Board-Ansicht
Mix-Ansicht- Barrick: Will Not Hedge Output Even If Gold Hits $500/Oz - Albrecht, 03.12.2003, 21:22
Barrick: Will Not Hedge Output Even If Gold Hits $500/Oz
-->By Chanyaporn Chanjaroen
London, Dec. 3 (OsterDowJones) - Barrick Gold Corp reiterated Wednesday
its new non-hedging policy, saying that it won't sell forward its output even
if gold prices hit $500 a troy ounce.
In a statement released at the Mines and Money conference in London, the
Canadian senior gold producer said,"We are committed to shareholder value and
want to eliminate the discount that the market ascribes to hedging."
Tuesday, Barrick announced a switch to become a non-hedging gold producer,
aiming to reduce its 16 million ounces of hedged gold to zero.
The company said that it cannot eliminate the hedge book right away
because it is evaluating a range of alternatives to reduce the hedge book down
to zero over time, in a"prudent, planned fashion."
"We have a unique flexibility in the terms of our forward sales
commitments and we don't want to spend a significant amount of hard earned
shareholders money on imprudent decisions," Barrick said.
The company said it will reduce the hedge book in a timely way, using
market volatility and taking advantage of opportunities as they present
themselves.
Barrick has not yet set a timetable for the elimination of its remaining
16 million ounces of gold hedges but it said"in light of the cyclicality in
the gold market and our production level of a minimum of about five million
ounces a year, we expect that there will be opportunities to deliver our gold
production against forward sales commitments."
The company cannot detail the alternatives for the hedge book reduction,
saying the alternatives are not"mutually exclusive." When management decides
which one or combination will achieve the goal, these decisions will be
announced," Barrick added.
With regard to its hedging counterparties, the company said its forward
sales commitments provide for flexible terms that reflect its financial
strength and asset quality.
"We have the sole discretion to deliver against the contracts at any point
for up to ten years," Barrick said.
Barrick Chief Executive Greg Wilkins also told OsterDowJones late Tuesday
that it won't hedge the new production coming from its four new projects. The
new output is estimated to reach 2 million ounces a year during 2005-2008.
Chanyaporn Chanjaroen, OsterDowJones, +44-20-7979-5748
cchanjaroen@osterdowjones.com
Dow Jones Newswires
12-03-030651ET
Copyright (C) 2003 Dow Jones & Company, Inc. All Rights Reserved.
<ul> ~ Barrick: Will Not Hedge Output Even If Gold Hits $500/Oz </ul>
Thread gesperrtgesamter Thread:
