South Africa’s gold production increased by 0.7% to 92.98 tonnes or almost 3 million oz. in the second quarter of 2003, compared with the corresponding period last year.
However, on a year-over-year basis, total gold production has taken a big hit in 2003, dropping 7.1%. For the first half of this year, gold output declined by 5% to 185.3 tonnes or roughly 5.95 million oz. — a decline of 311,000 oz.
Despite the 10.8% rise in the average U.S. dollar gold price to US$347 per oz. in the second quarter 2003, compared with the year-earlier period, a 25.8% increase in the rand exchange rate meant that the rand price of gold fell 17.6% to R86,323 (US$11,808) per kg or R2,678 or 366.35 per oz. (based on an exchange rate of US$0.14 per rand).
Higher production costs, combined with lower rand revenues, has squeezed industry profits and resulted in the curtailment of mining in certain marginal mines.
— The preceding is from an information bulletin published by the Johannesburg-based South Africa Chamber of Mines.
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