https://www.miningweekly.com

Dacian hedges on high gold price

14th June 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Gold developer Dacian Gold has signed its first gold hedging contract over its Mount Morgans project, in Western Australia.

The company on Wednesday told shareholders that it had forward-sold 52 000 oz of gold at an average price of A$1 782/oz. The gold will be delivered between July 2019 and June 2020, with the hedge representing some 26% of the forecast gold production from the Mt Morgans operation.

“With first production now just nine months away, we believe it was prudent to capitalise on the historically high Australian dollar gold price to underpin forecast project revenues at a time of waste-stripping part of the Jupiter openpit,” said Dacian executive chairperson Rohan Williams.

He noted that the forward sales contract provided some security, and did so at a price which was nearly A$200/oz more than the assumed price in the Mt Morgans feasibility study.

The A$220-million project is expected to deliver 186 000 oz of gold over the first four years of an eight-year mine life, based on a 2.5-million-tonne-a-year carbon-in-leach operation.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.043 0.896s - 111pq - 2rq
Subscribe Now