Gold Producer Hedgebook Cut Significantly in Q1: GFMS

Source:

...Producer sentiment remained strongly bullish towards the outlook for the gold price, reflected by another wave of buy-backs in the March quarter, with significant cuts in hedge cover by, among others, Barrick Gold, AngloGold Ashanti and Buenaventura as well as Gold Fields...

Following comparatively subdued levels in the second half of 2006, the pace of gold producer dehedging picked up notably in the first quarter with a 4.12 million oz (128 mt) cut to the outstanding delta-adjusted hedge book, according to the quarterly Global Hedge Book Analysis, produced by the precious metals consultancy GFMS, on behalf of Societe Generale Corporate and Investment Banking.

"Producer sentiment remained strongly bullish towards the outlook for the gold price, reflected by another wave of buy-backs in the March quarter, with significant cuts in hedge cover by, among others, Barrick Gold, AngloGold Ashanti and Buenaventura as well as Gold Fields' elimination of the inherited South Deep hedge," GFMS said.

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