Dacian Gold Limited
(ASX:DCN) has entered its first gold hedging contract for the 100%-owned Mount Morgans Gold Project in West Australia.
The gold exploration company says the gold hedging contract will involve forward selling 52,000 ounces at an average price of AUD$1,782 per ounce.
Dacian says its can deliver into the contract between 1 July 2019 and 30 June 2020, with the hedge being only 26 per cent of Mount Morgans’ forecast gold production for this period.
The company says it will start production in March, with the forward sales contract giving gold price certainty, as it does waste stripping at its Doublejay pit.
Shares in Dacian Gold Limited
(ASX:DCN) are trading 3.72 per cent higher to $1.95.
