FORWARD COMMODITY CONTRACTS

The group's hedging position, at 30 June 2007 appears below :

The forward contracts all relate to Loulo with Morila's production being completely exposed to spot gold prices. The remaining portion of the hedge book represents approximately 21% of planned production at Loulo and 14% of the group's attributable production for the period. 

During the quarter, the company delivered into 19 247 ounces of its hedge book at an average price of US$433/oz. The company rolled out to 2010 a portion of its 2007 forward sales contracts in order to achieve some price protection over the period of the Loulo underground capital programme. A total of 41 748 ounces were moved from a previous average price of US$444/oz to US$500/oz in 2010. The mark-to-market loss on the hedges at the time of the roll out will impact the income statement in the current year, and the portion pertaining to the June quarter amounts to US$3.9 million.