The following are extracts from Media Releases on the Australian Gold Industry.
"The Australian gold price reached an all time closing high of A$939 per ounce on 26 November and was even higher during the day... This occurred due to a combination of a higher US dollar gold price and a lower Australian dollar exchange rate."
"... it will be very interesting to see how the world's largest gold producing countries rank at the end of this year... It looks like China could overtake South Africa to become the world's number one producer for 2007... Australia will probably take third place, followed by the United States."
"Gold production for the 2006/2007 year was little changed on the previous corresponding period at 251 tonnes."
"There are a number of recycled operations which are now coming back into production and building up to full capacity... It is encouraging to see the list of producers growing..."
"... from late July to mid August, the US dollar gold price fell by around US$20 per ounce... the Australian dollar exchange rate varied by more than 10 US cents... the Australian dollar gold price rose by around A$80 per ounce."
"The total amount of gold held by the world's four major gold exchange traded funds (ETFs) rose to record levels last week... This suggests investors' interest in gold remains strong..."
"... ETFs offer a convenient and direct avenue of investment..."
"Overall, the industry treated fewer tonnes of ore at lower gold grades in the latest quarter compared with the December quarter."
"... over the past two years, the Australian dollar gold price had risen 50%..."
"Higher gold prices can lead to lower gold production as mine operators reduce the grade of ore fed into their treatment plants, ... This allows them to extend the lives of their mines and extract as much of the gold in the ground as possible."
"Australia has slipped from second to third place in the world ranking of gold producing countries..."
"... the emerging force in gold production is China and the next few years may well see quite a shakeup in the rankings."
"The higher production this quarter was due to ten new or recycled operations starting up..."
"One of the outcomes of the higher Australian dollar gold price is that existing gold producers are taking the opportunity to treat lower grade ore."
"It takes about 16 tonnes of ore to produce just once ounce of gold which is about the same size as a small square of chocolate."
"Australia's gold production in the 2005/06 year (is) the lowest production for any financial year in the last decade..."
"While gold accounted for around 60% of mineral exploration expenditure in the late 1990s, this figure has now fallen to around 30%."
"It's ironic really, that ever since peek gold production in the late 1990s there has been less commitment to gold production in Australia, yet that is what is absolutely essential for the long term sustainability of the local industry..."
"Over a dozen new gold operations are joining the ranks of Australia's gold producers as the junior miners respond to higher gold prices..."
"A problem facing some of the small producers in the Kalgoorlie area is the lack of treatment facilities where parcels of ore can be processed on a toll basis."
"Australian gold production declined sharply in the March 2006 quarter following heavy rain from six tropical cyclones and a tropical low."
"The Western Australian gold fields have been particularly hard hit this season."
"... wet weather causes operational problems (and) companies are often forced to keep their plants running by treating ore from low grade stockpiles."
"... cannot predict the future and therefore cannot predict what gold prices are going to do (but) a number of factors remain that could continue to push prices higher."
"Gold prices broke through US$700 per ounce in international markets last night pushing the Australian dollar gold price above A$900 per ounce, its highest level ever."
"The Australian dollar gold price has risen A$100 per ounce in the last six weeks and more than A$200 per ounce... since the A$700 per ounce mark... on 30 December 2005."
"The Australian dollar gold price broke through $800 per ounce in overnight trading, as a combination of a rising US dollar pushed the price... to an all time record."
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"Gold production totaled 263 tonnes last year (2005)..."
"More than a dozen additional gold mining operations are expected to commence production this year. This includes the long awaited Cowal mine in NSW, Ballarat East and Bendigo in Victoria and several smaller operations, mostly in Western Australia."
"The large number of projects under development is the result of discoveries and investment decisions made some time ago. Higher prices do not mean we can afford to neglect exploration."
The decision to adopt the equivilent of the International Financial Reporting Standards was criticised regarding hedging. "... the new standards were too inflexible and needlessly complicated the poorly understood subject of hedging and could deter investment in the industry."
