The production of gold continues to accelerate on a global scale. Throughout 2019, Australian gold miners have had a stellar year.
2019 was Good to Aussie Miners
Several stars aligned for Australian gold miners in 2019. Rising prices allowed them to make the most of every ounce dug up out of the earth. In fact, the gold price reached high levels which hadn’t been seen for a while, further contributing to the overall profitability of mining operations.
A second crucial factor is the increased output by miners in Australia last year. A new all-time high in gold production was reached, with 325 t being dug up. This is a vast improvement over the previous record, which sat at 317 t.
This higher output at a much higher price per troy ounce results in a big year for Australian gold miners. It is not crucial to keep the momentum going. Several new projects have come on stream in the past few months.
They contribute to the 87 t of gold being dug up in Q4 2019. Such an improvement was necessary, as September 2019 is widely considered to be “poor” in terms of performance. In total, miners generated an output of over AU$ 25 billion last year.
At its peak, the Australian dollar gold price peaked at AU$ 2,529 per ounce. Throughout February, the Australian dollar gold price has continued its uptrend, pushing to AU$2,529/oz. These high prices will ensure that gold mining remains an attractive business venture in the country.
Further Improving Production
A stellar year does not guarantee more of the same in 2020 and beyond. In Australia, several improvements will continue to roll out as time progresses. Various lesser-known companies are coming to market and scale up their capacity very quickly.
Speaking of capacity, the gold output of various mines is on the rise. One of the biggest improvements comes courtesy of Newcrest Mining’s Cadia East venture in NSW. In Q4, its output increased by 68,000 oz compared to Q3 2019. This goes to show that other locations may have ample room for future improvements in production.