Resolute Mining Implements A$ Gold Hedge

Resolute Mining Limited (ASX: RSG) has reported that it has forward sold 72,000 ounces of gold at an average price of A$1,715 per ounce with scheduled monthly deliveries of 4,000 ounces between December 2017 and May 2019. The average gold price received in the forward sales contracts of A$1,715 per ounce is a significant premium above Resolute’s budgeted gold price of A$1,600 per ounce.

Resolute has taken advantage of the recent strength in the A$ gold price to establish a gold hedge position to support the Ravenswood Expansion Project. The objective of the hedge is to protect project returns during the development phase of the 13 year mine life of the Ravenswood Expansion Project. Resolute is currently in a transition phase at Ravenswood as underground mining at Mt Wright comes to an end and the operation returns to large scale open pit mining.

The new A$ hedging is in addition to the remaining forward sales program of 84,000 ounces at an average price of US$1,330 per ounce which was established to support the Syama Underground Mine development program (refer to ASX announcement dated 1 September 2017).

Combined with Resolute’s existing US$ forward contracts, the group’s total hedged position represents approximately 30% of expected gold production over the next 18 months.


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