MINING REFINING

Pantoro enters gold price protection facility

Sat Oct 05 2024

Pantoro (ASX:PNR) has executed a gold price protection facility via an option trade for its 2025 calendar year production in the form of a zero-premium collar. 

The Western Australia-based gold producer says the price protection facility is for about 24% of next year’s production ounces, and “as the name suggests”, the trade was executed without any payment to counterparty Commonwealth Bank (ASX:CBA). 

Commenting on the collar facility and diesel hedge, Managing Director Paul Cmrlec says these trades are a prudent risk management step which continues to provide Pantoro with full exposure to gold prices up to $4,200 per ounce, with minimal downside as and when prices rise higher. 

“Stability in our diesel pricing at current low rates provides further protection to operating margins at the Norseman Gold Project,” Cmrlec says.

The facility includes 2,000 ounces per month with a put value (protection value) of $3,500 per ounce for 12 months from January to December 2025; and 1,000 ounces per month with a call value of $4,200 per ounce expiring monthly between January and December 2025. 

Source: https://mining.com.au/