London, 4 Ocotber 2011

The second quarter of 2011 was notable as being a second consecutive quarter of net gold hedging, according to new analysis from Thomson Reuters GFMS released today. Net hedging added 0.19 Moz (6 t), building on a similar amount in the first quarter. Much of this increase was from additions to the options portion of the book and changes in the volume of gold delta hedged against existing option positions, with the total options book growing by 12% quarter-on-quarter.

- The second quarter saw net hedging again, with 0.19 Moz (6 t) added to the global hedge book.

- This left the total hedge book standing at 5.07 Moz (158 t) at end-June.

- This was the second consecutive quarter of net hedging; the last occurrence of consecutive quarters of net hedging was last seen in 2001.

- Alkane Resources was the largest hedger, adding just 0.09 Moz (3 t) of forward sales. In total four companies actively increased their hedge positions.

- The marked-to-market liability of the global hedge book fell to negative $1.09 billion at end-June.

- Thomson Reuters GFMS forecast net hedging of around 1 Moz (32 t) for the full-year; the first time since the ‘hedging crisis’ that was triggered in 1999.

Ends -

Download the report HERE:

Attachments:

SG GFMS Global Hedge Book Analysis Q2_11.pdf

3747 Kb