Resolute Mining Limited has advised that the company has forward-sold 30 000 ounces of gold at an average price of $1590 per ounce in scheduled monthly deliveries of 5000 ounces between January 2021 and June 2021.

John Welborn MD and CEO of Resolute Mining

                                                                  John Welborn, MD and CEO of Resolute Mining Limited.

Resolute has taken advantage of strength in the gold price to extend the company’s US dollar-denominated gold hedge position for the first half of 2021. 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. The additional US dollar hedging extends Resolute’s existing US dollar forward gold sales programme, which consisted of 115 000 ounces of gold forward-sold at an average price of $1535 per ounce in scheduled monthly deliveries to June 2021.

The company maintains a hedging policy of committing to forward deliveries of gold production to take advantage of elevated gold prices. Its total gold hedge book on 17 February 2020, including the new US dollar gold hedges, consists of 225 000 ounces in monthly deliveries out to June 2021, representing less than 3% of Resolute’s Ore Reserves.

Managing director and CEO John Welborn was pleased to continue Resolute’s success in maximising operating cash flows through responsible hedging strategies:

“Incremental expansion of our US dollar hedging position at levels which are significantly above our budgeted gold price, protects and supports Resolute’s near-term cash flows,” he says. “Resolute’s hedging programme has strong support from our syndicate banks as our modest hedge book protects the company’s balance sheet and supports our goldlinked revenues. With long mine lives and large gold inventories, Resolute remains strongly leveraged to future upside in the gold price.”

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