TORONTO: Barrick Gold Corp., the world's biggest gold producer, said Tuesday it plans to eliminate all of its gold hedges and raise US$3 billion in a share offering to help pay for the move.
The Toronto-based company cited the bullish outlook for gold.
Its announcement came on a day the price of the metal rose above $1,000 per ounce to its highest level since March 2008.
Gold hedges are futures contracts that commit a company to selling the metal at set prices.
While hedges guarantee certain cash flows, they often commit a metals producer to ship the gold at prices lower than the current spot price.
Barrick's decision to pay off its hedges amounts to a bet that gold prices will keep rising.
Subscribe to:
Post Comments (Atom)
Panduan Zakat Emas Anda
Iklankan Produk di sini
Tambahkan network anda di sini
No comments:
Post a Comment