Anglo Asian Mining takes advantage of strong gold price

Azerbaijan-focused gold, silver and copper producer Anglo Asian Mining announced on Wednesday that it has taken advantage of the recent strength in the gold price and entered into a transaction to hedge 18,000 ounces of its gold sales for the remainder of 2016.

The AIM-traded firm said this represents about 50% of its forecast sales for the period.

Anglo Asian said it entered into a series of net zero cost options with a lower sales price of $1,200 per ounce and an upper sales price of $1,246 per ounce.

The options mature in lots of 1,500 ounces of gold with the first lot maturing on 12 July, and the remainder of the lots maturing every fortnight from that date until 13 December.

“This is a win win transaction for us,” said Anglo Asian CEO Reza Vaziri.

“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.”