Gold Miners Feel Pinch as Royalty Payments Surge Amid Bullion Rally

The gold rally has brought both benefits and challenges for miners, particularly in West Africa where royalty payments are surging.

A report by the World Gold Council found that first-quarter 2026 margins hit record highs for miners, but all-in sustaining costs (AISC) jumped 16 percent year-on-year to $1,785 per ounce.

In West Africa, IAMGOLD reported a 220 percent surge in royalty payments at its Essakane mine in Burkina Faso compared with the same period last year, accounting for 35 percent of the operation's total cash costs.

The situation is set to intensify: Ghana introduced a sliding-scale royalty regime on March 10 that allows charges of up to 12 percent when gold prices exceed $4,500 per ounce.