Russia’s Petropavlovsk hedges 3 tonnes of gold for $135 mln

MOSCOW, May 21 (PRIME) -- U.K.-registered Petropavlovsk Plc, which operates in Russia, has signed U.S. $135.17 million hedge deals for 96,000 ounces of gold (2.99 tonnes), the company said on Tuesday.

Under the terms of the agreement, the company will supply gold within three months until June 2014 at a fixed price of $1,408 per ounce.

In February, the company signed $664 million hedge deals for 339,000 ounces of gold (12.4 tonnes). Under the terms of the agreement, the company will supply gold at a fixed price of $1,663 per ounce during a period of 14 months, ending in March 2014.

Petropavlovsk is the second largest gold producer in Russia, with major assets in the Amur Region and the Yamalo-Nenets Autonomous District. The company’s production guidance for 2013 stands at 740,000–780,000 ounces of gold.

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