Global gold mining costs rose by 8% in the second quarter since the beginning of the year and reached a record high, the World Gold Council (WGC) said on Tuesday.
"The balance between gold prices and mining costs shifted in Q2’26. After an exceptional opening quarter, lower gold prices coincided with another increase in costs, putting margins under pressure. Global average gold producer All-In Sustaining Costs (AISC) rose by 8% q/q [quarter-on-quarter] and 22% y/y [year-on-year] to a record US$1,930/oz," the WGC said. All-In Sustaining Costs is an indicator reflecting the total costs of a gold mining company to extract one troy ounce of gold and maintain the current level of production in the long term, meaning it includes both fixed and variable costs. According to analysts, the rise in costs has been recorded for the 29th consecutive year, underscoring the sustained nature of inflationary pressure on expenses. Analysts forecast that high fuel procurement costs, ongoing supply chain issues, and inflationary pressure will contribute to further growth in gold mining costs. The last recorded quarter of cost growth coincided with a decline in gold prices, which put additional pressure on profitability. This creates preconditions for a further reduction in mining profitability in the remaining part of the year, the WGC said.
MOSCOW (Sputnik) - Global gold mining costs rose by 8% in the second quarter since the beginning of the year and reached a record high, the World Gold Council (WGC) said on Tuesday.
All-In Sustaining Costs is an indicator reflecting the total costs of a gold mining company to extract one troy ounce of gold and maintain the current level of production in the long term, meaning it includes both fixed and variable costs.
According to analysts, the rise in costs has been recorded for the 29th consecutive year, underscoring the sustained nature of inflationary pressure on expenses. Analysts forecast that high fuel procurement costs, ongoing supply chain issues, and inflationary pressure will contribute to further growth in gold mining costs.
The last recorded quarter of cost growth coincided with a decline in gold prices, which put additional pressure on profitability. This creates preconditions for a further reduction in mining profitability in the remaining part of the year, the WGC said.
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