Nordic Mines has pre-settled the remaining gold price hedge
(Thomson Reuters ONE) -
PRESS RELEASE, 17 May 2013 (translation from Swedish)
Nordic Mines has pre-settled the remaining volume of 65 236 troy ounces
(tr oz) for the period July 2013 to March 2015 (seven quarters) to a cost of
1.8 MEUR.
Due to a material fall in gold price, the company decided to pre-settle the
total remaining balance of the gold price hedging agreement to a cost of 1.8
MEUR. As a comparison, during 2012 (four quarters), the gold price hedge had a
negative impact on the company's result of 11.3 MEUR.
In March 2011, in combination with the project financing agreement, Nordic Mines
entered forward contracts with UniCredit and Standard Bank (the banks) for the
period from the first quarter 2012 until the first quarter 2015 on 134,280 tr oz
of gold at an average price of 1,049 EUR/tr oz. The price follows an incremental
curve, in the interval from 1,029 up to 1,078 EUR/tr oz under the hedging
agreement period.
The agreement consists of a gold swap that corrects the deliveries in the
quarter to the quarter's price according to the London Bullion Market (LBMA)
towards the hedged price. If the LBMA price is higher than the hedged price,
Nordic Mines compensates the banks for the difference. If the LBMA price is
lower than the hedged price, the banks compensate Nordic Mines for the
difference. Since the gold price according to LBMA has been higher than the
hedged price, Nordic Mines has every quarter so far paid the banks.
The company is delivering/selling doré gold continuously to spot prices
according to LBMA. The company's gross sales are netted with hedging costs.
"We have previously pre-settled the gold hedge for the second quarter 2013 and
we see this as an opportunity to further reduce the costs for future periods"
says Thomas Cederborg, CEO, in a comment.
For further information, please contact:
Thomas Cederborg, CEO, +46 708 480 521
Susanne Andersson, CFO, +46 730 668 904
For further information regarding Nordic Mines, please connect to
www.nordicmines.com
The information above has been made public in accordance with the Securities
Market Act and/or Financial Instruments Trading Act. The information was
published at 08.00 (CET) on May 17, 2013.
Nordic Mines is a Nordic mining and exploration company whose vision is to be
one of the leading gold producers in the Nordics and Europe and a role model in
respecting the environment. The company started mining gold in the Laiva mine in
Finland in summer 2011. These gold deposits are among the largest in the Nordic
region. Exploration is in progress in Finland and in Sweden. Nordic Mines was
established 2005 and have more the 100 employees with head office in Uppsala,
Sweden, The Nordic Mines share is traded on the Nasdaq OMX Small Cap list in
Stockholm.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Nordic Mines AB via Thomson Reuters ONE
[HUG#1702807]
Unternehmensinformation / Kurzprofil:
Datum: 17.05.2013 - 08:00 Uhr
Sprache: Deutsch
News-ID 261179
Anzahl Zeichen: 3644
contact information:
Town:
Uppsala
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 137 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Nordic Mines has pre-settled the remaining gold price hedge"
steht unter der journalistisch-redaktionellen Verantwortung von
Nordic Mines AB (Nachricht senden)
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