Polyus Gold has closed a number of hedge contracts

Polyus Gold Int Int has closed contract for sales of 88 tons of gold until the middle of 2018 under several schemes protecting the company from the market fluctuations in price. The volume shares 40% of possible production within the period.

The company has large-scale investment program, including $700 million for 2014. The major part of $320 million is financing to the launch of the Natalka deposit with reserves of 1,270 tons of gold with average gold content of 1.13 g per ton.

Gold is sold by $1,300 per ounce and not all banks believe in the pessimistic forecasts about the price but Polyus Gold has made the non-traditional decision to close the hedge contracts for gold sales.

In the end of May, the acting CEO P. Grachyov told to the journalists that Polyus awaits gold price of $1,300-$1,400 per ounce.