Beiträge von GoldenCentury

02 Dez 2004 20:47

02.12.2004 20:31:31 NYMEX oil ends down below $44 as US inventories rise

NEW YORK, Dec 2 (Reuters) - NYMEX crude oil futures ended down more than $2 on Thursday, selling off for the second straight session on rising supplies of U.S. petroleum supplies.

Extending Wednesday's $3.64 loss, which was crude's biggest one-day drop since September 2001, NYMEX oil for January delivery closed down $2.24 at $43.25 a barrel after sliding to a 12-week low of $42.50.

January heating oil last traded at $1.2590 a gallon, down 7.03 cents, adding to its 8.90-cent loss on Wednesday. Its session nadir of $1.2475 marked its lowest level since Sept. 20.

January gasoline last traded at $1.1420 a gallon, down 5.92 cents, after losing 8.34 cents on Wednesday. It traded as low as $1.1275 to post its cheapest price since Aug. 31.

02 Dez 2004 20:45

02.12.2004 20:42:56 NY gold, silver end below highs as dollar bounces

NEW YORK, Dec 2 (Reuters) - U.S. gold futures fell from 16-year and contract highs to close lower on Thursday, as a dollar rally sparked profit-taking, while silver tumbled back below $8 an ounce in volatile trading.

Speculative buying helped lift platinum futures to their highest since April, however, as funds rotated into a metal that had been lagging gold's recent advance.

February gold on the New York Mercantile Exchange's COMEX division ended down $3.60 at $452.30 an ounce, after trading between $448.70 and $458.70, which was the highest for futures since July 1988.

"As soon as the dollar started to gain strength, the metals collapsed," said Scott Meyers, an analyst at Pioneer Futures. "Gold can't hold up without the euro being strong, and the same goes for silver. This is an international monetary issue that has nothing to do with supply and demand."

The dollar rallied across the board as dealers pocketed profits in other currencies, which have climbed to highs in recent days.

Some traders viewed the dollar as oversold, but analysts continued to cite poor underlying sentiment surrounding the long-term negatives weighing on the U.S. currency, including the wide U.S. current account deficit.

Near-term price direction in gold remains dependent upon the dollar, said Meyers, who said markets would be focused on Friday's U.S. monthly employment report.

The euro was near $1.3271 at midafternoon, off its earlier all-time peak at $1.3383

Analysts have expected a correction lower in gold, which has benefited from concerns about the falling dollar.

The metal also has gained strength from the strongest bull move in commodities since the 1980s and by gold's role as a store of value amid economic and geopolitical uncertainty.

Additionally, traders often look to gold when crude oil is volatile. Oil fell to $44 a barrel Thursday, a day after suffering its biggest one-day loss in more than three years.

"While the longer-term bullish mood still remains, the recent sharp increase in long positions and continued speculation of a dollar correction leaves gold and the other precious metals open to profit-taking," James Moore of TheBullionDesk.com said in a daily note.

Support in the yellow metal was at $450 and $448, analysts said, with resistance viewed at $460.

Spot gold traded to $449.70/0.40, down from an earlier 16-year peak at $456.75 and Wednesday's late quote at $453.30/4.05. Thursday's afternoon London fix was at $454.20.

March silver futures sank 12.0 cents to end at $7.96 an ounce. The contract reached as high as $8.235, its strongest since April, before touching a session low at $7.915.

Silver futures peaked this year at $8.50 back in April.

Spot silver priced at $7.87/90, below an eight-month high at $8.15 earlier and the prior close at $7.98/8.01. The London fix was at $8.04.

January platinum settled up $5.60 at $884.20 an ounce, after reaching its highest since April 21 at $887. Spot platinum hit $878.00/883.00.

March palladium lost $2.50 to $209.05. Spot palladium was down at $206.50/212.50.

02 Dez 2004 18:25

02.12.2004 18:18:32 Gold zeigt sich volatil

London, 02. Dez (Reuters) - Der Goldkurs hat am Donnerstag in Europa mit 456,75 Dollar ein neues 16-Jahreshoch erreicht, nach einem zum Handelsende wieder etwas steigenden Dollar endete die Rally jedoch abrupt.

Vor allem die Fonds hätten zunächst wieder einmal die Nachfrage kräftig gestärkt, hiess es. In London, Sydney und New York starteten an der Börse zudem Gold-Fonds, die auch für Kleinanleger den Goldkauf erleichterten.

Dass der Goldmarkt derzeit spiegelbildlich auf die Dollar-Entwicklung reagiert und sehr volatil ist, zeigte sich am Nachmittag dann mit der Trendwende der US-Devise. Als der Dollar wegen Gewinnmitnahmen nach einem erneuten Rekordtief am Nachmittag zulegte, fiel Gold kurzzeitig sogar unter die 450 Dollar-Marke und notierte bei 449,20 Dollar.

Ein schwacher Dollar verbilligt einerseits das in der US-Währung gehandelte Gold für Anleger aus anderen Währungsräumen. Andererseits ist Gold ein beliebter Schutz vor dem Dollarverfall.

Zum Handelsende stand die Feinunze des Edelmetalls dann bei 450,60 Dollar und damit noch unter dem Vorabendkurs von 452,40/453,15 Dollar. Das Nachmittagsfixing in London erfolgte bei 454,20 Dollar, nach 454,35 Dollar am Vormittag und 452,85 Dollar am Mittwochnachmittag.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 16.574/16.824 (Vorabend 16.527/16.777) sfr an.

ish/och

© Reuters 2004

02 Dez 2004 18:12

02.12.2004 17:52:34 Gold ends sharply down in Europe as dollar firms

* Gold ends lower in Europe as firmer dollar prompts profit-taking from earlier advance to $456.75 -- the highest since June 1988.

* Spot gold slides to close at $446.65/447.40 by 1615 GMT, compared with $453.30/454.05 quoted late in New York on Wednesday.

* Dollar rises on profit-taking in other currencies, with some viewing the greenback as oversold. Euro last at $1.3266 after hitting record peak at $1.3383.

* Silver falls with gold after moving to its highest in eight months at $8.15. Silver last at $7.91/7.94, compared with $7.98/8.01 late in New York on Wednesday.

Platinum moves up to $880.00/885.00 from $874.00/878.00, while palladium stands at $209.00/213.00 from $208.00/214.00 previously.

02 Dez 2004 18:13

02.12.2004 17:31:27 NY gold & silver drop from new highs; platinum up

NEW YORK, Dec 2 (Reuters) - U.S. gold futures slid off 16-year and contract highs on Thursday, and silver fell from an eight-month peak over $8 an ounce, on profit-taking after the dollar recovered from new lows against key rivals.

Fund buying in the metals complex also lifted platinum futures to their strongest level since August at $887 an ounce.

"I thought yesterday we'd see $900, but maybe I was just a day short. But it is in the offing," said Ralph D'Esposito at RJ Futures.

Silver, relatively thinly traded, had been the surprise mover in the precious metals this week, said James Quinn, commodities commentator at AG Edwards & Sons, as funds bid it up quickly following gold's burst above $455 to within sight of $460.

