Capricorn Metals Ltd ( (AU:CMM) ) just unveiled an announcement.
Capricorn Metals Ltd has closed its remaining 55,000 ounces of gold hedging contracts, opting for a strategic equity transaction with Macquarie Bank Limited. This move increases Capricorn’s exposure to potential gold price increases while preserving cash reserves for its key projects, Karlawinda Expansion and Mt Gibson Gold Projects. The transaction involved issuing new shares to Macquarie, resulting in a modest dilution of 4.3% of existing shares. Additionally, Capricorn purchased gold put options to mitigate downside risk, allowing the company to benefit from potential gold price increases. This strategy is expected to enhance Capricorn’s revenue and cash flow in the coming years, without requiring further debt or mandatory hedging.
More about Capricorn Metals Ltd
Capricorn Metals Ltd is a company operating in the gold mining industry, focusing on the development and production of gold. Its primary projects include the Karlawinda Expansion Project and the Mt Gibson Gold Project, positioning itself to capitalize on gold price fluctuations.
YTD Price Performance: 30.89%
Average Trading Volume: 1,134,289
Technical Sentiment Consensus Rating: Sell
Current Market Cap: A$3.3B
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