28th Feb 2008 07:00
Albidon Limited28 February 2008 ALBIDON LIMITED LEVEL 1 62 COLIN ST WEST PERTH 6005 WESTERN AUSTRALIA ARBN 107 288 755 TEL: +61 8 9211 4600 FAX: +61 8 9211 4699 EMAIL:[email protected] ASX CODE: ALB AIM CODE: ALD ALBIDON COMPLETES ADDITIONAL NICKEL HEDGING HIGHLIGHTS • As required by Albidon's recent financing arrangements, a second hedging programme has been finalised for the forward sale of an additional 2,274 nickel tonnes over the period between January 2009 and December 2013. • The total amount of nickel hedged is now 11,294 tonnes, which represents approximately 25% of the nickel in concentrate expected to be produced over the hedging period. • Average nickel price for the total hedged production is US$23,605 per tonne (US$10.71 lb). • The total amount of hedging remains modest and continues to lock in strong operating margins while providing approximately 75% exposure to spot nickel prices. Nickel Hedging Programme As required by Albidon's recent financing arrangements, the Company has forwardhedged 2,274 tonnes of nickel in addition to its original 9,020 tonnes hedged inMay 2007. Total nickel now hedged is 11,294 tonnes which representsapproximately 25% of the nickel in concentrate expected to be produced from theMunali Nickel Project over the hedging period. The recent hedging commences inJanuary 2009 at 100 tonnes a month and then from July 2009 at 31 tonnes permonth out to December 2013. This allows for full production ramp up from mid2008 and provides exposure to the spot price of nickel for the first six monthsof production. The weighted average hedge prices per year for all of the hedged nickel are: 2009 2010 2011 2012 2013 Avg. hedge price (US$ tonne) 28,095 26,328 23,516 21,215 19,383 Nickel tonnes hedged 1934 2340 2340 2340 2340 The Company has completed the hedging on very favourable terms. This level ofhedging is modest and ensures the project continues to lock in strong operatingmargins, while at the same time providing a high degree of exposure to upside inspot nickel prices. The production of the other payable metals from Munali is unhedged (copper,cobalt, platinum and palladium). If you have any queries please contact the Chief Financial Officer, Nicholas Dayor Managing Director, Dale Rogers on +61 8 9211 4600 or email [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 94802500. Additional information may also be viewed on Albidon's website atwww.albidon.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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