Losing its shine: Falls in world prices of gold and nickel have constrained revenue growth

The Gold and Other Non-Ferrous Metal Processing industry mainly processes semi-refined gold. Semi-refined gold and gold dore bars are supplied to the industry to be further processed into refined gold. Some of these intermediate gold products are also processed in the industry when produced by non-mining companies. Refined gold volumes are expected to total 329.7 tonnes in 2017-18, up from 301.9 tonnes in 2012-13 due to higher mining volumes. Although the industry refines a substantial volume of gold, some firms do so for a fee. These firms do not own either the gold bullion feedstock or the refined gold produced. The refining fee earned by these industry participants represents only a small fraction of industry revenue...read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 13-18
2.4%
Forecast Growth 18-23
Profit
Employment
2,640
Businesses
120
Market Share of Companies

Industry Threats & Opportunities

  • Dramatic shifts in the world prices of gold and nickel have affected industry revenue
  • Industry profit has been low due to high purchase costs as a proportion of revenue
  • Stronger economic conditions will increase competition from other asset investment options
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in the decline phase of its life cycle. Industry value added (the industry's contribution to national GDP) is forecast to decline at an annualised 0.1% over the 10 years through 2022-23, largely due to low volume growth, lower gold pricing in world and domestic terms, and weak margins. This compares unfavourably with forecast GDP growth of 2.5% over the same period. Due to weak margins, firms in the industry have reduced employment to cut costs. Further, with the dominance of the largest companies in the industry, smaller metal processing firms have been unable to compete. This has resulted in enterprise number declining over the past five years...purchase to read more.

    Additional Insights for the Gold and Other Non-Ferrous Metal Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gold and Other Non-Ferrous Metal Processing Industry are

  • Supply contracts in place for key inputs
  • Upstream vertical integration (ownership links)
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as World price of gold and Demand from gold ore mining in the Gold and Other Non-Ferrous Metal Processing industry impact industry performance..

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    What's in this report

    What is the Gold and Other Non-Ferrous Metal Processing Industry?

    Industry firms smelt and refine gold, nickel and tin, and cast these metals into ingots, bars, sheets and other basic shapes. These manufacturing processes are carried out after the ore has undergone a beneficiation process at the mining phase to produce ore concentrate. Some firms in the industry also smelt, refine and manufacture other non-ferrous metals, such as bronze, silicon and titanium. Producers may also recover these non-ferrous metals from scrap.

    Industry Products
  • Australian-origin primary gold processing
  • Overseas-origin primary gold processing
  • Nickel processing
  • Overseas-origin secondary gold processing
  • Other non-ferrous metal processing
  • Australian-origin secondary gold processing
  • Industry Activities
  • Bronze
  • Gold refining and gold dore bar production
  • Molybdenum and tantalum metal powder
  • Nickel oxide production in association with nickel smelting
  • Nickel smelting or refining
  • Non-ferrous alloys
  • Non-ferrous metals refining
  • Recovering non-ferrous metals from waste materials
  • Tin, titanium, silicon, bismuth and other rare-earth metal smelting
  • Welding rod and solder
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of gold
  • Demand from gold ore mining
  • Domestic price of gold
  • US dollars per Australian dollar
  • World price of nickel

  • Current Performance
  • Gold prices and trends
  • Other industry segments
  • Exports and imports
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry revenue
  • Nickel and silicon
  • Exports and imports
  • Table: Gold and Other Non-Ferrous Metal Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gold and Other Non-Ferrous Metal Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Gold Ore Mining
  • Iron Smelting and Steel Manufacturing
  • Non-Ferrous Metal Casting
  • Jewellery Manufacturing

  • Key Selling Industries
  • Fossil Fuel Electricity Generation
  • Gold Ore Mining
  • Nickel Ore Mining
  • Salt and Other Mineral Mining

  • Products & Services
  • Australian-origin primary gold processing
  • Overseas-origin primary gold processing
  • Overseas-origin secondary gold processing
  • Nickel processing
  • Other non-ferrous metal processing
  • Australian-origin secondary gold processing
  • Chart: Gold and Other Non-Ferrous Metal Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Chinese gold markets
  • UK gold markets
  • Other gold export markets
  • Singapore gold markets
  • Domestic gold markets
  • Nickel and other export markets
  • Other domestic metals markets
  • Chart: Major Market Segmentation for the Gold and Other Non-Ferrous Metal Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gold and Other Non-Ferrous Metal Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gold and Other Non-Ferrous Metal Processing Industry

  • Industry Globalization
    Gold Corporation, Pallion Group Pty Limited,
  • Table: Gold Corporation - financial performance
  • Table: Pallion Group Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gold and Other Non-Ferrous Metal Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gold and Other Non-Ferrous Metal Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Total Gold Refined (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Beneficiation
  • Basic processes that extract minerals from a mined ore.
  • Gold Dore Bars
  • Semi-refined gold bars produced by mining companies that require further processing and refining to produce pure gold.
  • Nickel Matte
  • A semi-refined form of nickel produced when sulphide nickel ore is smelted.
  • Non-Ferrous Metal
  • Non-ferrous metals and alloys do not contain any significant amount of iron.
  • Primary Gold
  • Gold that is generally found deep underground in veins that requires extensive mining operations to extract.
  • Secondary Gold
  • Gold found near the surface of the Earth in nugget form that is easier to extract than primary gold.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gold and Other Non-Ferrous Metal Processing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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    This report on Gold and Other Non-Ferrous Metal Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gold and Other Non-Ferrous Metal Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gold and Other Non-Ferrous Metal Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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