AGLD Allied Gold

 

TIDMAGLD 
 
RNS Number : 8511H 
Allied Gold Limited 
01 March 2010 
 

 
 
 
                   ("Allied", "Allied Gold" or "the Company") 
 
                    Allied Gold unwinds remaining hedge book 
 
 
 
Allied Gold Limited has extinguished the last 30,000 ounces of a gold hedging 
programme giving the Company full price participation in the 75,000-80,000ounces 
it expects to produce in 2010 from the Simberi gold mine in Papua New Guinea. 
In February 2008, Allied Gold put in place a hedging programme over 170,000 
ounces as part of its Simberi project financing.  The majority of the hedging 
has been utilised or repaid over the past 18 months. 
The unwinding of the remaining hedges nine (9) months earlier than planned, at a 
cost of A$20 million, will now see the Company receive gold sales revenue at 
spot (currently US$1100/oz) compared to US$700/oz hedges. The payback for the 
retirement of the hedge book will take around 6 months based on current gold 
prices. Following the unwinding of the hedge book, the Company has AUD$150 
million cash at bank. 
Allied Gold Executive Chairman, Mark Caruso, said today, "With a sound balance 
sheet and significant resource base, the company is in a very different position 
compared with two years ago when the hedging was required as part of our debt 
funding.  Gold price participation is one of the key features investors look for 
in high-growth gold stocks and the unwinding of this legacy hedging will assist 
in the revenue received and our market profile." 
The changes will not affect the company's funding initiatives or its growth 
plans to lift production from Simberi and Gold Ridge (Solomon Islands) mines to 
in excess of 200,000oz pa in FY2012 and 300,000oz pa in FY2013. 
About Allied Gold: The Simberi gold mine (60km from Lihir Island) has produced 
150,000 ounces since production commenced in February 2008.  Production in 2010 
is expected to be approx 75,000-80,000 ounces, with an expansion later in the 
year to lift Simberi plant throughput from 2Mtpa to 3Mtpa and gold output 
towards 100,000 ozpa.   The Simberi sulphide project resource update is expected 
in March 2010 with a feasibility study expected during 2011.  Allied acquired 
the Gold Ridge project in the Solomons Islands in late 2009 and pre-development 
works are currently underway, with production of 120,000 ozpa expected in 
FY2012. 
 
 
For more information: 
+----------------------------------+--------------------------+ 
| Mark Caruso                      | T:+61 7 93252 5911       | 
| Executive Chairman               |                          | 
|                                  |                          | 
+----------------------------------+--------------------------+ 
| Roland Cornish                   | T: +44 (0) 20 7628 3396  | 
| Beaumont Cornish Limited         |                          | 
+----------------------------------+--------------------------+ 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCLLFVFVVILIII 
 

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