Gold miners face a harder hunt for new ounces - MiningMX

AI desk brief

Gold miners are finding it increasingly difficult and expensive to replace reserves and grow output, a structural bullish factor for long-term supply. RMB Morgan Stanley says the top 10 producers’ combined output has fallen to about 28m oz from 34-37m oz in the early 2000s, while their share of global mine supply has dropped to roughly 25% from 40-45% over 25 years.

Endeavour CEO Ian Cockerill said newly mined gold has grown by less than 1% a year in recent years, with only nine meaningful discoveries globally since 2020, and that mine development typically takes 15-16 years from discovery to first production. Newmont CEO Natascha Viljoen said the company must replace about 6m oz of reserves a year and is focusing on disciplined exploration and near-mine organic growth rather than relying on expensive M&A.