Top miners produced more gold in the fourth quarter of 2021 than in the prior-year period, despite inflationary pressures and operational shutdowns related to the omicron variant of COVID-19.
The total gold output of 20 major producers increased by 2.4% year over year to 8.5 million ounces for the fourth quarter of 2021 and 4.6% over the third quarter of 2021, according to data from S&P Global Market Intelligence.
The output increase is part of the continued recovery of global gold production as total supply rebounded to the pre-COVID level in the third quarter of 2021.
While the omicron wave pushed some mines to shut down operations during the fourth quarter of 2021, gold producers were less hard-hit than in 2020 thanks to higher vaccination rates and looser COVID-19 restrictions, said Bruce Yam, an independent foreign exchange strategist who worked with Hong Kong-based Everbright Sun Hung Kai.
Newmont Corp. and Barrick Gold Corp. remained the top two gold mining companies globally in the fourth quarter. While output slid from a year ago, the two North America-based companies booked double-digit growth as compared to the third quarter of 2021, helped by strong performance in Nevada Operations.
Nevada Gold Mines LLC, a joint venture between Barrick Gold and Newmont, achieved a quarterly production record for the fourth quarter of 2021, mainly driven by growth in its Cortez mines, Barrick Gold President and CEO Dennis Mark Bristow told investors Feb. 16.
Headwinds continue in 2022
Still, the omicron variant will continue to constrain miners' productivity. Colorado-based Newmont expects that omicron will affect as much as 150,000 ounces of its operation in the first quarter, with about one-third of impact coming from its Canadian operations and Cripple Creek & Victor Gold Mining Company Inc., President and CEO Thomas Palmer said on a Feb. 24 earnings call.
Australian miner Northern Star Resources Ltd. increased production the most among the top 20 miners, up by 57% to 388,742 oz from a year ago. However, CEO Stuart Tonkin acknowledged on a Feb. 9 earnings call that production in Western Australia is under labor and cost pressures.
Higher production costs and lower gold prices also dragged down gold miners' earnings in the fourth quarter of 2021, and the sector faces uncertainties amid the Russia-Ukraine conflict. Russia accounted for 9.6% of global gold production in 2020, according to Market Intelligence data.
Kinross Gold Corp., whose gold output dropped 21.9% year over year, suspended its Russian operations March 2.
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