Fixed rate Total gross Weighted average time for whichborrowings borrowings borrowings interest rate period fixed

US$m US$m US$m % Years

31 December 2001 108.4 217.5 325.9 5.5 1.2

31 December 2000 149.1 216.6 365.7 5.5 2.2

Interest on floating rate borrowings are determined primarily by reference to US LIBOR.

Interest rate profile of financial assetsThe interest rate profiles of the Group’s financial assets at 31 December 2001 and 31 December 2000, which arepredominately US dollar denominated, were as follows:

Fixed rate Floating rate Interest free TotalUS$m US$m US$m US$m

31 December 2001 – 32.0 0.8 32.8

31 December 2000 – 45.8 2.5 48.3

The financial assets of the Group comprise cash at bank and in hand.

Currency exposuresThe Group had no significant currency exposures given that all revenues are US dollar denominated as are the majority ofits costs, monetary assets and financial liabilities.

Fair values of financial assets and liabilitiesThe fair value of the Group’s financial instruments is as follows:

2001 2000Book value Fair value Book value Fair value

US$m US$m US$m US$m

Financial instruments held or issued to finance the Group’soperations:

Long term convertible debt 217.5 178.4 216.6 133.5Other long term borrowings 83.1 83.1 141.9 141.9Short term borrowings 25.3 25.3 7.2 7.2Cash 32.8 32.8 48.3 48.3

Derivative financial instruments to hedge the Group’s exposure to gold price risk:

Forwards – 117.6 – 93.3European Put options – 51.0 – 22.9European Call options granted – (48.3) – (48.5)Convertible structures – 10.5 – 22.4Lease rate swaps – (42.0) – (61.0)

Fair value is the amount at which a financial instrument could be exchanged in an arm’s length transaction between informedand willing parties. Where available, market values have been used to determine fair values. Where market values are notavailable, fair values have been calculated by discounting cash flows at prevailing gold prices and interest rates. The fairvalues have been determined using market information and appropriate methodologies, but are not necessarily indicative ofthe amounts that the Group could realise in the normal course of business.

47Notes to the Financial Statements

19 Financial instruments (continued)HedgingIt is the Group’s policy to hedge the risk of movements in the gold prices using several types of derivative financial instruments.

Gains and losses on instruments used for hedging the gold price are not recognised until the exposure that is being hedged isitself recognised. Unrecognised gains and losses on the instruments used for hedging and the movements therein, are as follows:

Gains Losses Net GainsUS$m US$m US$m

Unrecognised gains and losses on hedges at 1 January 2001 124.5 (4.5) 120.0Gains arising in previous years recognised in the year (54.4) – (54.4)

Gains and losses arising before 1 January 2001 not recognised in the year 70.1 (4.5) 65.6Gains and losses arising in the year and not recognised – – –

Unrecognised gains and losses on hedges at 31 December 2001 70.1 (4.5) 65.6

Gains and losses expected to be recognised within one year 34.7 – 34.7Gains and losses expected to be recognised after one year 35.4 (4.5) 30.9

20 Provisions for liabilities and chargesGroup

Deferred Sitetax rehabilitation Total

US$m US$m US$m

At 1 January 2001 9.9 14.6 24.5(Credit)/charge for the year (8.0) 3.3 (4.7)

At 31 December 2001 1.9 17.9 19.8

The site rehabilitation provision is expected to be utilised over the next 20 years.

Deferred taxation provided and unprovided comprises:Provided Full potential

2001 2000 2001 2000US$m US$m US$m US$m

Accelerated capital allowances 1.9 9.9 168.4 174.5Other timing differences – – (2.3) (2.4)Losses carried forward – – (231.5) (245.7)

1.9 9.9 (65.4) (73.6)

CompanyDeferred Site

tax rehabilitation TotalUS$m US$m US$m

At 1 January 2001 and 31 December 2001 0.6 5.2 5.8

48

21 Stated capitalNumber of shares

Authorised200,000,000 ordinary shares of no par value 200,000,0001 special rights redeemable preference share of no par value 1

200,000,001

Issued Stated capitalshares US$m

Allotted and fully paidAt 1 January 2001:Ordinary shares of no par value in issue 112,336,942 544.3Ordinary shares of no par value issued during the year 377,280 0.9

At 31 December 2001:Ordinary shares of no par value in issue 112,714,222 545.2Ordinary shares in treasury 559,405* –1 special rights redeemable preference share of no par value 1 –

113,273,628 545.2

*The 559,405 ordinary shares held in treasury do not qualify for dividends and do not have voting rights.

Based on the prices quoted on the New York Stock Exchange, the Company’s share price traded between a high of US$4.250and a low of US$1.875. As at 31 December 2001, the Company’s market capitalisation based on a share price of US$4.250 on that date was US$481.4 million.

The Government of Ghana holds the special rights redeemable preference share of no par value (the “Golden Share”). TheGolden Share is non-voting but the holder is entitled to receive notice of and to attend and speak at any general meeting ofthe members or at any separate meeting of the holders of any class of shares. On winding up, the Golden Share has apreferential right to return of capital, the value of which will be 1,000 cedis.

The Regulations of the Company provide that certain matters, principally matters affecting the rights of the Golden Share,the winding up of the Company or the disposal of a material part of the Group’s assets, shall be deemed to be a variation ofthe rights attaching to the Golden Share and shall be effective only with the written consent of the holder of the Golden Share.

All of the ordinary shares rank pari passu in all respects.

On 25 April 2001, the Company in general meeting passed a special resolution renewing an existing authority to makemarket purchases of its own shares up to an aggregate of 12,000,000 ordinary shares at a price per share (exclusive ofexpenses) of not more than 5 per cent above the average of the middle market quotations for the shares taken from the DailyOfficial List of the London Stock Exchange for the five business days immediately before the date of purchase. However, theCompany did not utilise this authority. The authority for the Company to purchase its own shares will expire on 24 July2002 or at the conclusion of the Annual General Meeting at which it is proposed to renew the authority.

In February 1996, the Group raised US$250 million through an issue by a subsidiary of seven year 51/2 per cent ExchangeableNotes listed on the New York and London stock exchanges. The noteholders have the option of converting the notes intoordinary shares at a conversion price of US$27 per share. The notes were to mature on 15 March 2003, unless converted orredeemed earlier. As at 31 December 2001, the Company had purchased US$31.4 million of the notes leaving US$218.6million notes still in circulation which could give rise to the issue of up to 8,096,296 ordinary shares (assuming full exchangeof all of the outstanding notes at an exchange price of US$27 per share). The notes repurchased remain uncancelled.

Notes to the Financial Statements

Notes to the Financial Statements 49

21 Stated capital (continued)

In January 2002, the Company announced a proposed restructuring of the 51/2% Exchangeable Notes (“Existing Notes”)debt of US$218.6 million. The principal terms of the proposed restructuring are included in the Report of the Directors onpage 27.

In November 1999, pursuant to an agreement with the Company’s hedge counterparties, a wholly-owned subsidiary, AshantiWarrants Limited, issued unlisted warrants to subscribe for Mandatorily Exchangeable Securities under which thesecurityholders have the option of converting the securities into ordinary shares at a conversion price of US$3 per share. Thewarrants were issued in three equal tranches with expiry dates of 28 April 2004, 28 October 2004 and 28 April 2005. The conversion rights of the warrants could give rise to the issue of up to 19,835,001 ordinary shares.

