Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Toronto Stock Exchange  >  Barrick Gold Corp    ABX   CA0679011084

BARRICK GOLD CORP (ABX)
Mes dernières consult.
Most popular
Report
SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Barrick Gold : Gold miner Acacia buys put options at $1,300 per ounce

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/06/2017 | 02:27pm CET

Acacia Mining (>> Acacia Mining PLC), which is scaling back operations to cut losses and settle a dispute with the Tanzanian government, has spent $3.2 million on options to sell 210,000 ounces of its gold output at $1,300 per ounce.

Acacia Mining (>> Acacia Mining PLC), which is scaling back operations to cut losses and settle a dispute with the Tanzanian government, has spent $3.2 million on options to sell 210,000 ounces of its gold output at $1,300 per ounce.

Shares in Acacia, majority-owned by Barrick Gold (>> Barrick Gold Corp), have lost almost half their value since the start of the year, after Tanzania banned concentrate exports at the start of March and then, in July, demanded $190 million in unpaid taxes.

By 1218 GMT, Acacia shares were up 1.9 percent on the day at 192 pence.

Gold <XAU=> was trading around $1,340, close to a one-year high due to tensions over North Korea's missile tests and a weaker dollar. The price has risen from around $1,200 in July.

To contain losses, Acacia said on Monday it was reducing operations at its flagship Tanzanian gold mine.

On Wednesday, the firm said it had bought options giving it the right to sell the group’s expected doré bar output for the next six months above its budgeted gold price of $1,200 per ounce. Doré bars are rough gold, an alloy of gold and silver.

An option to sell at a certain price is known as a "put", while an option to buy at a certain price is known a "call".

Miners have become wary of hedging, which allows them to lock in the price of their output, since Barrick and other major miners racked up losses unwinding options that prevented them gaining from the 12-year rally that took gold prices to record highs in 2011 just shy of $2,000 per ounce. <XAU=>

Analysts at Investec bank said in a note the $3.2 million spent on the put options was "a prudent strategy, particularly given the ongoing decline in the company’s cash position".

Acacia said its options also allowed it to benefit from a rise in the gold price above $1,300 ounces.

(Reporting by Rahul B in Bengaluru and Barbara Lewis and Jan Harvey in London; Editing by Jason Neely and Edmund Blair)

Stocks treated in this article : Barrick Gold Corp, Acacia Mining PLC
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BARRICK GOLD CORP
05:41p BARRICK GOLD : Chile orders Barrick to permanently close Pascua-Lama surface fac..
04:45p BARRICK GOLD CORPORATION : - Barrick Comments on Revised Pascua-Lama Sanction
02:18p BARRICK GOLD : Comments on Revised Pascua-Lama Sanction
01:57p BARRICK GOLD : DBRS Confirms Barrick Gold Corporation's Issuer Rating at BBB (lo..
01/17 TSX ends up as banks lead rally after rate hike
01/17 BARRICK GOLD : Comments on Creation of Canadian Ombudsperson for Responsible Ent..
01/16 Barrick Reports Preliminary Full Year and Fourth Quarter Production Results
01/16 TSX retreats as lower commodity prices pressure resource stocks
01/15 Gold miners and pot stocks push TSX higher
01/13 NEWMONT MINING : Speakers confirmed for Winnemucca Futures
More news
News from SeekingAlpha
12:15p Barrick Gold's Pascua-Lama project ordered closed by Chilean regulator
01/17 BARRICK GOLD CORP. : A Million Dollar Options Play?
01/16 Barrick Gold says preliminary 2017 gold production in line with guidance
01/16 FROM LAGGARDS TO OUTPERFORMERS : A Look At The S&P Index Composition
01/15 A Positive Weekly Chart For Gold Reminds Investors To Own Gold Mining Stocks
Financials ($)
Sales 2017 8 550 M
EBIT 2017 2 848 M
Net income 2017 1 719 M
Debt 2017 4 821 M
Yield 2017 0,79%
P/E ratio 2017 10,15
P/E ratio 2018 18,88
EV / Sales 2017 2,56x
EV / Sales 2018 2,46x
Capitalization 17 043 M
Chart BARRICK GOLD CORP
Duration : Period :
Barrick Gold Corp Technical Analysis Chart | ABX | CA0679011084 | 4-Traders
Technical analysis trends BARRICK GOLD CORP
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Average target price 19,1 $
Spread / Average Target 31%
EPS Revisions
Managers
NameTitle
Kelvin Dushnisky President & Non-Independent Director
John Lawson Thornton Non-Independent Executive Chairman
Richard J. Williams Chief Operating Officer
Catherine Phillipa Raw Chief Financial Officer & Executive Vice President
Matthew D. Gili Chief Technical Officer
Sector and Competitors
1st jan.Capitalization (M$)
BARRICK GOLD CORP-0.82%17 710
NEWMONT MINING CORPORATION6.61%21 333
SAUDI ARABIAN MINING COMPANY (MA'ADEN)--.--%17 138
NEWCREST MINING LIMITED2.37%14 330
AGNICO EAGLE MINES LTD1.41%11 135
POLYUS PAO--.--%10 608