GOLD MINERS ROUNDUP
APRIL 2017 • E&MJ 41 www.e-mj.com
tal gold output. However, on average those
seven processed roughly the same amount
of ore yoy, while total ore mined fell 2%.
Of the remaining three, which stand
out due simply to positive yoy total gold
output, one processed 15% more ore yoy
to attain a 6% yoy increase in gold out-
put; one processed 11% more ore yoy to
attain a 7% increase in output yoy. Again,
of the top 10 producers, only Polyus re-
ported a higher yoy total output than yoy
total ore processed.
The trend extends to at least what
could be considered the next five top pro-
ducers. For the top 15, on average there
was a 1% decrease in gold output yoy,
however, there was a 3% increase yoy in
total ore mined and a 4% increase yoy in
total ore processed. Of the top 15 produc-
ers, the only other one with results similar
to Polyus is Acacia. It processed 6% more
ore yoy, but raised output by 13%. At Ya-
mana Gold, yoy total ore processed fell
by 1%, while output did not change (0%)
yoy. If you remove Polyus and Acacia from
the top 15, average total gold output for
the remaining 13 fell by 2% yoy while to-
tal ore mined rose by 1% yoy, and total
ore processed rose by 3% yoy.
Obviously, some crucial questions
arise. Have 13 out of the world's top 15
gold producers hit the point of diminish-
ing returns at their existing mines? Some
of those mines will be discussed momen-
tarily, but first let's look at some of the
other metrics for context.
Prices Up, Costs Down
Falling output occurred amid rising prices
and lowered costs. The top 15 miners saw
realized prices rise on average 8% yoy. The
range runs from Freeport-McMoRan's aver-
age selling price (ASP) increase of 10% yoy
to Polyus' increase of 5%. The ASP for the
top 10 was $1,251. Eliminate Polyus and
the ASP for the remaining nine is $1,247.
All-in sustaining costs (AISC) for the
top five fell 2% on average. Pan out to the
top 10 and AISC falls an average of 1%.
Pan out further, and the average AISC yoy
for the top 15 is unchanged (0%). The
range runs from Acacia's 14% yoy increase
to Barrick's decrease of 12%, with the
median at 0%. Polyus reported the lowest
AISC at $572 per oz, a decline of 4% yoy.