In recent discussions surrounding the potential sale of Azumah Resources, a prominent gold exploration and mining company, a critical issue has emerged: the proposed demand for a change in the transactional value for the sale of 100% of Azumah Resources.
This demand is based on fluctuating gold prices and seeks to adjust the sale price accordingly.
However, such a stance is both unjustified and impractical, given the inherent complexities of mineral asset valuation, especially for a company yet to commence full-scale operations.
The Fallacy of Using Current Gold Prices as a Benchmark
Gold prices are notoriously volatile, influenced by global economic conditions, geopolitical events, currency fluctuations, and speculative activities. While current market prices can provide a snapshot of value at any given moment, they are poor benchmarks for transactions involving assets with long gestation periods and uncertain future revenues.
Using current gold prices as a basis for adjusting the transactional value of Azumah Resources ignores the fundamental principle that future mine revenues depend on a multitude of factors extraction costs, technological advancements, environmental regulations, and market demand, among others.
Relying solely on current spot prices risks undervaluing or overvaluing the asset, leading to unfair or unsustainable transaction terms.
The Uncertainty of Future Mine Performance
Azumah Resources is still in the exploration and development phase, with significant milestones yet to be achieved before commercial production. The anticipated returns from a mine are inherently uncertain, contingent upon successful development, operational efficiency, and sustained commodity prices over the mine’s lifespan.
Attempting to retroactively adjust the sale price based on presumed future gold prices disregards the risk profile of the project and the time value of money. Investors and buyers should recognize that valuation at this stage must incorporate a risk premium and realistic projections, not current market fluctuations.
The Inappropriateness of Turnable Transactional Value
The concept of a “turnable” transactional value one that can be adjusted or renegotiated based on short-term market movements is problematic. It undermines the stability of investment agreements and introduces undue uncertainty.
Such flexibility may benefit opportunistic parties but risks destabilizing the market and unfairly disadvantaging the seller, especially when the asset’s valuation is fundamentally uncertain.
Furthermore, imposing such adjustments can discourage genuine investment and development, as potential buyers may be deterred by the prospect of future arbitrary valuation changes. It also sets a dangerous precedent for future resource transactions, where market volatility could be exploited to renegotiate terms post-agreement.
Conclusion:Upholding Fairness and Market Integrity
In summary, the demand for adjusting the transactional value of Azumah Resources based on current gold prices is unjustifiable and counterproductive. Valuations of mineral assets, particularly at early stages, must be grounded in realistic projections, comprehensive risk assessments, and long-term market outlooks.
It is essential for stakeholders to recognize that the true value of Azumah Resources lies in its potential, not fluctuating spot prices. Any attempt to manipulate transaction terms based on current gold prices undermines the principles of fair trade, market stability, and investor confidence.
The sale of Azumah Resources should proceed on transparent, reasonable terms that reflect its developmental stage and inherent risks, not on speculative adjustments driven by short-term market volatility.
The Ghana Gold Board has officially commenced the full implementation of the new gold trading licensing regime, introducing sweeping reforms aimed at eliminating illegal gold trading and smuggling across the country.
The enforcement of the Ghana Gold Board Act, 2025 (Act 1140) marks a major milestone in the government’s broader effort to restructure and formalise the gold trading industry to maximise revenue for the state.
At a press conference in Accra, the Chief Executive Officer of the Ghana Gold Board, Sammy Gyamfi, emphasised that only individuals and entities duly licensed under the new framework are permitted to trade gold in Ghana.
“The new gold board licensing regime has taken full effect,” he said.
“Only Ghanaians who have gone through the approved process and obtained a valid license from the Ghana Gold Board can legally engage in gold trading.”
Mr. Gyamfi clarified that the new law overrides all previous licenses issued by the defunct Precious Minerals Marketing Company (PMMC) and the Ministry of Lands and Natural Resources, rendering them null and void.
“Operating under old licenses is no longer permitted. Those days are over,” he stressed.
