(Reuters) – Barrick Gold Corp investors have taken in stride news that the world’s largest gold producer may consider hedging its gold exposure, but they are roundly panning its plan for more diversification into other commodities.
John Thornton, who was confirmed after markets closed on Wednesday as Barrick’s next chairman, told reporters he would consider revisiting a hedging strategy for selling the company’s output because of the volatility of gold prices.
He also said he thinks Barrick, which already has a copper sideline, is well placed to look more at copper and perhaps at other commodities, once it puts its recent troubles behind it.
That pronouncement stung some Barrick shareholders, many of whom are invested in the Toronto-based miner only because they see a bright future for the gold price.
“It’s like saying to the market, once I recover from all the bad decisions I have made and paid back the mountains of debt I incurred doing it, I am going to go out and do it all over again, but not in the commodity I’m in right now,” said John O’Connell, the head of wealth management firm Davis Rea Ltd.