It is July 2011. A mining company has just discovered a small deposit of gold. It will take 6 months to construct the mine. The gold will then be extracted on a more or less continuous basis for 1 year. Futures contracts on gold are available with delivery months every 2 months from August 2011 to December 2012. Each contract is for the delivery of 100 ounces. Discuss how the mining company might use futures markets for hedging.