Gold in ‘good shape’ despite production slip

Gold output in Australia has fallen 9 per cent from its June quarter high, with some of the biggest operators reporting a drop in production, new data has shown.

Melbourne-based consultancy firm Surbiton Associates observed gold output of 76 tonnes for the September quarter was seven tonnes less than the 83 tonnes delivered in the previous quarter.

Output a Newmont’s Boddington gold operation in Bannister was the biggest producer delivering 174,000 ounces of gold compared to about 115,000 ounces in the quarter before.

Newcrest Mining's Cadia was down 44,600 ounces to 142,194 ounces, while AngloGold and Regis Resources lifted production by 19,440 ounces at Tropicana.

“Gold production in the September quarter was somewhat disappointing, with fewer tonnes treated and lower recovered grades but the Australian gold sector remains in good shape, longer term,” Surbiton Associates director Dr Sandra Close said.

“Some wet weather and COVID-19 problems affected output adversely but fortunately, these effects seem to be slowly receding and the rise in production costs seems to be starting to abate.”

The Australian gold price averaged at about $2,600 per ounce against a weaker dollar, according to Surbiton.

Overall, Australian gold production sits at 235 tonnes for the first nine months of the 2022 calendar year.