Resolute hedges more gold for Ravenswood expansion
PERTH (miningweekly.com) – Gold miner Resolute Mining has hedged another 35 000 oz of gold, at an average price of A$1 728/oz, taking advantage of the strong Australian dollar gold price to support the expansion project at its Ravenswood mine.
The miner on Friday said that the additional 35 000 oz is scheduled for monthly deliveries of 5 000 oz between June and December next year.
The average gold price for the additional forward sold gold was at a premium to Resolute’s budgeted gold price for its Ravenswood gold mine of A$1 700/oz, with the new hedging being in addition to the remaining forward gold sales programme of 50 000 oz.
The company’s total gold hedge book currently consisted of 85 000 oz in monthly deliveries out to December 2019, representing less than 20% of Resolute’s expected gold production over this period.
“We actively manage our gold sales and hedging strategies to take advantage of gold price volatility, maximise revenues and protect the company’s balance sheet,” MD John Welborn said.
“Establishing forward gold price certainty for a limited portion of our near-term production during periods of capital intensive development at levels above our budgeted gold price protects and supports the company’s future cash flows and project returns.”
Welborn said that with long mine lives, large gold inventories, and an industry-leading production profile, Resolute remained strongly leveraged to future upside in gold prices.
The gold hedging is expected to protect project returns during the staged development phase of the new 14-year mine life at Ravenswood. The development phase at the mine will see underground mining at Mt Wright come to an end during the current financial year, and the operation transition back to a large scale openpit mine.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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