Resolute Mining locks in more forward gold sales at high gold prices – Proactive Investors Australia
() has forward sold an additional 30,000 ounces of gold at an average price of A$1,887 per ounce.
The forward sales will be in scheduled monthly deliveries of 5,000 ounces between January 2020 and June 2020.
The objective is to secure price certainty for a portion of the revenues from Resolute’s Ravenswood Gold Mine in Queensland, Australia.
This adds to the existing 142,000 forward sold ounces through to 31 December 2019 taking the total to 172,000 ounces in monthly delivers out to June 2020.
This represents 30% of expected gold production over this period and only 3% of the company’s gold Ore Reserves.
READ: Resolute Mining locks in high gold price and increases stake in Manas Resources
Resolute’s managing director and CEO John Welborn said: “The Ravenswood Expansion Project will generate significant and ongoing value for Resolute with a long mine life, low risk, and low costs.
“The current Australian dollar gold price environment further supports the company’s development plans and investments.
“We continue to actively manage our gold sales and establish modest near term hedging to secure revenues and protect the company’s balance sheet.
“Establishing hedging at levels significantly above our budgeted gold price protects and supports Resolute’s revenue and cash flow.
“Resolute remains strongly leveraged to further upside in gold prices as we deliver on our strong organic growth agenda at Syama, Ravenswood, and Bibiani.”
READ: Resolute Mining increases quarterly gold production by 33%
Resolute produced 73,691 ounces of gold in the December quarter, up 33% on the prior September quarter.
The Syama Underground Mine ramp-up continues on plan with production up more than 50% to 56,207 ounces.
Ravenswood produced a consistent 17,484 ounces of gold.
The company is in a strong financial position with cash, bullion and listed investments as at 31 December 2018 of A$111 million.