More good news for the gold price. Here is an interesting an interesting article.
Regards,
F.F.
Gold-mining companies reduced their hedgebooks by 1,5-million ounces in the last quarter of 2006, the slowest rate of dehedging since the last quarter of 2005, according to the latest publication of the Hedge Book, which is compiled on a quarterly basis by Virtual Metals and Halliburton Mineral Services for Mitsui Global Precious Metals.
In all, 43 companies reduced their hedge positions over the quarter, with only two companies adding to their books - Boliden and Sherwood Copper.
The company making the largest reduction during the last quarter of 2006 was the world's biggest producer of the yellow metal, Barrick, which reduced its position by 1,2-million ounces.
Barrick also announced that it had reduced its hedgebook by a further 1,3-million ounces during the first quarter of this year.
Gold hedging currently stands at 40,2-million ounces, following a total dehedging of 13,4-million ounces (417 t) during 2006.
Barrick accounted for 70% of this.
“Measured as a percentage of the global book... 2006 was the largest annual reduction since our records begin in 2002,” the authors of the report said in a press release.
Looking ahead to Q1 07, dehedging was likely to pick up, in light of Barrick's 1,3-million ounce reduction plus 0,7-million ounces from the remainder of the Western Areas book, which was closed out by Gold Fields earlier this quarter.
For 2007 as whole, however, the report indicated that dehedging was likely to slow to between 7-million ounces and 9-million ounces, although this did not take into account either new hedging, or major buy-backs as seen with Barrick this quarter.
“Barrick continues to set the pace in dehedging, both in Q4 06 and looking ahead to next quarter,” said Mitsui Global Precious Metals head of precious metals research Edel Tully.
“For the rest of the year, while dehedging in 2007 is not expected to be of a similar magnitude to what it was in 2006, little appetite exists for new hedging.” |
