Shanta commits to more forward sales amid volatile gold price
JOHANNESBURG (miningweekly.com) – As a result of the continuing volatile gold price environment and the capital spend required to achieve the targeted production levels at its New Luika gold mine over the next year, Shanta Gold has committed to several forward-sale contracts for part of the 2013 and 2014 anticipated production.
The agreements would see the company delivering an additional 9 000 oz at an average price of $1 362/oz during the period to March 2014.
This brought its total outstanding forward-sales contracts to over 30 000 oz through to March 2014, at an average price of $1 398/oz.
Shanta said in a statement on Friday that the ramp-up of production at New Luika was “progressing satisfactorily” and, following the upgrading of the crushing circuit this month, it expected a substantial increase in throughput from July.
The company would provide an update on its first-half operating performance at the end of July.
Gold prices tumbled to a two-and-a-half-year low on Thursday after the US Federal Reserve signalled the curtailing of the quantitative easing programme in the near future. Gold broke through its April low of $1 321/oz, falling to $1 295.74/oz.
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