BMI Research released a recent report claiming Australia’s gold production will rise due the metal commanding higher prices and miners posting boosted profit margins.
The research company’s Australia Mining Report reveals it expects Australia’s total gold production to reach almost 14 million ounces by 2020, which is almost a 23 per cent increase on 11.4 million-ounce output expected for 2016.
SPOT GOLD REACHING RECORD HIGHS
In recent days, the spot gold price has reached all-time highs, achieving more than A$1,800 an ounce on early July 2016 – the most it’s been in more than a decade when it almost hit A$1,750 in mid-2011.
In as little as 12 months, the gold price in Australian dollar terms has risen 23.4 per cent on 2015 prices, according to data derived from goldprice.org.
BMI Research has forecast gold prices will grow even further to US$1,500 per ounce by 2020, which at the current US dollar and AU dollar exchange rates is A$2,003.54.
AUSSIE GOLD MINERS REAPING THE REWARDS
In the past few years, Australian miners such as gold-focused Newcrest Mining have worked hard to cut costs during a challenging economic climate. Newcrest is now prospering from a climbing gold price and profits.
As the largest gold producer listed on the Australian Stock Exchange, Newcrest reported a 2.6 per cent rise in its gold output for the three months ending March 2016. The company’s average realised gold price was US$1,181 per ounce for the period (about A$1,574), which was 7 per cent higher than the three months to December 2015.
Meanwhile, Evolution Mining achieved record gold production of 208,963 ounces for the March 2016 quarter, which was a slight 3 per cent uptick on the December 2015 period and 20 per cent surge on the September 2015 quarter.