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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: #Breeze who wrote (116558)	6/18/2025 12:51:44 PM
From: jazzlover2	Read Replies (1) \| Respond to of 116753

Thx for that Breeze. Interesting how the company share price did better imho during it's high hedging years prior 2010. Still couldn't take advantage of high AU prices since. Very costly to unwind those hedges, at least 5 billion I do believe, including dilution as per Google AI. Barrick Gold, once a major participant in gold hedging, has largely eliminated its hedging program. In the past, Barrick used hedging to lock in future gold prices, which helped the company grow during periods of falling gold prices. However, as gold prices rose, the company faced criticism for limiting potential profits. Ultimately, Barrick decided to unwind its hedging positions, a move that involved a substantial equity offering. Elaboration: Early Hedging Strategy: Barrick initially utilized hedging to mitigate the risk of declining gold prices, a strategy that proved beneficial in its early growth years. Shifting Perspectives: As gold prices increased, Barrick's hedging strategy became a point of contention, with critics arguing it capped potential profits when gold prices rose. Elimination of Hedging: In 2009, Barrick announced plans to eliminate its gold hedges, a decision that involved a significant equity offering to fund the unwinding of its hedging positions. Impact on Company: The decision to eliminate hedging reflected a change in strategy and a desire to have full exposure to the gold price. Current Status: Barrick now operates without a significant hedging program, allowing it to benefit fully from increases in the price of gold. Gold Hedging Defined: Gold hedging is a risk management technique where companies use financial instruments to offset potential losses from fluctuations in gold prices, essentially locking in future prices.