"Gold has traded to the highs, and now we're starting to see a little slippage in gold and silver. Personally, I think we're going to pull back a little bit," he said.

February gold on the New York Mercantile Exchange's COMEX division fell $3.20 to $452.70 an ounce by 10:54 a.m. EST (1554 GMT), near a session low of $451.30, after trading down from $458.70 -- the highest for futures since July 1988.

Analysts have expected a correction lower in gold, which has benefited from concerns about the falling dollar.

The metal also has gained strength from the strongest bull move in commodities since the 1980s and by gold's role as a store of value amid economic and geopolitical uncertainty.

Additionally, traders often look to gold when crude oil is volatile. Oil fell to $44 a barrel Thursday, a day after suffering its biggest one-day loss in more than three years.

"While the longer-term bullish mood still remains, the recent sharp increase in long positions and continued speculation of a dollar correction leaves gold and the other precious metals open to profit taking," James Moore of TheBullionDesk.com said in a daily note.

Analysts pegged support in gold at $450 and $448, with resistance at $460.

Spot gold traded at $450.30/1.00, down from an earlier 16-year peak at $456.75.

The dollar struggled up from an all-time low against the euro and a five-year low versus the yen as dealers deliberated how far Europe and Japan would let their currencies rise before taking action.

The European Central Bank decided at a meeting to keep its official interest rate at 2 percent, as expected, and bank President Jean-Claude Trichet said rate cuts were not discussed.

The euro climbed to $1.3383 before edging down to $1.3313 by midmorning.

March silver fell 10.0 to $7.98 an ounce, moving between $8.235 to $7.94. Silver futures hit $8.50 back in April. Spot silver traded at $7.91/94, compared with a high at $8.15.

January platinum rose $8.20 to $886.80 an ounce. Spot platinum touched $879.00/884.00.

March palladium lost 55 cents to $211. Spot palladium fetched $208.00/213.00.

02 Dez 2004 12:22

02.12.2004 12:14:20 Newmont positive on Indonesia despite legal case

By Jerry Norton

JAKARTA, Dec 2 (Reuters) - Newmont Mining Corp. (/NEM.N) is positive about its Indonesia operations despite allegations of pollution that could bring legal charges against executives and a company unit, a Newmont vice president said on Thursday.

Environmental groups and some villagers living near Buyat Bay on Indonesia's Sulawesi island say waste disposed in the bay by the Newmont gold mine contained pollutants contaminating the food chain and causing health problems.

Newmont, the world's biggest gold producer, denies that.

However, Indonesian prosecutors said this week they expect to file charges under environmental laws against six executives and the company's Indonesian unit responsible for the mine.

Conviction could mean jail terms for the executives.

Asked how that situation affected Newmont's attitude towards Indonesian operations, vice president for environment Dave Baker said: "Newmont's still very positive on Indonesia.

"We've been here a long time and as far as I know we have no intention of leaving ... It doesn't matter what country you're in, you go through ups and downs," the Denver-based executive told reporters near the end of a visit to Indonesia.

Mining groups and the U.S. embassy in Jakarta have said the Newmont case may discourage much-needed foreign investment.

Asked if he thought the prospect of executives going to jail would rule out consideration of major new projects in Indonesia, Baker said that wouldn't necessarily be the case.

"It just depends on the project and the project's economics and a whole lot of factors," he said. "There's always the political piece, the technical piece, the social piece, the economic piece."

Newmont's chief executive, Wayne Murdy, is also in Indonesia this week and visiting government officials, including the mines and energy minister, to present the company's side on the issues.

Charges of breaching environmental rules carry jail terms of up to 15 years in Indonesia if people are proved to have died or become seriously ill as a result of pollution. Legal articles cited by prosecutors this week carry terms of up to 10 years.

Baker said studies of illnesses in the Buyat Bay area, site of Newmont's Minahasa mine some 2,200 km (1,400 miles) northeast of Jakarta, showed no signs of arsenic or heavy metal intoxication. He suggested the health problems were "fairly typical of that part of Sulawesi".

He said while Newmont did not dispute many of the facts in a recent government-commissioned report that cited significant levels of mercury and arsenic in bay sediment, the issue is "applying appropriate and correct science to the facts".

If that was done, the conclusion would be that water quality in the bay was fine and the sediments did not pose a threat to health, he said.

A number of agencies and groups have been involved in several studies of the environmental situation in the area and have reached varying conclusions.

Some analysts, citing the detention of five Newmont executives for several weeks during a police investigation, say regardless of the merits of the case Indonesia is treating Newmont more harshly than its own companies when faced with similar allegations.

Environmentalists respond that the government has been too lenient in the past and should be more vigorous.

02 Dez 2004 08:44

02.12.2004 08:38:45 TOCOM gold at 12-year high after New York rally

TOKYO, Dec 2 (Reuters) - Tokyo gold futures rose on Thursday to their highest level in 12 years after prices in New York rallied to a 16-year high, although a soaring yen made investors wary of bidding up yen-based futures aggressively.

The October contract on the Tokyo Commodity Exchange (TOCOM) rose as high as 1,505 yen per gram, the highest for the benchmark month since Aug. 3, 1992 when prices marked a high of 1,509 yen. At the close it was up five yen at 1,502.

"The market drew strength from a bullish overseas market. But its rise was more gradual due to a strong yen," one broker said.

He added that the benchmark contract was expected to approach 1,563 yen -- the peak for 1992 set on March 12 -- unless the dollar's downturn came to a halt.

Broad concerns about the declining U.S. dollar have driven investors toward gold, which is viewed as a classic store of value when the U.S. currency is under pressure.

The dollar sank to a record low against the euro and fell to its lowest level since March 2000 versus the yen on Thursday as traders played down the chances of joint market intervention by European and Japanese authorities.

At 0630 GMT, the euro was buying around $1.3365 , up from $1.3345 in late New York trade and just off the record high of $1.3375 hit earlier in the day.

The dollar was at 102.20 yen after falling to 102.11,
a 4-½ year low and down nearly half a percent from late
trading in New York.

The market is focused on the ability of the United States to fund its budget and current account deficits, and on suspicions that Washington wants a weaker dollar to help fix the imbalance.

In New York, COMEX February gold moved as high as $457.70 an ounce, the priciest for futures since July 1988, before settling at $455.90, still up $2.70 on the day.

Spot gold was at $456.10/65 an ounce at 0630 GMT, extending gains from New York's last-quoted $453.60/454.35. TOCOM platinum futures rebounded on Thursday, buoyed by gains in New York and higher gold prices.

The benchmark October platinum contract ended up 15 yen per gram at 2,793, after trading between 2,785 and 2,805.

Other months gained nine to 18 yen.

Spot platinum was at $874.00/879.00 an ounce at 0630 GMT, unchanged from late New York.

Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.

Closing prices are in yen per gram except for silver, which is in yen per 10 grams:

For open interest details please click
Closing price Turnover (lots)
GOLD 1,502 (up 5) 58,033
SILVER 261.9 (up 7.7) 9,718
PLATINUM 2,793 (up 15) 39,439
PALLADIUM 692 (down 18) 1,236

Jetzt wirds langsam Zeit Dow u. Co. zu shorten,Beigebook optimistisch, aber der Dollar kriegt was vor den Latz, 1,3353........

