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Soros Really Likes Barrick Gold, Backs It With 1.9 Million Shares

(Kitco News) - Billionaire investor, George Soros apparently believes in gold’s rise. Last Friday, Reuters reported that a filing with the U.S. Securities and Exchange Commission, showed that Soros Fund Management LLC added a substantial stake in Barrick Gold Corp. (NYSE:ABX) during the second quarter. The report said that the fund bought nearly 1.9 million shares in Barrick Gold at a value of $20.1 million; at the same time, it left its stake unchanged in the Market Vectors Gold Miners exchange traded fund (NYSE:GDX), at 761,000 shares, valued at $13.5 million.

Like most gold miners, Barrick has been struggling with the fall in the gold price. The company has said it is close to meeting its debt reduction target of US$3 billion this year, and it plans to reduce spending by an additional US$2 billion by the end of 2016. Barrick’s all-in sustaining cost per ounce was $895.00 for the second quarter, and the company expects that number to end up between $840.00 and $880.00 for the year. December gold was last up $11.50 an ounce at $1,128.10.

And while Soros added to his gold positions, mega hedge fund Paulson & Co, led by longtime gold bull John Paulson, cut its stake in the SPDR Gold Trust by 1 million shares to 9.2 million shares in the second quarter according to the 13F-HR filing. SPDR Gold Trust is the world's biggest gold-backed ETF. 

By Daniela Cambone of Kitco News dcambone@kitco.com
Follow Daniela Cambone on Twitter @DanielaCambone

 

 

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