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The Markets
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The Markets
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Gold & silver

Resolute Mining locks in some profits with forward sales

The hedge locks in some profits but the company remains highly exposed to future upside in the gold price.

Resolute Mining Ltd (ASX:RSG) has forward sold 30,000 ounces of gold at an average price of US$1,337 per ounce.

The forward sales will be delivered in six consecutive monthly delivers of 5,000 ounces between July 2019 and December 2019.

Resolute’s total gold hedge book is now 160,000 ounces in monthly deliveries out to June 2020 with 65,000 ounces in $US and 95,000 ounces in A$.

The company produces gold from its Syama gold mine in Mali and its Ravenswood gold mine in Queensland.

READ: Resolute Mining obtains mining lease approvals to support Ravenswood Expansion Project in QLD

Resolute’s managing director and CEO John Welborn said: “We continue to actively manage our gold sales and undertake near term hedging to take advantage of gold price volatility, maximise revenues, and protect the company’s balance sheet.

“Incremental expansion of our current year US dollar hedging position at levels significantly above our budgeted gold price protects and supports Resolute’s revenue and cash flows.

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

“The company’s current hedge book represents less than 3% of our current Ore Reserves.”

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