29th Jun 2016 09:07
LONDON (Alliance News) - Anglo Asian Mining PLC on Wednesday said it has entered into a deal to hedge 18,000 ounces of its gold sales for the remainder of 2016, representing around 50% of its forecast sales for the period, in a bid to take advantage of the recent strength of the gold price.
The AIM-listed gold, copper and silver producer said it has entered into a series of net zero cost options with a lower sales price of USD1,200 per ounce and an upper sales price of USD1,426 per ounce.
The options mature in lots of 1,500 ounces of gold, with the first lot maturing on July 12, Anglo Asian said. The remainder of the lots mature every two weeks from Wednesday with the final lot maturing on December 13, the company added.
"This is a win win transaction for us. Whilst protecting the downside in the current volatile gold market over the coming six months given Anglo Asian's debt service payments, we also enjoy considerable exposure to any further increase in the price of gold during this period," sai9d Chief Executive Reza Vaziri.
Shares in Anglo Asian were up 3.5% at 16.17 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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