Australian gold mine production totalled 73 t in the March quarter of 2025 – 6 t (or 7%) less than in the December quarter, but 3 t (or 4%) more than in the March quarter of 2024, according to Melbourne-based gold mining consultants Surbiton Associates.

During the first three months of 2025, the London Bullion Market Association gold price ranged between $2 633 and $3 115 a troy ounce. In Australian dollar terms, prices ranged from A$4 232/oz to A$4 960/oz.

“Effectively the recent decline in Australian gold production was largely the result of higher gold prices,” said Sandra Close, a director of Surbiton Associates. “At today’s gold price the March quarter’s output is worth over A$12-billion, so understandably many producers are optimising their operations in response to such price increases.”

The gold price rally during the March quarter was largely attributed to the actions of US President Donald Trump. Since taking office on January 20, 2025, his on-again, off-again tariffs and other measures have caused widespread uncertainty and disruption in gold and other global markets, pushing prices higher.

“Higher gold prices make lower cut-off grades economic because what was unprofitable to mine and treat in the past then becomes profitable,” Close said. “If operations are able to lower their cut-off grades, then a greater amount of gold is recovered from each orebody.”

“Also, higher gold prices mean that it is economic to reclaim more low-grade material from stockpiles to feed into the treatment plants, so the weighted average head grade of ore being treated declines,” Close said. “Although lower head grades result in less gold being produced and mean cash costs and all-in sustaining costs per ounce increase, the value of each ounce of gold is higher.”

“Surbiton Associates’ latest analysis shows that low-grade, reclaimed stockpiled material is currently as high as around 15% of the total ore being treated,” said Close. “Thanks to increasing gold prices, the proportion of low-grade material being blended into feed has risen steadily for the last five quarters, from a proportion of only around 1% a year ago.”

While it might be expected that higher prices would stimulate greater gold production by encouraging the startup of new projects or the restart of idle operations, Close noted that many existing treatment plants are already operating close to capacity. As a result, there is limited immediate processing availability for smaller miners wanting to sell ore or access toll treatment.

“On the face of it, lower gold production and rising costs per ounce might suggest that the gold industry in Australia is in trouble,” Close said. “Far from it. Many gold producers are experiencing high margins and are doing very well.”

Mines reporting significantly lower output in the March quarter included Tropicana (AngloGold/Regis Resources), down 57 000 oz; St Ives (Gold Fields), down 40 500 oz; and Tanami (Newmont), down 46 000 oz.

Operations with increased production included Cadia (Newmont), up 25 000 oz; Bellevue (Bellevue Gold Mines), up 22 000 oz; and Fosterville (Agnico Eagle), up 7 000 oz.