PERTH (miningweekly.com) – Gold miner Evolution Mining has forward sold some 300 000 oz of gold, at an average price of A$1 638/oz, to take advantage of a recent rally in the Australian gold price.
The miner noted on Tuesday that 100 000 oz of the gold would be delivered in the 2016 financial year, with the remaining 200 000 oz to be delivered during the January 2018 to December 2019 period.
“We saw this as an opportune time to lock in additional hedging with the Australian dollar gold price trading close to three-year highs,” said FD and CFO Lawrie Conway.
The latest hedge was in addition to an existing hedge covering 521 311 oz, at a price of A$1 562/oz.
“Evolution remains strongly leveraged to any potential upside in the gold price with the hedge book accounting for less than 25% of the company’s expected production over the next five years. The additional hedging for 2016 locks in a higher level of near-term cash flow, which will be used to pay down debt at an accelerated rate,” Conway said.