scholarly journals CEO stock and option holdings as a determinant of option hedging by gold mining firms

2008 ◽  
Vol 5 (2) ◽  
pp. 400-408
Author(s):  
Ali Jebli ◽  
Nabil Khoury ◽  
Marko Savor
Keyword(s):  
Gold Mining ◽  
Negative Impact ◽  
Mining Industry ◽  
Option Hedging ◽  
Hedging Strategies ◽  
Operational Hedging ◽  
Investment Opportunities ◽  
Production Flexibility ◽  
Highly Correlated ◽  
Insight Into

This paper seeks primarily to analyze CEO holdings of stocks and options in their firm as a determinant of the decision to hedge and the intensity of hedging with option-like securities in the gold mining industry. The findings show that CEO holdings play an important role in the choice and intensity of the use of option-like hedging instruments. In addition, results also show that the intensity of option-like instrument use for hedging is diminished when the CEO is also the chairman of the board. This original finding provides additional insight into the decision making process in this context. Moreover, our results show that when non-hedgeable quantity risk and hedgeable price risk are highly correlated, gold mining firms resort to operational hedging strategies through their production flexibility. Finally, investment opportunities as well as the high correlation between production levels and gold prices seem to have a negative impact on the decision to use option-like hedging in the gold mining industry.

scholarly journals Strategic positioning of the Russian Far East gold mining industry

2020 ◽  
Vol 192 ◽  
pp. 03021
Author(s):  
Aleksei Sobolev ◽  
Peter Gibson ◽  
Gennadei Sekisov ◽  
Anton Andriushenko
Keyword(s):  
Gold Mining ◽  
Swot Analysis ◽  
Negative Impact ◽  
Russian Far East ◽  
Far East ◽  
Mining Industry ◽  
Strategic Positioning ◽  
Effective Strategies ◽  
Current State ◽  
Internal And External Factors

The objectives of this paper is to investigate internal and external factors influencing the gold mining in Russian Far East. Justification of the methodological and practical recommendations as well as effective strategies which in full measure correspond to the range of economic and technical factors aimed to increase the effectiveness of gold mining industry in Russia are presented. In this paper, we analysed the current state and main development trends, identified strengths and weaknesses of the internal environment, as well as opportunities and threats of the external environment for the gold mining enterprises based on SWOT analysis. Based on the analysis identified directions of production strategies improvements, sound strategic response and strategic management mechanisms to mitigate the challenges of current times. Their implementation will allow companies using the strengths to reduce the negative impact of weaknesses and prevent key threats, that will significantly increase the competitiveness and economic efficiency of the Russian gold mining industry.

scholarly journals Current state, prospects and problems of the gold mining industry of the Trans-Baikal Territory

2022 ◽  
Vol 962 (1) ◽  
pp. 012023
Author(s):  
M A Latysheva
Keyword(s):  
Gold Mining ◽  
Negative Impact ◽  
Mining Industry ◽  
Precious Metals ◽  
Environmental Damage ◽  
Production Volume ◽  
Total Production ◽  
Placer Gold ◽  
Current State ◽  
Placer Deposits

Abstract The article considers the current state, problems and prospects of gold mining in the Trans-Baikal Territory. There has been an increase in the volume of gold production from ore and placer deposits over the past 5 years. Placer deposits make up a significant part of the total production volume. The reduction of reserves in placers and the decrease in the quality of minerals in them open up new prospects for the extraction of precious metals, namely in ore gold mining. The extraction of placer gold, even with the best existing technologies, remains a sector of high environmental risk, in many settlements there is a gradual decline in the population and the “extinction” of settlements, as well as illegal gold mining is gaining momentum. Neither regional nor federal environmental supervision bodies have the opportunity to resist the destruction and degradation of nature from the extraction of placer gold. In general, this leads to an increase in the negative impact of placer gold mining on natural complexes and socio-economic sustainable development of regions and municipalities on the territory of which this type of activity is carried out, an increase in accumulated environmental damage.

scholarly journals Mercury Content on Mangrove Roots and Telescopium telescopium in Kao Bay, North Halmahera

2021 ◽  
Vol 5 (2) ◽  
pp. 73-78
Author(s):  
Moh. Fauzan Jafar Moh. Fauzan Jafar ◽  
Reni Tyas Asrining Pertiwi
Keyword(s):  
Heavy Metals ◽  
Gold Mining ◽  
Negative Impact ◽  
Mining Industry ◽  
Mining Area ◽  
Quality Standard ◽  
Mercury Content ◽  
Industry Waste ◽  
Root Absorption ◽  
Mangrove Roots

The process of extracting gold using mercury (Hg) carried out by Nusa Halmahera Minerals industries (PT. NHM) as well as by the community of illegal gold mining or gold mining without a permit (PETI) that occurs in the mining area of ​​Halmahera Island can have a negative impact on the aquatic environment. This study aims to determine the mercury absorption in mangrove roots of Rhizopora sp and Telescopium telescopium at two different stations. Sampling of mangrove roots was repeated 3 times for each station. Differences in the accumulation of heavy metals Hg in the roots of Rhizophora sp were analyzed using the T-test. The study showed that the concentration of mercury in the roots of Rhizophora sp ranged from 0.016 – 0.026 mg/kg and there were differences in root absorption between Rhizopora sp at station 1 of the Tabobo River mangrove near the PETI disposal and station 2 at the mining industry waste disposal. The concentration of mercury in Telescopium telescopium ranged from 0.08 - 0.15 mg/kg.  It is indicates that Telescopium telescopium in Kao Teluk has been contaminated with mercury but is still below the threshold of the quality standard that has been set.

