(Alliance News) - Resolute Mining Ltd said Friday it has sold forward a further 22,800 ounces of gold for 2020.
The gold - secured at an average price of USD1,553 per ounce - will be delivered monthly from July to December.
The precious metal was quoted at USD1,548.10 on Friday mid-morning.
Resolute said the additional sales "further extends" its US dollar forward gold program. The existing program consists of 55,000 ounces of gold, sold at an average price of USD1,510 per ounce, in scheduled monthly deliveries of 5,000 ounces from February through December.
"Resolute has taken advantage of market volatility and current gold price strength to extend the company's US dollar denominated gold hedge position. This hedging secures price certainty during 2020 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 company said.
Chief Executive & Managing Director John Welborn added: "Incremental expansion of our US dollar hedging position at current levels which are significantly above our budgeted gold price, protects and supports Resolute's revenue and cash flow. Resolute's active gold sales program and discretionary near-term hedging protects the company's balance sheet and supports our revenue and cash flows.
"With long mine lives, large gold inventories, and an industry leading production growth profile, Resolute remains strongly leveraged to future upside in gold prices."
Shares in Resolute Mining were 2.8% higher in London on Friday at 70.92 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Resolute Mining (RSG)