LONDON (Reuters) - Barrick Gold Corp stunned bullion markets on Friday by saying it was changing its hedging policy, and is no longer committed to selling the metal on forward markets as it is now awash with cash.
The commitment to hedging is gone...Hedging to us is no longer a requirement for running our business as it no longer creates shareholder value," Barrick Chairman and founder Peter Munk told reporters on the sidelines of a gold investment summit in London.
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ABOUT-TURN FROM PREVIOUS POSITION
On Thursday, Munk had extolled the virtues of hedging by Barrick, which has one of the largest gold hedge books in the industry.
In an address to the conference Munk had said hedging via forward sales was a key factor in funding exploration and development projects.
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http://story.news.yahoo.com/news?tmpl=story&cid=568&e=1&u=/nm/minerals_gold_hedging_barrick_dc(Very weird, this guy takes a 180 degree turn between yesterday and today, why??? What happened that we don't know about?)
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