Higher gold prices lead to reduction in production during March quarter, Surbiton Associates say
An Australian dollar gold price heading towards $5000 an ounce has actually driven a reduction in production of the precious metal across the country, Melbourne-based industry analysts Surbiton Associates say.
Surbiton said Australian gold mine production totalled 73 tonnes in the March quarter, six tonnes less than in the December quarter but three tonnes more than the March quarter of 2024.
This took place as the London Bullion Market Association gold price ranged between $US2633/oz and $US3115/oz, which in Australian dollar terms was $4232/oz to $4960/oz.
'Effectively, the recent decline in Australian gold production was largely the result of higher gold prices,' Surbiton Associates director Dr Sandra Close said.
'At today's gold price the March quarter's output is worth over $12 billion, so understandably many producers are optimising their operations in response to such price increases.'
Dr Close said the higher gold price had made lower cut-off grades economic because what was unprofitable to mine and treat in the past had now become profitable.
'If operations are able to lower their cut-off grades, then a greater amount of gold is recovered from each orebody,' she said.
'Also, higher gold prices mean that it is economic to reclaim more low-grade material from stockpiles to feed into the treatment plants, so the weighted average head grade of ore being treated declines.
'Although lower head grades result in less gold being produced and means cash costs and AISC costs per ounce increase, the value of each ounce of gold is higher.
'Surbiton Associates' latest analysis shows that low-grade, reclaimed stockpiled material is currently as high as around 15 per cent of the total ore being treated.
'Thanks to increasing gold prices, the proportion of low-grade material being blended into feed has risen steadily for the last five quarters, from a proportion of only around one per cent a year ago.'
Dr Close said that it might be thought that higher prices should also stimulate gold output by encouraging the start-up of new projects and the re-commissioning of old projects on care and maintenance.
However, she said many existing plants were now running close to their limit, so there was a shortage of immediate treatment capacity for emerging small miners wanting to sell parcels of ore or to have their ore toll-treated.
'On the face of it, lower gold production and rising costs per ounce might suggest that the gold industry in Australia is in trouble,' Dr Close said.
'Far from it. Many gold producers are experiencing high margins and are doing very well.'
Those mines reporting substantially lower gold production in the March quarter included Tropicana 330km north-east of Kalgoorlie-Boulder down 57,000oz, St Ives south of Kambalda down 40,500oz, and Tanami in the Northern Territory down 46,000oz.
Among the operations reporting increased gold production were the Cadia mine in New South Wales up 25,000oz, Bellevue north of Leinster up 22,000oz, and Fosterville in Victoria up 7000oz.
Boddington south-east of Perth produced the most gold during the quarter, 126,000oz, while Tropicana churned out 105,267oz, Cadia 103,000oz, Kalgoorlie-Boulder's Super Pit 99,998oz, and Telfer 90,172oz.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
14 minutes ago
- AU Financial Review
Calls for tougher rules amid KWM drama
King & Wood Mallesons' international troubles highlight serious flaws in the governance of top Australian law firms, say the two senators who led parliamentary inquiries into the professional services sector. Major legal partnerships have largely been spared the scrutiny faced by consulting firms since the PwC tax leaks scandal, but senators Deborah O'Neill and Barbara Pocock say they are vulnerable to the same governance failings and have failed to incorporate the reforms adopted by the big four consulting firms.
