Key Points
- The rate of net producer de-hedging slowed in the first quarter of 2010, with only 0.78 Moz (24 t) removed from the global hedge book.
- Nevertheless, this represented a 10% cut to the delta-adjusted global hedge book, which stood at 6.75 Moz (210 t) at end-March.
- Kinross Gold Corporation was the largest de-hedger.
- Adamus Resources made the only notable hedge, amounting to 0.29 Moz (9 t) of forward sales to fund the Nzema gold project in Ghana.
- The marked-to-market liability of the producer book improved slightly to total negative $2.99 billion in the fi rst quarter.
- Producers’ weighted average realised prices decreased by 1% quarter-on-quarter, to $1,044/oz.
- Looking forward, we continue to expect producer de-hedging to amount to around 3.00 Moz (93 t) in 2010.
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