Gold Forward Contracts As at the latest quarter ended March 31, 2024, VGCX had committed to deliver 30,000 oz of gold between then to Dec 31 at an average weighted price of US$2,116 per oz. The Co. had "mark-to-market" on those outstanding contracts and recorded a loss of US$4.8 million. The gold spot price has subsequently risen from US$2,116 to $2,416 per oz as of last Friday. The Co is in a financial bind as it's mine has now shut down and it is not in a position to deliver the gold, and additionally, the gold price has shot way up since then.
Gold forwards are legal binding agreements and VGCX is liable for legal recourse on failure to deliver. They might have to buy gold in the futures market in order to fulfill their commitments. The Co. also has royalties agreements signed with other miners.