"Most recent raisings have been for recapitalisation of existing...

"Most recent raisings have been for recapitalisation of existing gold miners such as Newmont and Newcrest, both of which attracted a flood of money. In the case of Newcrest, it asked for $500 million and took in $750 million, virtually overnight.

But, that was last week, before gold's mad dash through the $US1000 mark with the next few months likely to see a retreat.

BMO's Melek reckons the average price in the first half of this year will be about $US850 an ounce, a tip that implies a substantial fall. In the second half, the average is forecast to be $US925, with the same price tip applying to 2010.

Those prices are, obviously, one man's view of the gold market. But it is a well-informed view that should not be ignored. "

Extract Article by Tim Treadgold for Egoli 3 March 2009

PRU will be affected by changes in the Gold Price and options raising.