Quoting Section 63 of Act 1140, Mr. Gyamfi warned that unlicensed trading constitutes a criminal offence punishable by fines and jail terms.
“Anyone found trading gold without a Gold Board license commits an offence and is liable, upon summary conviction, to a fine of not less than 50,000 and not more than 200,000 penalty units, or imprisonment for a term between five and ten years—or both,” he said.
To reinforce compliance and crack down on illegal operations, President John Dramani Mahama will, on July 8, 2025, inaugurate the Gold Board Task Force at the National Security Secretariat (Blue Gate), Accra.
The task force will possess police-level powers and operate in coordination with a nationwide intelligence network to detect and halt illegal gold trade, smuggling, and price manipulation.
“This specialised unit is a critical part of efforts to protect Ghana’s mineral wealth and ensure fair pricing and accountability in the sector,” Mr. Gyamfi said.
The CEO disclosed that by the application deadline of June 21, 2025, the Gold Board had received:
Over 300 applications for Tier 1 Buyer Licenses
About 200 applications for Tier 2 Buyer Licenses
30 applications for Self-Financing Aggregator Licenses
15 applications for Aggregator Licenses
To date, more than 240 licenses have been approved after meeting eligibility requirements. Mr. Gyamfi confirmed that the application process remains open on a rolling basis, but unlicensed individuals and firms are barred from operating in the interim.
In line with promoting transparency and efficiency, the licensing process has been fully digitised.
Applicants are notified via email and online accounts, and payments are processed through the Ghana.gov portal.
Mr. Gyamfi concluded by urging all stakeholders to comply with the new licensing regime and support efforts to build a responsible, transparent, and economically beneficial gold trading system in Ghana.
The Minister for Finance, Dr Cassiel Ato Forson, has tasked the newly inaugurated Governing Board of the Ghana Gold Board to work hard to support and sustain the gains by the local currency (Cedi) against the major international trading currencies.
Although the Gold Board activities in the past months are not solely responsible for the Cedi’s resilience, the minister believes the activities of the Goldbod stand to further strengthen this performance.
At the inauguration of the new Governing Board, the minister emphasised that, the paradigm shift in government’s approach to gold trading contributing to robust gold reserves, will challenge traditional models reliant on old patterns, potentially leading to inaccurate projections and missing the true potential of the Cedi. In fact, it will change how both the Ghana cedi and Ghana’s foreign exchange accumulation will behave in the future.
“I wish to assure the Ghanaian public and our stakeholders, that the outlook for the Ghana cedi remains robust and sustainable, supported by the transformative activities of the Goldbod”, Dr Ato Forson said.
“I urge the newly-constituted Board to work hard to support and sustain this trajectory.”
Read Full Statement Below:
SPEECH DELIVERED BY THE FINANCE MINISTER, DR. CASSIEL ATO FORSON AT THE INAUGURATION OF THE GOVERNING BOARD OF THE GOLDBOD TODAY
Esteemed Chairman and members of the Board of Directors of the Ghana Gold Board (GoldBod);
2. I have the singular honour to congratulate you, on behalf of His Excellency President John Dramani Mahama, on your appointment to the Board.
3. Today’s inauguration marks the climax of months of diligent and painstaking work.
4. This journey began on January 27th, 2025, with the inauguration of the Technical Committee tasked to develop the legal and operational framework, particularly the drafting of a Bill for the establishment of the Ghana Gold Board (GoldBod).
5. The Technical Committee delivered on its mandate in a timely and efficient manner, culminating in the passage of the GoldBod Bill by Parliament at its last session, and its subsequent assent by His Excellency the President.
6. I must commend the members of the erstwhile Technical Committee and all who played various roles in developing the fit for purpose and time-tested GoldBod Act, within record time.
7. Distinguished members of the Board, it bears reminding you, that the Ghana GoldBod is a flagship initiative envisioned by His Excellency President John Dramani Mahama for economic revitalization.
8. The GoldBod is a vehicle for achieving currency stability through the structured purchasing and management of Ghana’s gold resources.
