Gold output down 5% but lower dollar eases price fall
Australia’s gold sector produced slightly less gold during the March quarter than the December one, a new analysis by mining consultancy Surbiton Associates says.
The 63.5 tonnes output was about 5 per cent less than the December quarter, but slightly better than the amount produced in the 2012 March quarter.
Surbiton director Dr Sandra Close said the recent fall in the gold price had been offset by the fall in the Australian dollar, which had shielded gold producers from some of the pain from the falling price.
The figures follow a tough few weeks for the local gold sector, with Focus Minerals reportedly cutting scores of jobs near Coolgardie, and listed major Newcrest cutting more than 100 jobs and closing its Brisbane office.
Elsewhere, Alacer Gold confirmed on Thursday it would seek to leave the Australian industry and focus on its lower-cost mine in Turkey.
Newcrest also flagged more than $6 billion worth of asset write-downs.
InvestSMART FORUM: Come and meet the team
We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free