Gold Production Costs Climbed in Q2 2024, Says Metals Focus

SEATTLE (Scrap Monster): The second quarter of this year saw a further increase in the cost of producing gold, according to Sarah Tomilson, Director of Mine Supply at Metals Focus.

The yellow metal's average cash cooperating costs were up nearly 5% from the previous quarter, but down 2% from the previous quarter to $938 per ounce. One of the main causes of the high operating costs, labor, remained high. For example, the mining sector in Australia saw the largest quarterly salary increase of any industry sector in Q2 of this year, according to the Australian Bureau of Statistics.

During the quarter, the all-in sustaining costs (AISC) increased by a little 1% to $1,388 per ounce. In comparison, the AISC saw a significant 6% increase. Over the last two years, the AIS has seen consistent growth. Meanwhile, due mostly to the higher quarterly average gold price in Q2 of this year, the average producer AISC margins rose to $950 per ounce. Higher costs are more than covered by the margins. Because of this, almost 97% of gold producers reported making money during the quarter.

It would be fascinating to observe if the situation persists in Q3 of this year or if the costs eventually begin to decline, the study added.

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