JOHANNESBURG -
Gold de-hedging is expected to total 7.5 million ounces (233 tonnes) this year if gold producers maintain current rundown rates of the global hedge book.
International precious metals consultancy GFMS said in a quarterly report that the pace of de-hedging picked up again in the first quarter of this year (2007), after a slow-down in de-hedging in the three months ending December 2006.
Major producers, Gold Fields and Barrick, have confirmed that they had bought back hedging positions in transactions completed in January and February and Peruvian miner Buenaventura bought back 0.5 million ounces (15 tonnes) of contracts in March this year.
The fourth quarter of last year saw de-hedging decelerating to 1.12 million ounces or 35 tonnes.
This contrasted with the "frenetic" pace of de-hedging that took place in the first half of last year. However, total de-hedging for 2006 reached 12.6 million ounces or 390 tonnes - a figure close to the record levels of 2004.
GFMS said last year's aggressive run down in the global hedge book and rapid de-hedging between 2002 and 2004 had reduced the run rate of ongoing de-hedging.
But additional large-scale hedge book restructures or buy backs could not be ruled out, as the outlook for the gold price remained positive.