As at 31 December, 2000, of the options granted to directors and staff 8,296,772 shares remained outstanding. As part ofthe review of the Company’s remuneration arrangements conducted prior to the Annual General Meeting on 25 April, 2001,option holders were invited to cancel all outstanding options voluntarily. The proposal was made on the basis that for every10 shares currently under option a new option would be granted over three shares. In the case of executive directors andcertain members of the Company’s senior management, their outstanding “underwater” options were required to besurrendered in order to receive any further awards under the Company’s long-term incentive plans. Options over 5,364,485shares in respect of other Senior Management and over 508,050 shares in respect of executive directors were cancelled inaccordance with the invitation. 2,189,787 options were lapsed.

Following the cancellation and re-grant of options described above, on 3 May, 2001, the total number of ordinary sharesover which executive directors and senior management now hold options is as follows:

Option Number ofprice ordinary shares

Period of exercise Code US$ of no par value

13 July 2003–12 July 2010 A 1.66 40,00028 August 2003–27 August 2010 B 2.55 50,0003 May 2004–2 May 2011 (Replacement Options) C 2.29 1,761,7603 May 2004–2 May 2011 D 2.29 980,090

2,831,850

All options granted on 3 May, 2001 were granted with exercise prices of US$2.29. They ordinarily become exercisable on3 May, 2004 and lapse on 2 May, 2011.

Notes to the Financial Statements50

22 Directors’ interestsThe beneficial interests, including family interests, of the directors holding office at the end of the year in ordinary shares ofthe Company are set out below:

Shares Shares under optionGranted

1 January 31 December 1 January Surrendered & during the 31 December2001 2001 2001 Cancelled year 2001

M E Beckett 1,359 1,359 – – – –S E Jonah 45,302 45,302 290,000 (290,000) 260,664 260,664T E Anin – 53 – – – –M Botsio-Phillips 100 100 45,000 (45,000) 32,260 32,260L Chalker – – – – –C A Crocker – 5,000 – – – –T Gibian 20,000 20,000 – – – –M P Martineau – – – – –N J Morrell – – – – –E D Ofori Atta 553 553 45,000 (45,000) 30,009 30,009J N Robinson – – – – – –T S Schultz 23,548 23,548 128,050 (128,050) 93,644 93,644S Venkatakrishnan – – 50,000 – 52,828 102,828

An analysis of options held by directors as at 31 December 2001 using the codes shown in note 21 is set out below:

B C D Total

S E Jonah – 87,000 173,664 260,664M Botsio-Phillips – 13,500 18,760 32,260E D Ofori Atta – 13,500 16,509 30,009T S Schultz – 38,415 55,229 93,644S Venkatakrishnan 50,000 – 52,828 102,828

Total 50,000 152,415 316,990 519,405

Between 1 January 2002 and 28 March 2002, there were no changes in the above directors’ interests.

Bonus Co-Investment Plan and Restricted Share SchemeUnder the Bonus Co-Investment Plan, executive directors and key employees are invited to invest a percentage of their annualremuneration in Ashanti ordinary shares (“Ashanti shares”). These are designated “Invested Shares” for the purposes of thePlan. Participants are then granted without further payment rights to receive additional shares referable to the number ofshares which they have purchased as Invested Shares. These additional shares are designated “Matching Shares” for thepurposes of the Plan. Normally, so long as the participant does not sell the Invested Shares within a two-year period followingtheir purchase, the Matching Shares will normally be released to the employee in equal instalments on the first and secondanniversaries of the award. Rights to receive Matching Shares will normally lapse if the participant leaves the Company orsells the Invested Shares within two years of the purchase of the Invested Shares.

Under the Performance Share Plan, also called Restricted Share Scheme, executive directors and key employees receive freeAshanti shares, if Ashanti achieves certain performance conditions within a three-year period. Shares acquired by the Trusteewill be conditionally awarded to employees nominated by the Company, and transferred to employees following theemployee’s completion of three years’ service from the date of the award provided certain performance targets are met.Special provisions apply if the participant’s employment terminates by reason of death, disability, retirement or redundancyor other reasons in the Committee discretion or (in the case of an expatriate employee) on expiry without renewal of hisfixed-term contract of employment, or on a person becoming a “majority shareholder controller” or on a reconstruction orliquidation of the Company.

On 3 May 2001, 377,280 ordinary shares were awarded under the Restricted Share Scheme for which new Ashanti ordinaryshares were issued, out of this, 91,680 shares were awarded to Directors.

Shares in category ‘A’ were acquired from the market while in respect of category ‘B’, new shares were issued in line with themodified rules as approved at the Annual General Meeting of 25 April 2001.

The full number of shares to which a participant is entitled would only be received if Ashanti meets challenging internaland/or external goals. Right to receive shares will normally lapse if the participant leaves the Company within three years ofthe grant of the award.

Notes to the Financial Statements 51

22 Directors’ interests (continued)The Bonus Co-Investment Plan uses Ashanti shares which have already been issued and these are purchased by an employeetrust, which is funded by Ashanti on terms agreed by the Board.

As at 28 February 2002 the following awards have been made to the directors under the Company’s Bonus Co-InvestmentPlan and Performance Share Plan since their introduction:

Shares awarded under the Shares awarded under theName Bonus Co-Investment Plan Performance Share Plan

Category ‘A’ Category ‘B’

S E Jonah 14,388 9,000 –M Botsio-Phillips – 6,000 12,000E D Ofori Atta – 6,000 10,560T S Schultz 7,697 6,000 35,328S Venkatakrishnan – 3,000 33,792

Total 22,085 30,000 91,680

Awards made under both the Bonus Co-Investment Plan and the Performance Share Plan will be allowed to run their course,but it is currently intended that no further awards will be made under them.

23 Reserves Group CompanyProfit and Share deals Profit and Share deals

loss account account Total loss account account TotalUS$m US$m US$m US$m US$m US$m

At 1 January 2001 (288.6) 19.0 (269.6) (404.5) 19.0 (385.5)Retained profit/(loss) for the year 62.7 – 62.7 (21.4) – (21.4)

At 31 December 2001 (225.9) 19.0 (206.9) (425.9) 19.0 (406.9)

In accordance with the Ghana Companies Code 1963 (Act 179), all transactions relating to the purchase and re-issue of theCompany’s own shares are recorded in a non-distributable share deals account.

Group reserves is after goodwill written off in previous years of US$476 million (2000: US$476 million) arising on theacquisition of subsidiary undertakings.

