Shanta Gold Ltd (LON:SHG), the East Africa-focused gold producer, developer and explorer, said it has settled all outstanding gold forward sale commitments, leaving the company unhedged.
As of early 2020, the company had sold forward 40,000 ounces to January 2021 at an average price of US$1,244 per ounce.
The forward sales were a condition of its senior lending facility.
On December 18, 2020, Shanta delivered 1,900 ounces into the hedge book and settled the final outstanding 840 ounces from operating cash flow.
"With all forward gold sales commitments settled, Shanta will now receive the full benefit of today's strong gold price environment,” said Shanta chief executive Eric Zurrin in a statement. “As a result, we look forward to significantly improved free cash generation heading into 2021."