Peru gold producers report positive Q3 results

Peruvian gold producers have been able to boost output and revenues so far this year, while record global prices of around US$2,740/oz are cause for further optimism.

The third quarter was a great period in terms of production for companies such as Yanacocha, operating in Cajamarca region and owned by US firm Newmont, and Peru's Poderosa. Considering that the gold price has potential to rise further, the situation could be replicated in Q4.

Yanacocha's attributable production was 93,000oz in Q3 and 262,000oz in January-September, according to a press release.

If the average production rate of 87,333oz of recent quarters is maintained, Yanacocha will exceed 300,000oz this year. Last year, the company reported 276,000oz. 

Poderosa, operating in La Libertad region, said in its latest results report that Q3 output reached 67,434oz and 215,443oz in January-September. The firm reported 189,430oz in January-September 2023.

Sales totaled US$165mn in the quarter and US$482mn year-to-September, compared to US$116mn and US$361mn in the respective year-ago periods.

Poderosa has invested US$107mn in exploration and mine preparation, US$18mn in infrastructure and US$7.44mn in machinery and equipment between January and September.

Newmont plans global investments of US$225mn during Q4, most of which will be allocated to construction of two water treatment plants and an operations closure plan in Peru.

On the gold price, Scotiabank wrote in a report that “although positioning has remained long, previous highs have not been reached, suggesting that the gold price still has room to rise to reach these highs. Technically, these increases could reach as high as US$2,900/oz… this year or next year.”

If the price keeps rising as predicted, it could also influence investment decisions and gold production in 2025.