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Resolute adds to US hedgebook

28th February 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Resolute Mining has forward sold an additional 30 000 oz of gold, at an average price of $1 670/oz, into its US dollar hedge book.

The gold will be delivered in monthly installments of 5 000 oz between July 2021 and December 2021.

“Resolute’s hedging programme has strong support from our syndicate banks as we progress the finalization of an expanded syndicated loan facility. Incremental expansion of our US dollar hedging position at gold price levels which are significantly above our budgeted gold price, protects and supports Resolute’s cash flows,” said MD and CEO John Welborn on Friday.

“We remain strongly leveraged to future upside in the gold price,” he added.

The additional hedging extends Resolute’s existing US dollar forward gold sales programme to 140 000 oz of gold, sold at an average price of $1 548/oz, with scheduled monthly deliveries until June 2021.

The miner’s total gold hedge book now stands at 240 000 oz out until December 2021, representing 3% of Resolute’s current ore reserves.

Edited by Creamer Media Reporter

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