Gold mining industry in Russia and its regions

2019 ◽  
Vol 17 (10) ◽  
pp. 1822-1833
Author(s):  
Sn.P. Mongush ◽  
◽  
T.M. Oidup ◽  
Keyword(s):  
Gold Mining ◽  
Mining Industry ◽  
Its Regions

MENGELOLA RESIKO DENGAN PRODUK DERIVATIF

2008 ◽  
Author(s):  
Dandes Rifa
Keyword(s):  
Risk Management ◽  
Value At Risk ◽  
Foreign Currency ◽  
Balance Sheet ◽  
Cash Flows ◽  
Market Risks ◽  
Hedging Strategies ◽  
Operational Hedging ◽  
Potential Risks ◽  
Derivative Products

The main objective of risk management is to minimize the potential for losses (risk) arising from unexpected changes in currency rates, credit, commodities and equities. One of the risks faced by companies is market risk (value at risk). This article aims to explain that risk management can be one of them by using derivative products. Derivative transactions is very useful for business people who want to hedge (hedging) against a commodity, which always experience price changes from time to time. There are three strategies that can be used to hedge the balance sheet hedging strategy, operational hedging strategies and contractual hedging strategies. Staregi contractual hedging is a form of protection that is done by forming a contractual hedging instruments in order to provide greater flexibility to managers in managing the potential risks faced by foreign currency. Most of these contractual hedging instrument in the form of derivative products. The management can enhance shareholder value by controlling risk. -Party investors and other interested parties hope that the financial manager is able to identify and manage market risks to be faced. If the value of the firm equals the present value of future cash flows, then risk management can be justified. 

A comprehensive approach to the recovery of gold from the technogenic objects of gold mining industry of the Russian Federation Far East

2013 ◽  
Vol 5 (1) ◽  
pp. 1-8
Author(s):  
S. I. Ivannikov ◽  
D. G. Epov ◽  
G. F. Krysenko ◽  
M. A. Medkov ◽  
S. Y. Bratskaya ◽  
...  
Keyword(s):  
Russian Federation ◽  
Gold Mining ◽  
Far East ◽  
Mining Industry ◽  
Comprehensive Approach ◽  
The Russian Federation

Hedging of Variable Annuities under Basis Risk

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Jan Bauer
Keyword(s):  
Financial Market ◽  
Negative Impact ◽  
Mathematical Finance ◽  
Insurance Company ◽  
Hedging Strategy ◽  
Variable Annuities ◽  
Basis Risk ◽  
Hedging Strategies ◽  
Cross Hedging ◽  
Geometric Brownian Motions

AbstractI study dynamic hedging for variable annuities under basis risk. Basis risk, which arises from the imperfect correlation between the underlying fund and the proxy asset used for hedging, has a highly negative impact on the hedging performance. In this paper, I model the financial market based on correlated geometric Brownian motions and analyze the risk management for a pool of stylized GMAB contracts. I investigate whether the choice of a suitable hedging strategy can help to reduce the risk for the insurance company. Comparing several cross-hedging strategies, I observe very similar hedging performances. Particularly, I find that well-established but complex strategies from mathematical finance do not outperform simple and naive approaches in the context studied. Diversification, however, could help to reduce the adverse impact of basis risk.

A Study on Ivory Coast with the Impacts of Artisanal Gold Mining on Local Livelihoods and the Mining Industry

2017 ◽  
Vol 20 ◽  
pp. 68-77
Author(s):  
Kouame Joseph Arthur Kouame ◽  
Fu Xing Jiang ◽  
Yu Feng ◽  
Si Tao Zhu
Keyword(s):  
Ivory Coast ◽  
Gold Mining ◽  
Mining Industry ◽  
Mineral Resources ◽  
Barriers To Entry ◽  
Chemical Contaminants ◽  
Artisanal Mining ◽  
Local Livelihoods ◽  
Artisanal Gold Mining ◽  
Main Activity

In rural regions, mining is an activity that employs many people due to the fact that the barriers to entry are sometime trivial, with very low technology, capital fund and no specialized skills required. Many people including children into artisanal mining in Ivory Coast because they can earn higher incomes in mining than through other traditional activities such as agriculture, which is the main activity in the country. Artisanal mining contribute to reduce the abject poverty and it offers many others opportunities. However, this activity has many negative social impacts. Local people including miners are risking their life everyday due to the unsanitary conditions, prostitution, chemical contaminants, and alcoholism, and also the large degradation of lands. The main objective of this Paper is to understand how artisanal gold mining in the Ivory Coast affects local livelihoods and the environment. Some key recommendations for addressing artisanal mining activities in order to have a good option for sustainable management of mineral resources in the country are proposed.

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