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 million...read more.

Industry Statistics & Market Size
Revenue
$677m
Annual Growth 13-18
-3.4%
Forecast Growth 18-23
Profit
Employment
980
Businesses
134
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 Products Chapter

    The industry's main product is gold, which is sold to downstream markets in several forms.Gold dore barsThe industry's largest product segment is gold dore bars, which are produced from gold extracted from hard rock. Gold dore bars are produced from gold concentrate and usually contain a mixture of gold and silver. OceanaGold Corporation's Waihi mine produces gold dore bars containing 10% to 25% gold, with the balance being silver. This silver is removed through further refining processes. The Perth Mint in Western Australia processes a large proportion of gold dore bars from New Zealand. This product segment is projected to account for 67.8% of industry revenue in the current year. Thi...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..

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    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
    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)
  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    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.

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