[miningmx.com] – THE world’s gold mining companies are reticent to lock in the current price of the metal and will cut 2.2 million ounces of gold from their hedge books, said BDLive citing a report by Thomson Reuters GFMS on July 8.
In its Global Hedge Book Analysis for the first quarter of this year Thomson Reuters GFMS said the global hedge book shrank by 80,000 ounces in the first three months of the year. The global hedge book was 6.2-million oz at end-March.
“We expect to see further modestly sized new hedges, often in connection with project financing arrangements, as well as extensions to existing hedging programmes,” it said.
“If hedging activity remains at the level seen throughout the first half of this year, net de-hedging may be the eventual outcome for the year as new activity will scarcely balance the scheduled unwinding of existing hedge contracts,” it said.
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