Aus­tralia’s gold out­put climbs to 12-year high–Sur­biton

Business Mirror - - AGRICULTURE/COMMODITIES - Bloomberg News

GOLD out­put in Aus­tralia, the world’s se­cond- big­gest pro­ducer, reached the high­est in 12 years in 2015, as ris­ing prices see min­ers re­vive moth­balled op­er­a­tions.

Full-year pro­duc­tion was 285 met­ric tons last year, al­most two tons more than in 2014 and the high­est an­nual to­tal since 2003, min­ing con­sul­tancy Sur­biton As­so­ciates Ltd. said on Sun­day in an e-mailed state­ment.

Bul­lion is the best-per­form­ing com­mod­ity this year, ris­ing 15 per­cent, as haven de­mand lures in­vestors and ex­pec­ta­tions mount that the Fed­eral Re­serve won’t raise US in­ter­est rates fur­ther in 2016. Pro­duc­ers in coun­tries, in­clud­ing Aus­tralia, are also ben­e­fit­ing from weaker lo­cal cur­ren­cies that trim costs and help to boost mar­gins. Gold in Aus­tralian dol­lar terms touched A$1,778.65 an ounce on Fe­bru­ary 11, the high­est since Septem­ber 22, 2011. Spot bul­lion closed on Fri­day at $1,223.46 an ounce, and is headed for a se­cond suc­ces­sive monthly ad­vance.

“If you fac­tor higher prices and tighter cost con­tain­ment into the over­all equa­tion, mar­gins have in­creased,” Sur­biton Di­rec­tor San­dra Close said in the state­ment. “Much of the lo­cal gold sec­tor is trav­el­ing quite well for the mo­ment.” Sara­cen Min­eral Hold­ings this month poured its first gold from the re­opened Thun­der­box mine in Western Aus­tralia, while Me­tals X Ltd. re­sumed pro­duc­tion at the Cen­tral Murchi­son gold pro­ject in Oc­to­ber.

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