Gold production higher in FY16

GOLD production in Australia reached some 9.4 million ounces in 2015-16, gold mining consultants Surbiton Associates has said, the highest levels in 15 years.
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Andrew Hobbs

Surbiton director Sandra Close said that at the current gold price of $A1730 per ounce, that would put the value of the entire year’s output at over $16 billion.

“With better gold prices, many producers are now taking the opportunity to increase output, increase revenue and strengthen their financial position,” she said.

“Clearly, whether they are large, small or new producers, many companies in the gold sector are keen to take advantage of the prevailing prices by using various strategies to maximise their gold output.”

Close said she hoped the higher Australian dollar gold prices, assisted by a weaker Australian dollar, would be reflected locally in larger exploration budgets into the future.

Gold production had been higher during the quarter at Newmont Mining’s Tanami mine, up 38,000 ounces, while the Kalgoorlie Super Pit and Saracen’s Thunderbox mine near Leinster had also seen production rise.

Juniors are either selling ore or having it toll treated, with other companies that aim to come onto production are working to refurbish old plants that are currently on care and maintenance.