NEW YORK, Feb 8 (Reuters) - Anglogold Ltd's forward gold sales in 1999 through 2008 total 11.85 million ounces as of December 31, 1998, according to its fourth quarter corporate filings, an increase of 3.7 million ounces from the third quarter ending September 30, 1998.
''This represents a slight increase in our hedges to account for the acquisition of the Minorco gold properties in North and South America,'' said Jonathan Best, executive director of finance for Anglogold.
Anglogold, the world's largest gold company, announced a $550 million acquisition of Minorco SA's North and South American gold properties, which is expected to increase its annual production by 12 percent to 7.5 million ounces.
Best noted in an interview with Reuters that Anglogold would be assuming an estimated $130 million of debt with the acquisition, although that number was still being computed. He added that company was planning $51 million in capital expenditures to improve the operations, plus another $5.5 million in exploration at those properties.
''This was a debt financed acquisition,'' Best said. ''There's a fair amount of capital expenditures to be donw and a fair amount of exploration to be done. With that in mind, we have a hedge program in place, the bulk of it in (1998 through 2000.)''
The forward sales were at $320 an ounce in 1998, $325 an ounce in 1999, and $330 in 2000.
''This doesn't substantially change out hedging strategy,'' Best said.
He added that gold prices were expected range between $280 and $300 an ounce in the near term. |
