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Gold mining output hits records as costs climb to a fresh high
World Gold Council data shows mine production rose 2% year on year to 966 tonnes in Q2, while all-in sustaining costs reached a record $1,785 an ounce in Q1.
Gold prices slipped after a post-Fed bounce, with the Comex continuous contract falling 1.6% to $4,037.86 an ounce by late morning in New York on Friday. December gold, which takes most of the contract volume as the market rolls forward, was down 1.5% at $4,099.50, while September silver fell 2.8% to $57.35 an ounce.
The World Gold Council also pointed to what is happening behind the scenes for producers, saying the world’s gold miners have never produced more, and have never faced higher costs. Mine production rose 2% year on year to 966 tonnes in the second quarter, an all-time high for a June quarter, and first-half output of 1,867 tonnes was also a record.
On costs, industry all-in sustaining costs hit a record $1,785 an ounce in the first quarter, up 5% quarter on quarter and 16% year on year. The council attributed the increase to higher royalties and corporate overheads, adding that a higher gold price can still feed into the cost line through royalties.
The article also flagged that cost pressures may intensify further, with early signs of higher energy prices tied to Middle East conflict risks already showing up at some operations, and a bigger impact expected in later quarters. It noted gold production economics remain strong, with gold averaging $4,872.90 in Q1 implying margins of close to $3,100 an ounce, even as traders cite rate risk and inflation expectations to limit rallies.
Latest closeGold $4,098.60 ▼0.0%|Silver $57.77 ▼1.8%