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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (12998)	1/15/2008 3:36:17 PM
From: LoneClone	Read Replies (1) \| Respond to of 193686

OceanaGold to restructure gold hedging facility as prices soar Melbourne (Platts)--15Jan2008 platts.com New Zealand gold miner OceanaGold will restructure its gold hedge facility to take full advantage of soaring gold prices, the company said Tuesday. The Australian Securities Exchange-listed miner said its current hedge facility has 320,000 oz forward sold at NZ$773 ($609)/oz expiring in 2010, of which 113,712 oz are scheduled to be delivered in 2008 at that price. But under the proposed restructure, the ounces for delivery in 2008 will be rolled forward to 2011, resulting in an "entirely unhedged production year" for the company. The restructure is pending approval from financial institutions. The adjustment will generate an estimated $33 million in additional cash flow at $850/oz gold price for the year, the company said. The funds will be used to reduce OceanaGold's debt and for general working purposes. OceanaGold said it has been progressively reducing the influence of its hedge facility through restructuring and the addition of unhedged production from new mines over the past two years. "The company has no intention of hedging any future gold production," OceanaGold said. "In addition, OceanaGold continues to examine financially sensible options to eliminate the remaining hedge facility." Gold finished above $900/oz for the first time in New York trade on Monday.