Loading ...After a challenging second quarter at its El Castillo complex in Mexico, Argonaut Gold (TSX: AR) will hedge part of the operation’s remaining life-of-mine production.
The company told shareholders in late August that it had entered into a series of “zero-cost, collar option contracts” covering 145,500 oz. gold through mid-2022 from its El Castillo mine, which along with its San Agustin mine, makes up the El Castillo mining complex, 100 km north of Durango.
Argonaut has set the floor price of the monthly gold collars at US$1,450 per oz., and the ceiling price of the collars from US$1,630 per oz. in the fourth quarter of 2019 to US$1,760 per oz. for the first half of 2022. The company will realize the actual gold sales price if the gold price stays within the range of the collars.
Management said that the “price-protection program” on part of El Castillo’s remaining life-of-mine production would “ensure profitability” and “extend the mine life at our highest-cost operation.”
cont. https://www.mining.com/argonaut-gold-to-hedge-gold-from-el-castillo/