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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (19238)	9/19/2002 10:42:35 AM
From: longdong_63	Respond to of 36161

Thanks Jim. I'm happy again. :-)

To: Jim Willie CB who wrote (19238)	9/19/2002 11:12:54 AM
From: isopatch	Respond to of 36161

Update on NEM/NFM hedge book house cleaning Don't know if this has already been posted. Iso ========================================================= biz.yahoo.com <LONDON, Sept 17 (Reuters) - Australian gold producer Normandy (Australia:NFM.AX - News), owned by world number one gold miner Newmont Mining Corp (NYSE:NEM - News), on Tuesday said Newmont NFM would eliminate its hedge book by February next year. "Newmont NFM has completed a restructure of its hedge book, reducing total hedging by 1.1 million ounces since 31 December 2001, and has implemented a new hedging policy that will result in elimination of the Company's remaining hedge book of 300,000 ounces by February 2003," the firm said in a statement released in Australia. The news was supportive for gold prices as hedging -- or the forward selling of gold by producers to lock in profits -- is seen by many analysts as a cap on prices as selling forward increases supplies into the market. "The amendment to the hedging policy was considered appropriate in light of the Company's improved balance sheet and the improved outlook for the gold price. It is unlikely that additional hedging will be undertaken in the near future," Normandy said in the statement. Normandy said the reduction in the hedge book since 31 December 2001 had been achieved by the selective buyback of 700,000 ounces on a cash neutral basis and delivery of all sales into existing contracts (400,000 ounces). This had left 600,000 ounces hedged at 31 August, which included 300,000 ounces ounces of hedging inherited in the acquisition of Otter Gold Mines Limited, Normandy said. The remaining 300,000 ounces of Newmont NFM hedge contracts will be delivered into over the next six months. The remaining 300,000 ounces in the Otter Gold Mines hedge book would be reduced as opportunities arise, Normandy said. Newmont Mining Corp had already committed itself to accelerate the unravelling of millions of ounces of gold pre-sold at fixed prices. The mining house had already extinguished some two million ounces of a total 10 million ounces inherited with the takeover of Normandy in February this year. Newmont, which forecast gold production of over seven million ounces this year, is among a growing legion of big miners with an aversion to hedging -- the practice of selling yet-unmined nuggets at fixed prices. Newmont has criticised hedging as hurting the gold price by erecting a false ceiling on upward price movements. However, some firms defend hedging as a way to protect margins when bullion prices fall.>