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

To: PAUL ROBERTSON who wrote (95943)	9/24/2003 7:04:23 PM
From: Ironyman	Respond to of 116766

You have to hand it to Sprott. They downgraded MDG, but kept the earnings estimate the same. I'll bet they have been loading up ever since.

To: PAUL ROBERTSON who wrote (95943)	9/24/2003 8:41:32 PM
From: paul ross	Respond to of 116766

Gold ETF to be launched in October in UK and US: mips1.net

To: PAUL ROBERTSON who wrote (95943)	9/24/2003 11:28:54 PM
From: marek_wojna	Read Replies (1) \| Respond to of 116766

Hold your breath. Everything starts with one bad sheep or mad cow, no matter how small it is. Companies like this should get burned like cattle in England. <<Reuters Australia's Dominion bucks trend to hedge gold Wednesday September 24, 10:50 pm ET By Tim Treadgold PERTH, Sept 25 (Reuters) - Australia's Dominion Mining Ltd (Australia:DOM.AX - News) is taking on more gold hedge positions as it readies a new mine, ignoring claims by some of the world's biggest mining houses that hedging depresses bullion prices. ADVERTISEMENT Dominion Chief Executive Peter Alexander said his company had recently sold an additional 15,000 ounces of gold from its Challenger lode in the Australian outback at fixed prices, a no-no for such industry giants as U.S-based Newmont Mining Corp (NYSE:NEM - News) and South Africa's Harmony Gold Ltd (HARJ.J). But with a market capitalisation of A$42 million ($28.5 million), compared with $15 billion for Newmont -- and bullion prices at their highest since the mid 1990s -- Dominion has little choice but to hedge, Alexander said. "I'm pretty certain we'll see other miners move to lock in this gold price," he said. Dominion's expansion of gold hedging comes as most miners take pains to rid their books of hedges to gain exposure to gold's rising value. AngloGold Ltd (ANGJ.J) of South Africa, once one of the world's most-hedged gold miners, has been cutting its hedge book and has vowed to undo target Ashanti Goldfields Ltd (AGC.GH) hedges if it wins a bidding war against London-listed Randgold (London:RRS.L - News) for the Ghana miner. AngloGold removed about 800,000 ounces of gold from its hedge book in the last quarter, leaving it with 8.3 million ounces pre-sold though it was continuing to unwind its positions, Newmont has disposed of 10 million ounces worth of hedges inherited when it acquired Australia's Normandy Mining last year. Hedging involves selling yet-to-be-mined nuggets at a preset price. The tactic protects miners when prices fall, but can backfire when gold goes up. This was the case for Ashanti in 1999 when it was forced to buy gold at higher prices than it could sell it to satisfy hedge commitments, taking the company to the financial brink. But for Dominion, hedging is needed, Alexander said. "For small companies with a lot of capital committed you just can't afford to not hedge. It's an insurance policy you take out during a spike in the gold price. "I have not yet seen a logical argument for a small company not to hedge," alexander said. Alexander said the latest forward sale was for delivery at A$595 an ounce, about A$26 above the spot price. Challenger is the first gold mine to be developed in the much-hyped Gawler Craton gold belt and is earmarked to yield 105,000 ounces of gold over a 20-months, then a further 280,000 ounces over four years after an undergound extension is built. "Certainly, we'll be hedging a portion of the underground reserves, probably about 50 percent of the 160,000 ounces in reserves," he said. ($1=A$1.47)