PERTH (miningweekly.com) – ASX-listed Blackham Resources has forward sold a further 34 250 oz of gold from its Matilda gold project, in Western Australia, at an average price of A$1 774/oz.
The hedging facility was undertaken with Investec Australia and will be delivered over the next 18 months of production.
Blackham said on Wednesday that with production imminent, the board believed it was prudent to lock in responsible proportions of its short- to medium-term production so that the company could optimally manage its operations and risk exposure in the current volatile price environment.
“Being able to lock in close to record high Australian dollar gold prices allows even modest hedge commitments to create a high degree of predictable cash flow at this crucial time in the company’s transition to being a significant gold producer,” said MD Bryan Dixon in a statement.
The company still has an initial 20 000 oz hedge programme in place, at an average price of around A$1 704/oz, which will be used over the next three months.
Blackham earlier this month started wet commissioning at the Wiluna gold plant, at the 5.1-million-ounce Matilda project.