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G Mining lifts gold cost forecast on labor inflation and higher royalties
The updated guidance raises total cash costs to $836-$965 per ounce sold and pegs AISC at $1,330-$1,544 per ounce.
South America-focused gold producer G Mining Ventures said its operating expenses will be about 12% higher this year, citing labor-cost inflation and increased royalty payments. The company updated its cost outlook even after reporting a second-quarter financial result that it described as better than expected.
G Mining raised its total cash costs forecast to a range of $836 (C$1,179) to $965 per ounce sold, compared with the prior target of $736-$865. It also increased all-in sustaining costs to $1,330-$1,544 per ounce, up from $1,230-$1,444 previously.
The company reaffirmed its 2026 production target of 160,000 to 190,000 ounces of gold, with about 61% of annual output expected in the second half. G Mining said the ramp reflects mining progress into higher-grade mineralization at its Tocantinzinho mine in Brazil, which entered commercial production in September 2024.
Shares fell after the guidance update, dropping 4.2% to C$47.72 in Toronto, valuing the company at about C$14 billion, as it released the forecasts alongside second-quarter results. Mining.com noted that analysts said the earnings beat was overshadowed by the roughly $100 per ounce cost guidance revision.
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