Gold Miners’ Costs Surged to Hit Fresh Peak in Q3

SEATTLE (Scrap Monster): The average all-in sustaining costs (AISC) in the gold mining industry recorded marginal increase by 1% during third quarter to hit record level of $1,289 per ounce. This is the third consecutive quarter that the gold miners’ costs have witnessed increase quarter-on-quarter. Upon comparison with the corresponding quarter a year before, the AISC stands 14% higher, said the World Gold Council (WGC) in its latest report published yesterday.

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The gold trade body noted that almost all input costs for miners have inflated, thus leading to significant rise in costs. There has been a phenomenal jump in wage rates, mainly due to shortage of labour. The diesel and electricity prices have spiralled, especially after Russia-Ukraine war. Alongside, the rise in ammonium nitrate prices have send prices of consumables such as cyanide and explosives to new heights.

The rising mining costs have resulted in halt in production at high cost mines. For instance, PureGold in Canada and Beatons Creek in Australia have been placed into care and maintenance.

Meantime, the rate of rise in mining costs has slowed during Q3 this year. It must be noted that the costs had surged higher by 4% in the prior quarter. Looking ahead, WGC expects the average AISC to remain high in the near term.