New figures from the mining consultants showed Aussie gold production hit 69 tonnes for the first three months of the year, down five tonnes or 7% on the previous quarter.
The result was little changed from last year and came in line with expectations.
“March quarter production in Australia is usually the lowest for the year,” Surbiton director Sandra Close said.
“Overall, both the grade and tonnage of ore treated was lower this quarter than for the December quarter 2014.”
Close said disruptions due to wet weather were partly to blame for the March result, with maintenance and operational problems also weighing down production.
The March period is the shortest quarter in the year and that also factored into the new figures.
Each day of the year results in production of about three quarters of a tonne of gold worth some $A37 million at the current gold price.
“Disruptions due to wet weather early in the year often mean gold producers have to treat additional tonnages of lower-grade stockpiled material to keep their plants near capacity,” Close said.
“This year wet weather affected some of the more northerly operations in Western Australia but further south, it was not a major problem.”
Newcrest Mining’s Telfer operation, Northern Star Resources’ Jundee mine and Regis Resources’ three operations in the Duketon region all reported lower output due to high rainfall.
In other parts of the industry, maintenance work had an impact on some operations.
Maintenance and operational changes at Kalgoorlie’s Super Pit resulted in the amount of ore treated falling by about 750,000t while gold output fell 44,000 ounces to 118,000oz.
Pit wall failures were reported at Norton Gold Fields’ Paddington operation and Regis Resources’ Rosemont mine but the impacts appear to be relatively minor.
Over in New South Wales output was reduced at Alkane Resources’ Tomingley operation as mining continued deeper in the Caloma open pit and the ore transitioned from the weathered zone to fresh rock.
Taking stock of the market, Surbiton said a 7% decline in the Australian dollar lifted the local gold price about $144 an ounce to an average $1547/oz.
The gain came amidst a slight uptick in the US gold price.
“The higher average Australian gold price in the March quarter may well partially explain why grades were lower for the quarter too,” Close said.
“With a higher gold price it becomes economic to treat lower grade ore.”
In terms of the wider industry, Close welcomed the WA Government’s move to defer its revision of royalty rates.
However, she said uncertainty still remained for the industry in the long term.
“Unfortunately the gold royalty question has not been resolved, only deferred,” she said.
The top producing operations for the March quarter were Newmont Mining’s Boddington (184,000oz), Newcrest’s Telfer (129,086oz) and AngloGold Ashanti and Independence Group’s Tropicana (122,319oz).
Next on the list was Newcrest’s Cadia East (121,592oz) and Newmont and Barrick Gold’s Super Pit (118,000oz).
