SYDNEY, Sept 1 Gold output in Australia, the
world's no. 2 producer after China, rose 5 percent in the second
quarter from a year ago as producers cut costs by increasing the
Output was 67 tonnes for the three months ended June 30, 3
tonnes up from the same period a year ago and 3.5 tonnes above
the preceding quarter, according the Gold Quarterly Review by
Melbourne-based Surbiton Associates.
"The higher gold output in the June quarter was due to
higher tonnages of ore treated plus slightly higher ore grades,"
said Surbiton Managing Director Sandra Close. "The increase in
grade was precisely what we expected would happen following the
price fall in early April."
Gold output fell 5 percent in the first quarter as wet
weather impeded production in parts of Western Australia state,
where roughly 80 percent of Australia's gold is mined.
Close said Evolution Mining's Mt Rawdon mine in
Queensland was one of the best performing, almost doubling gold
production. Output at St Barbara Mines's Gwalia
operation in Western Australia was up around 60 percent.
Newcrest Mining's Australian operations also
performed well, with output at Telfer in Western Australia up 30
percent and the combined output of its Cadia operations in New
South Wales up 20 percent.
The Australian dollar gold price averaged A$1,570 per ounce
in the March quarter 2013, but fell to average A$1,425 per ounce
for the June quarter.
"Now the price has recovered to around the A$1,570 per ounce
mark again," Close said. "If you factor in higher grades plus
other cost savings measures that the industry has recently
implemented, profit margins should improve."