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Gold/Mining/Energy : Precious and Base Metal Investing

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To: russwinter who wrote (574)	11/14/2001 3:35:51 PM
From: russwinter	Read Replies (2) of 39344

NEM has stated today that they intend to close out NDY's hedge book ASAP. That kind of accelerated demand in this thin market is not insignificant as NDY has forward sales of 5,854,000 oz (about half in 2005-2010) in Aussie dollars, plus another 575,000 oz from Mt. Leyshon. That's around 200 tonnes (half of annual CB sales under the WAG agreement) that will need to be purchased, or close to 8% of annual world gold production. Excerpted from Thom Calandra, Stockwatch column: "Newmont's Murdy on Wednesday morning also emphasized that he would unwind Normandy's hedged portfolio of forward gold sales as fast as he can. Newmont is an unhedged producer of gold - it sells gold at spot-gold prices. The company does not use derivatives, forward sales or other instruments to lock in higher prices for the metal, all of them practices said to depress the price of gold."

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