ANGLOGOLD ASHANTI – the world's fourth-largest Gold Mining company – said today that it's finished closing its "hedge book" of forward sales, buying back gold it had sold ahead of production at an average price of $1300 per ounce.
The New York-listed Gold Mining company says it will now sell all the gold it produces "at market prices", thereby improving cash-flow and profit margins after becoming the last of the world's major miners to retain a sizeable position in forward sales.
"We've moved decisively to eliminate the hedge book," said chief executive officer Mark Cutifani in a press release.
"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."
Gold Mining firm AngloGold Ashanti spent some $2.63bn on buying back gold between July and Oct., it said. The hedge-book closure followed a $1.6bn cash-raising from stockholders, specifically ear-marked for the purpose.
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