24 Reconciliation of operating profit before exceptional operating costs to operating cash flows 2001 2000

US$m US$m

Total operating profit before exceptional operating costs 96.8 89.1Share of operating profit in joint ventures (20.2) –

Operating profit excluding joint ventures 76.6 89.1Depreciation and amortisation 82.3 114.8Loss on disposal of fixed assets 0.6 5.2Decrease/(increase) in stocks 4.3 (11.8)Decrease in debtors 2.0 10.8Decrease in creditors (16.7) (18.0)Decrease in deferred hedging income (57.0) (34.6)Increase in provisions 3.3 0.8Outflows related to exceptional operating costs – (6.9)

Net cash inflow from operating activities 95.4 149.4

Notes to the Financial Statements52

25 Acquisitions and disposals 2001 2000

US$m US$m

Cash inflow from sale of 50% interest in Cluff Resources Limited (Geita mine) – 230.8Purchase of Pioneer Goldfields Company Limited (Teberebie mine) – (0.5)

– 230.3

26 Financing 2001 2000US$m US$m

Revolving Credit Facility – repayments (33.8) (251.0)Bridge Facility – drawdowns – 75.0Other – repayments (6.8) (10.3)

(40.6) (186.3)

27 Analysis of net debt At 1 Jan Other non-cash At 31 Dec2001 Cash flow movements 2001

US$m US$m US$m US$m

Cash at bank 32.8 (8.7) – 24.1Bank overdraft (3.5) (1.7) – (5.2)

Cash 29.3 (10.4) – 18.9Gold in transit and collateralised cash (liquid resources) 40.8 (9.7) – 31.1Borrowings (362.2) 40.6 0.9 (320.7)

Net debt (292.1) 20.5 0.9 (270.7)

28 Related party transactionsThe Company’s principal shareholder is Lonmin (32 per cent) which provides technical services and the services ofMr S E Jonah to the Group for which it received US$0.7 million (2000: US$1.8 million) for the year.

Another major shareholder is the Government of Ghana (20 per cent). The Group pays royalties, corporate and other taxesand utility charges in the normal course of business to the Government and associated authorities. Amounts paid during theyear totalled approximately US$51 million (2000: US$58 million).

29 Contingent liabilities

US Class ActionsThe consolidated class action which was commenced in the year 2000, is pending against the Company and one officer anddirector and one former director under United States Federal Securities laws in the United States District Court for theEastern District of New York. The complaint alleges non-disclosures and misstatements regarding Ashanti’s hedging positionand hedging programme. The plaintiffs contend that the Company and the individual defendants’ actions violatedSections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated under that Act. The plaintiffsseek unspecified damages, attorneys’ and experts’ fees and other reliefs.

The Court has rendered a ruling to the effect that the matter would be determined by document discovery and assessment ofevidence.

The Company continues to vigorously defend the action, and although the Company cannot make any assurances regardingthe ultimate result of the litigation at this stage, it believes that the outcome will have no material adverse effect on theCompany’s financial position.

Kimin – Employee Actions

In November 1999, the Brussels Labour Court upheld the claims for arrears of salary and severance payments in proceedingsinstituted by certain ex-Kimin expatriate employee against Kimin and Ashanti.

An appeal filed by Kimin and Ashanti against the judgement has now been determined with the award granted in favour ofsome of the ex-employees confirmed but certain further claims made were disallowed.

Notes to the Financial Statements 53

29 Contingent liabilities (continued)Although the Company cannot make any assurances regarding the ultimate outcome of all of the Kimin ex-employee actions,it is of the view, based on information currently available, that any expected liability that might arise has been provided for inthe financial statements.

Pangea/Ashanti Joint Venture – Arbitration

With regard to the arbitration proceedings at the International Court of Arbitration of the International Chamber ofCommerce between Pangea Goldfields Inc. and the Company, the parties have entered into settlement discussions and haveagreed the key elements for an amicable settlement of the dispute that would obviate any further arbitral proceedings andwhich would not have any material adverse effect on the Company’s financial position.

54 Hedging Appendix

The following table sets out Ashanti’s hedge portfolio as at 31 December 2001

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total

Forward Sales (ounces) 607,500 718,746 529,996 464,996 248,000 190,000 205,000 180,000 140,000 140,000 120,000 120,000 3,664,238(US$/ounce) 335.14 351.14 355.18 353.14 349.35 345.93 349.80 345.33 346.86 346.86 348.00 348.00 348.04

Puts:Bought (ounces) 270,000 50,000 79,200 79,200 79,200 79,200 79,200 79,200 79,200 – – – 874,400

(US$/ounce) 349.54 354.00 377.50 377.50 377.50 377.50 377.50 377.50 377.50 – – – 367.52

Sold (ounces) 50,000 50,000 50,000 – – – – – – – – – 150,000(US$/ounce) 270.00 270.00 270.00 – – – – – – – – – 270.00

Subtotal (ounces) 220,000 – 29,200 79,200 79,200 79,200 79,200 79,200 79,200 – – – 724,400

Calls:Sold (ounces) 712,700 665,092 628,972 425,528 212,056 291,076 274,660 96,220 56,500 56,500 56,500 56,500 3,532,304

(US$/ounce) 336.39 338.72 342.44 344.19 365.58 362.74 364.70 362.38 350.00 350.00 350.00 350.00 346.55

Bought (ounces) 60,000 240,000 280,000 60,000 173,000 173,000 – – – – – – 986,000(US$/ounce) 380.00 429.13 444.43 380.00 418.44 418.44 – – – – – – 423.74

Subtotal (ounces) 652,700 425,092 348,972 365,528 39,056 118,076 274,660 96,220 56,500 56,500 56,500 56,500 2,546,304

Convertible Structures:Put Protection (ounces) – – – – 100,000 100,000 100,000 100,000 100,000 100,000 100,000 50,000 750,000

(US$/ounce) – – – – 400.75 400.75 400.75 400.75 400.75 400.75 400.75 401.00 400.77

ForwardCommitment (ounces) – – – – 200,000 200,000 189,000 100,000 100,000 100,000 100,000 50,000 1,039,000

(US$/ounce) – – – – 400.75 400.75 400.75 400.75 400.75 400.75 400.75 401.00 400.76

CallCommitment (ounces) – – – – – – – 56,000 56,000 56,000 56,000 28,000 252,000

(US$/ounce) – – – – – – – 400.75 400.75 400.75 400.75 401.00 400.78

Lease Rate ounces due 2,085 – – – – – – – – – – – 2,085

Summary:Protected (ounces) 825,415 718,746 559,196 544,196 427,200 369,200 384,200 359,200 319,200 240,000 220,000 170,000 5,136,553

Committed (ounces) 1,258,115 1,143,838 878,968 830,524 487,056 508,076 668,660 432,220 352,500 352,500 332,500 254,500 7,499,457

Lease Rate Swap (ounces) 4,981,625 5,044,125 4,466,400 3,765,200 3,089,400 2,470,375 1,941,675 1,427,650 1,014,470 695,250 408,750 161,000 5,044,125

Total committed ounces as a percentage of total forecast production (excluding Geita production for the period of the project finance ie 2001 – 2007) 61%

DeferredHedging Income (US$m) 35 16 15 – – – – – – – – – 66

Details of Hedging Contracts outstanding at 31 December 2001Forward Sales:A total of 3.66 million ounces have been sold forward at an average price of US$348 per ounce.

Put Options:Ashanti has purchased 874,400 ounces of put options that give Ashanti the right, but not the obligation, to sell gold at certainstrike prices. The average strike price is US$368 per ounce. Ashanti has also sold 150,000 ounces of put options at an averagestrike price of US$270 per ounce.

Call Options:Ashanti has sold 3.53 million ounces of call options at an average strike price of US$347 per ounce. As a partial offset, Ashantihas bought 986,000 ounces of call options at an average strike price of US$424 per ounce which start maturing in 2002.

