ASX/LSE-listed Resolute Mining has forward sold an additional 30,000 ounces of gold at an average price of US$1,519 per ounce in scheduled monthly deliveries of 5,000 ounces between January 2020 and June 2020.
Resolute Mining has taken advantage of recent gold price strength to extend the its US dollar denominated gold hedge position.
The objective of this hedging is to secure price certainty for a portion of the US dollar revenues generated from Resolute Mining’s African gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.
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The additional US dollar hedging extends Resolute Mining’s existing US dollar forward gold sales program which consists of 50,000 ounces of gold forward sold at an average price of US$1,337 per ounce in monthly deliveries scheduled to December 2019.
Resolute Mining’s total gold hedge book as at 8 August 2019, including today’s new US dollar gold hedges, consists of 190,000 ounces in monthly deliveries out to June 2020 representing less than 3% of Resolute Mining’s Ore Reserves.
MD and CEO, John Welborn, is pleased to continue Resolute Mining’s success in maximising gold sales revenue through responsible hedging strategies:
“We continue to actively manage our gold sales and undertake near term hedging to take advantage of gold price volatility, maximise revenues and protect our 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 Mining’s revenue and cash flow.
“With long mine lives, large gold inventories, and an industry leading production growth profile, the company remains strongly leveraged to further upside in gold prices.”