• 107 days Will The ECB Continue To Hike Rates?
  • 107 days Forbes: Aramco Remains Largest Company In The Middle East
  • 109 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 509 days Could Crypto Overtake Traditional Investment?
  • 514 days Americans Still Quitting Jobs At Record Pace
  • 515 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 519 days Is The Dollar Too Strong?
  • 519 days Big Tech Disappoints Investors on Earnings Calls
  • 520 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 521 days China Is Quietly Trying To Distance Itself From Russia
  • 522 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 526 days Crypto Investors Won Big In 2021
  • 526 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 527 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 529 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 530 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 533 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 534 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 534 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 536 days Are NFTs About To Take Over Gaming?
The Gold Rally Has Finally Run Out Of Steam

The Gold Rally Has Finally Run Out Of Steam

This year has been incredible…

Rhodium Climbs Reaches Record Highs

Rhodium Climbs Reaches Record Highs

This week Rhodium hit a…

Oil Demand Falters On New Wave Of Lockdowns

Oil Demand Falters On New Wave Of Lockdowns

Road traffic and transportation fuel…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Gold Output Set To Decline

Gold Output

The suspension of mining activities due to the covid-19 outbreak in the second quarter of this year will result in a 1.7% decline in global gold production in 2020, says GlobalData.

According to the data and analytics company, all the world’s top gold producers, including Newmont (TSX: NGT; NYSE: NEM), Barrick Gold (TSX: ABX; NYSE: GOLD), AngloGold Ashanti (NYSE: AU), and Newcrest Mining (ASX: NCM) are expected to experience a reduction in output during 2020 owing to restrictions in mining operations and lockdowns in several key markets, such as South Africa.

“The widespread uncertainty due to the fear of a possible global economic downturn, however, pushed gold prices to an all-time high in August 2020, and they remain around $2,000 per oz. supporting profit growth for a number of gold miners, despite the falling output,” Vinneth Bajaj, a senior mining analyst at GlobalData, stated in a press release.

“OTHER FACTORS THAT HAVE IMPACTED THE LEADING COMPANIES’ OUTPUT DURING 2020 HAVE BEEN LOWER ORE GRADES AND SALE OF ASSETS,”

Vinneth Bajaj, senior mining analyst at GlobalData

The coronavirus pandemic led to the two largest gold miners, Newmont and Barrick Gold, reducing their production guidance from a collective 11.6 million oz. to around 11 million oz., says GlobalData.

Production from these companies, says GlobalData, more than halved in the second quarter to 1.4 million oz., down from 2.9 million oz. in the second quarter of 2019.

The reduction in output followed the temporary suspensions of operations at Barrick’s Veladero and Porgera mines and Newmont’s Cerro Negro, Yanacocha, Eleonore, Penasquito, and Musselwhite mines for most of April and May this year due to restrictions imposed by the outbreak, GlobalData says.

While AngloGold Ashanti and Kinross Gold (TSX: K; NYSE: KGC) have suspended their production guidance for the year, Polyus Gold (LSE: PLZL), Russia’s largest gold producer, has stuck with its guidance.

Restrictions due to covid-19 imposed on AngloGold Ashanti’s South African operations have led to a drop in output of 63,000 oz. in the first half of 2020 compared with the same period last year, GlobalData says, while the company’s overall reduction in global production for the first half of 2020 was 85,000 ounces.

“Other factors that have impacted the leading companies’ output during 2020 have been lower ore grades and sale of assets,” says Bajaj. “In Newcrest’s case, output was lower due to the sale of the Gosowong mine to Indotan Halmahera in March, whilst Newmont sold its Red Lake project in April and Kalgoorlie projects in the beginning of 2020.”

By Mining.com 

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment