Barrick to sell $3 billion in stock to buy back hedges
Barrick Gold said on Tuesday it will issue $3 billion in stock and use the proceeds to buy back all of its fixed-price gold hedges and a portion of its floating hedges.
Barrick, the world’s top gold producer, will take a $5.6 billion charge to its earnings in the third quarter as a result of a change in accounting treatment for the contracts, it said.
Barrick’s gold hedges, entered years ago to finance projects, have weighed on the company’s shares as the price of the metal has more than tripled over the past seven years payday loans.
Barrick will issue 81.2 million shares at $36.95 a share, a 6 percent discount to the stock’s closing price on Tuesday.
($1=$1.08 Canadian)
(Reporting by Cameron French; Editing by Frank McGurty)