Cadia East in New South Wales produced 192,024 ounces of gold in the March quarter, while Boddington in Western Australia delivered 189,000oz, according to data from Surbiton Associates.

Production at Cadia is expected to increase further, while Boddington has been continually improving.

Newmont and Barrick Gold’s Super Pit delivered 178,000oz gold for the quarter, while Newcrest’s Telfer produced 109,668oz and Newmont’s Tanami produced 104,000oz.

Overall, Australian gold production dropped slightly in the March quarter to 71 tonnes, a 2% decline from the December quarter.

But output was 4% higher than the same time last year.

Surbiton director Dr Sandra Close said the average grade of ore treated had declined during the quarter.

“This is not unexpected, as the gold price in Australian dollar terms has increased, due a recovery in the US dollar price of gold and a weakening of the Australian dollar,” she said.

“Many mine operators have the flexibility to trim their grades and still make a reasonable profit.”

The March quarter was characterised by higher average prices – reaching $A1750 an ounce in February.

As a result, there was an increase in hedging during the March quarter, with larger miners like Newcrest and Evolution Mining getting in on the action.

“In the past, some producers avoided ‘hedging’ – options and forward sales – like the plague,” Close said.

“At last more and more now realise that selling part of their gold output forward or using options, are legitimate and rational means of risk management and of securing future revenues.”

The Australian dollar hit more than $1760/oz this month, but is back at $1685/oz today as talk of a US rate rise weighs on the price.

US dollar gold is currently at around $US1215/oz.

“From a strategic perspective, we think gold is already starting to offer reasonable value at these lower levels and any further weakness would serve as a good buying opportunity,” UBS said on Friday.