Resolute Mining (ASX:RSG) has forward sold an additional 37,200 ounces of gold at an average price of US$1,562 per ounce.
The company says it “has taken advantage of market volatility and current gold price strength to incrementally extend the Company’s US dollar denominated gold hedge position…This hedging secures price certainty for a portion of the US dollar revenues generated from Resolute’s African gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.”
Resolute maintains a hedging policy of committing to modest short-dated forward deliveries of a percentage of the Company’s gold production to take advantage of elevated gold prices.
The company’s gold hedge book consists of 215,000 ounces in monthly deliveries out to June 2021 representing less than 3 per cent of its ore reserves.
Shares in Resolute Mining (ASX:RSG) are trading 0.4 per cent higher at $1.20.