From last quarterly
As announced in June 2023, the Company reduced its gold hedge book by 51,000 ounces to provideexposure to any increase in the A$ gold price over the next 12 months. The closure of these gold hedgingcontracts results in Capricorn having no gold hedging delivery obligations until 30 September 2024.At the end of the quarter the Company has 107,000 ounces of flat forward contracts remaining at anaverage delivery price of $2,327 per ounce. The Company also has 38,000 ounces of put options givingCapricorn the right (but not the obligation) to buy gold at $2,810 per ounce. The put options mature overthe next three quarters.
From June 2023
68463430
Essentially we have a hedge delivery obligation of approx 12-13k oz per qtr beginning 30 September 2024 running til 31 December 2026.
With the put options below the AISC of some peers at $2810 /oz we have three more quarters of flexibility and production insurance at present.
Hypothetically - we have the potential to produce ~ 30k/oz per quarter from KGGP and then exercise puts of 13k /oz at $2810 /oz at quarter's end.
Cost side -
30k oz @ AISC $1380 = $41.4m
plus 13k oz @ put price $2810 = $36.53m
= 43k oz at average cost $1812 /oz
Total - $78m
Profit side -
30k oz sold at spot ~ $3500 oz = $105m
13k oz delivered into hedge @ $2327 /oz = $30.25m
Total - $135.25m
As always DYOR - I may have this wrong?
CMM CHART, page-389
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