Positive Outlook For Brazilian Gold Production

• Fitch remains positive about Brazilian gold production growth through 2022, expecting it to grow at an average rate of 3.5% y-o-y, on the back of a solid project pipeline.
• Brazil’s long-term gold mining production sector growth will be underpinned by the country’s significant gold reserves and a favorable gold price outlook, encouraging investment in the sector.
• Jair Bolsonaro's administration’s proposal to expand permissible mining territories, coupled with its mining-friendly policy approach, present upside potential to the current forecast. Increased costs related to compliance with environmental regulations and attracting the necessary labor force will be hurdles for miners looking to invest.

(Source: Fitch)