Zimbabwe-based miner Caledonia Mining (LON:CMCL TSX:CAL) has sold forward 15,000 ounces of gold production.
A six month collar and cap arrangement has been set up at a price between US$1,050 per ounce and US$1,080 per ounce.
Caledonia said the arrangement would give it greater clarity over cashflows until July 2016 when production at its Blanket mine is expected to ramp up.
A six-year investment programme is underway at the mine that will see it invest US$70m up to 2021 to increase annual production to approximately 80,000 ounces of gold.
The miner added the hedge will comprise a series of weekly contracts.
Blanket will continue to sell 100% of its gold to Fidelity Printers and Refiners in Zimbabwe.
Caledonia added it intends to maintain its existing dividend policy of paying 1.125 US cents per quarter.