Global gold production would fall 1.7% in 2020, due to the closure and suspension of mines as a result of Covid-19 restrictions, mainly during the second quarter, GlobalData projected.

The consultancy expects that almost all major producers will witness a decline in production levels during 2020, due to the pandemic and the consequent lockdowns in several key markets, such as South Africa.

“However, widespread uncertainty due to fear of a possible global economic recession pushed gold prices to an all-time high in August 2020, and they remain at around $ 2,000 an ounce, supporting earnings growth for several miners of gold, despite the drop in production,” said Vinneth Bajaj, senior mining analyst at GlobalData.

Following the outbreak, the two largest producers, Newmont and Barrick Gold, reduced their targeting from a total of 11.6 million ounces (moz) to around 11 moz.

The production of these companies more than halved in the second quarter from a collective of 2.9 moz in the second quarter of 2019 to 1.4 moz in the second quarter of 2020.

Operations at Barrick’s Veladero and Porgera and Cerro Negro, Yanacocha, Eleonore, Penasquito and Newmont’s Musselwhite mines were temporarily suspended for most of April and May 2020 due to the outbreak.

Gold production

Meanwhile, Anglogold Ashanti and Kinross have suspended their prospects for 2020, while the Polyus Gold guidance remains the same.

Covid-19 restrictions on AngloGold Ashanti’s South African operations led to a 63 koz year-on-year drop in production in the first half of 2020, while the company’s overall drop for the first half of 2020 was 85 koz.