G-khan
04-09-2003, 10:51 PM
The outstanding gold-producer hedge book declined by 14% to 81-million ounces or 2 509 t, equivalent to 97% of mine production in 2002, a new hedge-book analysis, produced by Gold Fields Mineral Services (GFMS) and Investec, shows.
In a release, GFMS said the staggering decline in the global hedge book in 2002 was undoubtedly one of the key factors supporting the gold price above $300/oz last year.
At the end of the fourth quarter of 2002, the outstanding delta-adjusted producer hedge book consisted of 62-million ounces or 1 927 t of forward sales and a small quantity of gold loans, as well as 19-million ounces or 582 t of options transactions.
The analysis, which will be produced quarterly, is based on detailed results obtained through the use of the Brady Trinity Risk Management and Trading System.
Hedging activity has been inputted into the system on an individual company, instrument and year of expiry basis, allowing for detailed sensitivity and scenario analyses.
The delta adjusted options position is one of the key outputs obtained through the use of the Brady Trinity system, and is reflection of the physical market impact of mining companies’ options deals, GFMS states.
In a release, GFMS said the staggering decline in the global hedge book in 2002 was undoubtedly one of the key factors supporting the gold price above $300/oz last year.
At the end of the fourth quarter of 2002, the outstanding delta-adjusted producer hedge book consisted of 62-million ounces or 1 927 t of forward sales and a small quantity of gold loans, as well as 19-million ounces or 582 t of options transactions.
The analysis, which will be produced quarterly, is based on detailed results obtained through the use of the Brady Trinity Risk Management and Trading System.
Hedging activity has been inputted into the system on an individual company, instrument and year of expiry basis, allowing for detailed sensitivity and scenario analyses.
The delta adjusted options position is one of the key outputs obtained through the use of the Brady Trinity system, and is reflection of the physical market impact of mining companies’ options deals, GFMS states.