Australia-based miner Resolute Mining is taking advantage of the gold price strength by hedging 30 000 oz at an average price of $1 337/oz, thereby securing price certainty for a portion of near-term US dollar revenues from its Syama gold mine, in Mali.
Before these additional hedges, the company’s US dollar forward sales programme consisted of 35 000 oz of gold forward sold at an average price of $1 323/oz.
The total hedge book, including the new US dollar gold hedges, consist of 160 000 oz in monthly deliveries out to June 2020, comprising 65 000 oz in US dollar and 95 000 oz in Australian dollar.
“Incremental expansion of our current year US dollar hedging position at levels significantly above our budgeted gold price protects and supports Resolute’s revenue and cash flows,” said MD John Welborn.
The current hedge book represents less than 3% of the miner’s current ore reserves.