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The West Australian: Big fall coming for gold as miners post stellar results – ECR Minerals #ECR

Stuart McKinnonThe West Australian

Australia’s gold production is tipped to slump to a “generational low” by 2022 despite it being on track for a 26-year high of 10.2 million ounces next year.

S&P Global Market Intelligence attributed the rapidly slowing production to short mine lives of recent start-ups and other significant mines approaching the end of their lives.

“We are forecasting a 9 per cent fall year-over-year in 2020 and we expect the country’s production to reach a generational low of 6.8Moz by 2022, a 33 per cent drop within only three years,” S&P analyst Chris Galbraith said.

“Australia’s projected attrition stems from the short mine lives of the recent start-ups and some significant mines approaching the end of their life, such as Agnew/Lawlers and St Ives.

“Many smaller mines are also expected to start winding down, such as Cracow, Mungari, South Kalgoorlie and Paulsens.”

The prediction comes as a trio of Aussie gold miners yesterday reported stellar full-year results from their respective operations.

Saracen Mineral Holdings posted a 100 per cent surge in underlying profit to $67.3 million on the back of a 16 per cent rise in production to a record 316,453oz.

The Raleigh Finlayson-led miner said it would more than triple its exploration budget from $17 million last year to $60 million over the next five years.

St Barbara announced underlying profit of $202 million, up 26 per cent on the previous year, after producing a record 403,089oz in the period at record low all-in sustaining costs of $891/oz.

The Bob Vassie-headed company declared a final dividend of 8¢ a share fully franked, up from 6¢ last year.

Silver Lake Resources posted a net profit of $16.2 million, up from $2 million the previous year. The result was achieved on the back of a 16 per cent increase in gold production to 157,936oz and a 5 per cent reduction in all-in sustaining costs to $1289/oz.

Newcrest Mining’s underlying profit rose 16 per cent to $US459 million. Australia’s biggest gold miner declared a final fully franked dividend of US11¢, up from a partially franked US7.5¢ the previous year.

Find the original article by The West Australian here

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