SilverCrest Mines – Unhedged
SilverCrest Mines (SVL : TSX-V : $2.71 )
SilverCrest Mines announced that it has paid out a gold hedge facility that was comprised of 55,000 ounces of gold sold forward at US$926.50, with deliveries into the hedge facility scheduled to continue until 2014.
During 2010 and 2011 the company made scheduled deliveries of 26,000 ounces of gold into the hedge facility from gold production from the Santa Elena mine leaving a balance of 29,000 ounces of gold which the company has settled in cash for US$23,254,800. This reflects an effective settlement price of US$ 1,728 per ounce of gold inclusive of all transaction costs.
The payout of the hedge facility was financed with partial proceeds from the company’s recent $34.5 million financing. The company’s gold and silver production is now completely unhedged.
J. Scott Drever, President stated: “We are pleased to have been able to take advantage of the recent correction in the gold price to eliminate the outstanding gold hedge. The early elimination of the gold hedge will substantially increase our cash flows from operations for 2013 and 2014 which in turn strengthens our balance sheet and increases our flexibility to pursue our corporate objectives for growth.”
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