MineWeb: Gold and copper hedges slash into Newcrest's profits

8:52p ET Monday, August 28, 2006

Dear Friend of GATA and Gold:

MineWeb reports that the most recent financial results of the big Australian mining company, Newcrest, are poor, despite the boom in the metals, because of hedging. MineWeb says:

"The prime reason for the company’s relatively poor ongoing performance in a time of much higher gold and copper prices has been the impact of its forward sales contracts. Newcrest received only Aus$564 an ounce for its gold during the year, compared with the Aus$708 average spot price over the same period. Similarly, its less significant copper sales were achieved at Aus$2.22/lb as against a $3.69/lb average on the open market."

You can find the MineWeb report here:

http://www.mineweb.net/gold_silver/967207.htm

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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