Convertible Structures: The portfolio contains two types of convertible structures:

1. Ashanti owns 300,000 ounces of put options for the period March 2006 to December 2008 with strike prices of US$401 per ounce. Each option has a conversion level and a strip of conversion dates associated with it. If the conversion occursthe put options convert into 589,000 ounces of forward sales at the same strike price.

2. Ashanti owns 450,000 ounces of put options for the period March 2009 to December 2013 with strike prices of US$401 per ounce. Each option has a conversion level and a strip of conversion dates associated with it. If the conversion occurseach put option converts into 1 ounce of forward sales and 0.56 ounces of (sold) call options.

The average conversion level for convertibles 1 and 2 is US$363 per ounce.

The hedge table breaks the above structures into protected and committed ounces. The “Put Protection” represents the amountof ounces that may be sold should gold continue trading at current levels. Under certain conditions (given above) these puts maycease to exist and may be replaced by forward sales and/or calls sold (“Forward Commitment” and “Call Commitment”).

55

Gold Lease Rate Swaps:As of 31 December 2001, a maximum of 5.0 million ounces of Ashanti’s hedged production will be exposed to the floating one, three and six 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 leaserate income, which can be regarded as compensation for the lease rate exposure that Ashanti takes on).

Fixed Rate VolumeDescription (%) (ounces)

Ashanti pays a monthly floating rate and receives a monthly fixed rate of 2.00% 2.00 25,625

Ashanti pays a semi-annual floating rate and receives a semi-annual fixed rate of 1.90% 1.90 1,546,000

Ashanti pays a quarterly floating rate and receives a quarterly fixed rate of 1.80%.The fixed amount of ounces is converted to dollars at a fixed spot price of US$300 1.80 1,920,000

Ashanti pays a quarterly floating rate and receives a fixed amount of dollars at maturity. The quarterly amount is rolled until maturity of each forward contract. The fixed amount for eachcontract is calculated using the formula: Volume*YearsToMaturity*302*2.00%.The next rate set is in 2002. 2.00 920,000

Ashanti pays a quarterly floating rate and receives a fixed rate of 1.75%. 1.75 880,000

Total 5,291,625

Mark-to-Market ValuationsOn 31 December 2001, the portfolio had a positive mark-to-market value of US$88.8 million. This valuation was based on aspot price of US$277 per ounce and the then prevailing applicable US interest rates, gold forward rates, volatilities and guidelinesprovided by the Risk Management Committee. The delta at that time was 6 million ounces. This implies that a US$1 increasein the price of gold would have a US$6 million negative impact (approximate) on the mark-to-market valuation of the hedgebook. 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 31 December, 2001 was as follows:US$m

Forward contracts 117.6European Put options (net bought) 51.0European Call options (net sold) (48.3)Convertible structures 10.5Lease rate swaps (42.0)

88.8

Hedging Appendix

56 Hedging Appendix

Hedge Book SensitivitiesAll of the projections set out below are forward looking statements and have been prepared for illustrative purposes only, basedon the assumptions and sensitivities set out below and the hedge book as at 31 December 2001. Accordingly, the actual realisedprices, cash flows, mark-to-market values and portfolio sensitivities could differ materially from those set out below as a resultof a number of factors including active management of the hedge book.

Projected Realised PricesThe following summary table shows, as at 31 December 2001, the ounces delivered and average prices at the assumed spot priceindicated. A quarterly lease rate of 2 per cent is assumed throughout.

Ounces delivered Average PriceSpot Price million US$ per Ounce

US$250 5.2 359US$300 5.4 353US$350 7.1 349US$400 8.1 348

The number of ounces delivered in this table indicates how many ounces Ashanti would sell through forward sales, as well ascalls and puts, bought and sold, which would be exercised under the various assumed spot prices. The effects of all lease rateswap rate-sets have been included in the average price.

Mark-to-Market ProjectionsThe following table shows projected mark-to-markets of the portfolio for specified dates at specified spot gold prices. Thesemark-to-markets are calculated based on current market conditions using mid-rates and no volatility skew for options isassumed. Note also that there is one lease rate swap that is not paid out immediately but is paid out in line with forward sales– for this a fixing rate of 2 per cent is assumed. All amounts are in US$ millions.

Spot US$250/oz US$275/oz US$300/oz US$325/oz US$350/oz US$375/oz US$400/oz

Dec 02 247.79 129.51 4.04 (130.08) (273.01) (422.35) (575.38)Dec 03 225.62 128.97 27.58 (80.00) (194.80) (316.96) (442.75)Dec 04 206.17 125.96 42.97 (43.96) (135.43) (234.45) (336.24)Dec 05 185.01 119.56 52.23 (17.55) (90.03) (169.17) (251.71)Dec 06 166.00 112.03 56.70 (0.66) (60.63) (127.08) (197.58)Dec 07 147.77 103.47 58.44 12.21 (35.80) (88.93) (146.55)Dec 08 121.49 86.93 52.00 16.52 (19.71) (59.41) (103.07)Dec 09 93.10 67.65 41.94 15.88 (10.62) (39.56) (73.08)Dec 10 63.90 46.67 29.24 11.55 (6.47) (26.01) (50.30)Dec 11 41.06 30.21 19.22 7.98 (3.55) (15.71) (30.82)Dec 12 17.35 12.51 7.61 2.57 (2.73) (8.33) (14.97)Dec 13 – – – – – – –

Cash Flow ProjectionsThe following table shows a breakdown of the cash flows that would be received or paid under specified spot and lease rateassumptions. The specified lease rates are used for all resets, i.e. one month, three month and six month. The specified spot priceis used to cash-settle all contracts. All amounts are in US$ millions.

Spot US$250/oz US$275/oz US$300/ozLease Rate 1% 2% 3% 1% 2% 3% 1% 2% 3%

2002 83.79 79.33 74.88 62.73 57.84 52.94 40.68 35.34 30.002003 87.55 76.81 66.06 69.33 57.51 45.69 50.11 37.22 24.322004 74.57 64.80 55.02 60.32 49.57 38.82 45.07 33.34 21.612005 66.55 57.99 49.44 52.91 43.50 34.10 39.27 29.01 18.752006 56.96 49.69 42.41 46.22 38.22 30.22 35.48 26.75 18.032007 49.37 43.17 36.97 40.05 33.23 26.41 30.73 23.29 15.852008 50.55 45.22 39.90 40.83 34.98 29.12 31.12 24.73 18.352009 46.23 41.72 37.20 37.12 32.15 27.18 28.00 22.58 17.162010 41.88 37.84 33.81 33.73 29.30 24.86 25.59 20.75 15.922011 31.20 27.47 23.74 24.98 20.88 16.87 18.77 14.30 9.822012 28.90 25.34 21.77 23.14 19.22 15.30 17.38 13.10 8.822013 20.91 17.43 13.96 16.34 12.52 8.70 11.78 7.61 3.44

Total 638.46 566.81 495.16 507.70 428.92 350.21 373.98 288.02 202.07

Hedging Appendix 57

Spot US$325/oz US$350/oz US$375/oz US$400/ozLease Rate 1% 2% 3% 1% 2% 3% 1% 2% 3% 1% 2% 3%

