Via financialskeptic.blogspot.com/:
AngloGold Ashanti (NYSE:AU) reported improved Q4 earnings with production up 4% and slightly better cash production costs. The company forfeited approximately 6% of gold’s value on the table as they continued to produce to the hedge book that they are locked into. The negative valuation of the hedge book also continued to worsen.
In the conference call transcripts provided by Seeking Alpha the Treasurer Mark Lynam spoke competently but very briefly to the hedge activities and pointed out that over the next twelve months the actual received price will be 8-10% below anticipated spot prices as they continue to sell into the old and obviously unfavourable hedge book....
$47.95 (02/15/07)