01 Dez 2004 22:23

01.12.2004 22:19:04 FOKUS 1-Fed beurteilt US-Konjunkturbedingungen optimistisch

Washington, 01. Dez (Reuters) - Die Wirtschaft der USA ist der US-Notenbank (Fed) zufolge im Oktober und Anfang November gewachsen.

"Die Berichte aus den zwölf Bezirken der US-Notenbank zeigen generell ein Bild von anhaltendem Wirtschaftswachstum von Mitte Oktober bis Mitte November", teilte die Fed am Mittwoch in ihrem Konjunkturbericht Beige Book mit, den die Federal Reserve Bank von Dallas auf Basis von Daten vor dem 22. November erstellt hat.

Insbesondere am Arbeitsmarkt gebe es in den vergangenen Wochen positive Entwicklungen, wobei in einigen Regionen mittlerweile in Bauberufen, der Buchhaltung und der Energieversorgung sogar Arbeitskräfte fehlten. Allerdings entwickelten sich die Ausgaben der Verbraucher sehr unterschiedlich, in vielen Gebieten uneinheitlich, in anderen unverändert oder schwächer.

Die hohen Energiepreise könnte nach Fed-Angaben zu einer Verschiebungen der Ausgaben geführt haben. "Einzelhändler in den Bezirken Dallas, Kansas City und New York berichten, dass die Nachfrage nach Hochpreis-Produkten deutlich stärker ist als die nach günstigeren Produkten", hieß es in dem Bericht weiter. Es gebe Hinweise darauf, dass Haushalte mit niedrigeren Einkommen stärker von dem Energiepreisanstieg betroffen sein könnten. Höheren Kosten für Energie, Transport, Nahrungsmittel und aus Erdöl hergestellte Produkte würden Unternehmen in allen Landesteilen belasten. Die Einzelhandelspreise seien infolgedessen aber kaum angestiegen.

Das nach der Farbe seines Einbands benannte Beige Book dient dem für die Geldpolitik verantwortlichen Offenmarktausschuss der Fed (FOMC) als wichtige Grundlage für seine Zinsentscheidungen. Volkswirte rechnen mehrheitlich damit, dass die Fed bei ihrer nächsten Sitzung am 14. Dezember ihren als Schlüsselzins geltenden Zielsatz für Tagesgeld ein fünftes Mal in diesem Jahr um 25 Basispunkte auf dann 2,25 Prozent anheben wird.

che/sws

01 Dez 2004 22:08

01.12.2004 21:50:20 NY gold ends firm but off highs, silver up 3.9 pct

NEW YORK, Dec 1 (Reuters) - Gold futures climbed but settled below a 16-year high on Wednesday, buoyed by the dollar near a record low versus the euro and silver's jump to an eight-month peak above $8 an ounce.

A burst of technical fund buying at the start of the month drove metal prices higher, dealers and analysts said.

February delivery gold on the New York Mercantile Exchange's COMEX division moved as high at $457.70 an ounce, the highest for futures since July 1988, before ending at $455.90, up $2.70 on the day. The session low was $452.40.

Investors have piled into gold and, to a lesser extent silver, amid concerns about the declining dollar, although volatility in crude oil and geopolitical tensions also have lent support.

"I thought we might be in for a bit more of a correction in gold after the last month, but the rally continues strongly," said Paul McLeod, vice president of precious metals at Commerzbank in New York.

Spot gold peaked at $455.20 Wednesday, its loftiest level since June 1988, before slipping slightly. It last fetched $453.30/4.05, up from Tuesday's New York close at $450.50/1.25.

Physical demand for precious metals remains robust as well, especially on price dips, McLeod said.

"Silver had a very strong day, and I think it's getting ready to test the highs for the year, which I don't think many people expected to be seen," he added.

March silver closed 30.3 cents higher at $8.08 an ounce, after trading from $7.765 to $8.13. Spot silver jumped to $7.98/8.01, from Tuesday's late quote at $7.68/71.

The peak this year for a nearby silver futures contract was $8.211 on April 11.

The dollar hit an all-time low versus the euro at $1.3335 , before hovering at $1.3311 in the afternoon.

The dollar has lost almost a tenth of its value versus a basket of currencies in four months on concerns about the U.S. current account deficit and speculation Washington is happy to see a weaker dollar.

January platinum rose $6.30 to $878.60 an ounce. Spot platinum hit $874.00/879.00.

March palladium lost $1.55 to close at $211.55. Spot palladium traded to $208.00/214.00.

© Reuters 2004

01 Dez 2004 17:55

01.12.2004 17:42:57 Commodities News Summary

TOP NEWS
> NY gold above $456 early, silver hits 8-mo. high [nN01376540]

NEW YORK - U.S. gold futures climbed to within sight of recent 16-year highs on Wednesday morning after the dollar hit an all-time low versus the euro, while fund and trade buying lifted silver prices to an eight-month peak.

- - - -

> UPDATE 1-Gold higher in Europe, $455.00 in view [nL01193067]

LONDON - Gold prices pushed higher on Wednesday in Europe, with a probe towards the recent 16-1/4-year high at $455.00 an ounce triggered by dollar weakness, traders said.

- - - -

> London coffee up 1.8 pct, reversing earlier losses [nL01210189]

* London's robusta coffee futures up 1.8 percent by 1555 GMT on Wednesday, reversing earlier losses.

- - - -

> Soy rust found in Tennessee, 9th US state infected [nWBT002012]

WASHINGTON - A U.S. government test confirmed the highly contagious soybean rust in a Tennessee field, the ninth infected state found in less than a month, a state official said on Wednesday.

- - - -

METALS
> Global mine supply seen falling to 2010 - GFMS [nL01136691]

LONDON - Global supply of gold from mines is forecast to decline by an average of 30 tonnes a year over a five-year period from 2005, despite higher gold prices, industry consultant GFMS Ltd said on Wednesday.

- - - -

> INTERVIEW-Italy's jewellers see shoots of recovery [nL01564705]

VICENZA, Italy - Italy's jewellery sector is seeing an export recovery, but still faces big challenges in the shape of a surging euro and strong gold prices, a senior industry official said.

- - - -

> Implats - Rand forces look at costs, Zimbabwe key [nL01209662]

RUSTENBURG, South Africa - South Africa's strong rand is forcing Impala Platinum (/IMPJ.J) to examine costs and boost efficiency, but plans to boost output may depend on Zimbabwe, the world's second-largest platinum producer said on Wednesday.

- - - -

> Metals boom set fair for next few years - analyst [nL01185582]

LONDON - Metal prices should rise from their already-strong position in the coming year and remain buoyant in the medium term, one of London's top analysts said on Wednesday, contrasting with a mood of caution among other analysts.

- - - -

SOFT COMMODITIES > UPDATE 2-Ivory Coast cocoa arrivals seen down on y [nL0163109]

ABIDJAN - Cocoa arrivals at ports in Ivory Coast were 254,612 tonnes between October 1 and November 30 this year, down some 20 percent on the same period a year ago, according to an estimate by major exporters on Wednesday.

