Foreign ownership of Australian gold mines is on track to rise above 50 per cent. 

A report by Melbourne-based Surbiton Associates reveals that Australia produced 313 tonnes of gold in 2022, worth approximately $26 billion. 

Despite being slightly down from the 315 tonnes in 2021 and the record 327 tonnes in 2020, the output is a dramatic increase from less than 20 tonnes in 1982. 

Surbiton's managing director, Dr Sandra Close, who authored a book documenting the past 40 years of Australia's gold industry, stated that around 9,500 tonnes of gold have been produced over that period.

Corporate activity in the Australian gold sector has increased with changing exchange rates. 

On February 6, Newmont Corporation, a US mining giant, launched an all-scrip bid for Australia's Newcrest Mining worth $24.4 billion. 

However, Newcrest's board rejected the offer on February 16, saying it “did not represent sufficient value”. 

Newmont has been granted access to limited, non-public information on a non-exclusive basis to determine if it can provide an improved proposal for consideration by the board.

Dr Close has warned that if the takeover bid is successful, foreign ownership of Australia's gold industry would increase above 50 per cent. 

She pointed out that in the early 2000s, the control of the Australian gold industry stood at 80 per cent but dropped to just under 30 per cent as overseas gold companies acquired Australian operations. 

Dr Close has stated that changes in exchange rates could see further corporate activity in the Australian gold space amid increasing interest rates worldwide.

According to Surbiton's report, Boddington was Australia's largest producing mine last year, producing 798,000 ounces, followed by Newcrest's Cadia operation (647,790oz) in NSW and Newmont's Tanami operation (484,000oz) in the Northern Territory. 

The Kalgoorlie Super Pit and the Tropicana gold mine rounded out the top five with 469,084oz and 438,665oz respectively.

Finally, Dr Close mentioned that the US dollar gold price fell by US$101 an ounce in February, the sharpest decline in almost two years. 

However, the Australian dollar gold price declined by only $14 an ounce over the same period. The Australian dollar gold price last traded at $2,742 an ounce, while the US dollar gold price was $1,856 an ounce, according to Kitco data.