Gascoyne Resources Limited announced that it has entered into flat forward gold sales contracts for 164,000 ounces of gold production from its 100% owned Dalgaranga Gold Project, at a delivery price of $1,712 per ounce (net of fees). These contracts have been executed with Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) who are also providing a $60M project loan facility for the development of the Dalgaranga Gold Project. This hedge replaces the short term hedge facility that was put in place in November.
The Company’s strategy of securing short term hedges in November and early December set the base pricing for the longer term gold hedge outlined above. This strategy has enabled the Company to achieve a long term flat forward sale price of $1,712/oz, which is a premium of approximately $78/oz on the recent spot gold price of $1633/oz and has protected the Company from the recent gold price volatility.
The first gold delivery under the long term hedge is due in September 2018 and the last delivery date is June 2022.
At the time that the initial short term hedging was executed in November the Company was required to lodge a $5 million cash security with CBA. With the debt facility and the project security now in place, the $5 million has been returned to the Company.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.