17.88 12.09 6.31 (12.83) (19.06) (25.29) (47.40) (54.07) (60.75) (80.57) (87.69) (94.81)28.93 14.96 0.99 1.81 (13.23) (28.28) (30.63) (46.75) (62.87) (64.02) (81.22) (98.41)28.56 15.85 3.15 7.46 (6.23) (19.91) (21.15) (35.82) (50.48) (49.15) (64.79) (80.43)25.63 14.52 3.40 7.16 (4.81) (16.78) (14.75) (27.58) (40.40) (36.05) (49.73) (63.41)24.74 15.28 5.83 13.75 3.57 (6.61) 3.64 (7.27) (18.18) (12.13) (23.76) (35.40)21.41 13.35 5.29 11.06 2.38 (6.30) 1.38 (7.92) (17.22) (14.73) (24.65) (34.57)21.41 14.49 7.57 10.99 3.54 (3.92) 1.05 (6.94) (14.92) (15.58) (24.10) (32.61)18.88 13.01 7.13 9.76 3.43 (2.89) (0.77) (7.55) (14.32) (10.32) (17.54) (24.77)17.45 12.21 6.97 9.31 3.67 (1.98) (0.24) (6.29) (12.34) (8.02) (14.47) (20.92)12.55 7.71 2.86 6.34 1.12 (4.10) (1.29) (6.88) (12.47) (8.92) (14.88) (20.84)11.62 6.98 2.35 5.86 0.86 (4.13) (1.32) (6.67) (12.01) (8.49) (14.20) (19.90)7.22 2.70 (1.82) 2.66 (2.21) (7.08) (3.32) (8.53) (13.75) (9.30) (14.86) (20.42)

Total 236.28 143.15 50.03 73.33 (26.97) (127.27) (114.80) (222.27) (329.71) (317.28) (431.89) (546.49)

Portfolio SensitivitiesThe following table shows the sensitivity of the portfolio to certain market rate movements as at 31 December 2001. A description of each sensitivity is given below.

Delta (6.0) (Ounces million)Gold Rho 0.9 (US$ million)US Rho (17.6) (US$ million)Gold Vega (3.9) (US$ million)Theta (per day) 0.4 (US$ million)

Delta The delta shows the gold ounces that Ashanti would have to buy to neutralise the Hedge Book position. The delta could also be interpreted as the change in mark-to-market for a US$1 move in the spot gold price, i.e.a US$1 increase in spot would reduce the mark-to-market by US$6.0 million.

Gold Rho The gold rho figure shows the change in mark-to-market for a 25 basis point parallel shift in the gold interest ratecurve, i.e. a 0.25 per cent rise in gold interest rate across the gold curve would increase the mark-to-market byUS$0.9 million.

US Rho The US rho figure shows the change in the mark-to-market for a 25 basis point parallel shift in US interest rates,i.e. a 0.25 per cent rise in US interest rates across the US interest rate curve would decrease the mark-to-marketby US$17.6 million.

Gold Vega The Gold vega figure shows the change in mark-to-market for a 1 per cent parallel shift in the gold volatility curve,i.e. a 1 per cent rise in the gold volatility curve would decrease the mark-to-market by US$3.9 million.

Theta The theta figure shows the change in mark-to-market owing to the passing of one day, with everything elseremaining constant, i.e. if all market parameters stay the same, the mark-to-market would increase byUS$0.4 million for the next day.

Geita HedgingThe table below shows Ashanti's portion of hedging commitments for Geita as at 31 December 2001. The table represents halfof Geita’s hedge commitments.

Mark-to-Market ValuationOn 31 December 2001 the Geita portfolio had a negative mark-to-market value of US$4.7 million (Ashanti’s portion: US$2.4million). This valuation was based on a spot price of US$277 and the then prevailing US interest rates, gold forward rates,volatilities and guidelines provided by the Risk Management Committee.

2002 2003 2004 2005 2006 2007 Total

Forward Sales (ounces) 225,350 238,681 195,558 125,744 94,576 120,938 1,000,847(US$/ounce) 282.07 285.78 288.53 294.33 296.05 298.49 289.06

Puts:Bought (ounces) 25,170 26,735 25,586 24,350 18,115 23,390 143,346

(US$/ounce) 291.03 291.19 291.29 291.19 291.03 291.66 291.23

Summary:Protected (ounces) 250,520 265,416 221,144 150,094 112,691 144,328 1,144,193

Committed (ounces) 225,350 238,681 195,558 125,744 94,576 120,938 1,000,847

Total committed ounces as a percentage of total forecast production 60%

Lease Rate Swap (ounces) 233,316 200,964 156,301 116,774 76,301 41,420 233,316

58

Year to Year to Year to Year to Year to31 Dec 1997 31 Dec 1998 31 Dec 1999 31 Dec 2000 31 Dec 2001

US$m US$m US$m US$m US$m

Profit and LossTurnover 531.3 600.3 582.1 582.2 554.4

Total costs before exceptional items (447.7) (500.8) (485.8) (493.1) (457.6)

Operating profit before exceptional items 83.6 99.5 96.3 89.1 76.6Share of operating profit of joint venture – – – – 20.2

Profit before taxation andexceptional items 60.4 76.3 66.4 37.8 67.4

Exceptional items (4.7) (33.2) (250.0) (168.6) –Taxation (2.4) – (2.7) (8.8) (6.8)Profit/(loss) after taxation andexceptional items 53.3 43.1 (186.3) (139.6) 60.6

Profit/(loss) attributable to shareholders 53.7 40.7 (183.9) (141.1) 62.7Dividend (21.8) (10.9) – – –

Retained profit/(loss) for the year 31.9 29.8 (183.9) (141.1) 62.7

Earnings per share before exceptional items (US$) 0.54 0.68 0.59 0.27 0.56

31 Dec 1997 31 Dec 1998 31 Dec 1999 31 Dec 2000 31 Dec 2001US$m US$m US$m US$m US$m

Balance SheetFixed assets 1,101.2 1,213.1 1,139.5 769.2 746.0

Current assets 258.1 276.2 197.9 167.0 144.8

Creditors:Amounts due within one year (206.3) (282.4) (341.0) (176.2) (180.3)

Net current assets/(liabilities) 51.8 (6.2) (143.1) (9.2) (35.5)

Total assets less current liabilities 1,153.0 1,206.9 996.4 760.0 710.5

Creditors:Amounts due over one year (614.4) (632.2) (578.6) (456.7) (350.4)

Capital and reservesStated capital 515.6 518.6 544.3 544.3 545.2Reserves 4.6 30.8 (153.1) (269.6) (206.9)

Shareholders’ funds 520.2 549.4 391.2 274.7 338.3

Five Year Financial Summary

59Shareholder Information

Shareholder Profile as at 28 February 2002

Number of Per cent of total Number Per cent of Category shareholders shareholders of shares issued shares

Private individuals 27,441 96.68 1,908,542 1.68Pension funds 4 0.01 180,510 0.16Insurance companies 16 0.06 12,936 0.01Private/investment trusts 70 0.25 861,899 0.76Other corporate holders 859 3.00 109,750,335 97.39

Total 28,390 100.00 112,714,222* 100.00

Size of Shareholding

1 – 100 25,897 91.22 342,678 0.30101 – 500 1,825 6.43 387,864 0.35501 – 1,000 292 1.03 207,100 0.181,001 – 5,000 298 1.05 634,659 0.565,001 – 10,000 31 0.11 230,124 0.2010,001 and over 47 0.16 110,911,797 98.41

