LatAm gold miners forecast lower costs
Production costs of the main gold miners in Latin America moved higher in 2018 – but are on track to decline this year.
All-in sustaining costs (AISCs) among six of the region's biggest producers averaged US$913/oz, up from US$864/oz in 2017, according to data compiled by BNamericas.
Of the four that issued AISC guidance for 2019, costs are expected to average US$851/oz this year, down from an average of US$906/oz reported by the four companies last year, based on midpoint forecasts.
The companies selected are gold-focused miners with at least 50% of their 2018 output from Latin American operations. Each produced at least 300,000oz of the metal in the region last year.
Tahoe Resources was excluded after being acquired by Pan American Silver in February. Figures are on a byproduct basis, where available.
LOWEST COST MINERS
Yamana Gold was the lowest cost producer of the group last year, at US$835/oz.
While the figure was up from US$788/oz the previous year, the rise was due to revised methodology in its AISC data. Excluding these revisions, the 2018 figure would have been US$696/oz.
Yamana, which has mines in Brazil, Chile, Argentina and Canada, expects AISCs to rise to around US$870/oz this year.
Goldcorp – Latin America's top gold producer last year – recorded AISCs of US$851/oz in 2018, up from US$824/oz the previous year.
The figure is expected to drop to around US$800/oz this year. Newmont Mining is advancing a planned US$10bn takeover of the company, which has mines in Mexico, Argentina, the Dominican Republic and Canada.
Mexico's Fresnillo was the third lowest cost operator, with AISCs at US$900/oz last year, up from US$766/oz (figures are reported on a gold equivalent basis). The company does not issue AISC guidance.
HIGHER COST MINERS
Leagold Mining was the highest cost producer of the group last year, with AISCs at US$974/oz, up US$10 from 2017.
The 2018 figure is well below current gold spot prices of around US$1,300/oz.
A decline is forecast in 2019 to US$945/oz, reflecting lower costs at Los Filos in Mexico and FDM and Pilar in Brazil, partly offset by a slight rise at Fazenda in Brazil.
Torex Gold has forecast the biggest drop in AISCs for 2019, to US$790/oz from US$964/oz at its El Limón-Guajes mine in Mexico, in part reflecting ramped up production. AISCs in 2017 were US$989/oz.
Peruvian miner Buenaventura recorded US$955/oz AISCs, up from US$856/oz in 2017, reflecting higher cost of sales and administrative expenses, partly offset by lower sustaining capex.
Guidance for 2019 was not given in the company's results statement.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Mining & Metals (Argentina)
Junior exploration roundup: Silver Mountain, Cabral, C3 Metals and more
Companies operating in Brazil, Peru, Chile, Argentina, Jamaica, Colombia and Suriname provide updates.
Tecpetrol urges Alpha Lithium shareholders to accept takeover bid
The Argentine company is awaiting a response to its proposal to acquire Alpha Lithium and control the Salar Tolillar project, which targets around ...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Mining & Metals (Argentina)
Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Pastos Grandes
- Current stage:
- Updated:
2 weeks ago
- Project: La Rioja
- Current stage:
- Updated:
2 weeks ago
- Project: Mogote
- Current stage:
- Updated:
2 weeks ago
- Project: Potrerillos
- Current stage:
- Updated:
3 weeks ago
- Project: Libanesa
- Current stage:
- Updated:
3 weeks ago
- Project: El Meridiano
- Current stage:
- Updated:
3 weeks ago
- Project: Lama
- Current stage:
- Updated:
2 days ago
- Project: Cerro Covadonga
- Current stage:
- Updated:
4 weeks ago
- Project: La Rosita
- Current stage:
- Updated:
3 weeks ago
- Project: Luna Roja
- Current stage:
- Updated:
4 weeks ago
Other companies in: Mining & Metals (Argentina)
Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Álcalis de la Patagonia SAIC  (ALPAT)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Golden Arrow Argentina
- Company: Argentina Prime Holdings Inc.
- Company: Carlos Cristian Buganem
- Company: Well Drilling
- Company: Amaru Mining Services
- Company: LCV S.R.L. DE ARGENTINA
- Company: LitiAr S.A (Galli Company)