Resolute Mining Limited (ASX:RSG) has forward sold an additional 22,800 ounces of gold at an average price of US$1,553 per ounce in scheduled 3,800-ounce monthly deliveries.
This hedging activity adds to the 55,000 ounces of gold forward sold at an average price of US$1,510 per ounce in monthly delivers from July 2020.
Resolutes total gold hedge book consists of 177,800 ounces in monthly deliveries out to December 2020.
Notably, this represents less than 3% of its Ore Reserves across its portfolio of four operating gold mines and projects.
Locking in high prices secures cash flow
Resolutes managing director and CEO John Welborn said: “Incremental expansion of our US dollar hedging position at current levels which are significantly above our budgeted gold price, protects and supports Resolutes revenue and cash flow.
“Resolutes active gold sales program and discretionary near-term hedging protects the companys balance sheet and supports our 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.”
CY2019 guidance of 400,000 ounceRead More – Source
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