PERTH (miningweekly.com) – Gold miner St Barbara has forward sold some 50 000 oz of gold at a price of $1 260/oz.
The gold was contracted to be delivered in monthly installments between July and December this year, with the miner pointing out that the volume represented less than 15% of the current annual production capacity.
The forward gold contracts would reduce the US dollar gold price risk associated with accumulating US funds for the future repayments of the remaining US senior secured notes.
St Barbara told shareholders that the hedge provided gold price certainty at recent higher gold prices for a portion of the remaining $168-million balance of US notes.
The US notes had a maturity date of April 2018, however, St Barbara said that it intended to continue its recent practice of reducing debt to repurchasing notes in advance, as the opportunity arose.
In addition, St Barbara was also expected to pay out in full the $36-million balance of a debt facility by the end of June this year, some 12 months ahead of the amortization schedule.
Edited by: Creamer Media Reporter
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
