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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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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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
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Derivative 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
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financial instruments‚ how sensitive would Barrick earnings and cash flows be to gold price changes? For every 1% change in gold prices‚ how might its stock be affected? How could the firm manage its gold price exposure without the use of financial contracts? In 1992‚ American Barrick produced and sold over 1‚280‚000 ounces of gold at an average price of $422 per ounce‚ while the market price was $345 per ounce. If there is no hedging program‚ American Barrick needs to sell the gold at price $345 per
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WATER RESOURCES Water and its uses The average consumption of water in India per person each day is minimum 135L. This water is used for various purposes from bathing to drinking. This water used should be clean and sterile. Water holds more importance than most of resources . Due to rising threats on ecosystem it has become necessary to find means of saving water. Resources of water – The fresh water resources are… Surface wate Under river flow Ground water Desalination Frozen
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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 60
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1317370 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
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achieve a sustainable balance of benefits for business‚ its employees‚ stakeholders and the communities in which they attempt to establish subsidiary operations. In response to increasing global demand‚ extractive firms are operating where the natural resources are located‚ mostly in developing countries where governance mechanisms are often weak and sometimes non-existent. Developing countries envisage that the mining sector would be a key driver for economic growth and that the industry would eventually
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1 Forecasting as a Part of Human Resource Planning Choose human resource programs DEMAND FORECASTING Determine organizational objectives Internal programs External programs •Promotion •Recruiting •Transfer •External selection •Career planning Demand forecast for each objective Aggregate demand forecast SUPPLY FORECASTING •Executive exchange •Training •Turnover control Internal supply forecast Does aggregate supply meet aggregate No demand? External supply forecast Aggregate supply
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