hedging .. irj., page-15

Xerxes,


Tried to get PDF file down to look at balance sheet but too slow on this computer. Comsec shows 9 million long term debt but that is not specified and that source is not always up to date.

Perhaps the hedging was put in place to cover the 20 million debt or maybe it was to protect against the chance of any fall in gold and the USD/AUD. Whatever it does reduce the upside of any increase above AUD500
to 60% (300k/year) of production.

I assumed that the hedging was in place to cover debt and would not be in place once that debt was repaid. It seems under the hedging contract CRS is stuck with the hedge cost (while gold is above $500 ie.cost) for some time.

I did get the gold prices for last financial year:

Average spot price was AUD559 and CRS price was AUD520.





CRS ANN.

Repays $20 million debt

Document date: Thu 22 Aug 2002 Published: Thu 22 Aug 2002 14:47:06
Document No: 221745 Document part: A
Market Flag: N
Classification: Issued Capital - Other
CROESUS MINING NL 2002-08-22 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
Croesus Mining NL is pleased to report that the $20 million borrowed
from Macquarie Bank and used to fund the Central Norseman transaction
in January 2002, has been repaid in full just seven months after the
loan was drawn down.

This leaves Croesus with no bank debt and a mid quarter cash position
of $20 million.

In addition Croesus has increased its exploration spend rate with $10
million budgeted for the 2002/03 year. The majority of this money
will be spent at the Company's 100% owned Central Norseman Operation
where excellent results continue to be reported.

Croesus is the fourth largest Australian controlled gold producer
with forecast production of 300,000 ounces per annum. Last month
Croesus reported a record pretax profit (unaudited) of $15 million
for 2002.

For further information, please contact:

Michael Ivey Graeme Smith
MANAGING DIRECTOR & CEO COMPANY SECRETARY
08 90 91 2222 08 90 91 2222

Website: www.croesus.com.au

lrj.