Impressive Surge: Gold Production Skyrockets with Over 25 percent Surge in Deliveries


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DT Correspondent

Gold production in the country has experienced a significant boost, with deliveries to Fidelity Gold Refinery (FGR) soaring by more than 25 percent in January 2024 compared to the previous year, according to statistics released by FGR.

The data reveals that gold deliveries to FGR reached an impressive 2,375.3259 kilograms in January 2024, marking a substantial increase of 25.3 percent compared to the 1,895.9155 kilograms delivered in January of the previous year.

Specifically, deliveries by large-scale miners observed a notable rise of approximately 18.6 percent, reaching 1,108.8152 kilograms compared to 934.8500 kilograms delivered in January 2023.

Similarly, small-scale miners witnessed a remarkable surge, with deliveries in January 2024 increasing by approximately 31.8 percent to 1,266.5107 kilograms compared to 961.0655 kilograms in January 2023.

However, while the overall trend showcases a significant increase in gold deliveries, there was a slight decline of approximately 3.1 percent compared to December 2023, where 2,450.6266 kilograms were delivered.

Additionally, deliveries by small-scale miners experienced a decrease of 22.3 percent in January 2024, with 1,630.1057 kilograms delivered, compared to 1,266.5107 kilograms in the same month of the previous year.

On the other hand, deliveries by small-scale miners witnessed a rapid growth of 35.1 percent, surging from 820.5209 kilograms delivered in December 2023 to 1,108.8152 kilograms delivered in January 2024.

In 2023, gold deliveries to FGR by large-scale miners increased by 1.8 percent to 11.4 tonnes, attributable to significant developments made by most miners.

However, deliveries by artisanal and small-scale miners experienced a decline of 22.8 percent, dropping to 18.6 tonnes from 24.1 tonnes the previous year due to adverse weather conditions during the first quarter of 2023 and the government’s introduction of the 75/25 forex retention policy in November.

Notably, deliveries from small-scale producers plummeted from 2,642 tonnes to a mere 552 tonnes in November, marking the lowest point for the year.

Despite the challenges faced in 2023, gold deliveries in the country decreased by 15% to 30.1 tonnes compared to the previous year’s 35.6 tonnes.

However, small-scale miners continue to hold the title of the country’s largest gold producers, accounting for a significant 61.8% of total gold deliveries to FGR.

Looking ahead, gold deliveries are anticipated to witness further growth in 2024, driven by factors such as reduced rainfall, an expected increase in the price of gold throughout the year, and FGR’s strategic measures to enhance competitiveness with the parallel market.

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