Boliden Hedges Copper Production up to 2010.STOCKHOLM, Sweden -- In order to secure parts of the payments regarding the investment in Aitik, Boliden has extended its hedging of metal prices by about two years up to 2010. This implies that 70 percent of the planned price exposure of copper is now hedged at an average price of USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 6,394 per tonne for 2008 and USD 5,920 per tonne for 2009. Furthermore, the hedging of metal prices for gold, silver and lead has been extended up to 2010. "The hedging creates a better balance in our operations from a long-term perspective when we can secure significant parts of the investment in Aitik. At the same time, we have chosen to keep zinc production completely unhedged and be totally exposed to future price trends of zinc," says Jan Johansson, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Boliden. The table below summarises Boliden's metal-price hedging for the period 2007-2009 for copper, lead, gold and silver as at 1 January 2007. [TABLE OMITTED] 1) Price exposure for 2007 includes purchase contracts with price-escalator clause pending negotiations (estimated). The result of the final negotiations can influence the hedged portion for 2007. 2) For 2008-2009 the price-escalator clause is not included in the exposure nor the hedged portion. The level of escalators in the purchase contracts during 2008-2009 may affect the hedged portion. In conjunction with the implemented price-hedging of metals, Boliden has as previously also chosen to hedge its currency exposure in US dollars through put options. Boliden is subsequently hedged against a weakening of the US dollar vis-a-vis the Swedish krona Noun 1. Swedish krona - the basic unit of money in Sweden krona Swedish monetary unit - monetary unit in Sweden ore - a monetary subunit in Denmark and Norway and Sweden; 100 ore equal 1 krona , while holding an advantage should there be a strengthening. The floors of the currency options portfolio are spread between USD/SEK 6.0 - 7.4. Boliden is one of the leading mining and smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. companies in Europe with operations in Sweden, Finland, Norway and Ireland. Boliden's main products are copper, zinc, lead, gold and silver. Exploration and recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. of metals are also important within the Company, which employs around 4,500 people with an annual turnover of approximately EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3.8 billion. The Company's shares are listed on Stockholmsborsen's Large Cap list and on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. in Canada. www.boliden.com This information was brought to you by Waymaker http://www.waymaker.net |
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