Ramelius forward sells Mt Magnet gold
PERTH (miningweekly.com) – Gold miner Ramelius Resources has forward sold about 40% of the forecast production from the Mt Magnet operations, in Western Australia, over a two-year period, and about 20% of the total planned group production in the same period.
The company on Wednesday told shareholders that it had forward sold 47 200 oz of gold, at an average price of A$1 582/oz.
“Our new hedging strategy delivers a number of medium-term benefits to the company, particularly in executing our growth strategy, at a time of high gold price volatility,” said Ramelius CEO Mark Zeptner.
“With a clear view to profitability, the company can progress further pit cut-backs at our Mt Magnum operation, while still retaining exposure to gold price upside.”
Zeptner noted that the underpinning of future cash flows also formed a crucial element in reaching a final decision on the company’s high-grade, high-margin gold development projects at Vivien and Kathleen Valley.
The forward sales programme also assisted Ramelius in securing a compelling profit margin for the Mt Magnet operation.
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