PERTH (miningweekly.com) – Gold miner Resolute Mining has forward sold a further 30 000 oz of gold at an average price of $1 335/oz, taking advantage of the recent strength in gold prices to extend its US-dollar denominated hedge position.
The ASX-listed miner noted that the gold will be delivered on a monthly schedule of 5 000 oz, between July and December this year.
The additional US dollar hedging extends Resolute’s existing forward gold sales programme of 116 000 oz, which consists of 31 000 oz of gold at a price of $1 256/oz, and 85 000 oz of gold at a price between $1 715/oz and $1 783/oz.
The company’s total gold book at the end of January consisted of 146 000 oz in monthly deliveries out to December 2019, which represented less than half of Resolute’s expected gold production over this period.
“We continue to actively manage our gold sales and undertake near-term hedging to take advantage of gold price volatility, maximise revenues and protect the company’s balance sheet,” said MD and CEO John Welborn.
“Incremental expansion of our current year US dollar hedging position at levels significantly above our budgeted gold produce protects and supports Resolute’s revenue and cash flow in 2019. With long mine lives, large gold inventories and an industry-leading production growth profile, Resolute remains strongly leveraged to further upside in gold prices.”