- It decreases from 5.408 tonnes in February 2023 to 4.879 tonnes in March 2023
- Due to the drop in production at certain mines, including SOMISA
- SOMISA’s activities were halted for a week in March 2023
- But the gold price rose in the first trimester of 2023
- The dollar is stagnating
Industrial production of fine gold in March 2023 amounted to 4.879 tonnes. This is a decrease of 0.529 tonnes or 9.8% compared to February 2023 (5.408 tonnes). According to the report on the monitoring of economic and development indicators (April 2023), published by the General Directorate of the Economy and Planning (GDEP): “The drop in gold production is due to the suspension of activities at the Norgold Yimiougou mine and the drop in production at the mines (SOMISA and ROXGOLD) in March 2023. Indeed, the SOMISA mine’s activities were halted for a week following a call for action by staff representatives. It took the intervention of the Ministry of Mines to facilitate the resumption of work.
Comparing production in March 2023 to March 2022, there is a 6.7% drop between the 2 periods. This drop in production in March 2023 had an impact on production in the first trimester. Indeed, from January to March 2023, total fine gold production was 13,934 tonnes compared to 15,002 tonnes at the end of March 2022, i.e. a decline of 7.1%.
However, the decline in the gold price is offset by the fact that the gold price rose by 2.8% in March 2023 compared to the previous month, reaching 1,908.6 USD. In terms of trimester variation, the average price of an ounce of gold in the first quarter of 2023 shows an increase of 9.2%. “This increase in the price of gold in March 2023 is mainly explained by the use of the yellow metal as a safe haven following the panic in the banking sector caused by the bankruptcy of the American bank (Silicon Valley Bank) on 10 March 2023,” according to the GDEP.
Gold is trading in US dollars. The US dollar is trading at 612.8 CFA francs in March 2023 against 612.2 CFA francs in February 2023, a slight appreciation of 0.1%.
Elie KABORE
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