In this article, we will take a look at the 13 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.
Photo by Ricardo Gomez Angel on Unsplash
Our Methodology
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.
Biggest Gold Mines in the World
13. Pueblo Viejo
Total production in 2021: 488,000 Ounces
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%).
12. LOULO
Total production in 2021: 560,000 Ounces
This gold mine is located in Mali. Barrick Gold operates this mine. The company reported that the mine produced 560,000 ounces of gold in 2021.
11. Parachute Mine
Total production in 2021: 549,000 Ounces
This gold mine is located in Brazil.
10. Boddington
Total production in 2021: 696,000 Ounces
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.
9. Detour Lake Mine
Total production in 2021: 712,824 Ounces
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.
8. Canadian Malartic
Total production in 2021: 714,784 ounces
Owned by Agnico Eagle, this Canadian mine produced 714,784 ounces of gold in 2021.
7. Lihir
Total Production in 2021: 737,000 Ounces
Operated by Newcrest, the Lihir mine is located in Papua New Guinea.
6. Cadia Valley
Total production in 2021: 764,000 Ounces
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.
5. Kibali
Total production in 2021: 812,000 Ounches
Another gold mine owned by Barrick, the Kibali gold mine is located in Congo. For 2022, Barrick expects the mine to produce gold in between 340,000 – 380,000 ounces.
4. Olimpiada
Total production in 2021: 1.18 Million Ounces
The Olimpiada is one of the biggest gold mines located in Russia. The mine is estimated to have a whopping 30.01 million oz of gold reserves.
3. Grasberg
Total production in 2021: 1.37 million
The Grasberg gold mine is located in the Mimika Regency, Central Papua, Indonesia. The mine is operated by the American mining giant Freeport-McMoran.
The company’s stock recently jumped as investors believe China’s reopening could bode well for the mining companies like Freeport. As of the end of the third quarter, 57 hedge funds tracked by Insider Monkey reported having stakes in the company.
2. Muruntau
Total production in 2021: Over 3 Million Ounces
Muruntau is one of the biggest gold mines in the world, located in Uzbekistan. It is the largest open-pit gold mine. This mine is operated by Uzbekistan state-owned Navoi Mining and Metallurgy Combinat.
1. Nevada Gold Mines
Total production in 2021: 3.3 Million Ounces
Nevada Gold Mines are operated primarily by one of the biggest gold companies in the world, Barrick Gold. However, Nevada Gold Mines is a joint venture between Barrick and Newmont, with the latter owning about 38.5% of the mines.
In November, Barrick Gold shares took a major slump after the company posted third quarter results. The company suffered in the period due to rising costs and production declines. The company’s revenue also fell 10.6% in the quarter and came in at $2.53 billion.
As of the end of the third quarter of 2022, 35 hedge funds tracked by Insider Monkey reported having stakes in the company.
You can also take a peek at 10 Stocks to Buy According to Mark T. Gallogly’s Centerbridge Partners and 8 Stocks to Buy According to Alexander Captain’s Cat Rock Capital.
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Disclosure: None. 13 Biggest Gold Mines in the World is originally published on Insider Monkey.
