Australia Gold Miners Are Digging Deep on Weak Australian Dollar
A weak Australian Dollar has led gold miners there to dig deep, according to quarterly production figures.
In the third quarter, the second largest gold miner after China, Australian output increased 3 percent or 2 tonnes (64,301 troy ounces) to 75 tonnes over the same period from the year prior. This despite heavy rainfall which flooded some pits and derailed operations, according to Melbourne-based Surbiton Associates.
“It was a good performance given the wet weather that took its toll on some of the gold producers,” said Sandra Close, a director of Surbiton Associates. “Overall, local producers have continued to take advantage of the higher Australian dollar gold prices that have prevailed for much of 2016.” The price of gold in AUD has been rangebound.
“So far, throughout much of 2016, gold has traded in Australian dollar terms mostly between A$1,600 and A$1,800 per ounce and averaged near A$1,700 per ounce,” Close said.
Commodity prices boosted the Australian dollar against the greenback.