Silver Lake hedges 50 000 oz of gold
PERTH (miningweekly.com) – Gold miner Silver Lake Resources has entered into a forward gold hedging programme for some 30% of its expected production between April this year and March 2015.
The miner said on Monday that the gold hedging programme, covering 50 000 oz, had been established at an average price of A$1 536/oz, locking in a favourable margin on low-grade surface stockpiles that would be processed over the hedge period.
The hedge programme was agreed upon with the Commonwealth Bank of Australia, with Noah’s Rule acting as adviser to Silver Lake.
Mining companies are increasingly turning to hedging, particularly short-term forward selling, to generate finances for stormy times, newswire Reuters reported last week, quoting analysts and industry sources.
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