Gold production increase by over 25%
Gold deliveries to the country’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR), increased by approximately 25.3 per cent to 2,375.3259 kgs in January 2024 compared to 1,895.9155 kgs delivered in January the previous year, according to statistics from FGR.
According to the statistics, deliveries by large-scale miners increased by approximately 18.6 per cent to 1,108.8152 kgs compared to 934.8500 kgs delivered in January of 2023. Deliveries by small-scale miners in January 2024 also increased by approximately 31.8 per cent to 1,266.5107 kgs compared to 961.0655 kgs in January of 2023.
Deliveries, however, decreased by approximately 3.1 per cent compared to the previous month of December 2023, where 2,450.6266 kgs were delivered, and for small-scale miners, deliveries compared to December 2023 also decreased by 22.3 per cent with 1,630.1057 kgs delivered during the month compared to 1,266.5107 kgs in January of 2024.
However, deliveries by large small miners increased rapidly by 35.1 per cent from 820.5209 kgs delivered in December 2023 to 1,108.8152 kgs delivered in January 2024.
Gold deliveries to FGR by large-scale miners increased by 1.8 per cent in 2023 to 11.4 tonnes compared to 11.2 tonnes delivered the previous year due to major developments by most miners.
Deliveries by the artisanal and small-scale miners, however, declined by 22.8 per cent to 18.6 tonnes from 24.1 tonnes the previous year due to high rainfall patterns during the first quarter of 2023 and the government’s attempt to introduce 75/25 forex retention in November. Deliveries from small-scale producers fell from 2,642 tonnes to just 552 tonnes in November, the lowest for the year.
The country’s gold deliveries fell by 15 per cent in 2023 to 30.1 tonnes from 35.6 tonnes the previous year.
However, the small-scale miners remain the country’s biggest gold producers, accounting for 61.8 per cent of total gold deliveries to FGR.
Gold deliveries are expected to increase in 2024 due to low rainfall, the expected increase in the price of the yellow metal during the year, and FGR’s strategies to be competitive against the parallel market.