WGC: Gold Mining AISC Hits Record $1,930/oz in Q2 2026

Gold | 2026-11-11 05:52:24 | By Paul Ploumis

Sustaining capital expenditure emerged as the biggest contributor to rising production costs, rising 34% from the previous quarter to $441 per ounce.

Summary

Gold Production Costs Hit Record High
Global gold miners' average All-In Sustaining Costs (AISC) surged 8% quarter-on-quarter and 22% year-on-year to a record $1,930 per ounce in Q2 2026. Average cash operating costs also increased 6% quarter-on-quarter to $1,215 per ounce.
Rising Capital Expenditure and Operational Disruptions Drive Costs
Sustaining capital expenditure jumped 34% quarter-on-quarter to $441 per ounce, accounting for nearly 23% of total AISC. Higher labour and diesel expenses, supply-chain constraints and operational disruptions further increased costs at several mining operations, including B2Gold's Goose mine and Newmont's Cadia operation.
Declining Gold Prices Squeeze Mining Margins
The average gold price declined 7.2% during the quarter to $4,512 per ounce, reducing average AISC margins by 16% to $2,582 per ounce. The WGC expects persistent inflationary pressures to weigh on margins through the rest of 2026, although stronger gold prices could provide support in 2027.

SEATTLE (Scrap Monster): Global gold producers faced mounting cost pressures during the second quarter of 2026, said a latest report published by the World Gold Council (WGC). The operating expenses and sustaining capital investments peaked, while gold prices continued to decline during the quarter.

According to the report, average All-In Sustaining Costs (AISC) climbed 8% quarter-on-quarter and 22% year-on-year to a record $1,930 per ounce. Average cash operating costs increased 6% quarter-on-quarter to $1,215 per ounce.

Sustaining capital expenditure emerged as the biggest contributor to rising production costs, rising 34% from the previous quarter to $441 per ounce. This accounted for approximately 23% of the industry's total AISC. Higher labour and diesel expenses, supply-chain constraints and operational disruptions added to the overall production cost.

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Several mining operations experienced production setbacks. B2Gold's Goose mine in Canada reported exceptionally high costs following a fire in its crushing circuit, while Newmont faced additional expenses on account of downtime at its Cadia operation in Australia.

The average gold price declined 7.2% during the quarter to $4,512 per ounce, resulting in a reduction of AISC margins by 16% to $2,582 per ounce. Despite the contraction, margins remained historically elevated.

The WGC expects persistent inflationary pressures to impact mining margins through the remainder of 2026, although stronger gold prices could support margins in 2027.