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Gold/Mining/Energy : Barrick Gold (ABX)
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To: nickel61 who wrote (2398)4/13/2002 5:42:38 AM
From: nickel61  Read Replies (1) of 3558
 
JOHANNESBURG – Harmony Gold [NASDAQ:HGMCY] disclosed today that it has closed the hedge book inherited from its acquisition of Randfontein Estates from JCI Gold in 2000 at a net cost of $11 million. "The closure of the Randfontein hedge book is a continuation of Harmony's strategy of being unhedged. We believe our shareholders want the exposure of a potential increase in the gold price," financial director, Frank Abbott, said today (12 April).

Harmony said that the remaining forward sales contracts and call options totalling about 490 000 ounces have been closed. Owing to the higher gold price, Harmony also closed a further 220 000 ounces of forward purchases. In total, about 2.7 million ounces were closed out in the Randfontein hedge book, but a further 120 000 ounces of forward calls (longs) still remained which Abbott said would be closed out opportunistically as the gold price trends upwards. In total, there were about 430 000 ounces of calls inherited in the Randfontein hedge book.

The closure of the hedge book resulted in a net cost after tax of $11 million (R125 million) which was financed from existing cash resources.

-END-

Out of curiosity, did any Café member receive feedback from Placer Doom regarding their wayward hedging program? Was my information correct that they just added to their hedges right above $300 per ounce? No point in even asking about Barrick. Their arrogant management is determined to sacrifice the Barrick shareholders in order to stay in the good graces of The Gold Cartel.
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