Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Gold miner Acacia buys put options at $1,300 per ounce

Published 2017-09-06, 02:41 a/m
© Reuters.  Gold miner Acacia buys put options at $1,300 per ounce
ACAA
-
GOLD
-

Sept 6 (Reuters) - Gold miner Acacia ACAA.L , which is locked in a dispute with the Tanzanian government, said it has bought put options covering 210,000 ounces of gold at $1,300 per ounce.

The options, worth $3.2 million, provide a minimum price for the majority of the group's expected doré bar production for the next six months above its budgeted gold price of $1,200 per ounce, the miner said on Wednesday.

Doré bars are rough gold, an alloy of gold and silver.

Options will expire in equal instalments of 35,000 ounces per month. options will give the company the right to sell gold at the strike price when it is struggling with negative cash flow due to its conflict with the government in Tanzania. is majority-owned by Canada's Barrick Gold ABX.TO .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.