WGC: Higher Gold Prices Eased Margin Pressure on Producers

SEATTLE (Scrap Monster): The global average all-in sustaining costs (AISC) of gold miners recorded marginal surge during Q4 last year, said a latest report published by the World Gold Council (WGC).

The average AISC edged higher to $1,342 per ounce during the quarter, slightly higher by 2% upon comparison with the prior quarter. This is despite cost inflation and tight labour market conditions continuing to impact operating costs.

The average AISC for North America stood at $1,522 per ounce in Q4 2023, marginally higher by 2% over the quarter. This was the highest among all regions. The costs extended its rising trend that began in 2017. The average AISC margin for the region recorded quarter-on-quarter rise by 4% to $454per ounce. Barrick and Newmont recorded increased AISC at Nevada Gold Mines and Penasquito mine respectively.

According to the report, the AISC for the Oceania region rose 1% over the prior quarter to $1,132 per ounce. This resulted in an average AISC margin of $692 per ounce, significantly higher by 7% q-o-q.

South America’s average AISC extended decline in Q4 2023, falling by 3% over the previous quarter to $1,372 per ounce. This led to an average AISC margin of $604 per ounce during the quarter.

The costs, and subsequently margins, are likely to remain under pressure in the near term,