- - - -

> UPDATE 3-Vietnam says coffee crop may fall 10 pct [nHAN272851]

HO CHI MINH CITY - Vietnam, the world's top robusta coffee exporter, said on Wednesday its crop output may fall 10 percent short of its forecast 13-13.5 million 60-kg bags due to adverse weather and higher costs.

- - - -

> UPDATE 1-Iran confirms buys 40,000 tonnes of sugar [nL01524906]

TEHRAN - Iran on Wednesday confirmed it had purchased 40,000 tonnes of raw sugar this week, despite earlier comments that it did not need imports, and trade sources said UK sugar and sweetener maker Tate & Lyle (/TATE.L) sold the sugar.

- - - -

GRAINS, OILSEEDS, LIVESTOCK
> CBOT soybeans firm early on mild recovery [nN01140584]

CHICAGO - Soybean futures at the Chicago Board of Trade rebound slightly on Wednesday after nearly a week of lower closes, traders said.

- - - -

> UPDATE 1-Britain says safe to ease mad-cow control [nL01681189]

LONDON - Britain moved to put nearly two decades of crisis over mad cow behind it on Wednesday, saying it was safe to scrap a key measure protecting humans from the brain-wasting cattle disease.

- - - -

> Rainy US Northeast to dodge cold Canadian blast [nN01533770]

NEW YORK - Rain in the U.S. Northeast, the nation's largest heating oil hub, should bring moderately cold winds, but harsh cold air should stay in Canada, forecasters said on Wednesday.

- - - -

> Germany wants Russia to lift grain import ban [nL01477341]

HAMBURG - Germany is pressing Russia to end an import ban imposed in late November on German grains and other farm goods, a government spokeswoman said on Wednesday.

- - - -

01 Dez 2004 17:45

01.12.2004 17:42:30 Europe gold ends firm on weak dollar, $455 in focus

* Gold closes higher in Europe on Wednesday, with dealers eyeing a move to match last week's 16-1/4-year high at $455 per ounce on dollar weakness.

Spot gold closes at $452.40/453.15 per troy ounce by 1615 GMT, compared with $450.50/451.25 in New York late on Tuesday. Euro last at $1.3303 after hitting a record high versus the dollar at $1.3335.

* Silver heaps on gains to its highest since April as funds spead their purchases across gold and silver. Spot pumps up to $7.88/7.91 by 1634 GMT from $7.68/7.71 quoted in late New York trade on Tuesday.

* Platinum at $867.00/872.00, up marginally from New York's $865.00/869.00.

* Palladium marginally higher at $209.00/213.00 from $208.00/212.00.

Heute stressbedingt alles mit Verspätung,aber der Silberpreis macht den Ärger wett...

01 Dez 2004 17:16

01.12.2004 17:05:08 UPDATE 1-Gold higher in Europe, $455.00 in view

(Updates to afternoon)

LONDON, Dec 1 (Reuters) - Gold prices pushed higher on Wednesday in Europe, with a probe towards the recent 16-1/4-year high at $455.00 an ounce triggered by dollar weakness, traders said.

"It is being driven to the upside by the dollar being weaker," one trader said.

Despite the renewed advance, with the market nearing $454.00 at one stage, traders were wary of selling as the higher end of the current range.

"We are in a rough $3.00 range -- it does look a bit toppy here," the trader added.

Earlier, U.S. data on personal spending, construction spending and the ISM manufacturing index did little to excite the market, with the imoprtant release seen to be Friday's non-farm payrolls data.

Gold was at $452.70/453.45 by 1551 GMT, up from New York's late quote on Tuesday of $450.50/451.25.

"We continue to caution that a correction is inevitable at some point, but it is hard to identify the trigger," John Reade, analyst with UBS Investment Bank, said in his daily report.

With others, he said the prospect of end-year profit-taking and position-squaring might lead to a retreat towards the end of this month.

James Moore of TheBullionDesk.com said Tuesday's retreat suggested traders were getting nervous.

"Although I continue to believe that any consolidation will be met with good scaled down support, with the longer-term trend still for higher prices," he said in a daily note.

Reade noted that euro-denominated gold (XAUEUR=R) had slipped lower this week to around 399 euros an ounce from last Friday's seven-month high at 344 euros.

Elsewhere, silver charged higher amid eight-month highs in New York to settle at $7.89/7.92 an ounce from $7.68/71.

Platinum was at $867.00/872.00 versus $865.00/869.00, while palladium rose $1.00 to $209.00/213.00 an ounce.

(Additional reporting by Clare Black)

01 Dez 2004 17:18

01.12.2004 16:36:33 NY gold above $456 early, silver hits 8-mo. high

NEW YORK, Dec 1 (Reuters) - U.S. gold futures climbed to within sight of recent 16-year highs on Wednesday morning after the dollar hit an all-time low versus the euro, while fund and trade buying lifted silver prices to an eight-month peak.

The precious metals have been drawing in investors due to the eroding value of the U.S. currency, while high oil prices and increased geopolitical tensions have triggered buying as well, dealers and analysts said.

Gold touched $457 an ounce on Tuesday, which was its highest since July 1988, and has remained close to that level since then.

"It's a dollar thing," said a broker at a futures commission merchant in New York. "As long as the dollar is down, gold will stay up."

Frank Aburto, trader at F.C. Stone, said silver piggybacked on gold's rise Wednesday, and was lifted by renewed fund and commercial buying in the market.

"With the gold above the $450 level it is attracting some good interest to silver, which has been neglected," he said.

Gold for February delivery on the New York Mercantile Exchange's COMEX division rose $3 to $456.20 an ounce by 10:25 a.m. EST (1525 GMT), trading from $452.40 to $456.50.

COMEX spot December gold was up $2.10 at $453.40.

Previous end-of-the-month profit-taking, fueled by the market's top-heavy net long position, fizzled out overnight, paving the way for fresh speculative buying and physical interest at lower prices, dealers said.

Additionally, a lower dollar was boosting gold as the dollar-denominated metal was getting more affordable for non-U.S. buyers.

The dollar was not far off a fresh all-time low against the euro at midmorning.

The greenback has lost almost a tenth of its value versus a basket of currencies in four months on concerns about the U.S. current account deficit and speculation Washington is happy to see a weaker dollar.

The euro was worth $1.3320, close to the high at $1.3335.

Analysts said they viewed resistance in COMEX February gold at $460 and support down at $450 and $448.20.

Spot gold priced at $453.25/4.55, way above Tuesday's New York close at $450.50/1.25. Wednesday's early fix in London was at $451.10.

In silver, a mixture of fund, trade and bank buying catapulted prices to their highest since April, floor brokers said.

COMEX March futures rose 20.3 cents to $7.98 an ounce, moving from $7.76 to $7.985. Spot silver jumped to $7.90/93 from $7.68/71 previously. The London fix was lower at $7.715.

NYMEX January platinum rose $2.50 to $874.80 an ounce. Spot platinum traded to $867.00/872.00.

March palladium advanced $2.40 at $215.50. Spot palladium touched $209.00/213.00.

