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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (11394)	10/1/1999 7:56:00 AM
From: Keith Monahan	Read Replies (1) \| Respond to of 59879

Looks like ASL has covered it's hedges - smart move: BULLION TRADERS CAUGHT SHORT AS GOLD PRICE SURGES ASHANTI GOLDFIELDS, the giant African miner, became the first big player yesterday to reveal it had unwound most of its hedging positions this week as the gold price soared. The move came as the market was gripped by rumours that traders and hedge funds had lost millions on gambles that the gold price would fall further. The company, which runs a large hedge book, said it decided before the recent rally to buy 9 million ounces to offset 11 million ounces it had earlier borrowed or taken options to sell. Ashanti said it had acted "to remove the sensitivity of the hedge value to further rallies in the gold price". Miners use hedge contracts - such as forward sales and options - to insure against falling prices. The company added it had eliminated any exposure to floating lease rates before the rally started. This meant it had avoided the fall-out from the surge in lease rates - the cost of borrowing gold - to 10 per cent from the normal 2 per cent as investors stampeded to buy gold to cover their positions.