AngloGold calls time on hedges with $1.6bn offer

16 Sep 2010

AngloGold Ashanti made a bold call on gold prices even as they hit an all-time high on Tuesday with a combined equity and equity-linked fundraising that raised $1.578bn, enabling it to wind up its outstanding hedges.

Like other gold mining companies, AngloGold Ashanti has been steadily reducing its hedges, which have become progressively more unprofitable as the gold price has continued to rise.

On September 14, AngloGold had a hedge book of 2.72 million ounces — the largest in the industry — with an average ...

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