Fellow investors,
Here is another interesting article. It tells us that the production of gold is down once again for 2006. It also tells us were the major gold companies believe gold is going in the future by there dehedging activities.
Philv, these guys are not going to give you a straight answer. BritNick has been posting that same message whenever someone asks him for weeks now on the other board as well. Notice he never actually gives a spot price of gold to increase 10% from as one of his conditions. The rest of his statements also do nothing to inspire confidence or would make anyone consider buying ARU. In fact they have a negative feel about them and that is what they are designed to do. We all know why that is.
SageyRain, it seems you do not actually have me on ignore either. Otherwise you would not have known to correct one of your many mistakes in your last post and that I was laughing at it. It is now more correct, but still basically wrong. LOL.
Sagey, I will correct it for you later and explain to investors why you apply that reduction factor to Hollister but not ARU. Let me give you a hint Sagey. It has to do with the size of the veins. LOL
Fellow investors, this was a sleepy board before I showed up and certain people wanted to keep it that why. I read over the posts prior to my posting and this board certainly did nothing to inspire confidence. Certain persons wished to keep this board quiet. This would explain why I was told to go to another board by a certain individual after my first post greeting everyone. It did not strike me as a very nice hello.
I will continue to point out the mistakes of other posters as I have been doing. This is so that fellow investors can make there investment dicision an at least correct and factual information.
I am obviously long on ARU and have a very large position in it.
Regards,
F.F.
Global gold hedge book now at lowest since 1994
By: Rhona O’Connell
Posted: '28-FEB-07 08:37' GMT © Mineweb 1997-2006
LONDON (Mineweb.com) -- The latest Global Hedge Book Analysis from GFMS Ltd., in conjunction with Brady plc and Société Générale, has been released and reports that dehedging in the world’s gold mining industry in the fourth quarter slowed to 41 tonnes and that the provisional figure for the full year is for 397 tonnes of net de-hedging. This compares with estimated mine production in 2006 of 2,467 tonnes, suggesting that net supply from the mining sector in 2006 amounted to 2,030 tonnes, compared with a net 2,436 tonnes in 2005.
The longer term time series suggests that since the end of 1999, the global hedge book has contracted by 1,803 tonnes, equivalent to approximately six months’ fabrication and bar hoarding demand.
At the end of the year, total outstanding producer positions amounted to 1,341 tonnes on a delta-adjusted basis. This is the lowest level since 1994. The activity in 2006, driven largely by the hefty unwinding activity on Barrick’s part, meant that de-hedging in 2006 was broadly in line with “the elevated levels of de-hedging in the three years prior to the slump reported in 2005”.
The report notes that one of the common factors behind these substantial levels of dehedging was heightened corporate activity. While Barrick, with 277 tonnes of de-hedging following the Placer acquisition was the cornerstone of the 2006 activity, it will be recalled that AngloGold and Ashanti fuelled the activity in 2004, and Newmont, that of 2003. |
