Newmont Mining Corp, often seen as a proxy for the gold market, announced yesterday they are liquidating their entire 1.85-million-ounce gold hedge position. The restructuring will spell a $531 million loss for the company. But…
“With the elimination of our gold hedge book,” explained CEO Richard O’Brien, “we have renewed our commitment to maximizing gold price leverage for our shareholders. In addition, we are focused on delivering improvements in our operating performance and cost structure going forward.”
Huh? It sounds like O’Brien has been taking speech lessons from a certain (former) Fed chair. Here’s what we think he meant: “The price of gold is going up. And we want our shareholders to get a piece of the action.”
“With the elimination of our gold hedge book,” explained CEO Richard O’Brien, “we have renewed our commitment to maximizing gold price leverage for our shareholders. In addition, we are focused on delivering improvements in our operating performance and cost structure going forward.”
Huh? It sounds like O’Brien has been taking speech lessons from a certain (former) Fed chair. Here’s what we think he meant: “The price of gold is going up. And we want our shareholders to get a piece of the action.”
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