Gold Deliveries Increase to 7,739.42kg in Q2
Gold deliveries to the country’s sole operating gold buyer and exporter, Fidelity Gold Refinery (FGR), increased by over 28 per cent in the second quarter of 2024, new data from FGR shows.
By Rudairo Mapuranga
Overall gold deliveries surged to 7,739.42kg for the second quarter of 2024, marking a significant 28.033% increase from the first quarter’s 6,044.8689 kg.
Small-scale miners led this surge, delivering 4,515.1660 kg in the second quarter, representing a substantial 55.5988% increase from their first-quarter deliveries of 2,901.8006 kg. This notable rise underscores the critical role of artisanal and small-scale miners in the country’s gold production.
Large-scale miners also contributed to the overall increase, albeit to a lesser extent. Their deliveries rose to 3,224.2581 kg in the second quarter, up by 2.58314% from the 3,143.0683 kg delivered in the first quarter.
However, there was a 4.23346% decrease in overall monthly production from May to June 2024. The total gold delivered in June was 2,618.3844 kg, down from 2,734.1329 kg in May.
The second quarter of 2024 has been marked by a notable increase in gold deliveries, driven largely by the impressive performance of small-scale miners. Despite the slight month-to-month decline in overall production from May to June, the sector remains on an upward trajectory, contributing significantly to the nation’s gold output and economic stability.
Gold deliveries to FGR by the ASM increased by over 37 per cent to 1,678.4475 kg in May 2024 from 1,218.2045 kg 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 kg in May from 1,668.7922 kg in April.
ASM accounted for approximately 61.4 per cent 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 kg in May from 2,386.9067 kg in April.
Gold deliveries to FGR surged by approximately 31.4 per cent in April 2024 compared to the previous month, driven by increased contributions from ASM.
April’s gold deliveries reached 2,386.9067 kg, marking a significant increase from the 1,816.5413 kg delivered in March 2024.
ASM deliveries soared by approximately 58 per cent to 1,218.2045 kg in April, compared to 770.9838 kg in March, while deliveries by large-scale gold miners also rose by about 11.78 per cent to 1,168.7022 kg from 1,045.5575 kg in March. For the first time in two months, ASM deliveries surpassed those of large-scale miners, accounting for approximately 51 per cent of the total deliveries in April.
The first quarter of 2024 closed with total deliveries of 6,044 kg, slightly lower than the 6,194 kg recorded in the first quarter of 2023 and significantly below the 7,694 kg delivered in the first quarter of 2022, which was a record-breaking year. Large-scale miners delivered 51.995 per cent (3,143.0683 kg) of the total deliveries in the first quarter of 2024, surpassing ASM, who delivered 48.004 per cent (2,901.8006 kg). Historically, ASM has been the country’s primary gold deliverer to FGR, accounting for over 61 per cent of total gold deliveries.
Compared to the record year of 2022, deliveries during the same quarter decreased by 24 per cent to 7,694 kg. Additionally, deliveries in March 2024 dropped by 27 per cent compared to March 2022, from 2,403 kg to 1,816 kg.
Zimbabwe’s gold deliveries declined by 15 per cent 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 per cent decrease from the 24.1 tonnes sold in 2022, bringing deliveries back to 2021 levels.