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Gascoyne reduces bank debt

31st March 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Gascoyne Resources has reduced its bank debt by some 45%.

The miner has made a voluntary debt repayment of A$14.6-million to Investec, leaving its bank debt at the end of March at around A$17.5-million.

Gascoyne told shareholders that the early repayment followed more than 12 months of consistent operating performance from the Dalgaranga operation, and ongoing free cash flow generation.

In addition to lowering the bank debt, the voluntary prepayment also removed the requirement for further mandatory hedging at current spot prices, beyond the position already entered into, said Gascoyne.

At the current spot gold price, the existing hedge book has an in-the-money position of A$15.7-million, accounting for some 50 000 oz of gold at a price of A$2 564/oz, which would result in Gascoyne achieving an average realised price of more than A$2 400/oz for the remainder of the 2021 calendar year.

The reduction in the bank debt would also avoid more than A$750 000 of interest costs over the next 12 months.

Edited by Creamer Media Reporter

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