Gold Price Risk Mitigation
Perth, May 6, 2016 AEST (ABN Newswire) - Blackham Resources Ltd (
ASX:BLK) is pleased to announce it has sold forward 20,000 ounces of gold at an average price of A$1,701 per ounce and has a further 20,000 ounce of puts at an exercise price of A$1,575/oz. The objective of the gold hedging is to take advantage of the recent rally in the Australian dollar gold price and create certainty over the early cash flow from the Matilda Gold Project.
The initial expiry date on the forward sale is 2 August 2016 and the gold put options 9 August 2016. It is intended as the Matilda Gold Project progresses towards commissioning the forwards will be rolled out against first 6 months production to minimise gold price risk exposure as we de-risk the operations.
Commenting on the hedging, Blackham's Managing Director, Bryan Dixon, said:
"I am pleased that Blackham has been able to secure gold price protection at near record highs prior to production commencing. This hedge provides certainty over the Matilda's revenue as it quickly transitions to 100,000ozpa production. The initial price protection is modest but greatly reduces start up risk as the Company continues development of the Matilda Gold Project."
Matilda gold production is on track for the Sept 2016 quarter.
About Wiluna Mining Corporation Ltd
Wiluna Mining Corporation (ASX:WMC) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
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