ASM Gold Deliveries Increase by Over 37%
Gold deliveries to the country’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR), by Artisanal and Small-scale Miners (ASM) increased by over 37 per cent, statistics from FGR show.
by Rudairo Mapuranga
ASM gold deliveries increased by approximately 37.8% to 1,678.4475 kgs in May 2024 from 1,218.2045 kgs in April. However, large-scale gold producers, whose deliveries have been impressive throughout the year, saw their deliveries decline by approximately 36.7% to 1,055.6854 kgs in May from 1,668.7922 kgs in April.
ASM accounted for approximately 61.4% of the total gold deliveries, returning to their annual average delivery rate from the decline experienced in February and March when large-scale producers dominated.
Total gold deliveries increased by approximately 14.5% to 2,734.1329 kgs in May from 2,386.9067 kgs in April.
Gold deliveries to FGR surged by approximately 31.4% in April 2024 compared to the previous month, driven by increased contributions from ASM.
April’s gold deliveries reached 2,386.9067 kgs, marking a significant increase from the 1,816.5413 kgs delivered in March 2024.
ASM deliveries soared by approximately 58% to 1,218.2045 kgs in April, compared to 770.9838 kgs in March, while deliveries by large-scale gold miners also rose by about 11.78% to 1,168.7022 kgs from 1,045.5575 kgs in March. For the first time in two months, ASM deliveries surpassed those of large-scale miners, accounting for approximately 51% of the total deliveries in April.
The first quarter of 2024 closed with total deliveries of 6,044 kgs, slightly lower than the 6,194 kgs recorded in the first quarter of 2023 and significantly below the 7,694 kgs delivered in the first quarter of 2022, which was a record-breaking year. Large-scale miners delivered 51.995% (3,143.0683 kgs) of the total deliveries in the first quarter of 2024, surpassing ASM, who delivered 48.004% (2,901.8006 kgs). Historically, ASM has been the country’s primary gold deliverer to FGR, accounting for over 61% of total gold deliveries.
Compared to the record year of 2022, deliveries during the same quarter decreased by 24% to 7,694 kgs. Additionally, deliveries in March 2024 dropped by 27% compared to March 2022, from 2,403 kgs to 1,816 kgs.
Zimbabwe’s gold deliveries declined by 15% in 2023 due to rising costs, power shortages, and government currency policies. Deliveries to Fidelity totalled 30.1 tonnes in 2023, down from 35.6 tonnes in 2022, which was a record year fueled by new mining projects and improved payments to small-scale miners, who make up the majority of Zimbabwe’s gold deliveries. However, sales slowed in 2023.
Gold output remained stagnant for large producers at 11.4 tonnes in 2023, showing little growth from the 11.2 tonnes delivered in 2022 and 2021. Small-scale producers experienced a sharp drop, delivering just 18.6 tonnes in 2023, a 23% decrease from the 24.1 tonnes sold in 2022, bringing deliveries back to 2021 levels.