Total 28,390 100.00 112,714,222* 100.00

*Excluding 559,405 ordinary shares held in Treasury

Twenty largest shareholders as at 28 February 2002

(representing 98 per cent of issued ordinary shares of 112,714,222)

Number ofName of Company/Individual shares held

Depositary Nominee, Inc.* 47,510,281

Lonmin Plc 36,000,000

Government of Ghana 21,978,104

Libyan Arab African Investment Co. Ltd. 1,601,309

Vidacos Nominees Limited 1,212,110

AGC Share Scheme Trustee Limited 462,164

AGC Share Incentive Trustee Limited 239,606

National Nominees Limited 210,998

James Capel (Second Nominees) Limited 179,630

Social Security and National Insurance Trust 178,876

*Depository for Global Depositary Receipts

Number ofName of Company/Individual shares held

Merrill Lynch (Australia) 170,795

Temple Assets Executor and Trust Co. (PVT) Ltd 127,353

ANZ Nominees Limited 120,993

Roytor & Co. 107,129

Ghana Cocoa Coffee & Sheanut Farmers Assoc. 100,593

Gold Crest Securities Limited 87,181

Ashanti Goldfields Zimbabwe Employees 73,340

James Capel (Nominees) Limited 55,151

EBG Stockbrokers/Adansi Development Fund 53,485

Sam Jonah 45,302

110,514,400

60 Shareholder Information

Listing of Ordinary SharesThe Company’s ordinary shares are listed on the following international stock exchangesand trade under the symbols shown:

Australia AHAGhana AGCLondon ASHGq.LNew York ASL (CUSIP # 043743202)Zimbabwe –

On the Australian Stock Exchange, the shares also trade as CHESS Units of ForeignSecurities (CUFS).

The Company’s shares are also traded on the London and New York stock exchanges byway of a sponsored Global Depositary Receipt (GDR) facility with The Bank of New Yorkas Depositary. The ratio of GDRs to ordinary shares is 1:1. The securities are also traded asordinary shares on the Ghana and London stock exchanges.

On the Zimbabwe Stock Exchange, the Company’s securities are traded by way of asponsored Zimbabwe Depositary Receipt (ZDR) facility with Temple Assets Executor andTrust Company (Private) Limited as Depositary and are also traded as ordinary shares. Theratio of ZDRs to ordinary shares is 100:1.

Dividend PaymentsThe Company’s ordinary dividends are declared and paid in US dollars to shareholders onthe International Register unless they elect to receive them in pounds sterling.

Shareholders on the Australian Register receive their dividends in Australian dollars unlessthey elect to receive them in US dollars or pounds sterling.

Shareholders on the Ghana Register receive their dividends in Cedis unless they are non-resident and elect to receive them in US dollars or pounds sterling.

Shareholders on the Zimbabwe Register receive their dividends in Zimbabwe dollars.

The exchange rates used to determine the payments in other currencies are as at the dividendrecord date.

Dividend MandatesShareholders who wish to have their dividends paid directly into a bank or building societyaccount should contact their Registrars for a dividend mandate form.

Share Dividend PlanShareholders are normally offered the opportunity under the Ashanti Share Dividend Plan toreinvest their cash dividends in the Company’s shares. To date, the Ashanti Share DividendPlan has not been offered to shareholders on the Zimbabwe Register because they would bedisadvantaged by the significant share price differential between the London and Zimbabwestock exchanges. The Company is monitoring the share price differential and will offer ashare alternative once the differential is considered to be immaterial.

Shareholder Enquiries:

International Registrars’UK Transfer OfficeCapita IRG PlcBourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TUTelephone: (+44-20) 8639 2000Fax: (+44-20) 8639 2487

Australian RegistrarsASX Perpetual RegistrarsGPO Box 1736PMelbourne, Victoria 3001Telephone: (+61-3) 9205 4999Fax: (+61-3) 9205 4900

Ghana RegistrarsBarclays Bank of Ghana LimitedRegistrar’s DepartmentHigh StreetP O Box 2949AccraTelephone: (+233-21) 669404Fax: (+233-21) 667420

Zimbabwe RegistrarsSyfrets Corporate and Merchant BankP O Box 2540Zimbank House46 Speke AvenueHarare, ZimbabweTelephone: (+263-4) 757471Fax: (+263-4) 738844

GDR Holder Enquiries:

The Bank of New YorkADR Department101 Barclay Street, 22nd FloorNew York, NY 10286Telephone: (+1-212) 815 5133Fax: (+1-212) 571 3050

61Officers

Corporate Office

S E Jonah *Chief Executive and Group Managing Director

Mrs M Botsio-Phillips *General Counsel

S Venkatakrishnan *Chief Financial Officer

Mrs E D Ofori Atta *Executive Director, Corporate Relations

T S Schultz *Chief Operating Officer

E Abankroh *Company Secretary

J K Anaman *Managing Director, Public Affairs

M. ArnesenManaging Director, International Treasury

K Awotwi *Managing Director, Strategic Planning & New Business Development

A Darko *Managing Director, Information Systems & Telecoms

M AhorneyGeneral Manager, Budgeting & Planning

K Akosah-BempahGeneral Manager, Corporate Finance

E Dwomoh-AppiahGeneral Manager, Properties

A de FreitasGroup Mining Engineer

E Harlley *Group Manager, Internal Audit

G TownsendGroup Financial Controller

K TshribiGeneral Manager, Legal

Group ProjectsG Potter *Managing Director

Ashanti ExplorationP N Cowley *Managing Director

*Member of the Chief Executive’s Committee

Ashanti ZimbabweA NtiniManaging Director

N A ArmarFinance Director

Bibiani MineB HorochukManaging Director

Iduapriem MineD RennerManaging Director

Obuasi MineA DodsManaging Director

G KessieFinancial Controller

J A AmanorSenior Manager, Geology

Mrs E KwamiGeneral Manager, Human Resources

S Oti-AttakorahGeneral Manager, Processing

S Oti-BrakoGeneral Manager, Mining

J Y TimbillaGeneral Manager, Projects

Siguiri, GuineaD M A OwireduDirecteur Générale and Managing Director,Société Ashanti Goldfields de Guinée

Ben AhetoMine Manager, Siguiri

Geita, TanzaniaP TurnerChief Executive Officer

P LouwFinance Director

Kimin, D.R.C.I DansoManaging Director

62 Notice of Annual General Meeting

Notice is hereby given that the twenty-ninth Annual General Meeting of Ashanti Goldfields Company Limited will be held atthe Len Clay Stadium, Obuasi, Ghana on Tuesday 28 May 2002 at 11.00 a.m. to transact the following business:

Ordinary ResolutionsOrdinary Business1. To receive and consider the reports of the directors and auditors and the accounts for the year ended 31 December 2001.2. To re-elect as a director The Rt. Hon. The Baroness Chalker of Wallasey PC who is retiring by rotation.3. To re-elect as a director Dr Chester Arthur Crocker who is retiring by rotation.4. To re-elect as a director Mr Thomas Richard Gibian who is retiring by rotation.5. To re-elect as a director Dr Michael Peter Martineau who is retiring by rotation.6. To elect as a director Mr Theophilus Ernest Anin who was appointed by the Board since the last Annual General Meeting.7. To elect as a director Mr Gordon Edward Haslam who was appointed by the Board since the last Annual General Meeting.8. To authorise the directors to determine the fees of the Company’s auditors, Deloitte & Touche.

