- October Gold Deliveries Surge: 4,168 kg in October, a 22% increase
- Year-to-Date Performance: 28.2 tonnes slightly falling short of target
- Impact of Market Conditions: Attributed to soaring gold prices and a delayed rainy season
Harare- Zimbabwe's October gold deliveries surged 22% from September and 12% above October 2023, reaching 4,168 kgs. Small-scale miners produced 3,143 kgs, up from 2,404 kgs in September, while large-scale miners delivered 1,024 kgs, up from 1,009 kgs.
Year-to-date gold deliveries now stand at 28.2 tonnes, slightly short of the revised target of 35 tonnes for the 2024 calendar year.
The latest gold output increase was likely driven by two key factors: rallying gold prices, which have exceeded $2,700 per ounce, a multi-decade high, and the unusually late onset of rainfall.
The delayed start to the rainy season proved beneficial for gold mining activities, particularly for small-scale miners. Typically, heavy rains disrupt mining operations, flooding pits, and making it difficult for artisanal miners to access deposits.
The dry spell allowed small-scale miners to extend their production period, exploiting deposits that would otherwise be inaccessible during the wet season. Large-scale miners also benefited from the delayed rains, as they were able to maintain production levels without the usual disruptions leading to a record output.
Zimbabwe has also begun tracking gold from mine to market on 30 September 2024, which might have enhanced the marketing of this valuable commodity and helped avoid side marketing, resulting in increased gold output in October.
To achieve the revised target, Zimbabwe needs to produce 6.8 tonnes in the remaining two months (November and December), which translates to an average of 3,400 kilograms per month. However, it is doubtful if this will be achievable as more rains are expected this month in to December.
The secret to achieving this target lies in the prolonged dry spell experienced earlier, which allowed for increased production; its absence will likely hinder mining activities going forward.
Equity Axis News
