Taking advantage of the recent run-up in gold prices, Bond International Gold (TSE) has sold forward 810,000 oz. of gold at an average price of US$425 per oz.
Bond, 65% owned by Toronto- based LAC Minerals (TSE), said the average contract length for the sale is one year. The average spot price where the forward sales occurred was about US$398 per oz.
Mitchell Graye, chief financial officer for Bond, said the primary gold of the forward sale is to lower the company’s debt to a more acceptable level.
“The forward selling we have done will allow the company to cut its debt in half in two years, and ensure there are enough funds available to fully exploit the company’s asset base,” he said.
Bond’s forward position for the balance of 1990-92 now totals 843,000 oz. of gold at an average price of US$425 per oz. This is about 1.6 years of production after allowing for mandatory repayments under Bond’s current gold loan.
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