Acacia Mining buys put options for 120,000 ounces of gold

Acacia Mining announced on Thursday that it has bought additional put options covering 120,000 ounces of gold at a strike price of $1,320 per ounce, for a cost of $2m.

The FTSE 250 company said the options will expire in equal instalments of 30,000 ounces per month between March and June.

“These options, in addition to those bought in September 2017 at a strike price of $1,300 per ounce, provide a minimum price for the majority of the group’s expected production for the first half of 2018 above our budgeted gold price of $1,200 per ounce, with full upside exposure should the gold price continue to trade above the respective strike prices,” Acacia’s board said in its short statement.