Sumatra completes hedging deal for Tembang
PERTH (miningweekly.com) – Gold hopeful Sumatra Copper & Gold have ticked off a condition to its $45-million funding facility with Nomura Singapore and Indonesia Eximbank, announcing on Monday that it had completed a hedging programme for 50% of the gold and silver production during the first two years of operations at its Tembang gold project, in Indonesia.
Some 42 000 oz of gold was hedged at a strike price of $1 108.50/oz, if at the time of delivery the gold price was below $1 428.50/oz. If the gold price traded above this, Sumatra would receive a gold price equivalent to the prevailing gold price, less $320/oz.
A further 343 200 oz of silver was hedged at a strike price of $14.47/oz, where the silver price at the time of delivery was below $21.77/oz. If the price of silver was trading above this, Sumatra would receive a silver price equivalent to the prevailing price, less $7.30/oz.
Deliveries under the hedge programme would start in November next year, with equal monthly deliveries of gold and silver.
Sumatra said that the hedge programme represented around 23% and 16% respectively of the company’s gold and silver ore reserves.
The recently updated definitive feasibility study on Tembang forecast a total production of 168 794 oz of gold and about 1.8-million ounces of silver, at a processing rate of 400 000 t/y. The project is expected to produce about 33 000 oz/y of gold and 345 000 oz/y of silver, at a cash operating cost of $470/oz.
Meanwhile, Sumatra said that the remaining conditions precedent to the drawdown of the facility would be completed in the near-term and the drawdown of an initial $40-million of financing would occur in the first half of this month.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
