The Simberi mine, in Papua New Guinea.
JOHANNESBURG (miningweekly.com) – Gold mining company St Barbara has entered into 90 000 oz of forward gold contracts to be delivered in monthly instalments from July 2018 to December 2019 at a price of A$1 750/oz.
The forward contracts seek to secure a reliable cash margin on a portion of the Simberi mine's anticipated future gold production. The Papua New Guinea-based operation is expected to produce between 115 000 oz and 125 000 oz of gold at an all-in sustaining cost of A$1 130/oz to A$1 230/oz.
St Barbara already has a hedge in place for 22 000 oz of gold, at A$1 725/oz, between February and June this year as part of the 50 000-oz hedge announced in April last year. Contracts for a further 22 000 oz, at A$1 730/oz, are in place for delivery between February and June as part of a 50 000-oz hedge announced in June last year.
Of the 90 000 oz hedge announced on Wednesday, St Barbara would deliver 60 000 oz in monthly instalments in the 2019 financial year, and the balance in the 2020 financial year.