A multi-asset gold mine, with projects in Australia and Africa, has added a significant figure to its gold hedge book.
Resolute Mining has announced in a statement this week that it has sold an additional 35,000 ounces of gold, with scheduled monthly deliveries of 5,000 ounces between June and December 2019.
As a result of the strength of the A$ gold price, Resolute has extended its gold hedge position supporting its Ravenswood Expansion project. It will be used to protect project returns during the staged development phase of the new 14-year mine life of Ravenswood, which will see underground mining at its Mt Wright come to an end during the current financial year and the operation transition back to large scale open pit mining.
Resolute’s total gold hedge book now consists of 85,000 ounces in monthly deliveries out to December 2019 representing less than 20% of Resolute’s expected gold production over this period.
Managing Director and CEO, Mr John Welborn, was pleased to continue Resolute’s success in maximising gold sales revenue through responsible hedging strategies:
“We actively manage our gold sales and hedging strategies to take advantage of gold price volatility, maximise revenues, and protect the Company’s balance sheet. Establishing forward gold price certainty for a limited portion of our near-term production during periods of capital intensive development at levels above our budgeted gold price protects and supports the Company’s future cash flows and project returns.
“With long mine lives, large gold inventories, and an industry leading production growth profile, Resolute remains strongly leveraged to future upside in gold prices. The Company’s current hedge book represents less than 20% of expected gold production to December 2019 and less than 2% of current Ore Reserves.”