Barrick's Thornton opens the door to hedging

|About: Barrick Gold Corporation (ABX)|By:, SA News Editor

Barrick Gold (ABX -1.6%) has signaled a potentially titanic shift in the gold mining industry: a second look at hedging.

John Thornton, set to become sole chairman of ABX, says “I don’t know why you wouldn’t look at it, if for nothing else as a kind of analytical intellectual exercise... I don’t understand people in the industry who would say you should never do that."

Analysts say the large gold producers aren’t going to start hedging big chunks of their output, since no one wants to be seen selling at the bottom, and many investors still want their mining investments to track the price of the metal - but when the top man at the top gold producer says hedging isn’t a dirty word, that alone may open the door.

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