01 Dez 2004 17:19

01.12.2004 17:10:48 Gold zieht wieder etwas an

London, 01. Dez (Reuters) - Gold hat sich am Mittwoch in Europa von den Gewinnmitnahmen der Vortage wieder etwas erholt und stieg bis auf 453,80 Dollar. Noch ausstehende US-Konjunkturdaten haben allerdings einen stärkeren Anstieg verhindert, sagten Händler.

Eine Korrektur sei ab einem gewissen Punkt unausweichlich, jedoch sei ein Auslöser hierfür nicht auszumachen, so Edelmetall-Spezialist John Reade im "Daily Report" von UBS Investment Bank. Gegen Monatsende dürften Gewinnmitnahmen und Glattstellungen von Terminkontrakten zu sinkenden Kursen führen, so auch andere Gold-Experten. Der Markt werde langsam nervös, was der Fall unter die Marke von 450 Dollar vom Vortag zeige, kommentierte James Moore von TheBullionDesk.com.

Kurzfristige Impulse vom Devisenmarkt werden den Goldkurs nach Aussage von Händlern weiter bestimmen. Zudem stünde am Mittwochabend der Konjunkturbericht der amerikanischen Notenbank, das so genannte "Beige Book", an.

Zum Handelsschluss in Europa notierte die Feinunze Gold bei 452,40/453,15 nach 448,50/449,25 Dollar am Vorabend. Das Nachmittagsfixing in London erfolgte bei 452,85 Dollar nach 451,10 Dollar am Vormittag und 453,40 Dollar am Dienstagnachmittag.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 16.527/16.777 (Vorabend 16.326/16.576) sfr an.

ish/pma

Falls wer am 9.12. Zeit hat,ab nach Washington....

Hecla Mining Company and Northwest Mining Asssociation Present Day-Long Silver Session
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Nov. 30, 2004--President and Chief Executive Officer Phillips S. Baker, Jr., of Hecla Mining Company (NYSE:HL) will chair a day-long session covering silver and the silver market on Thursday, December 9, at the Northwest Mining Association annual convention in Spokane, Washington.

Titled "Silver: The Coming Explosion?!", the session will feature renowned experts on silver and the silver markets. The Silver Session will consist of silver economists and market analysts, junior silver company presentations, experts on the demand and use of silver and silver geological information.

Speakers include Michael DiRienzo, Executive Director of The Silver Institute; Ron Davies from the Silver Users Association and President of Ames Goldsmith; Jeffrey Christian, Managing Director of the CPM Group; David Kass, Senior Economist from the U.S. Commodity Futures Trade Commission; and David Morgan, precious metals analyst and host of Silver-Investor.com. The session will also feature a look at silver deposits around the world, as well as presentations from several junior silver mining companies.

The Silver Session will be held from 8:30 a.m. to 5 p.m. on December 9, at Spokane, Washington's, Red Lion Hotel at the Park, as part of the NWMA three-day exposition. Full three-day convention registration is available at http://www.nwma.org, or register for one day only for the Silver Session and Exposition Trade Show at a reduced rate by calling 509-624-1158, ext. 10.

Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines and processes silver and gold in the United States, Venezuela and Mexico. A 113-year-old company, Hecla has long been well known in the mining world and financial markets as a quality silver and gold producer. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols HL and HL-PrB.

CONTACT: Hecla Mining Company, Coeur d'Alene
Vicki Veltkamp, 208-769-4144
http://www.hecla-mining.com

SOURCE: Hecla Mining Company

30 Nov 2004 13:24

30.11.2004 12:42:09 Europe gold consolidates above $450, eyes U.S. data

LONDON, Nov 30 (Reuters) - Gold fell back on Tuesday, but looked to consolidate above $450, ahead of potential dollar-moving data to be realesed on Friday, dealers said.

By 1115 GMT spot gold was quoted at $451.75/452.50 an ounce, down from New York's late close of $453.30/454.05.

Bullion had spiked to a fresh 16-1/4 year high of $455 last Friday, but retraced after U.S. investors took profits after returning from the Thanksgiving holiday on Monday.

"It's been quiet, we saw some Australian dollar-related producer selling this morning, but as the euro picked up gold went bid and here we are back at $452.00 with no particular view," one trader said.

Analysts said gold's quiet trading session on Monday, with lower volumes than seen on Thursday and Friday, had come as a surprise after the U.S. holiday. Gold is now seen between $450 and $454, while it tracks the euro against the dollar.

The U.S. currency remained weak against the euro on Tuesday at around $1.3271, despite bouncing back slightly from last week's record low of $1.3329.

A weak U.S. currency makes dollar-priced bullion cheaper for non-U.S. investors and a natural hedge against greenback volatility.

European Central bank (ECB) President Jean-Claude Trichet, due to speak before the European Parliament at 1400 GMT, has said that recent euro moves have been brutal and unwelcome.

Later on Tuesday, traders will also be waiting for preliminary third quarter gross domestic product (GDP) data at 1330 GMT, the November Chicago PMI and the Conference Board's consumer confidence index expected at 1500 GMT.

If economic data out of the United States this week is bullish, it could shift the focus back to the pace of the Federal Reserve's monetary tightening campaign, and soften worries over the U.S. currency account deficit.

This week, the key release is U.S. payroll data for November, due out on Friday.

Traders expected activity this week to be less choppy, but the bullion market would remain cautious about long positions.

"Speculative positions are very large and although further U.S. dollar weakening will keep the metal moving higher in dollar terms, the gold market is vulnerable to a move lower should the dollar stage a temporary recovery," a daily report by UBS Investment Bank's precious metals analyst, John Reade, said.

Alexander Zumpfe from Dresdner Kleinwort Wasserstein added a temporarily stronger dollar could cap the upside this week. "Our short-term call is therefore for a consolidation within the recent range, which should help to take the heat out of this recently overbought market," he said in his daily report. Silver fell slightly to $7.74/7.77 from New York's late close of $7.77/7.80, steadying after volatile Monday trade.

Platinum stayed firm, rising slightly to $863.00/868.00 versus $860.00/865.00, while palladium edged up to $209.00/214.00 compared to $208.00/213.00.

30 Nov 2004 13:20

30.11.2004 13:19:45 Silver fixes higher, gold consolidates above $450

* Silver fixes higher at 775.00 cents an ounce compared with previous fix of 765.00 cents. Spot silver sits lower at $7.74/7.77 an ounce by 1208 GMT compared with New York's late Monday quote of $7.77/7.80. * Silver forward rates on Reuters page indicated at 2.002, 1.974, 1.914 and 1.672 for one, three, six and 12 months respectively. * Gold falls to $452.20/452.70 by 1211 GMT, compared with New York's late quote of $453.30/454.05. Bullion had spiked to $455.00 on Friday, the highest since June 1988. * Bullion seen tracking euro , still strong at $1.3290 by 1222 GMT, near all-time highs against the dollar of around $1.3329 set on Friday. * Platinum up at $863.00/868.00 an ounce versus New York's close of $860.00/865.00. Palladium edges up to $209.00/214.00 from $208.00/213.00 an ounce.

