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According to Aurum Analytics and PCF Capital Group, average AISC for the June quarter fell by 1.2% to $1196/oz.
The two lowest-cost producers, Evolution Mining/Glencore’s Ernest Henry (AISC of negative $432/oz) and Newcrest Mining’s Cadia (AISC of $404/oz) have significant copper credits to thank for the low costs.
Kirkland Lake Gold’s outperforming Fosterville mine in Victoria was the lowest-cost primary gold producer with AISC of just $517/oz.
Fosterville also had the highest average grade by a long way, with a June quarter head grade of 17.2 grams per tonne gold.
Other mines with AISC below $1000/oz included Regis Resources’ Duketon North ($606/oz), Evolution’s Mt Carlton ($616/oz), Northern Star Resources’ Jundee ($754/oz), Evolution’s Cowal ($762/oz), St Barbara’s Gwalia ($872/oz), KCGM’s Super Pit ($886/oz), Alkane Resources’ Tomingley ($905/oz), Evolution’s Mt Rawdon ($922/oz) and Cracow ($993/oz), and Newmont Mining’s Tanami (993/oz).
Another five operations had AISC of $1000-1100/oz, while three out of the 46 on the list had AISC of more than $2000/oz – Gold Fields’ Darlot, which is being sold to Red 5, RNC Minerals’ Beta Hunt, and Kirkland Lake’s Cosmo, which has since been suspended.
Average grade fell by 1.7% to 3.35gpt gold, comprising an average open pit grade of 1.91gpt gold and an underground grade of 4.76gpt.
After Fosterville, Gwalia had the next highest grade (8.8gpt), followed by OceanaGold Corp’s Waihi in NZ (7.39gpt).
The biggest producer was Newmont’s Boddington (212,000oz), followed by the Super Pit (188,000oz) and AngloGold Ashanti and Independence Group’s Tropicana (110,509oz), with output at Cadia, usually a top three producer, impacted by an earthquake in April.
