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Product cover image for Barrick Gold: Eliminating the Gold Hedging Strategy

Barrick Gold: Eliminating the Gold Hedging Strategy

Murray J. Bryant; Ken Mark

Product #:9B11B002
Supplier:Ivey
Discipline:Accounting, Strategy
Setting:Canada, 2009
Details:Case (PDF) • 16 pages • 2011-03-07

Subjects:

HedgingRisk managementFinance and investingAccountingStrategy

Industries:

Energy and natural resources sector

Geography:

CanadaNorth America
Your Price:$9.71

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Barrick Gold, the largest gold producer in the world, has taken steps to eliminate its longstanding gold hedging program. In its early years, Barrick’s hedging program was a key factor allowing the firm to grow amid falling gold prices. But Barrick’s management team faced questions about its hedging program when gold prices started to rise in the 2000s. The case allows students to review Barrick’s hedging program and consider the impact of its decision not to hedge going forward.

Learning Objectives

The Barrick Gold case introduces the concept of using hedges as part of a firm’s long-term strategy. It examines the arguments for and against hedging, as well as the impact that hedging has had on Barrick Gold. Students will be taken through an example of how gold hedging works and will receive an overview of the interests of the parties involved.
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Case Study: Barrick Gold: Eliminating the Gold Hedging Strategy (English version) | Ivey Publishing