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SilverCrest (TSXV:SVL, NYSE:SVLC, AMEX:SVLC) announced that, with the payout of its gold hedge facility, it is now a completely unhedged silver and gold producer.
SilverCrest (TSXV:SVL, NYSE:SVLC, AMEX:SVLC) announced that, with the payout of its gold hedge facility, it is now a completely unhedged silver and gold producer.
As quoted in the press release:
The original hedge facility was comprised of 55,000 ounces of gold sold forward at US$926.50 per ounce and deliveries into the hedge facility were scheduled to continue into 2014. During 2010 and 2011 the Company made scheduled deliveries of 26,000 ounces of gold into the hedge facility from gold production from the Santa Elena mine leaving a balance of 29,000 ounces of gold which the Company has settled in cash for US$ 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 CAD$34.5 million bought deal, prospectus financing which closed on October 30, 2012.
SilverCrest President, J. Scott Drever, said:
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.
To view the whole press release, click here.