Gold Output Forecast to Hit Fresh Peak in 2019

SEATTLE (Scrap Monster): The world gold production is expected to record further growth by 2% in 2019 to total 109.6 million ounces (Moz). This will be the eleventh consecutive year of growth in world gold production. The latest report by S&P Global Market Intelligence also notes that the growth in 2019 will be the strongest in past three years. The output had recorded marginal rise by just less than 1% during the previous year.

According to the report, more than 50% of the yearly jump in output is likely to come from those mines which have either been commissioned recently or those that are expected to come on stream during the course of the year. The mines that are likely to make major contributions to increased gold production in 2019 include Gruyere JV in Western Australia, Meliadine in Nunavut, Sigma-Lamaque in Quebec, Obuasi in Ghana and Aurizona in Brazil.

Canada is likely to emerge as the fourth largest gold producing country, surpassing the U.S. in 2019. Incidentally, Canada will be the only major gold producer to witness significant increase in gold output in the next five years. The report foresees gradual increase in Russian gold production. The country’s gold production is expected to equal that of Australia by 2020 and may even surpass it in the years after that.

In 2020, global gold output is likely to increase marginally by nearly 0.4 Moz over the prior year. Thereafter, the production is expected to fluctuate, dropping in 2021 and increasing again in 2022. The report forecasts drop in production by over 3 Moz and up to 5 Moz in 2023 and 2024 respectively.