PERTH (miningweekly.com) – ASX-listed Westgold Resources has hedged a further 30 000 oz, at a fixed forward rate of A$1 863.35/oz, bringing its forward hedge book to 160 000 oz, at an average price of A$1 792.46/oz.
The company on Tuesday said that the additional 30 000 oz is due for delivery between April and June this year.
“Westgold seeks to prudently and opportunistically protect the price it receives for up to 50% of its gold sales in the short-term, disconnecting its operational outcomes from the sentiment driven volatility of the US dollar gold price,” the company told shareholders.
In addition to the forward hedge book, Westgold also has a pre-pay arrangement with Citibank, which currently stands at 20 000 oz, and is reduced by 1 250 oz a month.