AngloGold executive
vice president,
business sustainability,
Thero Setiloane
 
London, England — MININGREVIEW.COM — 27 September 2010 – AngloGold Ashanti Limited “’ the world’s third largest miner “’ is confident the gold price will continue to strike new highs, and says its decision to unwind its hedge-book reflects that confidence.

“The unwinding of the hedge-book is an indication of our confidence in the gold price and where it’s going. It will enable us to do a lot of things that we otherwise might not have been able to do,” said AngloGold executive vice president, business sustainability, Thero Setiloane.

Speaking in an interview on the sidelines of the London Bullion Market Association annual conference, he said he saw the gold price holding comfortably above US$1 300 for the remainder of 2010, and heading towards US$1 400.”

AngloGold had cut its hedge book “’ gold sold forward or covered by derivatives “’ to 2.72 Moz by 14 September, and planned to eliminate all of it by early next year by procuring early settlements of contracts that mature beyond 2010.

Setiloane did not elaborate further on the progress of the hedge-book unwinding.

He said it would add some US$500 million(R3.6 billion) to US$600 million (R4.3 billion) to the bottom line of the world’s third largest gold producer, which would use the cash to develop some of its pending capital projects.

“The prospects in terms of projects are second to none in the world, so I think as a company everything is looking up. The market is looking up, our prospects are looking up, and we have the cash to self-fund a lot of those projects," he added.

AngloGold shares have risen by more than 4% this year, compared with a 3.1% rise in Johannesburg’s blue-chip Top-40 index.

Setiloane said the company had no plans right now to use that capital to fund any acquisitions.