- Write by:
-
Wednesday, January 16, 2019 - 7:08:13 PM
-
532 Visit
-
Print
Mining News Pro - IAMGOLD Corporation (TSX: IMG) today announced that it has entered into a forward gold sale arrangement with financial institutions whereby the company will receive a prepayment amount of $170 million in exchange for delivering 150,000 ounces in 2022, with a gold floor price of $1,300 per ounce and a cap price of $1,500 per ounce.
According to Mining News Pro - The prepaid gold arrangement is supported by a syndicate of banks including Citibank N.A. and National Bank of Canada. According to the press release, terms of the prepay are:
Funding of $170 million is provided to IAMGOLD in December 2019 in exchange for physical delivery of 150,000 ounces of gold over the period of January 2022 to December 2022.
Delivery can be made from the production of gold from any of IAMGOLD`s operating mines.
The cost of the Prepay arrangement is 5.38% per annum, which is based on the date the prepayment is advanced, quantity of ounces settled and timing of delivery.
The collar on the prepay at the time of delivery of ounces occurs as follows:
If the prevailing gold price equal to or less than $1,300 per ounce, there is no incremental payment to IAMGOLD or from IAMGOLD;
If the prevailing gold price is greater than $1,300 per ounce but less than $1,500 per ounce, the syndicate pays IAMGOLD the difference between the prevailing gold price and $1,300;
If the prevailing gold price is greater than $1,500 per ounce, the syndicate pays IAMGOLD the incremental difference between $1,300 and $1,500, or $200 per ounce.
The funding is expected to be accounted for under IFRS as deferred revenue.
"Entering into the gold prepay provides additional liquidity to IAMGOLD at attractive terms to support the execution of the company`s growth strategy, while also mitigating any downside price risk below $1,300 an ounce on 150,000 ounces of production," said Carol Banducci, EVP and CFO in a media statement.
On Tuesday, gold was trading at $1,292 per ounce, not far off a six-month high.
Short Link:
https://www.miningnews.ir/En/News/327392
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
Newmont confirmed on Wednesday that two members of its workforce died this week at the Cerro Negro mine located in the ...
Chinese investors are snapping up stocks tied to high-flying metals from copper to gold, aiding an onshore market facing ...
Outflows from global physically backed gold exchange traded funds (ETFs) continued for a 10th month in March, but at a ...
i-80 Gold fell by over 11% at market open Tuesday following its announcement of a C$100 million ($74m) public offering ...
Australia’s Westgold Resources said on Monday it had agreed to acquire Toronto-listed Karora Resources in a ...
Chinese coal prices are likely to keep falling until the start of the peak summer season, suppressing imports of the ...
No comments have been posted yet ...