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Westgold restructures hedging

2nd September 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Westgold has restructured its gold hedging arrangements to take advantage of the higher gold price.

The miner said on Wednesday that prior to the restructure, its hedge book schedule for the period ending February 2022 was for 10 000 oz a month. Under an agreement reached with Citibank, this schedule has now been revised to enable Westgold to take advantage of the current higher gold prices in the short term.

The hedge book restructure would see Westgold deliver 6 000 oz of gold a month from September this year until December 2021, at A$2 082.60/oz, allowing the company the opportunity to add a further A$24-million in revenue for the 2021 financial year.

Between January 2021 and December 2022, the revised schedule would see Westgold increase hedging commitments to 8 000 oz for the extended period, at a price of A$2 092.60/oz.

The company told shareholders that the revised hedge position now stood at 192 000 oz, which accounted for only 7.5% of the company’s current ore reserves.

The company’s mid-range production guidance for the 2021 financial year of between 270 000 oz and 300 000 oz, and the hedge deliveries for the full year, are expected to total some 90 000 oz/y, or 31.6% of production.

Edited by Creamer Media Reporter

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