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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (2364)9/25/2001 1:15:04 PM
From: goldsheet  Read Replies (2) | Respond to of 4051
 
Although GOLD never had a firm "no hedge" policy, I seem to recall they closed out all contracts. This appears to somewhat of a policy change for them ???

"Gold Fields, which is buying the St. Ives and Agnew mines from WMC Ltd., plans to lock in the U.S. currency's appreciation by selling future production at today's exchange rate, a practice known as hedging, Chairman Chris Thompson said. ``The currency is the key,'' he said at a presentation to analysts and reporters. ``We could hedge half of (output) at current rates.''

For reference (in 2000) St. Ives produced 408,100 and Agnew produced 209,600 for a total of 617,700, so GOLD is talking about a potential new 300koz per year hedge.



To: Claude Cormier who wrote (2364)9/25/2001 2:24:34 PM
From: tyc:>  Read Replies (1) | Respond to of 4051
 
I believe that hedging only the currency risk and not the metal price is what killed Pasminco. They lost money on the currency hedge, AND the fall of zinc prices.

I hope Goldfields mean that they will hedge half their production in Australian dollars, locking in both the current metal price AND the current value of the Aussie dollar.


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