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- This week, Beacon Minerals (ASX: BCN) entered two agreements: one to acquire tenements in WA and another for a 14,000-ounce forward gold contract
- The first agreement is to acquire tenements in WA from Aurimin, which will bolster mine reserves at BCN’s Juardi mine
- The forward gold sales announced today involve a company based in Switzerland
- The gold is being sold at a price of $3080 an ounce, a significant increase compared to past sales
- Shares last traded at 2.7 cents
Earlier this week, Beacon Minerals (ASX:BCN) entered into a binding agreement to acquire the Mt Dimer tenements from Aurimin (ASX:AUN).
What’s more, the company has today announced a 14,000-ounce forward gold contract at $3080 an ounce with a company headquartered in Switzerland.
Mt Dimer tenements
The acquisition of the Mt Dimer tenements is part of the company’s strategy to extend the mine life of its Juardi mine in Western Australia.
This acquisition of surrounding projects aims to bolster mine reserves and complement the existing operations. These latest tenements are located around 100 kilometres northwest of Beacon’s Jaurdi gold processing plant.
Beacon will make a cash payment of $3 million upon the deal’s completion, along with a two per cent net smelter royalty as part of the agreed-upon royalty agreement.
The completion of the deal is subject to several conditions, with a deadline of December 15, 2023. The company has stated that it will finance this acquisition using its existing cash reserves.
Forward gold sales
The forward gold sales announced today will encompass monthly instalments from November 2023 to June 2024.
Beacon highlighted the contract’s notable increase in the sale price from the September quarter, where the average gold price was $2924 per ounce. The forward gold sales also represent a $377 per ounce increase from the 12 months ending June 30, 2023, when the average price was $2703.
The company’s full-year guidance for 2023-2024 ranges from 27,000 to 29,000 ounces.
Thirty-five per cent of the company’s gold will be sold at spot prices.
The company highlighted the agreement as “hedging Beacon’s gold price exposure in relation to the Jaurdi gold project and providing a secure cash margin on a portion of Beacon’s future gold production.”
Shares last traded at 2.7 cents.
