Katoro Gold

Resolute Mining has forward sold an additional 37,200 oz of gold at an average price of US$1,562 per oz in scheduled monthly deliveries of 1,200 ounces between July 2020 and December 2020 and scheduled monthly deliveries of 5,000 ounces between January 2021 and June 2021.

Resolute Mining has taken advantage of market volatility and current gold price strength to incrementally extend the company’s US dollar denominated gold hedge position.

This hedging secures price certainty for a portion of the US dollar revenues generated from Resolute’s African gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.

The additional US dollar hedging extends Resolute’s existing US dollar forward gold sales program which consisted of 77,800 oz of gold forward sold at an average price of US$1,522 per oz in scheduled monthly deliveries to December 2020.

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Resolute Mining maintains a hedging policy of committing to modest short-dated forward deliveries of a percentage of the company’s gold production to take advantage of elevated gold prices.

Resolute’s total gold hedge book as at 20 January 2019, including the new US dollar gold hedges, consists of 215,000 oz in monthly deliveries out to June 2021 representing less than 3% of Resolute’s ore reserves.

MD and CEO, John Welborn, is pleased to continue Resolute’s success in maximising gold sales revenue through responsible hedging strategies:

“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.

As Resolute Mining seeks to expand its existing low-cost senior revolving syndicated loan facility, its hedging program has strong support from its syndicate banks as its modest hedge book protects the company’s balance sheet and supports a portion of our future revenue and cash flows.

“With long mine lives, large gold inventories, and an industry leading production growth profile, Resolute remains strongly leveraged to future upside in gold prices.”