WGC: Gold Mine Production Hit an All-Time First-Quarter High

SEATTLE (Scrap Monster): The Gold Demand Trends Q1 2022 Report published by the World Gold Council (WGC) noted suggested record gold mine production and notable jump in recycling during the initial quarter in 2022.

The total gold supply stood at 1,156.6 tonnes, higher by 4% year-on-year, compared with 1,108.8 tonnes in Q1 2021. This was driven by strong mine production of 856.5 tonnes, which hit all-time first quarter high during the quarter. The mine production was up by 3% from 834.6 tonnes in the corresponding quarter a year before.

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The surge in mine production was mainly on account of ongoing ramp-up of brownfield expansions, higher grades at some existing mines and a return to production by mines in Chinese Shandong province, whose operations had been halted due to safety investigations. Asia and Oceania regions reported tremendous surge in output, driven by increased production by China and Australia.

The recycled gold supply witnessed 15% surge, in response to higher gold prices. The supply of 310.5 tonnes was the highest first quarter level of recycled gold supply since 2016. The supply had totalled only 269.3 tonnes in Q1 2021.

The trends evident in the first quarter suggest that gold mine production is likely to remain strong in 2022 in full year 2022, noted WGC.