Gold prices surpassed the $1,650 per ounce (oz) mark in intraday trading today as a surprise rate cut from the coronavirus wreak havoc with equities. Some gold miners are taking advantage of the upswing, which is at its highest level in more than seven years. Two recently announced they had forward sold gold production for 2020 and 2021.

OceanaGold Corp. reported it entered into a forward gold sale arrangement with the support of the company’s banking group. Oceana received a pre-payment of $78.5 million or approximately $1,635 per ounce (oz) on February 28, in exchange for delivering 48,000 oz of gold between September and December 2020. The advanced gold ounces sold represents a little more than 30% of expected gold production across that period and 13% of the Oceana’s total 2020 full year production.

“We expect our annual gold production to be stronger in the second half of the year, particularly at Haile where we expect two-thirds of the gold output from the operation in the second half of the year,” President and CEO of OceanaGold Mick Wilkes said. “While we do not anticipate using gold prepayment arrangements as a standard practice going forward, it is an attractive option at today’s high gold prices that mitigates the need for any material refinance of debt or equity issuance.”

Oceana effected the advanced sales arrangement through Scotia Bank, Commonwealth Bank, Citibank and BNP Paribas.

That announcement was followed by one from Resolute Mining that said it had forward sold 30,000 oz of gold at an average price of $1,670/oz in scheduled monthly deliveries of 5,000 oz between July 2021 and December 2021. Resolute said the hedge would secure price certainty for a portion of the revenues generated from the Syama gold mine in Mali and the Mako gold mine in Senegal. The additional hedging extends Resolute’s existing US dollar forward gold sales program, which consisted of 140,000 oz of gold forward sold at an average price of $1,548/oz in scheduled monthly deliveries to June 2021.

“Resolute’s hedging program has strong support from our syndicate banks as we progress finalization of an expanded syndicated loan facility,” Resolute Mining Managing Director and CEO John Welborn said. “Incremental expansion of our US dollar hedging position at gold price levels, which are significantly above our budgeted gold price, protects and supports Resolute’s cash flows. We remain strongly leveraged to future upside in the gold price.”

Resolute’s total gold hedge book as of March 1, including the new US dollar gold hedges, consists of 240,000 oz in monthly deliveries out to December 2021.