August 2021
Robust gold prices and the precious metal's assured role as a safe haven is encouraging miners to invest in their operations to halt output declines, extend mine life and grow production. AME expects gold demand to grow at a compound annual growth rate of 0.6% over the medium-term to 151,303koz by 2025. We expect mine gold supply to slide at a CAGR of 3.8% to 94,115koz over this period.
AME's base case of expansions coming online over the medium-term includes operations by Newmont, Equinox Gold, Agnico Eagle Mines, AngloGold Ashanti, Eldorado Gold, Wiluna Mining and Evolution Mining.   Newmont Newmont has approved full funding for its Ahafo North project to expand its footprint in Ghana. The project, which includes four open pit mines and a 3.7Mtpa mill, is located 30km from the company’s Ahafo South operations. "The development of this prolific orebody will leverage our proven operating model and will be supported by our existing world-class Ahafo South operation," said Newmont CEO Tom Palmer. The project is expected to add between 275koz-325kozpa with AISC between US$600-$700/oz for the first five full years of production (2024-2028). Project capex is estimated to between US$750-$850m with a construction set to be completed in the second half of 2023 and commercial production in early-2024. At current gold prices, the project is expected to deliver more than a 30% IRR, Newmont said.