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To: Enigma who wrote (23442)	11/26/1998 10:55:00 AM
From: Alex	Read Replies (2) \| Respond to of 116753

Normandy cashes in $650m hedge By KATE ASKEW, Resources Writer Normandy Mining has raised $650 million in cash from its gold hedge book, igniting speculation it is gearing up for a major acquisition. Under a deal announced yesterday, Normandy realised 4.1 million ounces of forward gold sales, or 85 per cent of its substantial hedge book's value at current market prices. It will replace the forwards with put options. Normandy will book the tax-free profit over the next 10 years. It won't pay capital gains tax because the hedge book is parked in a Normandy subsidiary, that used to be part of Alan Bond's group, which has $240 million worth of capital losses. The $650 million profit extends Normandy's cash to about $900 million. On top of that it has an additional $700 million available through an undrawn debt facility, giving it a war chest of about $1.6 billion. Normandy's executive chairman Mr Robert Champion de Crespigny has weathered a torrid year amid some market scepticism over the company's ability to keep up its rapid growth rate. Normandy's share price has also failed to impress when ranked against the performance of its Australian peers such as Acacia Resources and Delta Gold. But heading into the quiet Christmas period in a listless gold price atmosphere is seen by some observers as the ideal time for hostile acquisitions. Mr de Crespigny's aggressive acquisition strategy has seen Normandy grow from a gold tiddler into one of the world's top 10 goldminers. One Sydney-based fund manager suggested Acacia Resources and Newcrest Mining should be viewed as possible targets given their three-way ownership with Normandy in the Boddington goldmine and the associated Wandoo project. Indications from drilling around the newly acquired Hedges goldmine is that the giant Wandoo basement project, that had been put on hold under lower gold prices, could be feasible given it can now boost the economics with higher grade ore. One of the difficulties Normandy has struck in building its portfolio is the lack of world-class gold assets available - or if they are in North America they are generally too expensive. It also has a poor exploration record and has had limited success overseas. In contrast, local companies like Acacia and Newcrest are trading at substantial discounts to their North American peers and have much-desired world-class gold assets in Acacia's Sunrise goldmine and Newcrest's Cadia gold/copper operation. But analysts discounted a sudden bid by Normandy for the 25.1 per cent-owned Great Central Mines, given that company is carrying about $423 million of capitalised exploration as a hangover from the takeovers of Wiluna Mines and Eagle Mining. Great Central is seen by market watchers as effectively a Normandy subsidiary. The hedging deal comes ahead of Normandy hosting a tour of its operations by North American fund managers.

To: Enigma who wrote (23442)	11/27/1998 2:46:00 AM
From: marcos	Read Replies (2) \| Respond to of 116753

"the media are going to really run with this YK2 story" - yes, they already are. It's just that I can't see this directly relevant to the PoG. Maybe it could act as a catalyst in making people better aware of more fundamentally sensible and logical reasons for a gold bull, which certainly now exist ignored, but y2k in and of itself will not make paper useless or bring gold into everyday life, imho. But then panic is by definition an irrational animal .... they say last millennium people really lost it. Anybody have a chart of the PoG back that far -g-