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  • April 1993 (Revised October 1995)
  • Case
  • HBS Case Collection

American Barrick Resources Corporation: Managing Gold Price Risk

By: Peter Tufano
  • Format:Print
  • | Pages:25
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Abstract

Managing the risk of changing prices of gold is central to the business strategy of American Barrick Resources Corp., one of North America's largest and most successful gold-mining firms. The case contrasts this firm's hedging policies with those of its rivals that do not hedge and details the wide range of hedging products (gold loans, forwards, options, spot deferred contracts) used to manage price risk. In 1992 the management of American Barrick is pleasantly surprised by unexpected new gold finds, but this new production places demands on the firm's hedging program and tests the firm's commitment to hedging when prices of gold and of many hedging vehicles are unattractive.

Keywords

Risk Management; Business Strategy; Mining; Mining Industry; United States

Citation

Tufano, Peter. "American Barrick Resources Corporation: Managing Gold Price Risk." Harvard Business School Case 293-128, April 1993. (Revised October 1995.)

About The Author

Peter Tufano

Finance
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