The world’s largest gold producer, Barrick Gold Corp. (ABX) and its wholly owned subsidiary, Barrick Australia Finance Pty Ltd., are planning to issue $1.25 billion in debt securities comprised of $400 million of 4.95% notes due 2020 and $850 million of 5.95% notes due 2039. The offering is expected to close on Oct 16. Barrick plans to use the net proceeds from the offering to further reduce the liability related to its floating spot price (fully participating) gold contracts. In September this year, Barrick had raised about $3 billion representing 81.2 million common shares at a price of $36.95 per share as a part of its plan to eliminate gold hedges. Barrick’s gold sales contracts -- which comprise gold hedges and floating contracts -- totaled 9.5 million ounces with a mark-to-market position of negative $5.6 billion. Barrick Gold intends to use $1.9 billion of the net proceeds to

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AngloGold Ashanti Ltd. (AU), the world’s third largest gold producer, plans to expand output through exploration. The company aims to produce up to 6 million ounces annually, up from 4.98 million ounces in 2008, largely by improving its mines and expanding through exploration. AngloGold expects the dollar price of gold to rise. The company has forecasted gold prices of $950 to $1,100 per ounce in 2010. It expects gold prices to rise beyond $1,100 if the downtrend in the US economy continues and investment demand for gold increases further. Although electricity costs and new wage settlements have put pressure on the company's bottom line, it has no plans to lay off workers to save costs. AngloGold is also planning to develop its La Colosa project in Colombia. In July this year, AngloGold had teamed up with African miner Randgold Resources to buy Moto Goldmines, which owns ...

Newmont Mining Corp. (NEM), the largest U.S. gold producer, is emphasizing on exploration near its existing mines in Nevada to bolster its reserves. Newmont is exploring 18 deposits near its existing mines, which could add 4 million to 7 million ounces to its gold reserves.

Based in Colorado, Newmont is trying to boost reserves to benefit from historically high gold prices. In June, the company concluded its purchase of the remainder of the Boddington gold project, the largest in Australia, from AngloGold Ashanti Ltd. (AU). The $2.9 billion mine will have an annual capacity of about 1 million ounces at a projected cost of $300 an ounce.

Newmont’s gold sales fell 5.7% to 1.2 million ounces in the second quarter. After which the company lowered the higher end of its 2009 gold sales forecast range to 5.4 million ounces from 5.5 million ounces. The company sold 5.2 million ounces of

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On September 8th, the world’s largest gold producer, Barrick Gold Corporation (ABX), announced its plans to raise $3 billion from a share offering and use the proceeds to pay off its gold hedges. As of September 7, 2009, Barrick’s gold sales contracts -- which comprise gold hedges and floating contracts -- totaled 9.5 million ounces with a mark-to-market position of negative $5.6 billion. To pay off the hedges, Barrick Gold has entered into an agreement with a syndicate of underwriters for a bought deal public offering for gross proceeds of about $3.0 billion, representing 81.2 million common shares at a price of $36.95 per share. Barrick Gold intends to use $1.9 billion of the net proceeds to eliminate all of its fixed priced gold contracts within the next 12 months and about $1.0 billion to offload a portion of its floating spot price. The company expects ...

Colorado-based Newmont Mining Corp. (NEM), the world's leading producer of gold, completed its acquisition of 100% of the Boddington project on June 25. Boddington - the largest gold project in Australia - is a large open pit mine, located 130 kilometres southeast of Perth. Previously, Newmont owned 66.66% of the project and completed 96% of the construction as of May.

In January, Newmont announced plans to purchase the remaining 33.33% interest in the project from AngloGold Ashanti Australia Ltd. - a wholly owned subsidiary of South Africa-based AngloGold Ashanti Ltd. (AU).

The total consideration for the 33.33% interest consists of $750 million paid in cash at closing; $240 million payable in cash and/or Newmont common stock, at Newmont's option, in December 2009; and a royalty capped at $100 million, equal to 50% of the average realized operating margin (if any) exceeding $600 per ounce, payable on

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AngloGold Ashanti Ltd. (...

Anglogold Ashanti Ltd. (...

Mutual Global Discovery A (TEDIX) was incepted in December 1992 and seeks capital appreciation. It may invest all its assets in foreign equity and debt securities, including sovereign debt and participations in foreign government debt, of companies that are trading below their intrinsic value.

The fund invests the equity portion of its portfolio primarily to predominantly in mid- and large cap companies, with the remaining portion of its equity portfolio in smaller companies. As of December 2008, its portfolio turnover was 25.23%.

The fund's top holdings include British American Tobacco Plc (BTI), Wyeth (WYE) and Groupe Danone.

Franklin Strategic Income A (FRSTX) seeks high current income with capital appreciation as a secondary consideration. The fund invests at least 65% of its assets in U.S. and foreign debt securities.

The fund may invest substantially all of its assets in high-yield, lower-quality

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AngloGold Ashanti Ltd. (AU) advanced about 2% this morning and was pressuring a short-term level of resistance at $32.52. AU is a Zacks#1 Rank ("Strong Buy") stock. The average forecast on the company's 2009 earnings has gone up by 18 cents per share to $2.43 in the last week.

Zacks Investment Research

Today we are featuring top-performing "precious metals" equity mutual funds that invest in gold stocks and/or precious metals or bullion.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Precious Metals Equity Funds list.

3 Precious Samples

Van Eck Intl Investors Gold A (INIVX) was incepted in February 1956 and seeks long-term capital appreciation by investing in common stocks of gold-mining companies.

The fund may take current income into consideration when choosing investments. It is non-diversified. As of December 2008, its turnover ratio was 18%.

Randgold Resources Ltd. (GOLD), Agnico-Eagle Mines (AEM) and Goldcorp Inc. (G) are among the fund's top holdings.

AIM Gold & Precious Metals A (IGDAX) seeks growth of capital by investing in companies involved in exploring, mining, processing or investing

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