CASE STUDY II AMERICAN BARRICK RESOURCES CORPORATION: MANAGING GOLD PRICE RISK Group II - Cohort 5 American Barrick is the largest gold producer in North America. The implementation of the gold-hedging program differentiated the firm from other major gold rivals and improved its reserve and financial strength. In 1995‚ American Barrick ’s latest gold find necessitated the
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Cases Case 2 American Barrick Resources Corporation: Managing Gold Price Risk 1. Hedging Motivation In terms of the gold mines owners‚ they hedge nothing against the price drop risk of gold output. As the profits‚ cash flows and stock price were tied of gyrations in the price of gold. As to the gold‚ there was always a ready market for their product‚ at market prices‚ once extracted from the earth and refined. Hedging against the risks can protect the downside of gold price‚ enable the both
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1. What are the challenges faced by extractive mining corporations in their attempt to establish subsidiary operations in developing nations As major multinational extractive mining corporations continue to expand their developing country footprints‚ they are finding challenges in carrying out corporate social responsibility (CSR) to achieve a sustainable balance of benefits for business‚ its employees‚ stakeholders and the communities in which they attempt to establish subsidiary operations. In
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American Barrick Resources Corporation Case a. Explain the value chain for gold mining firms (how can a mine create a competitive advantage relative to its rivals). What are the factors that may explain exceptional performance of ABX relative to the other gold mines? To create a competitive advantage‚ a mine has to properly manage its exposure to gold price fluctuations. This is not an easy thing to do since there are so many factors to consider: when‚ how much‚ and how to hedge the gold
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PART B. 1. One organization that I feel has the best longterm position in terms of their stock market price is Barrick Gold. http://finance.yahoo.com/q/bs?s=ABX+Balance+Sheet&annual http://www.barrick.com/investors/annual-report/financial-highlights/default.aspx The most important factor in any organization from what I learnt is how much it can pay its shareholders in dividends. Barrick gold has increased per year their annualized dividend US cents per share from 48 cents per share in 2010 to
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AFRICAN BARRICK GOLD Shares Report Motivation of investment The reason of investing 10‚000 pounds in a company of exploiting natural resources‚ gold‚ it is a decision for the future . This can be argued by the fact that gold is one of the most expensive resources required in the current market. Having an analysis of the past few years the price of gold in the market‚ it can be seen an increase
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Case WriteupCase study 2: American Barrick Resources Corporation FNCE 6909 – Corporate Risk Management Due November 1‚ 2012 Presented By: Justin Merow on November 11‚ 2012 Executive Summary The following case study reports on a highly successful gold mining company‚ American Barrick Resource Corporation. We discuss herein the many of the techniques being used in their hedging programs and the variation between such programs. The company itself was founded by a gentleman named Peter Munk
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Barrick Gold’s Impact in the Dominican Republic’s Society and Economy Monica Sido Hawli Universidad Iberoamericana Abstract This paper studies the impact of the mining company Barrick Gold in their Pueblo Viejo Project located in Cotuí‚ Dominican Republic. Many studies have been done to the actions of this company around the world‚ but this paper examines the situation of their project in the Dominican Republic and the effects that has caused
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describe the communication problem and the resulting symptoms that are occurring with Barrick Gold Mine Company happening at the peak of Andes range‚ the Pascua-Lama development‚ and the concerns of its stakeholders. As an ending to this case analysis there shall be a solution provided on how the massive gold mine company can solve the disputes with its stakeholder groups. The main communication problem that Barrick is facing is caused by their own hand‚ by saying and promising things and doing completely
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Barrick Gold and the Mine at the Top of the World Introduction The purpose of this case analysis is to identify the main communication problem that the world’s largest gold mining company‚ Barrick Gold‚ is facing in the midst of their major Pascua-Lama developmental project. The following paper discusses the causes of the communication problem and resulting symptoms‚ along with the key stakeholders that are affected and their concerning issue. Finally‚ this paper will provide a solution using
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