re: huge sellers... ncm currency hedge This little snippet might help you out gaweb...
Announced by: NEWCREST MINING LIMITED (NCM)
Announced on: 11/06/2002 09:57:07
Part: A
Words: 350
Status: Market sensitive (Y)
Industry Sub Group: Gold Producer (11)
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NEWCREST MINING LIMITED 2002-06-11 ASX-SIGNAL-G
HOMEX - Melbourne
+++++++++++++++++++++++++
MARKET RELEASE
The Board of Newcrest Mining Limited advises that it will make
provision at 30 June 2002 for surplus* currency positions in the 2003
and 2004 financial years. At today's exchange rate the pre-tax loss
relating to these provisions would amount to approximately A$80
million**.
This decision has been taken having regard to existing and proposed
revised accounting standards and is an accounting provision but not a
close-out of those positions.
The recent strengthening of the A$ against the US$ continues to
improve the mark to market position of Newcrest's currency hedge
book. The negative $361M currency mark to market at 31 March 2002 has
improved by approximately $83M. The improvement in the mark to market
is not affected by this provision.
Newcrest will maintain its existing currency and gold hedging
positions and will closely manage these to improve outcomes. With
only 20% of anticipated reserves hedged, and in light of the emerging
Telfer project, the Company retains substantial flexibility in its
future hedging strategy and a significant exposure to the gold price
in the years beyond 2003/04.
Newcrest's policy continues to be that excess gold hedging positions
will be marked to spot. At today's gold price, this policy would have
no P&L impact as at 30 June 2002.***
* Newcrest has determined that approximately US$120 million in
2002/03 and approximately US$65 million in 2003/04 of currency
contracts are surplus.
** Outstanding contracts will be revalued at subsequent reporting
dates and the provision will be reversed in the years to which they
relate. The final outcome will be dependent upon the spot exchange
rate at the maturity of the contracts.
*** The affect of the policy on the gold hedge position based upon
the current level of gold production is:
PRE-TAX GAIN/LOSS)
SPOT A$/OZ 2002/03 2003/04
550 $5.8M ZERO
560 ZERO ZERO
580 ($1.5M) ($1.0)
600 ($2.4M) ($1.3)
For further information please contact:
Peter Reeve
GENERAL MANAGER
Corporate Affairs
Newcrest Mining Limited
Telephone: (61-3) 9522 5339
Facsimile: (61-3) 9510 3416
Email: [email protected]
This information is available on our website at
http://www.newcrest.com.au
GK
LHG
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