"The Australian dollar gold price is nearing its all time record of A$776 per ounce... the record has stood for 26 years."
"Gold prices have risen recently due to a number of factors. These include increased demand for gold from India, China and other developing countries, the possibility that some Central Banks will add to their gold reserves and concerns about Iran and its nuclear ambitions, the continuing rise of the US Government and trade deficits and rising inflation. At the same time, gold production in South Africa and other countries has fallen or remained stagnant."
"Australian gold production declined once again in the September quarter... despite the lower output, the current high Australian dollar gold price is offsetting higher costs of production."
"... a number of new operations (are) slated for startup in the next few quarters..."
"What is most encouraging is the number of excellent drilling results being reported. Two Greenfields discoveries at Dalwallinu and Tropicana are particularly significant, as they each extend the Western Australian gold province into virgin territory."
"Australian gold output for the full 2004/05 financial year (is) 265 tonnes."
"The June quarter was the worst of the four quarters in the financial year... A majority of the larger and medium sized established operations had lower gold output this quarter..."
"Many producers are reporting higher cash costs due to increases in fuel, consumables and labour charges."
"Australia's status as the world's No. 2 is under threat... Australia displaced the United States as the second largest gold producing country after South Africa in 2003 and retained that ranking in 2004."
"We are now seeing the effects of years of inadequate investment in exploration in Australia... the Federal Government should be re-examining its taxation policies to make exploration for gold and other minerals more attractive."
"The government does so little for an industry which provides such a large proportion of our exports..."
"... providing exploration incentives alone would give a considerable stimulus to the industry... "
"The Australian gold mining industry certainly does not face export bottlenecks... you could fly Australia's annual gold production out of the country in just three Boeing 747s (but) that would be unlikely with such a valuable cargo..."
"The amount of gold produced in 2004 was the lowest since 1995..."
"The mining industry is the best hope of redressing Australia's appalling balance of trade..."
"To put it simply and say it yet again, Australia is just not spending enough on exploration... we are living on borrowed time - it's five years since the last significant greenfields gold discovery was made in Australia"
"The Super Pit had a record result... Its production was just over a quarter of a million ounces in three months, a first for a single Australian goldmine."
"Australia should retain its position as the world's second largest gold producer..."
"Recent rises in the US gold price have largely been offset by the increasing value of the Australian dollar." "... one positive effect... on the local market was increased investor interest in capital raisings and new gold floats."
"Exploration spending needs a real boost... It has halved from around $740 million in 1997 to $373 million in 2003. Every year, this industry must find about 280 tonnes of gold just to stand still."
"The last two quarters have suffered the double whammy of fewer tonnes treated and lower ore grades... Despite this, the downturn should only be temporary and the overall production trend is still upwards in the medium term."
"Many producers have had to treat lower grade stockpiles in order to keep their processing plants running..."
"Production was expected to be down due to the extraordinarily wet weather... It ended up being the worst quarter in about ten years."
"Despite the poor start to the year... the downturn should only be temporary and overall the upward trend in gold production remains intact."
"In 2003 Australia displaced the United States as the world's second largest gold producer..."
"At least another 30 tonnes or 1 million ounces of annual capacity is scheduled to come on stream by end 2004... most of the extra ounces are from redevelopment of known deposits... exploration for new deposits must remain a top priority."
"Australia's gold production is increasing... the upward trend is now firmly established."
"...the higher US dollar gold price and the weaker US dollar had had the positive effect of focusing investors' interest back on gold... the smaller Australian-based mining and exploration groups are finding it easier to raise capital..."
"However... the current January to March quarter could see a temporary fall in Australian gold output."
"Australia has a good chance of displacing the us as the world's second largest gold producer within the next few years..."
"The reappearance of several revamped projects from 2004 onwards is also expected to lift Australian gold output in the near to medium term..."
"But I repeat, we can't afford to be complacent. Ongoing exploration is essential for the long term viability of an industry which provides Australia with some A$5 billion worth of exports annually."