30 Nov 2004 08:52

30.11.2004 08:40:35 UPDATE 2-Tokyo gold matches 12-yr high after New York rise

TOKYO, Nov 30 (Reuters) - The benchmark gold futures contract on the Tokyo Commodity Exchange (TOCOM) rose as high as 1,503 yen per gram on Tuesday, equalling the 12-year high marked in October, after the New York market hit a 16 1/4-year peak.

TOCOM gold also gained strength from the dollar's bounce above 103 yen following the release of weaker-than-expected Japanese output data.

The 1,503 yen level matched the Oct. 6 mark, which was the highest since Aug. 3, 1992, when TOCOM's benchmark gold rose as high as 1,509 yen, an exchange spokeswoman said.

At the close, benchmark October gold was up seven yen at 1,501, coming off the day's high on profit-taking.

"The market lost steam in the afternoon as operators were eager to take profits before the release of key U.S. economic indicators later this week, which could have a major impact on the dollar and bullion," a Tokyo broker said.

Gold has been buoyant as investors have shifted money to the safe-haven metal from dollar-based financial assets amid the dollar's downward trend, traders said.

The dollar was at 103.02/05 yen at 0630 GMT, up from 102.86 in late Monday U.S. trade. Last Friday it hit a four-and-a-half year low of 102.15 yen.

The dollar bounced back after Japanese data on Tuesday showed industrial production fell 1.6 percent in October compared with a month earlier, far below market expectations for a gain of 0.1 percent.

But currency dealers said they suspected the dollar's two-day reprieve from weeks of heavy selling would not last long.

The market's biggest focus is on U.S. payrolls figures for November due on Friday, but in the meantime traders are waiting for preliminary U.S. gross domestic product data for the third quarter, due at 1330 GMT.

On Monday in New York, COMEX December gold settled up $4.40 at $453.70 an ounce, the loftiest level for futures since July 1988.

COMEX gold caught up with bullion, which marked a 16-year high of $455 an ounce on Friday, following the U.S. Thanksgiving holiday.

Spot gold was at $452.25/453.00 an ounce at 0630 GMT, down from New York's last quoted $453.30/454.05, in the wake of the dollar's rebound.

TOCOM platinum futures also settled higher, lifted by a softer yen and stronger gold futures.

The benchmark October platinum contract ended up 29 yen per gram at 2,797, after trading between 2,783 and 2,802.

Other months gained 17 to 31 yen.

Spot platinum was at $865/870 an ounce at 0630 GMT, up from Monday's New York close of $860.00/865.00.

Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.

Closing prices are in yen per gram except for silver, which is in yen per 10 grams:

For open interest details please click
Closing price Turnover (lots)
GOLD 1,501 (up 7) 96,111
SILVER 254.4 (up 2.7) 5,701
PLATINUM 2,797 (up 29) 56,596
PALLADIUM 709 (up 1) 1,276

29 Nov 2004 21:13

29.11.2004 21:01:29 NY gold closes above $450, highest since July 1988

NEW YORK, Nov 29 (Reuters) - U.S. gold futures closed at a 16-1/4-year peak above $450 an ounce Monday as the market caught up with higher bullion following the U.S. Thanksgiving Day, while silver ended at a seven-month peak.

December delivery gold on the New York Mercantile Exchange's COMEX division settled up $4.40 at $453.70 an ounce, within a range of $449.30 to $454.80, which marked the loftiest level for futures since July 1988.

February gold gained $4.30 to $455.80 in last-ditch contract rollover from the December contract before Tuesday's first notice day for metal delivery.

Refco analyst Tom Boustead said fund buying in New York after a four-day market holiday hurled gold above $450 amid improved sentiment as the dollar held near a record low versus the euro.

The market "has upward momentum until we see something happen in the currencies that would shift sentiment," Boustead said. "Gold looks a little overbought but I don't think that matters until there's a reason to take profits."

On Friday, when U.S. markets were shut, bullion touched a 16-1/4-year high at $455 and the euro hit a record at $1.3329.

Analysts said gold was looking attractive to investors as a safe haven against a backdrop of a declining dollar, rising oil prices and heightened geopolitical tensions.

According to an informal poll of London analysts released on Friday, gold was destined to reach $500 an ounce in 2005 on expectations of further dollar weakness, but may correct lower first.

Boustead said he viewed futures as in a range between support at $450 and resistance at $460 for now.

Spot gold last was quoted at $453.30/4.05, versus Europe's close Friday at $452.25/3.00. Monday's afternoon fix in London was at $451.25.

The euro dipped to around $1.3274 by midafternoon.

A strong euro makes dollar-priced metals cheaper for non-U.S. buyers.

Trade buying in New York propped up silver prices also amid an absence speculative selling, said a COMEX floor broker.

December silver gained 15.7 cents to $7.77 an ounce, trading from $7.605 to $7.795 -- its highest since April. Next-active March futures rose 15.8 cents to $7.825.

Spot silver shot up to $7.77/80 from $7.67/70 previously. London's fix was at $7.65.

January platinum finished up $3.00 at $865.40 an ounce. Spot platinum hit $860.00/865.00.

December palladium fell $2.65 to $211.35 an ounce. March shed the same amount to $213.75. Spot palladium fetched $208.00/213.00.

29 Nov 2004 17:08

29.11.2004 17:07:02 UPDATE 1-Europe gold off peaks, steadies on U.S. open

(Updates to afternoon)

LONDON, Nov 29 (Reuters) - Gold slipped from last week's 16-year highs on Monday in Europe, reflecting U.S. investor profit-taking after the New York futures market re-opened following Thanksgiving holidays, traders said.

Although traders were prepared for a possible drop below $450 an ounce by the end of the day, they remained confident bullion's rally was still intact.

By 1525 GMT, spot gold was at $451.45/452.20 compared with Friday's European close of $452.25/453.00.

Gold, seen as a hedge against dollar weakness, had spiked to its highest since June 1988 at $455 in Friday's early trade as the dollar reached a record low against the euro at $1.3329.

"It's the first day back after the U.S. holidays, and traders are still taking everything in, but really very little has changed and the U.S. currency is still the main driver," Simon Weeks, director, bullion at ScotiaMocatta said.

The dollar gained slightly on Monday as traders turned their attention towards U.S. economic reports due later in the week, but stayed weak against the euro around $1.3274.

Signs China was in no rush to let its currency appreciate against the dollar gave some support to the greenback, which had shed nearly nine percent against the euro in the past two months.

Analysts said that although gold's rally still had more to show because of the weak dollar, it remained vulnerable in the short term to sharp falls because of the high exposure of speculators on the New York futures market.

But with no clear signs of U.S. intervention to prop up the U.S. currency, all expectations were that bullion's bull run would remain intact, and a downturn -- if any -- would be shortlived.

"A test higher seems increasingly certain, with Barclays FX Strategy team noting that near-term central banks comments are unlikely to shift in a U.S. dollar-positive direction," a daily report by Barclays Capital said.

Analysts added the successful launch of new products aimed at smaller investors in the bullion market meant profit-taking could still be seen because of the sheer level of speculative long positions.

The exchange-traded-fund (ETF), called streetTRACKS Gold Shares , attracted $1.3 billion in its first three days of trading and was issued earlier in November.