9. As Africa’s leading gold producer, Ghana derives substantial foreign exchange earnings from gold. However, the benefits accrued from this valuable mineral remain minimal, often coming at a steep environmental cost.
10. Historically, Ghana’s revenues from gold have been confined to traditional sources such as royalties and taxes.
11. The Ghanaian economy has not realized the full benefit of our gold resources.
12. Hence, the time has come for Ghana to expand beyond royalties and taxes by harnessing the entire value chain of gold.
13. To achieve this, we must optimise every stage of the value chain—from extraction to refining, value addition and marketing, both locally and internationally.
14. The Ghana Gold Board is here to serve as that specialised agency for effective marketing of our gold resources.
15. This will involve the implementation of a deliberate program to formalise gold trading from the small-scale mining industry and promote traceability with the aim of enhancing the international acceptability of gold from Ghana.
16. I am happy to announce, that the erstwhile chaos in Ghana’s gold purchasing sector that prevented the nation from fully benefiting from its gold resources, has come to an end.
17. Hitherto, the Precious Minerals Marketing Company (PMMC) had the mandate to purchase and sell gold. However, this mandate was not exclusive.
18. The Bank of Ghana also used to purchase gold through PMMC and other private aggregators under initiatives such as “gold for forex,” “gold for reserves”, “gold for oil,” and “gold for cash” among others.
19. Additionally, the Minerals Income Investment Fund (MIIF), despite its primary mandate to optimize mineral investment, also ventured into gold buying, incurring substantial financial losses.
20. Apart from these, numerous individual Ghanaians and foreigners with export licenses and/or gold buying licenses were also active in the gold purchases and export market.
21. This fragmented, uncoordinated and unregulated system led to widespread gold smuggling and deprived the state of much-needed foreign exchange.
22. All of this now belongs in the past, because the Ghana GoldBod is the now the sole buyer and assayer of gold, with exclusive mandate to grant license to engage in the trade of Gold from Ghana’s small-scale mining sector.
23. Distinguished members of the Board, I am pleased to observe that the GoldBod has already began to fulfil its object and has contributed immensely to the recent stability of the Ghana Cedi through gold reserve accumulation.
24. As of May 13, 2025, the Ghana cedi has solidified its position as the standout performer among global currencies, achieving a remarkable 16.7% appreciation against the US dollar year-to-date.
25. This marks a significant reversal from the 13.4% depreciation observed in the same period of 2024, with the cedi earning recognition as the top-performing currency in April 2025.
26. This rally stems from a robust policy framework, underpinned by synchronized monetary and fiscal measures, as well as a favorable global context.
27. The central bank, in close collaboration with the Ministry of Finance, has adopted a stringent monetary policy, complemented by aggressive liquidity sterilization.
28. Concurrently, the Ministry of Finance has implemented a disciplined fiscal stance anchored around prudent public finance management.
29. Bolstering these efforts, enhanced foreign exchange inflows from gold, cocoa, and remittances, alongside a softening US dollar amid global uncertainties, have significantly driven the strength of the Ghana cedi.
30. But the unprecedented performance of the Ghana cedi has not come at the cost of our safety net. In fact, our foreign exchange reserves at the Bank of Ghana reached a record-high in April 2025, surpassing targets set under the IMF-supported programme ahead of schedule.
31. This underscores the sustainability of the cedi’s performance.
32. The activities of the Goldbod stand to further strengthen this performance. In fact, it will change how both the Ghana cedi and Ghana’s foreign exchange accumulation will behave in the future.
33. This paradigm shift will challenge traditional models reliant on old patterns, potentially leading to inaccurate projections and missing the true potential of the cedi.
34. I wish to assure the Ghanaian public and our stakeholders, that the outlook for the Ghana cedi remains robust and sustainable, supported by the transformative activities of the Goldbod.
35. I urge the newly-constituted Board to work hard to support and sustain this trajectory.
36. Together, let us help to propel His Excellency President John Dramani Mahama’s ongoing reset of Ghana’s economy and our effort to deliver economic prosperity for all Ghanaians.
