St Barbara Limited
(ASX:SBM) says it has entered into forward gold contracts to reduce the US dollar gold price risk associated with the future repayment of the remaining US Senior Secured Notes.
A total of 50,000 ounces of gold contracts will be delivered in monthly installments from July to December 2016 at a forward price of US$1,260 per ounce.
The company says this volume represents less than 15 per cent of current annual company production.
The hedge provides gold price certainty at the recent higher gold prices for the remaining US$168 million of US notes.
St Barbara reported a net profit of $77.45 million at 31 December 2015.
