Gold deliveries increase 31%+, ASM dominate submissions
Gold deliveries to the country’s sole gold buyer, Fidelity Gold Refinery (FGR), surged by approximately 31.4 percent in April 2024 compared to the previous month, driven by increased contributions from artisanal and small-scale miners (ASM), according to figures obtained by Mining Zimbabwe.
April’s gold deliveries reached 2,386.9067 kilograms, marking a significant increase from the 1,816.5413 kilograms delivered in March 2024.
ASM deliveries soared by approximately 58 percent to 1,218.2045 kilograms in April, compared to 770.9838 kilograms in March, while deliveries by large-scale gold miners also rose by about 11.78 percent to 1,168.7022 kilograms from 1,045.5575 kilograms in March. For the first time in two months, ASM deliveries surpassed those of large-scale miners, accounting for approximately 51 percent of the total deliveries in April.
The first quarter of 2024 closed with total deliveries of 6,044 kilograms, slightly lower than the 6,194 kilograms recorded in the first quarter of 2023 and significantly below the 7,694 kilograms delivered in the first quarter of 2022, which was a record-breaking year. Large-scale miners delivered 51.995 percent (3,143.0683 kilograms) of the total deliveries in the first quarter of 2024, surpassing ASM who delivered 48.004 percent (2,901.8006 kilograms). Historically, ASM has been the country’s primary gold deliverer to FGR, accounting for over 61 percent of total gold deliveries.
Comparing to the record year of 2022, deliveries during the same quarter decreased by 24 percent to 7,694 kilograms. Additionally, deliveries in March 2024 dropped by 27 percent compared to March 2022, from 2,403 kilograms to 1,816 kilograms.
Zimbabwe’s gold deliveries declined by 15 percent in 2023 due to rising costs, power shortages, and government currency policies. Deliveries to Fidelity totaled 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 percent decrease from the 24.1 tonnes sold in 2022, bringing deliveries back to 2021 levels.