Zimbabwe’s Gold Deliveries Decline Over 2% in Q1 2024 as Operational Costs Rise

Large Scale Miners (LSM) surpassed Artisanal and Small-scale Miners (ASM) in gold deliveries, marking a shift in the industry’s dynamics.

Gold deliveries

Zimbabwe’s gold industry experienced a decrease in deliveries during the first quarter of 2024, with operational costs cited as a significant factor contributing to the decline. Large Scale Miners (LSM) surpassed Artisanal and Small-scale Miners (ASM) in gold deliveries, marking a shift in the industry’s dynamics. Despite record-breaking deliveries in 2022, the sector has faced challenges, including rising costs and power shortages, impacting overall gold output.

Decrease in Gold Deliveries

Gold deliveries to Fidelity Gold Refinery (FGR) decreased by 2.41% in the first quarter of 2024 compared to the same period in 2023. The total deliveries closed at 6,044 kg, reflecting a decline from the 6,194 kg recorded in Q1 2023 and the record-breaking 7,694 kg delivered in Q1 2022.

Large Scale Miners Overtake ASM

During Q1 2024, LSM accounted for 51.995% of total gold deliveries, surpassing ASM who contributed 48.004%. This shift marks a notable change in the industry’s landscape, highlighting the increasing role of LSM in gold production.

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Impact of Rising Costs and Power Shortages

The decline in gold deliveries can be attributed to various factors, including rising operational costs and power shortages. These challenges have affected both large-scale and small-scale miners, impacting their ability to maintain previous levels of gold output.

Plateau in Gold Output

Despite record deliveries in 2022, gold output in Zimbabwe has plateaued in recent years. Large producers delivered 11.4 tonnes in 2023, showing minimal growth from previous years. Similarly, small-scale producers saw a sharp decline in deliveries, returning to 2021 levels.

Industry Outlook

The challenges faced by Zimbabwe’s gold industry underscore the need for sustainable solutions to address rising costs and power shortages. While the sector has experienced fluctuations in output, efforts to improve efficiency and productivity remain crucial for long-term growth and stability.

The decline in gold deliveries during Q1 2024 reflects ongoing challenges within Zimbabwe’s gold industry, including rising operational costs and power shortages. As stakeholders work to address these issues, a concerted effort is needed to ensure the sector’s resilience and sustainability in the face of evolving dynamics.

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