Gold production results remained flat in Q4'16

By Carrie MacDonald and Christopher Galbraith | 07 April 2017

The following research article is an excerpt of the Gold Mined Supply Report, a quarterly study on global gold production by the major gold producers, that includes expert commentary from S&P Global Market Intelligence.

As reported in S&P Global Market Intelligence's quarterly Gold Mined Supply report, gold production by the largest players remained fairly steady in the December 2016 quarter, compared with the same period in 2015. However, while overall production posted an incremental increase, changes are afoot among gold producers, which could alter the picture. Several of the largest producers are decreasing production and have been planning for falling output as part of their near- and medium-term strategies. Meanwhile, a few smaller companies have been increasing production or transitioning from explorer to producer.

The most notable gains in rising production are largely being driven by consolidation within the industry, with a handful of notable mergers and acquisitions taking place in 2015 and 2016. The merger of Kirkland Lake Gold and Newmarket Gold effectively doubled output of the merged entity, as was the case with Tahoe Resources, after its acquisition of Lake Shore Gold in first quarter 2016.

As of March 27, 64 companies had reported production of at least 50,000 oz of gold for the December 2016 quarter. Of these, 41 (64%) announced higher year-on-year production and 18 (28%) reported a year-on-year decrease. Only one, Gold Fields, showed no change. Four companies started producing in late 2015 or 2016 and therefore did not have comparable previous-year production.
The table below highlights the top 15 producers based on Q4, 2016 production.


gold-production-results-by-major-gold-producers


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