Resolute Mining forward sells another 30,000 ounces of gold

Resolute Mining has forward sold an additional 30,000 ounces of gold at an average price of $1,501 per ounce, it announced on Tuesday, in scheduled monthly deliveries of 5,000 ounces between July and December 2020.

The Sydney and London-listed firm said it had extended its dollar-denominated gold hedge position to secure price certainty during 2020 for a portion of the dollar revenues generated from its African gold mines - the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.

It said the additional US dollar hedging extended its existing dollar forward gold sales programme, which consisted of 35,000 ounces of gold forward sold at an average price of $1,494 per ounce in scheduled monthly deliveries of 5,000 ounces per month through to June 2020.

Resolute's total gold hedge book as at 24 December, including the newly-announced dollar gold hedges, consisted of 165,000 ounces in monthly deliveries out to December 2020, representing less than 3% of Resolute's ore reserves.

“We continue to actively manage our gold sales and undertake near-term hedging to take advantage of gold price volatility, maximise revenues, and protect the company's balance sheet,” said managing director and chief executive officer John Welborn.

“Incremental expansion of our US dollar hedging position at current levels which are above our 2020 budgeted gold price, protects and supports Resolute's revenue and cash flow.

“With long mine lives, large gold inventories, and an industry leading production growth profile, Resolute remains strongly leveraged to further upside in gold prices.”

At 0812 GMT, shares in Resolute Mining were up 8.05% in London at 64.95p.