Barrick Gold (ABX) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Barrick Gold (ABX)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Enigma who wrote (2375)	4/10/2002 4:33:31 PM
From: nickel61	Read Replies (1) of 3558

NY gold resuscitated by AngloGold hedge reductions 04/10/02 12:20 PM Source: Reuters URL: investor.cnet.com NEW YORK, April 10 (Reuters) - COMEX gold jumped on Wednesday, recovering from early profit taking after top-tier South African producer AngloGold Ltd. said it was "aggressively" running down its hedge book. Though the company gave no details, saying only that it was taking advantage of market conditions, June gold accelerated a mild morning bounce back above the $300 an ounce level around which it has consolidated recent gains all week. ------------snip------------ The trend toward reduced selling by gold companies has been bullish for gold this year. The tone was set by U.S.-based Newmont Mining, after it bought Australia's Normandy Mining, became the world's largest producer, and pledged to unwind Normandy's large hedge book and avoid all hedging. Producers hedge by selling their output forward to lock in prices and protect themselves against falls in the market. But it can work against their interests because heavy hedging activity can prevent the price of gold from rising. "We haven't changed our hedging policy per se, but market conditions at the moment dictate that we are running down our hedge book and we have been for a little while," AngloGold Financial Director Jonathan Best told Reuters. AngloGold closed 1.7 million ounces in its hedge book in the last quarter of 2001, leaving it with a hedge book of 14.6 million ounces. Best said the company was reducing its book because it was more bullish on the gold price and because U.S. interest rates are low, raising the cost of carrying short gold positions.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next