Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: LoneClone who wrote (40874)	7/31/2009 6:02:01 PM
From: LoneClone	Read Replies (1) \| Respond to of 193667

AngloGold Ashanti (NYSE: AU) Announces Reduced Hedge Book by 1.4Moz, to Less Than One Year's Output Friday July 31, 3:09 am ET ca.us.biz.yahoo.com JOHANNESBURG, SOUTH AFRICA--(Marketwire - 07/31/09) - AngloGold Ashanti Limited (NYSE:AU - News) undertook an extensive restructuring of its hedge book in July, reducing its overall commitments by about 1.4Moz, in order to realize its strategy of maximizing exposure to spot gold prices. "We've worked hard to strengthen our balance sheet and that gave us the flexibility to skin the hedge book by getting it well below one year's production," Chief Executive Officer Mark Cutifani said. "The market fundamentals are extremely robust for gold, which supported our decision move aggressively sooner rather than later, to ensure we maximize our exposure to spot prices." The decision was taken in July 2009 to invest $797m to reduce the company's overall hedge position, after the successful issue in the second quarter of a five-year convertible bond and the receipt of the first tranche of the proceeds from the sale of the company's Boddington stake. The company now expects to achieve a 7% discount to spot gold prices at $950/oz gold price, with the hedge book reducing by approximately 800,000oz a year, until it winds up at the end of 2014. AngloGold Ashanti's overall hedge commitment declined to 4.47Moz at July 25, less than one year's production. That compares with 5.84Moz at the end of the first quarter. The committed ounces are expected to decline further, to about 4.1Moz by the end of 2009, a full year ahead of target. Contact: Contacts Stewart Bailey Mobile: +1 646 717 3978 E-mail: Email Contact Sicelo Ntuli +27 (0) 11 637 6339 Email Contact Alan Fine +27 (0) 11 637 6383 +27 (0) 83 3250757 Email Contact Joanne Jones +27 (0) 11 637 6813 +27 (0) 82 896 0306 Email Contact Source: AngloGold Ashanti