Tuesday, July 22, 2014

Gold Yields Fall To The Lowest Levels Ever


Another brilliant report from SRSrocco

Takeaway points:

The top five gold miners’ average yield declined another 5% in 2013. Average yield fell from 1.26 grams per ton (g/t) in 2012 to 1.20 g/t in 2013.

Newmont Mining:

2005 Waste Rock/Production Ratio = 52 metric tons/ gold oz

2013 Waste Rock/Production Ratio = 113 metric tons/ gold oz

2005 Newmont consumed 19 gallons of diesel in its operations to produce one ounce of gold. 

By 2012, this increased to a staggering 31 gallons per ounce…. a 63% increase in seven years.

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Link: http://srsroccoreport.com/top-gold-miners-yields-fall-to-the-lowest-level-ever/top-gold-miners-yields-fall-to-the-lowest-level-ever/

With the results for 2013 finally in, the top gold miners average yield fell to the lowest level ever.  This is a surprising development considering that the average price of gold dropped to a low of $1,411 in 2013.  Normally when the price of gold falls, gold miners switch to higher grades to remain profitable.

However, the top five gold miners’ average yield declined another 5% in 2013.  If we look at the chart below, the top five gold miners (Barrick, Newmont, AngloGold, Goldfields* & Goldcorp) average yield fell from 1.26 grams per ton (g/t) in 2012 to 1.20 g/t in 2013.

(*Note:  GoldFields spun-off three mines into a new company called Sibanye Gold in 2012.  The data below includes both companies listed as GoldFields.)

Top 5 Gold Production & Average Yield 2005-2013

Furthermore, the average gold yield for the group declined from 1.68 g/t in 2005 to 1.20 g/t in 2013.  Which means these miners lost 0.48 g/t in just eight years… a 29% decline.  That might not sound like a lot, but if we do the math… it’s a substantial loss.

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