“…the June quarter saw gold prices reach record levels in both US dollar and Australian dollar terms, with many gold producers taking advantage of the higher prices to increase gold production and report record profits…subsequently, prices had risen further.”
“… it is not unusual for gold production to decline a little when prices increase, although there are two opposing courses of action that companies can adopt.”
“At times of high prices, some operators deliberately reduce mill head grades by blending low grade stockpiled material with run of mine ore…In this way more gold can be mined from their deposits, thus extending the lives of their operations. Some profit is foregone up-front but the life-of-mine is longer.”
“Alternatively, since a dollar today is worth more than a dollar tomorrow, operators can choose to treat higher grade ore and realise greater early profits, even though some gold will be left unmined…”