Business
Hedging of gold sales for remainder of 2016
Hedging of gold sales for remainder of 2016.
About this update from Anglo Asian Mining Plc
[{"type":"text","content":"\n \nRNS Number : 5963C Anglo Asian Mining PLC 29 June 2016 \n\nAnglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining\n29 June 2016\nAnglo Asian Mining plc\nHedging of gold sales for remainder of 2016\n \nAnglo Asian Mining plc (\"Anglo Asian\" or \"the Company\"), the AIM listed gold, copper and silver producer focused in Azerbaijan, has taken advantage of the recent strength of the gold price and entered into a transaction to hedge 18,000 ounces of its gold sales for the remainder of 2016. This represents approximately 50 per cent. of its forecast sales for this period. \n \nThe 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. \n \nPUT options give the right to the Company (but not the obligation) to sell gold at the option price. CALL options give the right to the holder (but not the obligation) to buy gold at the option price. The 18,000 ounces will therefore have a minimum / maximum sales price per ounce of US$1,200 / US$1,426. Where the spot price on date of sale is between US$1,200 and US$1,426, sales will take place at spot price.\n \nAnglo Asian CEO Reza Vaziri commented, \"This is a win win transaction for us. Whilst protecting the downside in the current volatile gold market over the coming six months given Anglo Asian's debt service payments, we also enjoy considerable exposure to any further increase in the price of gold during this period.\" \n \nFor further information please visit www.angloasianmining.com or contact:\n\n\n\n\nReza Vaziri\n\n\nAnglo Asian Mining plc\n\n\nTel: +994 12 596 3350\n\n\n\n\nBill Morgan\n\n\nAnglo Asian Mining plc\n\n\nTel: +994 502 910 400\n\n\n\n\nEwan Leggat\n\n\nSP Angel Corporate Finance LLP\nNominated Adviser and Broker\n\n\nTel: +44 (0) 20 3470 0470\n\n\n\n\nLaura Harrison\n\n\nSP Angel Corporate Finance LLP\n\n\nTel + 44 (0) 20 3470 0470\n\n\n\n\nLottie Brocklehurst\n\n\nSt Brides Partners Ltd\n\n\nTel: +44 (0) 20 7236 1177\n\n\n\n\nSusie Geliher \n\n\nSt Brides Partners Ltd\n\n...