PERTH (miningweekly.com) – ASX-listed Aeris Resources has entered into unsecured gold hedges for 36 000 oz of gold, at a forward price of A$2 536.25/oz for the gold produced at its newly acquired Cracow mine, in Queensland.
Aeris said that the hedges, with Macquarie Bank, would mature over the next 12 months in scheduled monthly deliveries of 3 000 oz.
“Given our commitments in the next 12 months to funding exploration activities and debt repayments, we believe it was prudent to put these hedges in place to underpin a portion of our operating cashflows while still providing exposure to a future upside in the Australian dollar gold price,” said Aeris executive chairperson Andre Labuschagne.
“These hedges represent approximately 50% of our targeted gold production from the Cracow gold operations in 2021, and have been strongly supported by our major shareholders and financier.”
Aeris last week completed its A$125-million deal with gold miner Evolution Mining to acquire the Cracow mine, which is expected to produce between 70 000 oz and 75 000 oz of gold at a C1 cash cost of A$980/oz, in 2021.