Top LatAm gold mines on track for 2021 rebound

Production across 10 of Latin America’s biggest gold mines edged higher in Q3, as COVID-19 impacts waned.

Aggregate output by the 10 was 1.17Moz, up 2.6% from the 1.14Moz generated in 3Q20, when pandemic pressures weighed heavily on some assets.

The figure is roughly flat from the 1.16Moz produced in Q2, and 1.21Moz in the first quarter, according to data compiled by BNamericas.

Output of 3.54Moz in the first three quarters puts the 10 on track to exceed the original midpoint 2021 guidance of 4.59Moz.

Eight of the 10 mines are in line to deliver or surpass original guidance, with two on track to miss forecasts.

The assets produced 4.54Moz gold in 2020.

TOP GOLD MINES

Pueblo Viejo, Dominican Republic, Q3 gold output: 212,000oz

Barrick Gold’s Pueblo Viejo (pictured) held its position as Latin America’s biggest gold producer by a significant margin, despite output falling from 216,000oz in 3Q21 due to lower grades, largely offset by higher throughput.

Barrick reiterated 2021 guidance of 470,000-510,000oz for its 60% interest in Pueblo Viejo, or 783,000-850,000oz on a 100% basis. Newmont holds the other 40%.

Output in the first nine months was around 635,000oz.

Peñasquito, Mexico, Q3 gold output: 172,000oz

Newmont’s Peñasquito mine delivered a strong quarter of production, with gold output up from 158,000oz in 3Q20 on higher volume of ore processed and recoveries

The Mexican asset is on track to meet or exceed guidance of around 660,000oz, with 520,000oz produced in the first three quarters.

Paracatu, Brazil, Q3 gold equivalent production: 134,425oz

Kinross Gold’s Brazilian mine saw gold equivalent output rise marginally from 133,924oz, with higher throughput and recovery partially offset by lower grades and timing of ounces processed.

While Kinross confirmed company-wide guidance of 2.1Moz gold equivalent, Paracatu appears likely to fall some way behind the company’s original target of over 600,000oz for 2021, with production of 411,891oz in the first three quarters.

El Limón-Guajes, Mexico, Q3 gold output: 111,229oz

Output at Torex Gold’s mine slipped from 131,790oz in 3Q20, and 118,054oz in the second quarter of 2021.

The decline was mainly due to lower grades.

Despite the Q3 drop, ELG is expected to hit the top end of 2021 guidance of 430,00-470,000oz gold, with 358,792oz produced in the first nine months.

Fruta del Norte, Ecuador, Q3 gold output: 107,663oz

Lundin Gold’s Ecuadoran asset continued to ramp up, with production rising from 94,250oz on higher throughput and recoveries.

Based on performance to date, Lundin expects production at Fruta del Norte to come in near the top end of its 2021 guidance range of 380,000-420,000oz gold.

Merian, Suriname, Q3 gold output: 105,000oz

Production at Newmont’s Merian was roughly flat from the 106,000oz in 3Q20, with lower mill throughput largely offset by higher grades.

Merian is on track to meet or exceed guidance of around 425,000oz in 2021, with production of 324,000oz in the first nine months.

Veladero, Argentina, Q3 gold output: 96,000oz

Veladero, a 50:50 JV between Barrick and Shandong Gold, produced 96,000oz gold in Q3, up from 88,000oz, mainly due to the ramp up of the Phase 6 leach pad, which was commissioned in the second quarter.

Veladero is back on track to meet 2021 guidance of 260,000-300,000oz after a solid Q3, with output in the first three quarters of 222,000oz.

Herradura, Mexico, Q3 gold output: 94,193oz

Production increased at Fresnillo’s Herradura mine from 85,102oz in 3Q20, after COVID-19 restrictions impacted recovery cycles at leaching pads last year.

Gold grades were also marginally higher in Q3.

Fresnillo said it remains on track to meet company-wide gold guidance of 675,000-725,000oz in 2021, with Herradura well positioned to exceed forecasts of 340,000-410,000oz, with production in the first nine months at 352,358oz.

Cerro Negro, Argentina, Q3 gold output: 76,000oz

Newmont’s Cerro Negro mine saw production surge from 46,000oz in 3Q20, when operations were reduced due to COVID-19 restrictions.

“Cerro Negro continues to improve productivity and performance, significantly increasing tons mined and processed in each quarter. The site team is managing the impacts from the pandemic as well as possible,” COO Robert Atkinson told the Q3 call.

Newmont has issued guidance of 270,000oz gold at Cerro Negro this year, plus or minus 5%. The operation is well placed to meet or exceed this forecast with 208,000oz produced so far.

Yanacocha, Peru. Q3 gold output: 65,000oz

Production at Yanacocha fell from 80,000oz mainly due to the ramp down of the mill, ahead of the proposed US$2bn Yanacocha Sulfides expansion project.

This impact was partially offset by higher leach pad production.

Yanacocha is tracking below 2021 guidance of around 315,000oz, with production to date of 194,000oz.

The mine is operated by 52.35% owner Newmont, with Buenaventura holding 43.65% and Sumitomo 5%.