Catalyst Metals (ASX:CYL) entered into gold forward contracts for 30,000 ounces of gold at a fixed price of AU$6,075 per ounce, with deliveries spread evenly over 15 months at 2,000 ounces per month starting in August, representing 2% of reserves or one quarter of production, according to a Thursday Australian bourse filing.
The company said the recent gold price volatility can be destabilizing, and it will, from time to time, enter into similar short-term price protection contracts to manage its revenue and overall operational stability.