South African gold production for the fourth quarter of 2007 and for 2007 as a whole

2007 gold production

In 2007, South Africa's gold production fell by 7.4% to 254 685 kilograms. This annual decline of 7.4% compares to the 6.3% per annum average rate of decline recorded over the past decade.

For gold mines, members of the Chamber (excluding by-product gold producers that are members), production fell by 6.7% to 219 223 kilograms. The 37% increase in capital expenditure by Chamber members to R8.1-billion fed through to a 5.8% increase in the tons of material processed through the mills, but the 11.8% decrease in the average grade mined to 4.12 grams per ton resulted in overall production declining.

Fourth quarter 2007 gold production

In the fourth quarter of 2007, South Africa's gold production fell by 7% to 61 845 kilograms when compared to the third quarter of 2007. On a year-on-year basis the rate of decline in gold production accelerated from 5.4% in the third quarter to 9.2% in the fourth quarter of 2007. A number of issues, including stoppages related to improving safety in the industry had a negative impact on production.

For the gold mines members of the Chamber, production declined by 7.4% to 53 079 kilograms in the fourth quarter of 2007 when compared to the third quarter. The 1.5% decline in tons milled plus 6% decline in average grade led to the fall in production. On a year-on-year basis the Chamber's members production fell ny 9% in the fourth quarter of 2007, as the 6.3% increase in tons processed through the mills was insufficient to compensate for the 10% decline in the average grade recovered.

For any enquiries, please contact: Roger Baxter, chief economist +27 11 498-7663