The 50,000 ounces of hedging had been taken out in September at $A1791 per ounce, about two months prior to the deal announced in November with Gold Fields whereby Gold Road’s funding for the Gruyere’s development was effectively confirmed – by Gold Fields buying a 50% stake in the project for $350 million.

A feasibility study by Gold Road indicated Gruyere could cost $507 million to develop, with annual production set to average about 270,000 ounces, and all-in-sustaining-costs, $A945/oz.

Gold was trading today at levels around $1535/oz.

Gold Road started the current quarter with $79 million cash.

The company, which acknowledged the contribution of hedging specialist Noah’s Rule and Commonwealth Bank in the profitable initiative, said it remained opened to future forward sales programs and had “plans to develop an appropriate strategy aligned with its risk management program”.

Gold Road’s close-out of hedging follows fellow ASX gold company Blackham Resources realising $6.3 million earlier this month after cashing-in 41,250oz it had locked away at an average price of $1762/oz.

On a terrible day for gold stocks generally, shares in Gold Road were down 7.2% to 55.2c in afternoon trade, capitalising the company at $480 million.