37. I thank you and may God bless our homeland Ghana.
It notes that prices will, however, remain high relative to the pre-spike level
With the onset of a new crop season portending larger crop sizes in Ghana and Cote d’Ivoire, the “cocoa market is expected to be calm and cocoa prices could potentially decrease,” the mid-year Monetary Policy Report of the Bank of Ghana says.
It notes that prices will, however, remain high relative to the pre-spike level.
Also, it noted that the ongoing geopolitical tensions in the Middle East and the expectation of continued production restraint by some OPEC+ producers may continue to lend some support to oil.
Gold prices, the report projected, “may suffer losses as we move closer to possible Fed rate cuts in the second half of the year.”
In its report, the central bank said prices of Ghana’s key export commodities increased on the global commodities market as of the end of June 2024.
It said the weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude oil) increased in the month of June 2024.
The index rose to 196.68 from 190.74 in the previous month, representing an increase of 3.1 per cent.
The increase was on account of a rise in the cocoa and crude oil sub-indices, which was enough to outweigh the fall in the gold sub-index.
The cocoa sub-index grew by 11.1 per cent while the crude oil sub-index remained almost unchanged at 0.01 per cent and the gold sub-index fell by 1.1 per cent.
It noted that cocoa futures bounced back in June, reaching US$9,022.6 per tonne after a drop of 19.2 per cent in May.
Tight supply, spurred by extreme weather conditions and diseases amid increasing demand, supported the price increase, the report explained.
It said from January to June 2024, cocoa prices soared by 113.02 per cent, mainly on the back of tight supply.
Also, crude oil prices were broadly stable in June, gaining just 0.01 per cent to settle at an average price of US$83.01 per barrel.
The prices were supported by escalating geopolitical tension in Europe and the Middle East, notwithstanding OPEC+’s decision to boost supply later in the year, the report added.
It noted that since January 2024, crude oil prices have increased by 7.4 per cent, mainly due to concerns about supply disruptions due to geopolitical tensions and the planned output cut by OPEC+.
Spot gold dropped marginally by 1.1 per cent to close at an average price of US$2,325.34 per fine ounce in June 2024.
Gold prices were weighed down by a rising US dollar and increasing Treasury yields but losses were moderated by safe-haven demand amid tensions in the Middle East and rising bets that the U.S. Federal Reserve might reduce interest rates later in the year.
From the beginning of the year to date, gold prices have increased by 14.2 per cent, largely explained by the expectation of rate cuts by the Fed, and geopolitical tension that boosted the safe-haven appeal of the metal.
The Bank of Ghana’s Domestic Gold Purchase Programme has so far amass 65.4 tonnes of gold valued at US$5 billion.
This has significantly improved the country’s gold reserves.
Base on this success, the Vice President of has announced plans to anchor the value of the Cedi to gold, aiming to shield the country’s currency from depreciation and mitigate ongoing foreign exchange challenges.
“This approach would not only stabilise the exchange rate but also free up additional forex reserves”, Dr. Mahamudu Bawumia said when speaking at the inauguration of the Royal Ghana Gold Refinery in Accra last week.
Dr. Bawumia outlined his strategy to ensure the long-term stability of the Cedi through a new foreign exchange management system.
“I would like to propose a new foreign exchange regime management architecture for Ghana next year, in which the value of the Cedi will be anchored to gold
“I believe that the best anchor for the Cedi is gold. I want us to anchor the Cedi to gold,” Dr. Bawumia stated.
He further explained that under this proposed system, the Bank of Ghana’s gold reserves would play a crucial role in managing foreign exchange demand.
“If you have GHS3 billion and you are looking to buy forex, the Bank of Ghana can take the GHS3 billion, buy gold, and give you your forex. Demand equals supply, and the exchange rate doesn’t move,” he explained.
Dr. Bawumia stressed that this approach would not only stabilise the exchange rate but also free up additional forex reserves for other critical needs.
“You will maintain long-term exchange rate stability, which will be anchored on gold, and then we will move forward,” he added.
