Gold Miners Expand Hedge Book by Another 50 Tonnes in First Quarter: Report


Gold miners expanded the global hedge book by another 50 tonnes in the first quarter after hedging on a net basis for a second straight year in 2015, an industry report showed on Monday.

Miners use hedging, usually by selling future production forward, to guarantee returns for their output.

In their quarterly Global Hedge Book Analysis, Societe Generale and GFMS analysts at Thomson Reuters said the global hedge book total stood at 270 tonnes at the end of March.

Australia-based operators accounted for half of gross hedging in the first quarter, with the majority coming from Newcrest, followed by a fourth tranche undertaken by Russia’s Polyus Gold, the report showed.

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