Saracen Mineral Holdings lifts hedge book to 180,000 gold ounces
Saracen Mineral Holdings (ASX: SAR) has hedged another 38,500 ounces of gold to bring its total
hedging to 180,000 ounces at an average price of A$1,627.50.
Currently the yellow metal is priced at around A$1370 an ounce, providing the hedge book with a $258 paper gain per ounce.
The
additional ounces have been on a “spot deferred” basis which means that
they do not have a set delivery date and can be utilised at any time by
the company for sales.
The advantage of this basis is that it
allows the Saracen to sell gold production in excess of its current
fixed hedge program into the new facility which will give a guaranteed
minimum price for these ounces.
At the company's Red October underground mine in Western Australia, production is forecast at 48,000 ounces planned for FY2014.
The “All in” costs are sub A$1,200/oz, with the Cash Costs sub A$900/oz.
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