PERTH (miningweekly.com) – Miner Resolute Mining has forward sold 96 000 oz of gold at an average of $1 330/oz to take advantage of a recent upturn in prices.
The company has scheduled monthly deliveries of 6 000 oz scheduled until December 2018.
The hedged gold represents about 25% of Regis’s expected gold production to December 2018, and is in addition to the remaining forward sales programme of 6 000 oz at an average price of A$1 800/oz that was established to support the restart of openpit operations at the Ravenswood mine, in Western Australia.
“Locking in US dollar gold hedge protection at these prices is a prudent economic decision. Our development plans at Syama provide exposure to the US dollar capital and operational expenditure over the period of the forward sales contracts.
"Establishing US dollar gold price certainty at levels significantly above our budgeted US dollar gold price provides additional strength to the company’s future cash flows and project returns,” said MD and CEO John Welborn on Monday.
Gold has rallied in recent weeks following geopolitical tensions around North Korea, which has been conducting nuclear tests. Traders are seeing gold as a safe-haven investment.