Mining News
Lowest cost gold mining companies in 2020 - report
(Kitco News) - The following is the list of the top 10 lowest cost gold mining companies in 2020 calendar year among the top 20 largest primary gold producers worldwide measured by output.
The ranking used all-in sustaining costs (AISC) metric that serves as a globally accepted benchmark of a mine's operating efficiency.
Primary gold producers are defined as "mining companies where gold contributed to 80% or more of revenues from operating activities generated last year."
With AISC of $604/oz, Russian gold miner Polyus was the lowest cost gold producer among the top 20 biggest gold miners in 2020. The group's AISC increased 2% year-over-year reflecting higher stripping activities and sustaining capital expenditures.
B2Gold is second with AISC of $788/oz sold, a 9% decline over 2019 ($862/oz). The lower costs were due to higher than budgeted gold ounces sold, lower G&A costs and lower than budgeted sustaining capital expenditures, partially offset by higher royalties resulting from a higher average gold price realized than budgeted in 2020.
Centerra is third. The company's all-in sustaining costs on a co-product basis were $799/oz in 2020 compared to $737/oz in 2019. The increase was due to higher capitalized stripping costs at the Kumtor mine and higher sustaining capital at both the Kumtor and Mount Milligan mines, partially offset by higher copper credits and greater gold ounces sold as a result of the addition of the Öksüt mine.
Kirkland Lake is fourth with AISC of $800/oz for 2020, a 42% increase compared to $564 for 2019. Excluding the impact of Detour Lake, where AISC per ounce sold averaged $1,171, AISC per ounce sold in 2020 averaged $566, largely unchanged from the comparable 2019 level as the favourable impact of suspending operations at Holt Complex more than offset higher AISC per ounce sold at Fosterville and Macassa.
Endeavour Mining sits fifth. The company's consolidated AISC for all the operations increased by 7% or $55/oz, from $818/oz in 2019 to $873/oz in 2020, due primarily to the higher gold prices, which increased royalties by $43/oz. The increased production at lower cost mines (Houndé and Ity) and the addition of the low cost Boungou mine partially offset the higher costs at Agbaou, Karma and Mana.
Polymetal's all-in sustaining costs amounted to US$ 874/GE oz, up 1% year-on-year. At Albazino, AISC increased by 9% to US$ 946/oz, which was mostly driven by underground development and prestripping costs capitalised at Ekaterina-2 and Farida pits.
Newcrest's AISC for the calendar year 2020 of $911/oz were 13% higher than in 2019.
Barrick's AISC of $967/oz in 2020 were 8% higher than in 2019 ($894/oz) primarily due to higher royalty expenses from the higher gold price environment.
Gold Field's all-in sustaining costs increased by 9%, from US$897/oz in 2019 to US$977/oz in 2020, mainly due to higher sustaining capital expenditure, higher cost of sales before amortisation and depreciation and higher royalties (due to higher gold price realised), partially offset by higher gold sold.
Kinross' all-in sustaining costs per au eq. oz. sold were $987 for full-year 2020, which is within the 2020 guidance range, compared with $983 for full-year 2019.
Lowest cost gold mining companies in 2020
Company |
2020 AISC, $/oz |
2019 AISC, $/oz |
% change |
|
1 |
Polyus |
604 |
594 |
2 |
2 |
B2Gold |
788 |
862 |
-9 |
3 |
Centerra |
799 |
737 |
8 |
4 |
Kirkland Lake |
800 |
564 |
42 |
5 |
Endeavour |
873 |
818 |
7 |
6 |
Polymetal |
874 |
866 |
1 |
7 |
Newcrest |
911 |
803 |
13 |
8 |
Barrick |
967 |
894 |
8 |
9 |
Gold Fields |
977 |
897 |
9 |
10 |
Kinross |
987 |
983 |
0 |
