On subsequent reading of the last quoted article I came upon these passages which are relevant.
groups.yahoo.com
>>>....following the Rand raid it was announced that bullion bank Deutsche Bank had arranged a R700 million facility for Avgold to enable the company to complete its Target mine in the Free State. Of course the condition for the loan was that Avgold immediately sell forward up to 75
percent of the first five years of production.
Soon after, rumours circulated that Harmony Gold would in turn be forced by fellow bullion bank J.P. Morgan to agree to purchase put options on 1.0 million gold ounces to finance the billion-Rand purchase of Elandsrand and Deelkraal from Anglogold. This could require the sale of a further 30 tons of gold.
The two transactions could together dump up to 75
tons of gold onto the market.
(For what it's worth, I am an Avgold shareholder and I have no doubt that Anglo, a big indirect shareholder in Avgold, arranged the transaction)
Market talk has it that Anglogold and Canadian gold
producer Barrick Gold are together preparing a joint
takeover of unhedged producer Gold Fields. The
forward sales policies of excessive hedgers like
Barrick and Anglogold have assisted the gold cartel
in their price manipulation.
If successful, would Barrick and Anglogold force
Gold Fields to hedge their production, or is this
simply a cheap way for Barrick and Anglogold to
reduce their hedging exposure? <<<
Clearly, Anglogold is in bed with Barrick and was, indeed, Barrick's "partner-in-crime", certainly as far as forward selling was concerned. It is also clearly in bed with the bullion banks. In fact, only a few months ago there were strong rumors that Barrick was going to do a deal with Anglo American (Anglogold's parent) to buy Anglogold. Seems to me that Anglogold could be lucky that it, too, is not being sued by Blanchard.
The point which many observers do not seem to grasp (including long-gone and Bill Murphy) is that Anglo American has the ANC (the SA government) by the tail (or is it the nose). In fact, the ANC owes is position today to covert deals which Anglo made "behind the curtain". No-one should forget that the term "South Africa Inc" refers to Anglo, even today under the ANC, as it has for the past 50 years. |
