This is very significant development one of the biggest Hedgers in the market decided that gold will be going up and not down contrary to what they were thinking for years. I would say that we are standing right at the pivotal point in this Bull market. Technicals clearly showing this kind of development.
"TORONTO (Reuters) - Barrick Gold Corp. (ABX.TO: Quote) reported a first-quarter loss on Tuesday as it took a $557 million charge to exit hedge positions and take advantage of strong spot gold prices.
The world's biggest gold producer reported a loss of $159 million, or 18 cents a share, compared with a year-before profit of $224 million, or 29 cents a share.
Stripping out the charge to eliminate forward sales contracts, adjusted earnings were $398 million, or 45 cents a share, up from $263 million, or 33 cents a share.
Barrick said its hedge book for current production has been completely eliminated, although the company still has hedges related to projects still in development, particularly the Pascua-Lama project on the border of Argentina and Chile.
"It's great news that they have reduced their hedges, because that was an albatross around their neck," said John Ing, analyst sand president of Maison Placements."
The world's biggest gold producer reported a loss of $159 million, or 18 cents a share, compared with a year-before profit of $224 million, or 29 cents a share.
Stripping out the charge to eliminate forward sales contracts, adjusted earnings were $398 million, or 45 cents a share, up from $263 million, or 33 cents a share.
Barrick said its hedge book for current production has been completely eliminated, although the company still has hedges related to projects still in development, particularly the Pascua-Lama project on the border of Argentina and Chile.
"It's great news that they have reduced their hedges, because that was an albatross around their neck," said John Ing, analyst sand president of Maison Placements."
No comments:
Post a Comment