Gascoyne hedges its bets
PERTH (miningweekly.com) – Gold developer Gascoyne Resources has taken advantage of the strong Australian gold price, entering into a hedge agreement with the Commonwealth Bank of Australia.
The company told shareholders on Thursday that some 82 000 oz of gold from the Dalgaranga gold project, in Western Australia, have been forward sold at a price of A$1 660/oz in a short-dated structure.
“We are pleased to have entered into the hedge facility with the Commonwealth Bank of Australia, and have entered into 82 000 oz of short-dated forward gold sales, which when rolled to the final maturity dates, is expected to result in a realised gold price of around A$1 700/oz, based on the current forward curves,” said Gascoyne MD Mike Dunbar.
“The gold price is one of the largest risks to the business outside of our control and entering into this transaction at the current high gold price, significantly mitigates this risk to the project, while also providing Gascoyne significant exposure to any increase in the gold price.”
Gascoyne is required to lodge A$5-million as cash security for the hedge, which will be released upon the financial close under the project’s finance facility, which is on track for completion in late November.
Mining at Dalgaranga is expected to start in March next year. The A$86-million Dalgaranga openpit operation is expected to deliver 623 000 oz of gold over the six-year mine life.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...
VISIT SHOWROOM
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
