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Canada’s gold production to grow robustly in 2019 — Report

Agnico Eagle Mines’ Meliadine project in Nunavut. Image from Agnico Eagle via flickr

Fitch Solutions’ industry trends analysts have revised Canada’s 2019 gold mine production growth forecast up to 6% from 2% predicting production to grow robustly as new projects come online over the coming quarters.

Canada’s dominance in attracting exploration investment has resulted in a strong gold project pipeline set to come online in 2019. Over the past decade, Canada has been able to attract a significant amount of exploration projects, Fitch reports.

In 2017, Canada lead the world in quantity of active exploration sites with over 500 of which just over 300 were for gold and silver. Canada’s provincial governments have offered tax credits and assistance programs for junior explorers, which played a positive role in attracting investment.

Key gold projects for 2019 include GoldCorp’s Borden project in Ontario, expected to start 2H19, with mine life estimated at seven years; Agnico Eagle Mines’ Meliadine project in Nunavut, on track to start production in Q219, with 3.7 million ounces in reserve; Barrick’s Hemlo mine in Ontario, already operating, with 1.8 million ounces in reserve;  GoldCorp’s mine in Quebec, operational with 3.8 million in proven reserves; New Gold’s Rainy River mine in Ontario, operational with 3.9 million ounces in reserve, GoldCorp’s Musselwhite mine in Ontario, operational with 1.9 million ounces in reserve, and Agnico Eagle Mines’ Amaruq project in Nunavut, with production estimated to begin in Q319. Eldorado Gold is expecting the Lamaque mine in Quebec to reach full commercial production in Q119.

The favourable gold price environment is expected to continue in 2019, offering support to production levels, and Canada’s ability to attract exploration investment.

Fitch forecasts gold prices to hover around current spot levels and average 1,300 /oz throughout the year.

Read the full report here.