Fool's gold: Revenue has declined due to the falling world price of gold

Despite gold being a valuable resource and a good store of value, the Gold Ore Mining industry has performed poorly over the past five years. This poor performance has been due to the world price of gold steadily decreasing in US dollar terms, resulting from declining inflationary expectations around the world. Low interest rates and quantitative easing policies did not push global and domestic inflation significantly higher over the period. Gold's role as a store of value was therefore diminished, resulting in the world price of gold falling. Industry revenue is expected to decline at an annualised 3.4% over the five years through 2017-18, to total $676.5 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Industry declines have mainly been due to lower global gold prices over the past five years
  • Low mining volume growth has occurred in response to lower gold prices
  • World gold prices are forecast to continue falling over the next five years
  • Industry Report - Industry Analysis Chapter

    The Gold Ore Mining industry has faced a difficult operating environment over the past five years. Steady declines in the world price of gold have only partly offset a weaker New Zealand dollar and a small projected rise in gold ore mining volumes. These factors have pushed revenue lower and reduced the number of companies operating in the industry. Furthermore, high costs associated with mining and processing gold ore have contributed to lower profit margins.Gold price influencesThe world price of gold has declined over the five years through 2017-18. It peaked in 2012 in response to global inflation fears stemming from quantitative easing policies implemented in the United States. Gol...purchase to read more.

    Additional Insights for the Gold Ore Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gold Ore Mining Industry are

  • Ability to accommodate environmental requirements
  • Availability of resource
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as World price of gold and US dollars per New Zealand dollar in the Gold Ore Mining industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Gold Ore Mining in New Zealand Industry?

    Industry players extract gold ore resources using opencast and underground mining techniques. The industry includes firm that use a gold ore beneficiation process, which is carried out prior to final smelting and refining. The industry also includes gold dore bar production (semi-pure gold bullion bar).

    Industry Products
  • Gold dore bars
  • Alluvial gold
  • Gold concentrate
  • Industry Activities
  • Gold ore mining
  • Gold ore dredging
  • Gold ore beneficiation processes
  • Gold dore bar production
  • Roasting and flotation extraction of gold ore
  • Reworking of tailings for gold
  • 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
  • US dollars per New Zealand dollar
  • World GDP
  • Capital expenditure on mining

  • Current Performance
  • Gold price influences
  • Low volume growth
  • Revenue and profit
  • Enterprises and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Weaker global pricing
  • Weaker revenue

    and exports

  • Forecast employment growth
  • Table: Gold Ore Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gold Ore Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Metal and Mineral Wholesaling in New Zealand
  • Non-Ferrous Metal Product Manufacturing in New Zealand

  • Key Selling Industries
  • Engineering Consulting in New Zealand
  • Heavy Machinery and Scaffolding Rental and Hiring in New Zealand
  • Industrial and Mining Machinery Wholesaling in New Zealand
  • Mining Support Services in New Zealand

  • Products & Services
  • Gold dore bars
  • Alluvial gold
  • Gold concentrate
  • Chart: Gold Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Domestic gold smelting and refining firms
  • Chart: Major Market Segmentation for the Gold Ore Mining 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 Ore Mining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gold Ore Mining Industry

  • Industry Globalization
    OceanaGold Corporation,
  • Table: OceanaGold Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gold Ore Mining 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 Ore Mining Industry
  • 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)
  • Gold Production (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alluvial Gold
  • Gold extracted from rivers and streams, often via a dredging process.
  • Beneficiation
  • Basic processing carried out at the mine site to remove waste product from the ore.
  • Dore Bars
  • Semi-processed gold bars containing approximately 80% to 90% pure gold. These are often made at processing facilities at gold mining sites and transported to refineries for further refining.
  • Opencast Mining
  • A type of surface excavation in the form of an inverted cone. The shape of the mine opening varies with the shape of the mineral deposit. Also known as open-pit or open-cut mining.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gold Ore Mining in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gold Ore Mining in New Zealand:
    • 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 Ore Mining in New Zealand 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 Ore Mining in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.