Special BusinessTo pass the following as ordinary resolutions:

9. THAT the service agreement between the Company and Mr T S Schultz dated 27 March 2002, a copy of which has beensigned for the purpose of identification by the Chairman of the Meeting, and the terms of the appointment of Mr T S Schultzto his office as an executive director contained therein be and are hereby approved for the purposes of Section 194(4) of theCompanies Code, 1963 (Act 179).

10. THAT the directors be and are hereby generally and unconditionally authorised pursuant to Section 202(1) of theCompanies Code, 1963 (Act 179) to exercise all the powers of the Company to allot and issue:(a) ordinary shares in connection with any option scheme or share scheme for directors and/or employees approved by the

members in General Meeting,(b) up to 38,000,000 ordinary shares without offering such shares to existing shareholders in accordance with the

provisions of sub-paragraph (b) of the said Section 202(1) PROVIDED that this authority shall be limited so that,otherwise than pursuant to the authority referred to above and a rights issue or similar offer where shares or othersecurities are offered to ordinary shareholders and such holders of other securities of the Company as the directors maydetermine on a fixed record date in proportion (as nearly as may be) to their then holdings of securities or in accordancewith the rights attached thereto (subject to such exclusions or other arrangements as the directors may deem necessaryor expedient in relation to fractional entitlements or having regard to any restrictions, obligations or practical problemsarising from or under the laws or the requirements of any territory or of any recognised regulatory body or stockexchange or otherwise howsoever) the aggregate number of shares to be issued for cash by the directors pursuant to theauthority contained in this sub-paragraph (b) shall not in aggregate exceed 5,600,000 ordinary shares and suchauthority (unless previously revoked or renewed) shall expire on 28 August 2003 or the conclusion of the next AnnualGeneral Meeting of the Company (whichever is the earlier) save that the Company may before such expiry make anoffer or agreement which would or might require shares to be allotted after such expiry and the directors may allot andissue shares in pursuance of such offer or agreement as if the said authority had not expired; and

11. THAT subject to the passing of Resolution 10 above the provisions of Section 202(2) of the Companies Code, 1963(Act 179) be and are hereby disapplied in connection with: (i) any issue of shares pursuant to the authorities conferred byResolution 10 above; and (ii) any issue of treasury shares.

To pass the following as a Special Resolution:

Special Resolution12. THAT the Company be and is hereby unconditionally authorised to exercise all the powers of the Company to make market

or off market purchases of the Company’s ordinary shares up to an aggregate of 13,000,000 ordinary shares at a price pershare (exclusive of expenses) of not more than 5 per cent above the average of the respective middle market quotations forthe shares as derived from the Daily Official List of the London Stock Exchange for the five business days before thepurchase is made, such authority (unless previously revoked or renewed) shall expire on 28 August 2003 or at the conclusionof the next Annual General Meeting of the Company (whichever is the earlier) save that the Company may before suchexpiry enter into a contract to purchase shares which would or might require to be executed wholly or partly after suchexpiry and may make a purchase of shares pursuant to such contract as if the said authority had not expired.

By order of the Board Registered OfficeGold House

Patrice Lumumba RoadRoman Ridge

PO Box 2665Accra

Ernest AbankrohSecretary 28 March 2002

Ashanti Goldfields Company Limited (Registered in Ghana No. 7094) (ARBN 074 370 862)

63Notice of Annual General Meeting

Notes:

1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of him. A proxy need not bea member. Completion and return of an instrument appointing a proxy will not preclude a member from attending and voting in person atthe meeting.

2. In order to be valid, the instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed, or acopy of such authority certified notarially or in some other way approved by the Board, must be deposited at the offices of the Company’sRegistrars in Ghana, Barclays Bank of Ghana Limited, High Street, PO Box 2949, Accra, Ghana or at the UK Transfer Office of theCompany’s International Registrars, Capita IRG Plc, Bourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TU, UK or at the officesof the Company’s Registrars in Australia, ASX Perpetual Registrars GPO Box 1736P, Melbourne, Victoria 3001, Australia or at the officesof the Company’s Registrars in Zimbabwe, Syfrets Corporate and Merchant Bank, PO Box 2540, Zimbank House, 46 Speke Avenue,Harare, Zimbabwe, not less than 48 hours before the time appointed for holding the meeting.

FAILURE TO DEPOSIT THE FORM OF PROXY AS REQUIRED WILL RESULT IN THE PROXY NOT BEING ADMITTED TO,OR PARTICIPATING IN THE MEETING.

3. In the case of joint registered holders of any share, the vote of the senior who tenders a vote, whether in person or by proxy, shall beaccepted to the exclusion of the vote of the other joint holders. For this purpose seniority shall be determined by the order in which thenames of the holders stand in the register.

4. Copies of the directors’ service agreement of more than one year’s duration will be available for inspection during business hours at theCompany’s registered office and the UK Transfer Office referred to in Note 2 above from the date of this Notice and at the Len ClayStadium, Obuasi, Ghana from 10.00 a.m. on 28 May 2002 until the conclusion of the Annual General Meeting.

5. Under Section 194 of the Companies Code of Ghana, the terms of appointment of the office of Directors of the Company need to beapproved by the shareholders of the Company by way of an ordinary resolution. Resolution 9 above has been included to approve thecontract between the Company and Mr T S Schultz for the period 1 January 2003 to 31 December 2003.

6. It is proposed by Resolution 10 to enable the directors to allot unissued and uncommitted share capital of the Company amounting to38,000,000 Ashanti shares (representing approximately one-third of the current issued share capital of the Company) until 28 May 2003 orthe conclusion of the next Annual General Meeting (whichever is the earlier). This Resolution is proposed so as to give the directors thenecessary flexibility to take advantage of business opportunities as they arise. The directors, other than in connection with option schemes orshare plans, have no present intention of using this authority which renews an existing authority given to them each year. This is withoutprejudice to the formal request which will be made separately in respect of the Company’s debt restructuring.

It is also proposed by Resolution 10 to empower the directors to allot equity securities for cash without first offering them to existingshareholders in proportion to their holdings, subject to a maximum of 5,600,000 Ashanti shares representing approximately 5 per cent ofthe current issued share capital. The directors, other than in connection with option schemes or share plans, have no present intention ofusing this authority which replaces the equivalent resolution passed at the last Annual General Meeting and will expire on 28 August 2003or at the conclusion of next year’s Annual General Meeting (whichever is the earlier). This Resolution is proposed so as to give the directorsthe necessary flexibility to take advantage of business opportunities as they arise and the 5,600,000 ordinary shares limit for issues of sharesfor cash ensures that existing shareholders’ interests are protected.

7. It is proposed by Resolution 12 to renew the Company’s authority to purchase its own issued shares at a price which is not more than 5 percent (exclusive of expenses) above the average of the market values of Ashanti shares taken from the London Stock Exchange Daily OfficialList for the five business days before the purchase is made. The authority will be for the purchase of a maximum of 13,000,000 Ashantishares (approximately 10 per cent of the Company’s current issued share capital) and will expire on 28 August 2003 or at the conclusionof next year’s Annual General Meeting (whichever is the earlier). It is presently intended that a resolution for its renewal will be proposedat each succeeding Annual General Meeting. The Company will continue to make purchases when it considers appropriate although nopurchases will be made unless the effect will be to increase expected earnings per share and such purchases would be in the best interestsof shareholders generally.

