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Hedging back in vogue as gold price shines

With gold prices consolidating above US$1,500 per ounce, miners are once again turning to hedging to lock in prices to either cover their debt obligation or ensure the future productive life of higher cost operations. Companies including Argonaut Gold, Golden Star Resources, Torex Gold and Harte Gold, among others, have been active and entered into zero cost collar hedging strategies.

Hedging back in vogue as gold price shines Hedging back in vogue as gold price shines Hedging back in vogue as gold price shines Hedging back in vogue as gold price shines Hedging back in vogue as gold price shines

Argonaut locks in profits at El Castillo in Mexico

A zero-cost collar is a strategy to protect against losses by purchasing put options and selling call options such that there is no net cost to the producer.