Anglo Ashanti

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Anglo Ashanti

Postby preciousmetalsnews » Thu Oct 07, 2010 12:04 pm

AngloGold Ashanti eliminates hedge book, gains full exposure to gold
http://www.anglogold.com/Additional/Press/2010/20101007+AngloGold+Ashanti+eliminates+hedge+book.htm

Thursday, October 07, 2010
(JOHANNESBURG) -- AngloGold Ashanti has completed the elimination of its gold hedge book, providing the company and its shareholders with full exposure to the prevailing gold price. The company will now sell the gold it produces at market prices and therefore expects to enhance cash flow and profit margins as a result of removing hedge contracts with low committed gold prices.

"We've moved decisively to eliminate the hedge book," Chief Executive Officer Mark Cutifani said. "The completion of the hedge book restructure over the last three years has created about US$4.0 billion of value for our shareholders and represents one of the major building blocks for the new AngloGold Ashanti. We remain bullish on the outlook for gold and will now benefit from full exposure to the price as we go forward."

The cost of scheduled hedge book maturities during the third quarter of 2010 was approximately US$98 million. The additional cost of closing out all future hedge contracts amounted to approximately US$2.63 billion, representing an average buy-back price of US$1,300 per ounce for this final tranche of the hedge restructure. The cost will be reflected in adjusted headline earnings for the last two quarters of 2010.

This final phase of hedge restructuring has been funded with proceeds from the issue of new equity and the mandatory convertible bonds completed in September, as well as cash from internal sources and debt facilities.

AngloGold Ashanti has consistently executed a strategy to reduce its outstanding gold hedging position in recent years. A number of initiatives have been undertaken to accelerate this reduction of the hedge book from 11.3 million ounces at the beginning of 2008, to 3.22 million ounces in June 2010.

In September 2010 AngloGold Ashanti successfully completed a concurrent offering of equity and mandatory convertible bonds, raising gross proceeds of approximately US$1.6 billion in order to help fund an elimination of its residual gold hedge book. This has now been achieved.
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Re: Anglo Ashanti

Postby Pixel8r » Thu Oct 07, 2010 12:10 pm

Judging by this post from Rob Kirby yesterday they can now sell forward at forward prices. :shock:

THE FEDERAL RESERVE is SELLING PAPER GOLD and BUYING PHYSICAL GOLD

[the good ole ‘American way’ – through proxies]

By Rob Kirby | 4/10/10


A couple of weeks ago, I pitched an idea to some associates of mine who are involved in SERIOUS [tonnage] PRECIOUS METALS procurement – physical metal only – let’s just say HUGE money. I asked them if they would be interested in purchasing an “option” – cash up front - for the exclusive rights [first right of refusal on off-take] of a gold producer [miner] for a set number of ounces for 3 – 5 years “at the market” – using LBMA pricing [a.m. / p.m. fixes] in the future. The answer I got back from my associates was “show us a terms sheet, we definitely have interest”.

So, I spoke to a friend who is very close to an intermediate producer who is in the mode of raising money right now. I had them ask the producer if they would have interest – the producer said, “YES, we are interested - but just to let you know – J.P. Morgan has been asking us if we would sell them the same option”. So, while gold producers have shuttered their “gold hedge books” – the Bullion Banks are ‘synthetically’ trying to keep physical output captive – I would suggest FOR THE EXPRESSED REASON THAT THEY SELL EVERY PHYSICAL OUNCE AT LEAST 100 TIMES OVER.

Gold is going to get EXTREMELY scarce in the future folks. Big money interests are now cutting off [or bidding for / gaining exclusive access to] the traditional bullion supply chain “at the pit”.

The shorts of ‘paper gold’ at J.P. Morgan [the Fed in drag] are selling the daylights out of the paper market and simultaneously buying exclusive rights to producers’ future production so they can try to fudge their way through an unmitigated fraud and settle a big enough chunk of their bad bets to keep this ‘systemically ruinous’ precious metals ponzi-scheme alive...
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Anglo Ashanti

Postby Ziknik » Fri Nov 30, 2012 2:36 pm » Opera 12.11 Opera 12.11  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1600 x 900 1600 x 900

I'm posting this here as we don't have a Gold Fields thread

This could be a turning point for South African miners

http://www.iol.co.za/business/business- ... LjEA1PHSjY
Gold Fields, whose history dates back 125 years when gold prospectors first swamped the Witwatersrand, has again announced a major makeover in a bid to improve its fortunes.

The company said yesterday that it would split off its South African operations and house them in a new gold mining company, Sibanye Gold, which would be listed on stock exchanges in New York and Johannesburg.

The news of the split could herald a similar move by other gold mining companies as the South African gold mining industry grapples with aging mines, escalating costs, declining ore grades and labour challenges.



There's a really good FT article on the subject. I won't post it as the FT are really aggressive about copy right. Google "Gold Fields to spin off two mature mines" and read.
"we needed a fightback and a fightback is under way"
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Re: Anglo Ashanti

Postby Pixel8r » Fri Nov 30, 2012 2:56 pm » Safari 6.0.2 Safari 6.0.2  Mac OS X Mac OS X  Screen Resolution: 1920 x 1200 1920 x 1200

Ziknik wrote:There's a really good FT article on the subject. I won't post it as the FT are really aggressive about copy right. Google "Gold Fields to spin off two mature mines" and read.

It's fine to post links to FT stuff.

Gold Fields to spin off two mature mines
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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