By analyst
The price of gold broke a three-year losing streak in 2016, but the focus of the world’s top gold mining companies in terms of output continued to be on cost-cutting and divestment (with varying degrees of success) which led to a decline in production for most of the sector’s majors.
Preliminary gold production by the top 10 publicly-traded, non state-owned gold mining companies compiled by MINING.com sister company IntelligenceMine totalled 29.46 Moz in 2016. That represents a 4% decrease compared to 2015, but still makes up a significant proportion of overall global production of some 100 million ounces a year. Fewer discoveries, lower grades and difficult economics and regulatory environment in many countries are expected to result in fall in global production in 2017 for the first time in more than a decade.
Most of the companies in the top rankings achieved savings per ounce of gold mine, but all-in costs (AISC – a measure that captures direct operating costs, corporate and exploration expenditure and capital investment required to sustain the business) have stayed stubbornly high for many of the top producers as the positive effects of lower energy costs and currency weakness against the dollar diminishes.
The top 10 list stayed the same compared to 2015, but there are a few companies knocking on the door notably Canada’s Yamana Gold which produced just short of 1.3 Moz of gold in 2016 and is closely followed by Africa-focused Randgold Resources.
1. Barrick Gold
Cortez – Barrick Gold
With 5.52 Moz of gold produced in 2016, Canada’s Barrick Gold Corp. (TSE:ABX) holds first place in global ranking, well ahead of its competitors.
Compared to 2015’s 6.12 Moz, Barrick’s gold output dropped by 9%, mainly because of the Toronto-based company’s asset sales including the Bald and Round Mountain mines in January 2016 to number 5 on the list Kinross Gold. Barrick also reduced its equity interests in the Porgera mine in Papua New Guinea in the third quarter 2015.
Barrick’s focus on cost-cutting and restructuring of its portfolio paid off in a big way – the company managed to reduce its all-in sustaining costs (AISC) by 12%, from $831 in 2015 to $730 in 2016.
2. Newmont Mining
Newmont’s Carlin mine in Nevada. Image: Newmont Mining
US-based Newmont Mining Corporation (NYSE:NEM) stays at number two, but closed the gap substantially producing 4.9 Moz of the precious metal in 2016, 6% more than in 2015 (4.6 Moz). T
his growth was supported by new production from Merian and Long Canyon; a full year of production at Cripple Creek & Victor and Carlin’s Turf Vent Shaft; and productivity improvements at Kalgoorlie. These ounces offset the impacs of declining production at Yanacocha and geotechnical issues at Carlin.
The Denver-based company reduced its all-in sustaining costs (AISC) by 2%, from $933 in 2015 to $912 in 2016.
3. AngloGold Ashanti
AngloGold Ashanti’s Moab Khotsong mine 180km from Johannesburg, South Africa. Image: AngloGold Ashanti
AngloGold Ashanti Limited (NYSE:AU), reported 8% decrease in annual production, from 3.95 Moz of gold in 2015 to 3.63 Moz in 2016.
Production was impacted by safety-related stoppages at its …read more
Source:: Infomine
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