OZ Minerals hedges gold in stockpile to “lock-in value”

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Prominent Hill areal view Image credit: www.ozminerals.com

Australian mining company OZ Minerals announced that it is hedging gold in stockpile to capitalise on historically high gold prices which are at near 15 year highs.

Prominent Hill areal view Image credit: www.ozminerals.com
Prominent Hill areal view
Image credit: www.ozminerals.com

The Adelaide-based miner said that the gold contained in the stockpile at Prominent Hill has a significant, de-risked value.

“OZ Minerals has high confidence in the value of this stockpile because the ore has already been minded, the grade is known and the trial held late last year confirmed recovery and plant throughput rates,” said Managing Director Andrew Cole.

“The gold contained in the stockpile at Prominent Hill is a tremendously valuable, de-risked asset and we have decided to lock-in approximately 60 percent of the value by taking advantage of the historically high gold prices.”

Mr Cole said the gold stockpile will continue to grow over the remaining life of the open pit.

“OZ Minerals’ hedge position will be reviewed on a quarterly basis and an ability to maintain a hedge position equivalent to approximately 60 percent of the recoverable gold contained in the stockpile will be retained. The stockpile is currently expected to be drawn down to 2022,” he added.