In this article, we will take a look at the 13 biggest gold mines in the world. You can skip this part and go to 5 Biggest Gold Mines in the World.
Investors almost always remain focused on the movement of gold, perhaps the most valuable and reliable asset in the world. Gold price touched new records last year as investors flocked to the safe-haven asset amid recession fears. Recently, gold price touched its peak of about $1,850 per troy ounce. Analysts believe gold price is expected to soar in 2023 as the Fed doesn’t show any signs of halting rate hikes. There are already some predictions about gold price possibly touching its all-time high in 2023.
According to a CNBC report, Eric Strand, manager of the AuAg ESG Gold Mining UCITS ETF (FRA:ZSG0.F), thinks we will see a new all-time high for gold as the analyst expects the start of a “new secular bull market.” He thinks the price of gold could touch $2,100 per ounce.
“Central banks as a group have continued, since the great financial crisis, to add more and more gold to their reserves, with a new record set for [the third quarter of] 2022,” Strand said, according to CNBC.
But there is another prediction that’d make the above price target for gold look cheap. Danish investment firm Saxo Bank recently said in a report that gold price could touch $3000 per ounce in 2023. This is because the bank believes 2023 would become a “war economy” and everyone would flock to gold. Saxo Bank believes there will be a big political crisis in Europe and expects French President Macron's resignation as it thinks the French population is unhappy due to inflation and rising energy prices and the opponents of Macron are getting stronger. Saxo Bank also believes the UK would rejoin the EU and the EU will take an initiative to develop its own unionized army.
However, some believe that gold prices are expected to remain flat in the coming year because 2022 has shown that the illiquid nature of gold provides no safety net for its buyers. For example when the Federal Reserve increases interest rates, the U.S. government bonds get a boost. On the other hand, gold does not pay anything. When the US dollar gets stronger, gold becomes expensive for foreign buyers.
According to WSJ, Kathy Kriskey, commodity strategist at Invesco, believes gold is not a good inflation hedge.
“Oh, inflation? I got to use gold. No, gold is not a good inflation hedge,” Kriskey reportedly said.
There are many reasons to invest in gold stocks. One, major gold companies are stable and unlike tech growth stocks, they tend to show stability during tough times. Second, major gold companies pay strong dividends. For example, major gold mining companies like Newmont Corporation (NYSE:NEM), Agnico Eagle Mines Limited (NYSE:AEM), and Barrick Gold Corporation (NYSE:GOLD) have been rewarding their investors with regular dividends for the past several years.
As of January 8, Newmont Corporation (NYSE:NEM) has a dividend yield of over 4%, while Agnico Eagle Mines Limited (NYSE:AEM) has a 2.8% dividend yield. Barrick Gold Corporation (NYSE:GOLD) in May last year announced a $0.20 per share quarterly dividend.
Recent signs of easing inflation have spurred bets that the Federal Reserve will raise rates in smaller increments in 2023. The S&P 500 and the Dow Jones Industrial Average have rebounded from their 2022 lows, while bond prices, which rise when yields fall, have jumped.
Hedge funds and other speculative investors have lately piled into gold after pulling out for most of 2022, pushing bullish wagers on the metal during the week ended Dec. 13 to the highest level since June, according to Commodity Futures Trading Commission data tracking futures and options.
Bank of America Corporation (NYSE:BAC) analysts say gold could top $2,000 an ounce in 2023, which would be near record levels. Elevated risks of a global recession could boost inflows into gold funds, Citigroup analysts wrote.
Estimates from the Department of Industry, Science, Energy and Resources of the Government of Australia (DISER) said that the global gold production was expected to jump 2.2% to 3,660 tonnes in 2022. Production in China, Australia and Africa were expected to drive this growth.
The estimates also said that gold production in China was expected to gain in 2022 as the country reopened gold production in the Shandong province. Gold prices already saw a boost at the start of 2023 after China began to lift COVID restrictions. China is the biggest commodities market in the world, and Chinese consumers account for a major portion of actual gold sales.
For this article we consulted research reports produced by mining industry analysts, used company screeners and did manual research to devise a vast list of major gold mines operating in the world. We then found 2021 gold production data for these mines and picked the top 13 of these mines based on gold production.
The list is ranked in an ascending order of gold production. We have also mentioned the notable companies that are operating these mines.
The Pueblo Viejo mine is located in Dominican Republic. It is the biggest gold mine in Latin America. It is operated by Pueblo Viejo Dominicana Corporation, which is owned by Barrick Gold (60%) and Newmont Goldcorp (40%).
The Boddington gold mine is located in Western Australia. It’s also an important copper mine in the region. In 2021, the mine produced 696,000 ounces (oz) of gold and 32,205t of copper.
This Canadian mine is operated by Kirkland Lake Gold, which acquired the property in 2019.
The company reported that the mine produced 210,980 ounces in the fourth quarter of 2021 alone. Total gold production from the mine in the year came in at 712,824 oz.
The Cadia Valley gold mine is located in Australia. It is a series of copper and goals mines which spreads across the entire valley. Cadia is the second largest open cut mine in Australia. This gold mine is operated by Newcrest, which is an Australian company that engages in the exploration, development, mining and sale of gold and gold-copper concentrate.