After several years of declining output, the 2002/03 result is significant, as it is the first rise in fiscal year gold production for five years."
"Much of the increase can be attributed to the ramp-up of existing operations plus a few new operations commencing production. Both the overseas owners that now dominate the industry and the locals are driving their operations harder."
"...We still can't afford to be complacent about the importance of ongoing exploration. Every year, 9 million ounces of gold needs to be found in order to replace gold mined and maintain reserves."
"...the average Australian dollar gold price for the March 2003 quarter was A$593 per ounce, the highest average quarterly price since the March quarter in 1988."
"Although market commentators remain focused on the movements in the US dollar price, a greater effect at the local level has been the strengthening Australian dollar. The rise of the Australian dollar from 56 to 65 US cents since the beginning of the year was clearly a concern for gold producers and other exporters."
"....Such price volatility may lead some producers to reconsider their strategy with regard to both price and currency hedging."
"This is the fifth successive year when production has fallen. However, the decline in production.... has been offset by the rise in Australian gold prices."
"....the downward trend (in production) is levelling off..."
"...several new projects commenc(ed) operations late in the year."
"... gold rose to a high of A$645 per ounce in early February, 2003...."
"Placer Dome Inc's successful takeover of AurionGold Ltd has lifted overseas control of the Australian gold industry to 70%."
"...the increase in overseas ownership has coincided with a period of rising Australian dollar gold prices."
"Only one of Australia's top ten gold operations, Cadia Hill, owned by Newcrest Mining Ltd, remains in local hands."
"Gold production has continued to fall from its peak of 318 tonnes in 1997/98. The drop in exploration expenditure over the last five years has been a key factor in this downward trend."
"Some of our biggest, long-life mines such as Boddington, Kidston and Mt Leyshon have closed this year."
"This is the lowest quarterly output since September 1995. The continued drop in production is no surprise, it's the direct outcome of lower exploration expenditure."
"While production has been dropping, the Australian dollar gold price has been going up due both to the weak Australian dollar and the rise in the US dollar gold price. The higher prices have renewed interest in gold both in Australia and overseas."
"Takeovers in the Australian gold industry in the past year have changed ownership considerably, with around 60% of gold production currently controlled from overseas"
"Last year marked the fourth successive drop in annual output."
"The higher A$ prices and relatively stable cash costs throughout 2001 have helped maintain or even increase average cash margins for local producers."
"Many of our best, long-life producers are now in overseas hands, along with large areas of prospective exploration ground. Aussie investors who want a direct slice of the action are now having to back the remaining local producers and the small explorers."
"The big overseas gold producers are far more interested in our gold mines than local investors. Clearly they appreciate their value and their long term potential."
"Surbiton Associates estimates that overseas control of Australia's gold production rose from around 20% five years ago to around 30% a year ago. With the changes this year, including a Normandy takeover, overseas control will double to around 60%."
"The slow decline in annual Australian gold output is expected to accelerate over the next year."
"The real concern for the long term is the lack of new finds and the greater reliance on deeper mining of known resources. Increased exploration for new deposits needs to be encouraged now."
"It is vital that it (exploration) be encouraged as an investment for the future. However, according to the Australian Bureau of Statistics figures, gold exploration expenditure has halved in the last three years."
"Tax deductibility is available for investment in a raft of highly specialised primary production schemes. However, compared with the gold industry, even the potential export earnings of many of these products is miniscule."
"Olives, nuts and truffles are great for cocktail parties but it is exports like gold that really make a difference to Australia's balance of payments. We simply can't afford to loose the export dollars that gold and other minerals provide."
"Australian dollar gold prices hit a five-year high in the December quarter of 2000."
"The constant focus on the US dollar gold price is quite misleading when you look at the local scene. The decline in the value of the Australian dollar has proved a boon for many Australian gold producers."
"Production is holding up well given the lower levels of gold exploration in recent years. But this may not continue indefinitely."
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