Mupane Gold buffers revenues ahead of closure :: Mmegi Online

The country's sole gold producer, Mupane Gold Mine, has initiated option contracts which will protect the mine's revenues from fluctuations in the gold price, as shareholders prepare for end of mining in 2012.

Mupane Gold Mine, a wholly-owned subsidiary of Australian giant IAMGOLD, is winding down due to a decline in reserves and resources. Generally, option contracts allow the seller of a commodity to negotiate set prices and enter into forward-looking agreements with buyers. Through such arrangements, Mupane Gold Mine hopes to buttress its revenues ahead of the planned mine decommissioning in two years' time.

Mupane Gold officials say option contracts will apply to a portion of the mine's approximately 50,000 ounce annual production. The options strategy was initiated during the first quarter of the year and designed to protect the mine's coffers.

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Mupane Gold buffers revenues ahead of closure

The country's sole gold producer, Mupane Gold Mine, has initiated option contracts which will protect the mine's revenues from fluctuations in the gold price, as shareholders prepare for end of mining in 2012.

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