Forward Looking Statements64

This report contains a number of statements relating to plans, forecasts, and future results of Ashanti Goldfields CompanyLimited (“Ashanti”) that are considered “forward looking statements” as defined in the Private Securities Litigation Reform Act1995 of the United States of America including but not limited to the restructuring of the Exchangeable Notes, the restructuringof Ashanti’s hedge book and negotiations to extend margin-free trading arrangements, the negotiation of a new Revolving CreditFacility, future production levels and operating costs, plans for diversification, and the removal of the Golden Share. Ashantimay also make written or oral forward looking statements in its presentation, in its periodic reports and filings with the variousregulatory authorities, in its annual report to shareholders, in its offering circulars and prospectuses, in press releases and otherwritten materials and in oral statements made by its officers, directors or employees to third parties. These forward lookingstatements include statements about our beliefs, hopes, projections and expectations, and may include statements regardingfuture plans, objectives or goals, anticipated production or construction commencement dates, construction completion dates,expected costs, production output, the anticipated productive life of mines, projected cashflows, debt levels, and mark-to-marketvalues of and cashflows from the hedgebook.

Such statements are based on current plans, information, intentions, estimates and projections and certain external factors whichmay be beyond the control of Ashanti and, therefore, undue reliance should not be placed on them. Forward looking statementsspeak only as of the date they are made, and Ashanti undertakes no obligation to update publicly any of them in light of newinformation or future events. These statements are subject to risks and uncertainties that could cause actual occurrences to differmaterially from the forward looking statements, such as the risks that conditions to the Restructuring of the Exchangeable Notesmay not be satisfied, fulfilled or waived, the Scheme of Arrangement might not be approved by the holders of the ExchangeableNotes or by the relevant Court, the restructuring of Ashanti’s hedge book may not be able to proceed as hoped, Ashanti maynot be able to achieve the levels of production and operating costs it has projected, the Government of Ghana may refuse torelinquish the Golden Share. Additional risk factors affecting Ashanti are set out in Ashanti’s filing with the US Securities andExchange Commission.

Ashanti can give no assurances that such results, including the actual production or commencement dates, constructioncompletion dates, costs or production output or anticipated life of the projects and mines, projected cashflows, debt levels, andmark-to-market values of and cashflows from the hedgebook, and projections of the conditions under which a particular hedgecounterparty might be permitted to make margin calls discussed will not differ materially from the statements contained in thisreport. 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 RiskFactors include liquidity, gold price volatility, hedging operations, reserves estimates, exploration and development, mining,yearly output, infrastructure, Ghanaian political risks, environmental regulation, labour relations, general political risks, controlby principal shareholders, Ghanaian Statutory provisions, dividend and litigation. For example, future revenues from projectsor 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 theexpansion of specified mines.

Other factors that may affect the actual construction or production commencement dates, costs or production output andanticipated life of mines include the ability to profitably produce 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 governmentalauthorities where such projects or mines are being explored or developed, including increases in taxes, changes in environmentaland other regulations and political uncertainty.

Likewise the cashflows from and mark-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 Ashanti undertakes no obligation to update publiclyany of them in light of new information or future events.

1.66

1.74

1.56

1.55

1.17

Total Gold Production (millions of ounces)

2001

2000

1999

1998

1997

335.0

335.0

372.0

385.0

450.0

Total Gold Price Realised (US$ per ounce)

2001

2000

1999

1998

1997

190.0

187.0

205.0

218.0

254.0

Total Cash Operating Costs before exceptional items(US$ per ounce)

2001

2000

1999

1998

1997

158.9

203.9

211.2

208.1

171.4

Group Operating Cash Flow before exceptional items(US$ millions)

2001

2000

1999

1998

1997

62.7

30.5

66.1

73.9

58.4

Earnings before exceptional items (US$ millions)

Cover picture: Mrs Kallo Maimouna Maga, Headmistress of the Siguiri Primary School and some of her pupils inan outdoor play session during school vacation

2001

2000

1999

1998

1997

ContentsChairman’s Statement 2Highlights 3Chief Executive’s Review 4Operations Review 8Financial Review 17Production 20Ore Reserves and Mineral Resources 22Financial Statements and Corporate Information 25

Financial CalendarAnnual General Meeting 28 May 2002First Quarter Results May 2002Second Quarter Results July 2002Third Quarter Results October 2002Full Year Results February 2003

65Corporate Information

Registered OfficeGold HousePatrice Lumumba RoadPO Box 2665Accra, GhanaTelephones: (+233-21) 772190

(+233-21) 772235(+233-21) 778160(+233-21) 778167(+233-21) 761311

(Satellite) 874 1562524Fax: (+233-21) 775947(Satellite) 874 1562525Website www.ashantigold.com

Ernest AbankrohCompany SecretaryTelephone: (+233-21) 774977Fax: (+233-21) 778155E-Mail Address ernest.abankroh@ashantigold.com

London Office3rd Floor, Roman HouseWood StreetLondon EC2Y 5BAUnited KingdomTelephone: (+44-20) 7256 9938Fax: (+44-20) 7256 9939

Investor RelationsCorporate OfficeJames AnamanManaging Director, Public AffairsTelephones: (+233-21) 778178

(+233-21) 772190Fax: (+233-21) 778156E-Mail Address james.anaman@ashantigold.com

London OfficeCorinne GaisieUK RepresentativeTelephone: (+44-20) 7256 9938Fax: (+44-20) 7256 9939E-Mail Address corinne.gaisie@ashanti.co.uk

Golin HarrisAllan Jordan (New York)Telephone: (+1-212) 697 9191Fax: (+1-212) 697 3720E-Mail Address ajordan@golinharris.com

Bibiani MinePO Box 98, Bibiani, GhanaTelephone: (+233-51) 20118Satellite Fax: 873 761314865

Freda-Rebecca MinePO Box 70, Bindura, ZimbabweTelephone: (+263-71) 7300/1Fax: (+263-71) 6919

Geita MinePO Box 532Geita, TanzaniaTelephone:Fax:

Iduapriem MinePO Box 283, Tarkwa, GhanaTelephone: (+233-362) 505(Satellite) 873 1627111Fax: (+233-362) 479(Satellite) 873 1627112

Obuasi MinePO Box 10, Obuasi, GhanaTelephones: (+233-582) 494–8

(+233-582) 475Fax: (+233-582) 268

Siguiri Minec/o Société Ashanti Goldfields de GuinéeKM4, Cameroun B.P. 1006Conakry, GuinéeTelephone: (+1-301) 916 53 87Satellite 873 761333884

873 685-51881Fax: (+1-301) 916 53 79Satellite 873 76333885

Ashanti Exploration4, Nortei Ababio StreetRoman RidgePO Box 2665, Accra, GhanaTelephones: (+233-21) 774377

(+233-21) 767335/6Fax: (+233-21) 778739

Ashanti Goldfields Company Limited Registered in Ghana No. 7094 ARBN 074 370 862

Photography by Norman Childs. Designed and produced by THE & FACTOR. Printed in England by royle corporate print

(+255-28) 2520 500(+255-28) 2520 502