AngloGold Ashanti Limited - AngloGold Ashanti Chairman and Deputy Chairman
appeal to IMF regarding gold sales
ANGLOGOLD ASHANTI CHAIRMAN AND DEPUTY CHAIRMAN APPEAL TO IMF REGARDING GOLD
SALES
AngloGold Ashanti Limited
(formerly AngloGold Limited)
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
(`AngloGold Ashanti/Company`)
ANGLOGOLD ASHANTI CHAIRMAN AND DEPUTY CHAIRMAN APPEAL TO IMF REGARDING GOLD
SALES
In their letter to shareholders in the AngloGold Ashanti Annual Report for
2004, chairman Russell Edey and deputy chairman James Motlatsi commented on
the concern that the International Monetary Fund (IMF) might sell part of its
substantial gold reserves in order to write down the debt of heavily indebted
poorer countries. This, they said, had given rise to a `degree of uncertainty`
in the gold market.
Referring to 1999 when the same scheme was proposed, they pointed out that a
means was devised to realise value from the IMF gold reserves through the
revaluation of a portion of the IMF gold holdings from their low balance sheet
value of $42 per ounce to the spot price for the metal at that time.
`This achieved the IMF purpose without impacting on either the gold market or
the price and we urge the IMF to act in a way on this occasion which will
achieve its certainly worthwhile objective without severe and negative
consequences for the gold producing developing economies,` they said.
The physical demand for gold during 2004 had showed some encouraging moves in
the important markets of Turkey and Vietnam, and sustained demand in India. In
China, for the first time in several years, sales of gold jewellery grew with
the introduction to that market of modern, 18-carat gold jewellery product.
`With these high population economies achieving growth in the high single
digits, there seems good reason for cautious optimism about future demand and
pricing for all commodities including gold,` they said.
ends
Johannesburg
30 March 2005
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
