Bushfires, rains dampen Australian first quarter gold output to 75 t

Gold experts Surbiton Associates estimates the 75 t of output to be worth about A$17-billion based on the average gold price in the quarter. Gold prices fluctuated widely in the quarter – from an all-time record of $5 595 oz late in January to $4 392/oz only four days later.

Australian gold miners produced 303 t last year, maintaining the country’s status as one of the world’s largest gold-producing regions.

Surbiton director Dr Sandra Close explains the March quarter is often the most affected by wet weather, however, this time there was the added disruption caused by bushfires. “Fortunately though, the overall result was better than might have been expected for the first quarter of the calendar year,” she states.

Among the operations that were affected by heavy rain in the reporting quarter include Gold Fields’ wholly-owned Gruyere mine, with output having been 20 200 oz lower, and Newmont Corporation’s Tanami operation, which had output decrease by 41 000 oz.

At Newmont’s Boddington mine, bushfires caused damage to the mine’s water and electricity supplies, as well as to its communication systems, in December last year. By early 2026 the mine was still operating at reduced levels – such that production was 35 000 oz less than in the December 2025 quarter.

Close confirms that these fires are full blown bushfires or forest fires and not simply ‘brush’ fires, with Australia often experiencing bushfires in the summer.

Meanwhile, gold mining operations that increased produced include Gold Fields’ Granny Smith mine, which had production increase by 19 600 oz, and Newmont’s Cadia mine, which had 13 000 oz of higher output. Northern Star Resources’ KCGM Super Pit mine also increased output by 12 500 oz.

Australia’s largest gold producers in the March quarter were Northern Star’s Super Pit mine with 120 000 oz, Newmont’s Boddington mine with 111 000 oz, AngloGold Ashanti and Regis Resources’ Tropicana mine with 109 000 oz, Newmont’s Cadia mine with 94 000 oz and Gold Fields’ St Ives mine with 83 700 oz.

MARKET VIEW

Commenting on the gold price movement in the quarter, Close says the gold price recovered again after its decline to $4 392/oz in January, both in US dollar and Australian dollar terms, however, world markets had to deal with the outbreak of the US/Iran war on February 28, which initiated the closure of the Strait of Hormuz and caused a subsequent shortage of oil and higher oil prices globally.

“World share markets declined sharply owing to the outbreak of the US/Iran war and concerns regarding oil. To offset the lower value of portfolios, financial institutions sold gold and other assets. That depressed gold prices which triggered margin calls and stop-loss orders, thereby reducing gold prices even further.”

Among the world’s responses were Türkiye selling or swapping substantial amounts of gold from its reserves while Russia also sold some gold to raise foreign exchange to defend their currencies.

By March 23, gold prices had fallen as low as $4 098/oz. At the time of Surbiton’s writing in early June, the gold price is around $4 440/oz. This compares with a price a year ago of $3 340/oz.

“Despite the gloom, the fundamentals underpinning the long-term rise of gold and silver prices appear to be intact. There is still a great deal of uncertainty in world markets in general,” Close states.