Gold deliveries decrease over 2%, LSM overtake ASM
Gold deliveries to the country’s sole buyer and exporter, Fidelity Gold Refinery (FGR), decreased by 2.41 per cent during the first quarter of 2024 compared to the same quarter of 2023, due to increasing operational costs.
The deliveries closed the first quarter of 2024 at 6,044 kg, lower than the 6,194 kg in the first quarter of 2023, and significantly below the 7,694 kg delivered in the first quarter of 2022, a record-breaking year.
Large Scale Miners (LSM) delivered 51.995 per cent (3,143.0683 kg) of the total deliveries (6,044.8689 kg), overtaking Artisanal and Small-scale Miners, who delivered 48.004 per cent (2,901.8006 kg).
Deliveries decreased by 24 per cent compared to the record year of 2022 during the same quarter, which saw 7,694 kg delivered. The deliveries also dropped by 27 per cent in March 2024 compared to 1,816 kg from 2,403 kg in March 2022.
The LSM delivered 1,045.5575 kg in March, with the ASM delivering 770.9838 kg, totalling 1,816.5413 kg.
Zimbabwe’s gold deliveries fell by 15% in 2023 as the industry felt the impact of rising costs, power shortages, and the government’s currency policy.
Deliveries to the official gold buyer, Fidelity, ended the year at 30.1 tonnes, down from 35.6 tonnes in 2022. The 2022 haul was a record, driven by new mining projects at larger producers and better payments to small-scale miners, who account for the bulk of Zimbabwe’s gold deliveries. However, sales slowed in 2023.
Gold output has plateaued for large producers. They delivered 11.4 tonnes, showing little growth from the 11.2 tonnes they delivered in 2022, the same amount of gold they delivered in 2021. Small-scale producers delivered just 18.6 tonnes in 2023, a sharp drop of 23% from the 24.1 tonnes they sold in 2022. Deliveries from small miners are now back to where they were in 2021.