Barrick CEO not looking to hedge gold
Tue Mar 4, 2014 6:08pm EST
(Reuters) - Canada's Barrick Gold Corp , the world's biggest gold miner, is not looking to hedge the price of the precious metal because it expects a sharp increase in coming years, Chief Executive Jamie Sokalsky said on Tuesday.
"That is not something we're considering doing right now," Sokalsky said at an interview with Bloomberg News during the Prospectors & Developers Association of Canada (PDAC) convention in Toronto.
Sokalsky said he was not interested in hedging because investors want to capture gold's upside.
In December, incoming Barrick Chairman John Thornton told reporters he would look seriously at hedging.
Sokalsky said Thornton's comments reflect the fact that hedging is "a discussion anyone should have in the commodity business."
Barrick unwound its gold hedges in 2009, raising more than $5 billion so it could benefit as the price of gold rose. Some investors believe full exposure to the gold price is the only reason to buy mining stocks, instead of physical gold.
