PERTH (miningweekly.com) – ASX-listed Metals X has entered into a hedging programme for 245 000 oz of gold, with scheduled deliveries until September 2018.
The gold would be priced at A$1 631.23/oz.
“Metals X is very pleased by the pricing that was achieved upon execution of the hedging facility. Hedging a component of our future gold production provides various benefits, including cash flow certainty, and enables Metals X to continue to actively invest in further growth,” said executive director and CEO Peter Cook.
He noted that the implementation of a modest hedging programme took advantage of the current strong Australian gold price and secured a portion of cash flow.
The hedging amount represented some 21% of Metals X's production guidance out to 2018.
The company recently finalised the acquisition of three gold projects, including the Georges Reward project for A$4.5-million, the Grosvenor gold project for 18-million shares and the Mt Henry gold project for 22-million shares.
The Mt Henry operation would be commissioned as a bolt-on operation to the currently operating Higginsville mine and could add some ten years to the project's mine life.
The Grosvenor project was expected to go into production by late 2016.