UK gold coin sales jump on concerns over Labour’s fiscal plans
While the possibility of a capital gains hike by Labour adds to the coins’ appeal, it’s one of many potential drivers for the Mint’s increased sales.
Artemis Gold (TSXV:ARTG) has begun hedging gold from its 100%-owned Blackwater mine 160 km southwest of Prince George, BC. The company has agreed to deliver 100,000 oz. of gold at a weighted average sale price of C$2,836/oz. ($2,099/oz.) between March 2025 and December 2027.
Steven Dean, Artemis chair and CEO, calls the forward sale modest and a prudent step to boost return on capital during the early years of operation. “The effective price on the first 100,000 gold oz. is at or near historic highs and approximately 40% higher than the gold price assumption used in our September 2021 feasibility study.
Hedging these ounces is also a risk management tool to further de-risk servicing of the company’s bank debt funding for the development of the mine,” he added.
Construction at the Blackwater open pit and carbon-in-leach mill has begun for an initial gold pour expected in the first half of next year. The project will have average gold production of 321,000 oz. per year at an all-in sustaining cost of $578/oz.
Artemis has set the initial capital budget at C$645 million for phase one, with payback expected in 2.3 years. Phase two expansion will cost C$347 million and boost output to 438,000 oz. yearly, and phase three will cost C$374 million, bringing output to 438,000 oz. annually. The final phase has no capex expectation, but output will drop to 176,000 oz. annually.
