Anglo Asian Mining plc hedges gold sales at price of $1,200-1,426 per ounce

Anglo Asian Mining plc (Anglo Asian or the Company), the AIM listed gold, copper and silver producer focused in Azerbaijan, has hedged its gold sales for the second half of 2016, abc.az reported.

The Company reports that the subject of the transaction is 18,000 ounces of its gold sales for the remainder of 2016.  This represents approximately 50% of its forecast sales for this period.

The Company has entered into a series of net zero cost options with a lower (PUT option) sales price of US$1,200 per ounce and an upper (CALL option) sales price of US$1,426 per ounce. The options mature in lots of 1,500 ounces of gold with the first lot maturing on 12 July 2016. The remainder of the lots mature every two weeks from this date with the final lot maturing on 13 December 2016.

PUT options give the right to the Company (but not the obligation) to sell gold at the option price. Where the spot price on date of sale is between US$1,200 and US$1,426, sales will take place at spot price.

Anglo Asian CEO Reza Vaziri commented that the transaction is a win for the Company as it protects Anglo Asian from further volatility.