Vancouver — The world’s third-largest gold-producing nation continued to see output fall from the record levels of recent years, due to the exploration and development squeeze brought on by the slump in the gold price.
Australian production fell 2.3% to 8.49 million oz. in the fiscal year ended June 30, 2001. This marks the third consecutive year of declines since production hit a high of just over 10 million oz. in 1997.
More than two-thirds of the yearly output continued to come from the gold fields of Western Australia. The Australian Gold Council cites a depletion of reserves in some mines as the driver behind the latest drop.
For the year ended Dec. 31, 2000, the Super Pit, which is owned by Normandy Mining (NDY-T) and Homestake Mining (HM-N), remained the largest operation with record annual production of 715,164 oz. gold.
Granny Smith, held by Placer Dome (PDG-T) and Australian-based Delta Gold, took second place with 412,048 oz.
Western Mining‘s (WMC-N) St. Ives operation produced 408,155 oz. to retain its position as the third-largest mine.
The paradox in the continued fall of the country’s gold output is that local dollar gold prices hit a five-year high of A$507 per oz. in the last quarter of 2000. This compares with the slide in U.S. dollar prices to a near-20-year low.
A weak Australian dollar helps the local producers. Margins remain healthy, with total cost of production for the year coming in at A$400 per oz. Average spot sales came in at more than A$500 per oz.
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