PERTH (miningweekly.com) – Dual listed gold miner Resolute Mining has forward sold a further 30 000 oz of gold, at $1 590/oz for scheduled monthly deliveries of 5 000 oz a month between January and June next year.
“Incremental expansion of our US dollar hedging position at levels which are significantly above our budgeted gold price, protects and supports Resolute’s near-term cash flows,” said Resolute MD and CEO John Welborn.
“Resolute’s hedging programme has strong support from our syndicate banks as our modest hedge book protects the company’s balance sheet and supports our gold-linked revenues. With long mine lives and large gold inventories, Resolute remains strongly leveraged to future upside in the gold price.”
The additional US dollar hedging extends Resolute’s existing US dollar forward sale programme to 115 000 oz, forward sold at an average price of $1 535/oz, until June 2021.
Resolute’s total gold hedge book stands at 225 000 oz, with monthly deliveries out until June next year, representing less than 3% of the company’s ore reserves.