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Gold deliveries to Fidelity continue to decline

The downward trend has sustained the 2023 annual output which recorded a 15% depreciation attributed to the impact of rising costs, power shortages and government’s policy on the currency among other factors.

GOLD deliveries to Fidelity Printers and Refineries (FPR) have suffered a significant decline, according to latest official data.

FPR statistics shows that deliveries of the precious metal declined by 22% in February to 1,95 tonnes compared to 2,38 tonnes realised in January.

Contrary to tradition where small scale miners have dominated volumes sent to the refinery, large scale bullion miners delivered a 988,7 kgs, which translates to 53% of the total for the month under review.

Small scale miners accounted for the balance of 47 % of the yellow metal output at 864,3 kgs representing a 31,76% decline from 1266,51 kgs recorded in January.

The 1,85 tonnes of bullion by artisanal and small scale miners in February represents a 2,2 % year on year decline from 1,89 tonnes they managed for the same period last year.

In February gold prices remained above US$2 000 per ounce and reached US$2 120 an ounce on Wednesday, a figure that ranks amongst gold’s all time high prices.

The downward trend has sustained the 2023 annual output which recorded a 15% depreciation attributed to the impact of rising costs, power shortages and government’s policy on the currency among other factors.

Market watchers believe that the decline in deliveries also have to do with the rising costs, payment delays by FPR, and a decision by the government in the last quarter.

While miners expect output to grow in 2024, they remain pessimistic about their prospects for the year due to costs, weak commodity prices, and the power costs surged after the national power utility ZESA increased tariffs. – (NewZimbabwe)

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