WGC: Gold Mining AISC Hits Record $1,930/oz in Q2 2026
Gold | 2026-11-11 05:52:24
Sustaining capital expenditure emerged as the biggest contributor to rising production costs, rising 34% from the previous quarter to $441 per ounce.
By Paul Ploumis
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.
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What is the biggest factor driving the increase in global gold production costs in Q2 2026?
Frequently Asked Questions
- What was the average All-In Sustaining Cost (AISC) of gold production in Q2 2026?
The average AISC of global gold producers reached a record $1,930 per ounce in Q2 2026, marking an 8% increase from the previous quarter and a 22% rise compared with the corresponding quarter of 2025.
- What were the main factors behind the increase in gold mining costs?
Higher sustaining capital expenditure was the biggest contributor to rising production costs. Increased labour and diesel expenses, supply-chain constraints and operational disruptions also added to miners' cost burdens. Sustaining capital expenditure alone rose 34% quarter-on-quarter to $441 per ounce.
- How did declining gold prices affect gold miners' profit margins?
The average gold price fell 7.2% quarter-on-quarter to $4,512 per ounce. This resulted in a 16% contraction in average AISC margins to $2,582 per ounce. Despite the decline, margins remained historically elevated.