Resolute hedges more gold as prices soar
PERTH (miningweekly.com) – Gold miner Resolute Mining has taken advantage of the higher gold prices, forward selling an additional 30 000 oz of gold at an average price of $1 519/oz.
The gold is scheduled for monthly deliveries of 5 000 oz, starting in January 2020 until June that same year.
MD and CEO John Welborn on Thursday said that objective of the hedging was to secure price certainty for a portion of Resolute’s US dollar revenues generated from its African gold mines.
“We continue to actively manage our gold sales and undertake near term hedging to take advantage of gold price volatility, maximise revenues, and protect the company’s balance sheet.
“Incremental expansion of our US dollar hedging position at current levels, which are significantly above our budgeted gold price, protects and supports Resolute’s revenue and cash flow. With long mine lives, large gold inventories, and an industry-leading production growth profile, Resolute remains strongly leveraged to further upside in gold prices.”
Resolute’s total gold hedge book now stood at 190000 oz, in monthly deliveries out until June 2020, representing less than 3% of the company’s total ore reserves.
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