World Gold Output Declined 5.2% in 2020: GlobalData

SEATTLE (Scrap Monster): UK-headquartered analytics firm GlobalData announced that overall gold output across the world is estimated to have registered 5.2% year-on-year decline in 2020 to 108 million ounces.

The global gold output was adversely affected by Covid-19 pandemic during the previous year. The drop in output was further exacerbated by halt in expansion work and contractions from mines nearing closure.

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The Covid-19 pandemic significantly impacted gold production during the initial six-month period in 2020. Newcrest’s gold output witnessed 15% decline during this period. The output by Barrick and Agnico Eagle were also down by 12.3% and 8.4% respectively. On the other hand, the acquisition of Detour Lake project led to 48% surge in output by Kirkland Gold. The Zijin output too was up by 5.9% over the previous year.

According to GlobalData forecast, the total gold production is expected to witness a jump by 5.5% to 113.9 million ounces in 2021. The output is predicted to grow at a CAGR of 2.9% to hit 124.1 million ounces by 2024. The key contributors to this growth will be Indonesia, Peru and the U.S., whose combined gold output is expected to surge from 20.1 million ounces in 2021 to 25.3 million ounces in 2024.

The Chinese gold output declined by 7% to 12.4 million ounces in 2020, whereas the South African production dropped by 10.9%. On the contrary, the resilient Australian mines accounted for 4.3% surge in output to 12 million ounces during the previous year.