The Advertiser
30 minutes ago
- The Advertiser
White noise: PM gets personal on airport opposition
Anthony Albanese knows what it's like to have the constant drone of aeroplanes above, shaking off opposition to Sydney's first all-hours airport. After cutting the ribbon of the completed Western Sydney Airport terminal, the prime minister spoke to the more than 48,000 residents in western Sydney and the Blue Mountains who will endure the noise from the pathways of aeroplanes. He said the government has "gone to a great deal of trouble" to ensure minimum disruption and impact of aircraft noise from the planes above, pointing out his home in inner city Sydney sits about five kilometres from Sydney Airport. "As the member for Grayndler and as a Marrickville resident, I'm very conscious about these issues," he told reporters from the new terminal on Wednesday. "We need aviation activity, the truth is that some people have opposed this airport existing. "Any time you have infrastructure, there'll be some opponents." On the runway, only four airlines have signed up. This is despite the airport aiming to cater for five million passengers per year once it opens, and 82 million by 2063. Air New Zealand announced on Wednesday they will dock in 2027, joining Qantas, Jetstar and Singapore Airlines. But the airport's chief executive Simon Hickey said they have spoken to more than 30 airlines. Mr Albanese expects more carriers to join before the $5.3 billion project opens in late 2026. "The objective here is for this to be a full international and domestic airport," he said. The terminal's completion marks a significant milestone since construction began four years ago. The gateway is inspired by the landscapes and flora around the Western Sydney region. Inside, the ceiling is emblematic of eucalyptus trees with the curly form of its bark intertwined with skylights that aim to show the Australian natural light. Passengers can also expect baggage to take five minutes to transport from the plane to the carousel, as about five kilometres of conveyor belts line the terminal, Mr Hickey said. A single terminal will also house international and domestic services under one roof. Mr Hickey said the airport has been designed to make flying less stressful. "What reduces that stress is natural light, air and easy way-finding, and we've got all of those elements here," the chief executive said. "We are standing under a skylight down in the lowest level, giving lots of natural light in your bag pick up area, which normally is a small and pokey place." The airport will be connected to an underground rail line from April 2027. Anthony Albanese knows what it's like to have the constant drone of aeroplanes above, shaking off opposition to Sydney's first all-hours airport. After cutting the ribbon of the completed Western Sydney Airport terminal, the prime minister spoke to the more than 48,000 residents in western Sydney and the Blue Mountains who will endure the noise from the pathways of aeroplanes. He said the government has "gone to a great deal of trouble" to ensure minimum disruption and impact of aircraft noise from the planes above, pointing out his home in inner city Sydney sits about five kilometres from Sydney Airport. "As the member for Grayndler and as a Marrickville resident, I'm very conscious about these issues," he told reporters from the new terminal on Wednesday. "We need aviation activity, the truth is that some people have opposed this airport existing. "Any time you have infrastructure, there'll be some opponents." On the runway, only four airlines have signed up. This is despite the airport aiming to cater for five million passengers per year once it opens, and 82 million by 2063. Air New Zealand announced on Wednesday they will dock in 2027, joining Qantas, Jetstar and Singapore Airlines. But the airport's chief executive Simon Hickey said they have spoken to more than 30 airlines. Mr Albanese expects more carriers to join before the $5.3 billion project opens in late 2026. "The objective here is for this to be a full international and domestic airport," he said. The terminal's completion marks a significant milestone since construction began four years ago. The gateway is inspired by the landscapes and flora around the Western Sydney region. Inside, the ceiling is emblematic of eucalyptus trees with the curly form of its bark intertwined with skylights that aim to show the Australian natural light. Passengers can also expect baggage to take five minutes to transport from the plane to the carousel, as about five kilometres of conveyor belts line the terminal, Mr Hickey said. A single terminal will also house international and domestic services under one roof. Mr Hickey said the airport has been designed to make flying less stressful. "What reduces that stress is natural light, air and easy way-finding, and we've got all of those elements here," the chief executive said. "We are standing under a skylight down in the lowest level, giving lots of natural light in your bag pick up area, which normally is a small and pokey place." The airport will be connected to an underground rail line from April 2027. Anthony Albanese knows what it's like to have the constant drone of aeroplanes above, shaking off opposition to Sydney's first all-hours airport. After cutting the ribbon of the completed Western Sydney Airport terminal, the prime minister spoke to the more than 48,000 residents in western Sydney and the Blue Mountains who will endure the noise from the pathways of aeroplanes. He said the government has "gone to a great deal of trouble" to ensure minimum disruption and impact of aircraft noise from the planes above, pointing out his home in inner city Sydney sits about five kilometres from Sydney Airport. "As the member for Grayndler and as a Marrickville resident, I'm very conscious about these