View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Comment
October 15, 2020

Covid-19 lockdowns and suspensions during Q2 to drive drop in global gold output by 1.7% in 2020

By GlobalData

The shutdown of mines due to Covid-19 restrictions, primarily during the second quarter, is expected to result in a 1.7% decline in the global gold output in 2020. A decline in the production levels from almost all of the top producers is expected during this year due to the pandemic and ensuing lockdowns in several key markets such as South Africa.

Free Whitepaper
img

Mining Mega Trends and Their Impact to your Organisation's Resilience

Numerous mega trends are impacting the mining industry, making an effective resilience program more important than ever to ensure that operations continue as intended. From ESG considerations, through to the use of advanced technologies such as Internet of Things devices, AI, and digital twins, as well as workplace safety, volatility in commodity markets, and the spectre of Covid-19 still looming. Each mega trend has a different impact that needs managing correctly, with a one-size-fits-all approach insufficient. This white paper identifies the mega trends affecting mining businesses, while exploring the opportunities, risks, and implications for operational resilience, with expert insight from Dynamiq on the best practices and approaches to improve business outcomes. Download this document to learn more.  
by Dynamiq
Enter your details here to receive your free Whitepaper.

The widespread uncertainty due to the fear of a possible global economic downturn, however, pushed gold prices to an all-time high in August, and they remain approximately $2,000/oz, supporting profit growth for a number of gold miners, despite the falling output.

Following the outbreak, the two largest producers, Newmont and Barrick Gold, reduced their guidance from a collective 11.6 million ounces (moz) to approximately 11moz. Production from these companies more than halved in the second quarter from a collective 2.9moz in Q2 2019 to 1.4moz in Q2 2020. Operations at Barrick’s Veladero and Porgera mines and Newmont’s Cerro Negro, Yanacocha, Eleonore, Penasquito and Musselwhite were temporarily suspended for most of April and May due to the outbreak.

Meanwhile, Anglogold Ashanti and Kinross have suspended their outlook for 2020 while Polyus Gold’s guidance remains the same. Covid-19 restrictions on AngloGold Ashanti’s South African operations led to a 63koz year-on-year drop in the output in H1 2020, while the company’s overall decline for H1 2020 was 85koz.

Other factors that have impacted the leading companies’ gold output during 2020 have been lower ore grades and sale of assets. In Newcrest’s case, output was lower due to the sale of the Gosowong mine to Indotan Halmahera in March, while Newmont sold its Red Lake project in April and Kalgoorlie projects at the beginning of 2020.

 

Related Companies

Free Whitepaper
img

Mining Mega Trends and Their Impact to your Organisation's Resilience

Numerous mega trends are impacting the mining industry, making an effective resilience program more important than ever to ensure that operations continue as intended. From ESG considerations, through to the use of advanced technologies such as Internet of Things devices, AI, and digital twins, as well as workplace safety, volatility in commodity markets, and the spectre of Covid-19 still looming. Each mega trend has a different impact that needs managing correctly, with a one-size-fits-all approach insufficient. This white paper identifies the mega trends affecting mining businesses, while exploring the opportunities, risks, and implications for operational resilience, with expert insight from Dynamiq on the best practices and approaches to improve business outcomes. Download this document to learn more.  
by Dynamiq
Enter your details here to receive your free Whitepaper.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Mining Technology