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.

By InvestSMART · 17 Jun 2013

By InvestSMART ·
17 Jun 2013

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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.

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Frequently Asked Questions about this Article…

How much gold did Australia produce in the March quarter and how does that compare to the December quarter?

Australia produced 63.5 tonnes of gold in the March quarter, about 5% less than the December quarter, but slightly more than was produced in the March quarter of 2012.

Who provided the analysis of Australia’s gold output and what was their main takeaway?

Mining consultancy Surbiton Associates provided the analysis. Director Dr Sandra Close said the recent fall in the gold price had been offset by a weaker Australian dollar, which helped shield gold producers from some of the pain of lower prices.

How did the fall in the Australian dollar affect gold producers amid lower global gold prices?

According to Surbiton Associates, the fall in the Australian dollar partially offset the recent drop in the gold price, effectively reducing some of the financial impact on local gold producers.

Which Australian gold companies announced job cuts or office closures in the article?

The article reports that Focus Minerals reportedly cut scores of jobs near Coolgardie, and major listed miner Newcrest cut more than 100 jobs and closed its Brisbane office.

What did Alacer Gold announce about its operations in Australia?

Alacer Gold confirmed it would seek to leave the Australian industry and focus on its lower‑cost mine in Turkey.

Did Newcrest disclose any significant financial impacts in the article?

Yes. Newcrest flagged more than $6 billion worth of asset write‑downs, in addition to its job cuts and Brisbane office closure.

What recent challenges has the local Australian gold sector faced according to the article?

The article describes a tough few weeks for the local gold sector, including slightly lower quarterly output, company job cuts (Focus Minerals and Newcrest), Newcrest’s office closure and large asset write‑downs, and Alacer Gold exiting the Australian industry.

Where did the production figures and company developments in the article come from?

The production figures and commentary came from an analysis by Surbiton Associates and reporting on company actions by Focus Minerals, Newcrest and Alacer Gold as described in the article.