issues," he told reporters from the new terminal on Wednesday. "We need aviation activity, the truth is that some people have opposed this airport existing. "Any time you have infrastructure, there'll be some opponents." On the runway, only four airlines have signed up. This is despite the airport aiming to cater for five million passengers per year once it opens, and 82 million by 2063. Air New Zealand announced on Wednesday they will dock in 2027, joining Qantas, Jetstar and Singapore Airlines. But the airport's chief executive Simon Hickey said they have spoken to more than 30 airlines. Mr Albanese expects more carriers to join before the $5.3 billion project opens in late 2026. "The objective here is for this to be a full international and domestic airport," he said. The terminal's completion marks a significant milestone since construction began four years ago. The gateway is inspired by the landscapes and flora around the Western Sydney region. Inside, the ceiling is emblematic of eucalyptus trees with the curly form of its bark intertwined with skylights that aim to show the Australian natural light. Passengers can also expect baggage to take five minutes to transport from the plane to the carousel, as about five kilometres of conveyor belts line the terminal, Mr Hickey said. A single terminal will also house international and domestic services under one roof. Mr Hickey said the airport has been designed to make flying less stressful. "What reduces that stress is natural light, air and easy way-finding, and we've got all of those elements here," the chief executive said. "We are standing under a skylight down in the lowest level, giving lots of natural light in your bag pick up area, which normally is a small and pokey place." The airport will be connected to an underground rail line from April 2027. Anthony Albanese knows what it's like to have the constant drone of aeroplanes above, shaking off opposition to Sydney's first all-hours airport. After cutting the ribbon of the completed Western Sydney Airport terminal, the prime minister spoke to the more than 48,000 residents in western Sydney and the Blue Mountains who will endure the noise from the pathways of aeroplanes. He said the government has "gone to a great deal of trouble" to ensure minimum disruption and impact of aircraft noise from the planes above, pointing out his home in inner city Sydney sits about five kilometres from Sydney Airport. "As the member for Grayndler and as a Marrickville resident, I'm very conscious about these issues," he told reporters from the new terminal on Wednesday. "We need aviation activity, the truth is that some people have opposed this airport existing. "Any time you have infrastructure, there'll be some opponents." On the runway, only four airlines have signed up. This is despite the airport aiming to cater for five million passengers per year once it opens, and 82 million by 2063. Air New Zealand announced on Wednesday they will dock in 2027, joining Qantas, Jetstar and Singapore Airlines. But the airport's chief executive Simon Hickey said they have spoken to more than 30 airlines. Mr Albanese expects more carriers to join before the $5.3 billion project opens in late 2026. "The objective here is for this to be a full international and domestic airport," he said. The terminal's completion marks a significant milestone since construction began four years ago. The gateway is inspired by the landscapes and flora around the Western Sydney region. Inside, the ceiling is emblematic of eucalyptus trees with the curly form of its bark intertwined with skylights that aim to show the Australian natural light. Passengers can also expect baggage to take five minutes to transport from the plane to the carousel, as about five kilometres of conveyor belts line the terminal, Mr Hickey said. A single terminal will also house international and domestic services under one roof. Mr Hickey said the airport has been designed to make flying less stressful. "What reduces that stress is natural light, air and easy way-finding, and we've got all of those elements here," the chief executive said. "We are standing under a skylight down in the lowest level, giving lots of natural light in your bag pick up area, which normally is a small and pokey place." The airport will be connected to an underground rail line from April 2027.
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
People spent hours queueing, but In-N-Out's Aussie pop-up is more about business than burgers
It's not often you'll see people queue up to enter a pub before 9am on a weekday, but on Wednesday, Sydney's Coogee Bay Hotel was no ordinary pub. It was, for those who had at least $8 and time to spare, perhaps their only chance to taste American chain In-N-Out Burger for themselves. Should the fast food franchise decide to bolster its fleet of 418 United States stores with a permanent outpost on Australian shores, it's clear that decision would be warmly received by foodies. But the suits behind the cult brand have been sitting on that knowledge, without acting on it, for more than a decade. Last year, hundreds of Canberrans waited more than two hours in the blazing February sun for a chance to taste the signature 'Animal Style' burger. A week later, the same thing happened in Brisbane; the year before, all menu items sold out in Melbourne within half an hour, and in 2016, Sydneysiders were turned away 30 minutes before a Surry Hills pop-up even opened because it had already sold out. In-N-Out Burger − which has held various trademarks in Australia since 1993 − has known demand is present Down Under since its first Australian pop-up in 2012. Unlike compatriots Five Guys, Wahlburgers, Hungry Jack's (FKA Burger King) and Wendy's, however, a bricks-and-mortar store lasting more than six hours has yet to materialise on our boundless plains.
