- Zimbabwe has lost $270 million in year-to-date gold earnings due to indirect exports and reliance on intermediaries
- With 28.2 tonnes of gold produced up to October, Zimbabwe's year-to-date gold revenues totalled $1.87 billion
- Falling short of the potential $2.3 billion, based on the average gold price of $2,364 per ounce
Harare- Zimbabwe's gold sector is struggling to reach its full potential, with the country experiencing a loss of US$270 million in gold earnings year-to-date (January to October).
This significant shortfall reflects the urgent need for Zimbabwe to reevaluate its export strategy and consider alternative approaches.
Data from Fidelity indicates that Zimbabwe's gold revenues from January to October have totaled $1.87 billion, surpassing the entire year's revenue of $1.80 billion for 2023.
However, actual earnings fell short of a potential $2.3 billion, based on an average gold price of US$2,364 per ounce during the period.
With 28.2 tonnes of gold produced up to October, the country was expected to earn $2.14 billion.
Zimbabwe does not sell directly to the London Bullion Market (LBMA).
Instead, it relies on intermediaries to facilitate these transactions, which leads to reduced earnings and increased costs.
This situation has resulted in a 12.6% loss on each tonne exported.
This is not the first instance of such losses for Zimbabwe.
In FY23, the country earned $1.8 billion, falling short of a potential $2 billion based on spot prices, indicating a loss of $200 million.
Zimbabwe was suspended from the LBMA in 2008 after its gold production plummeted to 3 tonnes, below the minimum annual requirement of 10 tonnes needed for membership.
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