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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (60650)	11/7/2000 8:54:41 AM
From: Enigma	Respond to of 116790

A little better it appears?

To: Alex who wrote (60650)	11/7/2000 8:57:10 AM
From: lorne	Read Replies (1) \| Respond to of 116790

Ashanti trims its hedge policy Bloomberg November 07 2000 Accra - Ashanti Goldfields, Africa's fourth-largest gold company, said yesterday it would sell less gold at prearranged prices, limiting the chance of losses should the gold price rise unexpectedly. For the first time in more than a year, Ashanti would be able to cancel forward sales arrangements and make a profit. At one point last year, it would have lost about $550 million because of wrong-way bets on gold prices. Those bets made it liable for collateral payments it could not meet. To stave off bankruptcy, the company had to comply with creditors' demands and reduce reliance on prearranged sales. It also had to give creditors the right to buy 15 percent of the company at a discount. The hedge book, covering forward sales arrangements, "is in the black for the first time in almost 15 months,'' said James Leahy, at Canaccord Capital in London. "We have a 'buy' on the company; now there is no hesitation.'' Ashanti's output surged 18 percent in the quarter ended June 30 from the same period the year before to 448 000 ounces, and production costs fell 13 percent to $254 an ounce. Ashanti will also take a $15 million charge in the fourth quarter as a result of cancelling some sales contracts. businessreport.co.za