"But we believe it is impressive enough to ensure that the majority of speculative interest will hold and look for higher prices," Barclays added.

Dealers put support at $450, with resistance seen at $460. Trade was expected largely to remain in a $5 range. Silver followed gold and was last quoted at $7.72/7.75 compared with $7.67/7.70 late in Europe on Friday.

Platinum was lower at $859.00/863.00 against $862.00/867.00, with palladium at $210.00/216.00 against $212.00/215.00.

Abschreiben sollte man sie noch nicht, nur umschreiben wird man sie müssen....

Renamed, revamped DRDGOLD 'no longer burning cash'

--------------------------------------------------------------------------------
By John Fraser
Shareholders of gold miner Durban Roodepoort Deep have approved a change of the company's name to DRDGOLD, which will come into effect this week.

Meanwhile, the company's CE, Ian Murray, has said the restructuring of the company's South African operations has succeeded, "and we are no longer burning cash".

At a sparsely attended shareholders' meeting on Friday, reflecting the fact that most of DRDGOLD's shares are held in North America, 96,6% voted in favour of the name change, which is designed to reflect the global nature of the company. The miner has diversified into Australasia, and is seeking further diversification.

All motions at the annual meeting were adopted, including awarding share options to directors, giving them the right to issue new shares, and a share buy-back scheme.

Murray said the recent restructuring, which has led to the loss of a third of DRDGOLD's South African workforce, had been a success. "It looks as if we are now making enough cash to cover our costs, including capital costs, in SA," he said.

"The restructuring is paying off. SA is no longer cash negative, and offshore our operations are earning dollars."

He said the dollar gold price continued to climb last week, but the effect of this was being offset in SA because of the strengthening rand. "So there was no uplift for South African gold production."

Murray was quizzed on reports that DRDGOLD was considering abandoning its primary listing on the JSE Securities Exchange SA.

He said no decisions had been made on this, but confirmed that with most shareholders offshore, the company was looking at the possibilities presented by a relaxation of exchange controls, which would allow it to keep a secondary listing in SA. "We would keep our local listing, and would remain on the main board of the JSE," he said.

"We will continue to be listed where our shareholders are."

Business Day

29 Nov 2004 16:59

29.11.2004 16:49:32 NY gold jumps to 16-1/4-year high on U.S. reopen

NEW YORK, Nov 29 (Reuters) - U.S. gold futures climbed to a 16-1/4-year peak above $450 an ounce on Monday, as the market caught up with bullion prices following last week's U.S. Thanksgiving holiday, while silver reached a seven-month high on trade buying in New York, dealers said.

December delivery gold on the New York Mercantile Exchange's COMEX division was up $2.50 at $451.80 an ounce by 10:32 a.m. EST (1532 GMT), after earlier rising as high as $452.10, which marked the loftiest level for futures since July 1988.

February gold gained $2.60 to $454.10, boosted by rollover from the December contract before Tuesday's first notice day for metal delivery.

Gold's price finally broke above resistance at $450 after repeated failures at that level, following action in overseas markets on Friday, when U.S. markets were closed for a long holiday weekend.

Bullion on Friday rose to a 16-1/4-year high at $455 and the euro reached a record at $1.3329.

Standard Bank said in a market note that gold was looking attractive to investors against a backdrop of a declining dollar, rising oil prices and heightened geopolitical tensions.

"We could be looking to another rally to break above $455 (and) a successful move out of this current range could set the market on course to $465 in the short term," Standard Bank said.

According to an informal poll of London analysts released on Friday, gold was destined to reach $500 an ounce in 2005 on expectations of further dollar weakness, but may correct lower first.

Spot gold traded at $451.00/1.75, compared with Europe's close Friday at $452.25/3.00. Monday's afternoon fix in London was at $451.25.

Even though the euro dipped to around $1.3267 by midmorning on Monday, commercial players were supporting the precious metals, dealers said.

A higher euro makes dollar-priced gold cheaper for non-U.S. buyers.

"A couple of trade houses came in here as good buyers this morning," said a silver floor broker. "It was actually a lack of selling that initially pushed this thing up."

December silver rose 10.2 cents to $7.715 an ounce, trading from $7.605 to $7.78, the highest since April. Next-active March futures gained 10.3 cents to $7.77.

Spot silver was up at $7.69/72 from $7.67/70 previously. London's fix was at $7.65.

January platinum rose $1.60 to $864 an ounce. Spot platinum traded to $859.00/863.00.

December palladium lost $2.50 to $211.50 an ounce. Next active March fell $1.80 to $214.60. Spot palladium held at $210.00/215.00.

