PERTH (miningweekly.com) – Gold miner Resolute Mining has forward sold a further 30 000 oz of gold between January and June 2019, which will be delivered in monthly batches of 5 000 oz.
The company told shareholders on Monday that it was taking advantage of the recent strength in the US gold price to add to its US dollar gold hedge position, in order to secure additional revenues from its Syama gold mine, in Mali, during the ramp-up phase of the underground mine.
The additional ounces extend the existing US dollar hedge position established in September of last year of monthly deliveries of 6 000 at $1 330/oz, which will run until December this year.
At the end of October, the company’s total gold hedge book consists of 115 000 oz of gold out until December 2019, representing some 26% of the company’s expected gold production over this period.
“Establishing some US dollar gold price certainty at these levels is a prudent economic decision as we enter into the ramp-up phase of the Syama underground mine,” said Resolute CEO and MD John Welborn.
“Syama provides exposure to US dollar capital and operating expenditure and our hedging programme provides a level of certainty to the company’s future cashf lows and project returns.
“Resolute remains strongly leveraged to gold prices with our current hedge position representing less than 2% of our gold ore reserves. Resolute’s gold hedge book now stands at 115 000 oz of forward sold gold, at an average price of around A$1 756/oz.”