Harmony - Results Of The Early Settlement Offer

Release Date: 29/11/2004 14:30:05 Code(s): HAR
Harmony - Results of the early settlement offer
Harmony to commence the subsequent offer with 10.8% of Gold Fields
Harmony Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1950/038232/06)
Share code: HAR ISIN: ZAE000015228
("Harmony")
29 November 2004
Results of the early settlement offer
Harmony to commence the subsequent offer with 30,9% of Gold Fields
On 18 October 2004, Harmony announced the terms of a proposed merger between
Harmony and Gold Fields offering 1.275 new Harmony shares for each Gold Fields
share, representing a premium of approximately 29%* and an implied price to net
present value multiple for Gold Fields of 2.4x, a substantial premium to Gold
Fields" peer group. The proposed merger was structured on the basis of an early
settlement offer for up to 34.9% of Gold Fields with a subsequent offer for the
balance of Gold Fields" entire issued share capital.
Harmony is pleased to announce that as at 12.00 p.m. (South African time) on 26
November 2004, the closing date of the early settlement offer, valid acceptances
of the early settlement offer had been received in respect of a total of 53 392
108 Gold Fields shares representing approximately 10.8% of the entire issued
share capital of Gold Fields. Settlement of the consideration due under the
early settlement offer in respect of valid acceptances received on or before the
closing date will be despatched as soon as possible and, in any event, by no
later than Friday, 3 December 2004.
In addition, as previously announced, Harmony has received an irrevocable
undertaking from Norilsk to accept the subsequent offer in respect of 98 467 758
Gold Fields shares, representing approximately 20.03% of the entire issued share
capital of Gold Fields.
Accordingly, Harmony now either owns, has received valid acceptances of the
early settlement offer or has an irrevocable undertaking to accept the
subsequent offer in respect of a total of 151 859 866 Gold Fields shares
representing approximately 30.9% of the entire issued share capital of Gold
Fields.
Harmony is pleased with the support of its proposed merger by Gold Fields
shareholders. Harmony believes that a starting position of 30.9% represents a
strong platform for the subsequent offer. In addition, a significant number of
Gold Fields" shareholders who did not tender or only partially tendered into the
early settlement offer have indicated their support for the proposed merger,
stating their preference to accept the subsequent offer.
Reasons fed back by a number of Gold Fields" shareholders to Harmony for waiting
to accept the subsequent offer, aside from it being common practice, include the
fact that Gold Fields" management has been offering Gold Fields" shareholders a
number of potential inducements to refrain from tendering their shares. To
Harmony"s knowledge, these have included, inter alia:
- a specific buy-back by Gold Fields of Norilsk"s 20% holding in Gold Fields
at a 15% premium to Harmony"s offers, which would require the approval by way
a special resolution of Gold Fields" shareholders in general meeting, at which
Norilsk will be precluded from voting on the matter;
- a potential white knight making an offer for the whole of Gold Fields;
- the potential sale of all or certain of Gold Fields" international assets;
- the potential unbundling of certain of Gold Fields" South African assets;
and
- the revision of the terms of the proposed transaction between Gold Fields
and IAMGold to attempt to address the inequality of the previous agreement by
Gold Fields" management.
Harmony believes that some of these are not capable of being implemented,
especially in a manner that would be considered attractive to Gold Fields"
shareholders and clearly a number of these proposed options are also mutually
exclusive and contradictory. To take one example, the sale of production ounces
for cash, especially in a firesale environment, to raise cash to buy out a
single shareholder at a substantial premium is unlikely to be in the best
interests of all of Gold Fields" shareholders or to meet with the approval of
those shareholders.
Harmony awaits evidence that the Gold Fields" board has a coherent strategy in
place to deliver on any of these promises in a manner that is in the best
interests of all of its shareholders, now including Harmony. Harmony will watch
the outcome with interest.
The first test of Gold Fields" shareholders belief in the Gold Fields" board and
management and their strategy will come on 7 December 2004, when Gold Fields"
shareholders vote on the proposed IAMGold transaction. Harmony is of the strong
view that a board that has a major strategic move rejected by its own
shareholders should consider whether it continues to have the support and
confidence of its shareholders. Harmony is encouraged by the substantial
opposition to the proposed IAMGold transaction which had been expressed during
meetings that Harmony has held with Gold Fields" shareholders. Harmony
considers that Gold Fields" management has already positioned itself for a vote
of no confidence in this major element of its strategy.
At the heart of Harmony"s proposal is what it believes will be the creation of a
highly profitable South African champion that is able to compete internationally
and is positioned to become the leading global gold miner. Harmony is
convinced that, by applying Harmony"s superior and proven operational expertise
and efficiency to Gold Fields" assets, Harmony will build an exciting platform
which would create value for all shareholders. From the outset the enlarged
group would be the largest gold mining company in terms of production, reserves
and resources. Building on this Harmony is committed to also becoming the most
efficient and valuable gold miner worldwide.
Harmony has been able to build a substantial, sustainable gold mining business
out of mines that were discarded as unprofitable by its competitors, including
Gold Fields. Harmony attributes its" success to concentrating on basic
management principles known as the "Harmony Way", which include a strong focus
on cost control and a flat, decentralised management structure that empowers the
people on the ground. Given Harmony"s proven track record in delivering cost
savings, Harmony is confident that, following completion of the proposed merger,
Harmony can achieve sustainable annual cost savings of at least R1 billion, or
15% of Gold Fields" South African cost base.
After initially attacking Harmony"s analysis as unrealistic, Gold Fields"
estimates of potential cost savings are creeping up towards the low end of what
Harmony believes is achievable by applying the "Harmony Way", an implicit
acceptance of the cost savings opportunities achievable under Harmony"s
management. Furthermore, Harmony questions whether Gold Fields" management is
able to deliver even this lower amount, given its poor performance on cost
management to date. On 28 October 2004, Ian Cockerill confirmed: "A desire to
cut costs has always been a part of the Gold Fields strategy, but the desire to
do something and the ability to deliver can often be two entirely different
things."
In its analysis of potential cost savings, Harmony is fortunate to be able to
make direct comparisons in respect of the cost levels of assets acquired from
Gold Fields. For instance, in relation to Evander, Harmony has achieved total
cost savings of some 33%. In fact, if Gold Fields still owned Evander today,
with Harmony"s cost structure, Harmony estimates that Evander would be Gold
Fields" most profitable underground operation by operating margin.
Harmony believes that savings of this magnitude would unlock a market value of
at least R17 billion. In addition, due to the current uncertainty in the
market, Harmony is trading at a substantial discount to its fundamental value,
with a price to net present value multiple of only 1.3x. As certainty returns,
Harmony expects this discount to correct itself, further increasing the value
inherent in the proposed merger. Following completion of the proposed merger,
the enlarged group would be the world"s largest gold mining company in terms of
production, reserves and resources, in Harmony"s view a "must have" investment
with substantial index weightings.
Harmony initiated a strong Rand restructuring process some six months ago, which
involved closing down unprofitable operations and streamlining the work force.
This restructuring process has now been completed and some 83% of Harmony
operations are profitable with only a marginal reduction in production.
Harmony"s ore reserves are strong and demonstrate little sensitivity to a lower
gold price. Harmony believes that it is now optimally positioned to face a
sustained strong Rand/Dollar exchange rate.
"We are delighted that we will be starting the subsequent offer with 30.9% of
Gold Fields" shares behind us and consider that this provides strong impetus for
the ultimate success of the proposed merger. We are further encouraged by the
feedback that we have received from Gold Fields" shareholders who have indicated
their ultimate belief in the value proposition that Harmony is offering and
their support for the proposed merger. In addition, a significant number of
Gold Fields" shareholders have expressed to Harmony their recognition that the
proposed IAMGold transaction, which represents the major pillar of Gold Fields"
management"s strategy is value destructive and not in the best interest of Gold
Fields and its shareholders. Now that Gold Fields" management is reaching the
end of its largely unsuccessful attempts to frustrate the proposed merger
through a serious of expensive and technical legal challenges, we look forward
to arguing Harmony"s compelling value proposition based on fundamentals with the
confidence that the various contradictory promises made by Gold Fields"
management will be revealed as both value destructive and ultimately incapable
of implementation in a manner that is either to the benefit of or likely to meet
with the approval of Gold Fields" shareholders." said Harmony CE Bernard
Swanepoel.
THE SUBSEQUENT OFFER
As set out in the circular to Gold Fields" shareholders dated 20 October 2004,
Harmony irrevocably undertook to make an the subsequent offer on the same terms
as the early settlement offer for the balance of the issued share capital of
Gold Fields not already acquired by Harmony under the early settlement offer.
Accordingly, Harmony will commence the subsequent offer and will shortly post to
Gold Fields" shareholders a supplementary document containing the terms and
conditions of the subsequent offer.
* the 29% premium is calculated by comparing the closing Harmony share price on
14 October 2004 to the average daily volume weighted average price of Gold
Fields shares on the JSE for the 30 business days ending on 14 October 2004, the
last practicable date in accordance with the JSE Listings Requirements prior to
the announcement of the proposed merger.
ENDS
ENQUIRIES
HARMONY
Ferdi Dippenaar +27 11 684 0140 Corne Bobbert +27 11 684 0146
Marketing Director +27 82 807 3684 Investor Relations +27 83 380 6614
HSBC INVESTEC
Adrian Coates +44 20 7991 8888 Dennis Tucker +27 11 286 8725
Andrew Bell George Nakos
Jan Sanders Andrew Brady
Tim Morgan-Wynne Kevin Kerr
Graham Shuttleworth
Date: 29/11/2004 02:30:12 PM Supplied by http://www.sharenet.co.za
Produced by the JSE SENS Department