Gold Prices Outpace Mining Costs, Fuel Record Margins for Miners
The World Gold Council (WGC) reports that gold prices offset a significant increase in mining costs for the first quarter of 2026. Despite rising production expenses, which reached an all-time high of $1,785 per ounce with a year-over-year growth of 16%, record gold prices more than made up for it.
The average price of gold increased by 17% from the previous quarter and a staggering 70% compared to the same period last year. At one point in January, spot prices briefly touched $5,595 per ounce, a new record.
Royalty payments were the biggest contributor to the increase in mining costs during the quarter. These expenses rose by 24% from the previous quarter and 85% compared to the same period last year, accounting for around 12% of the average producer's cost base.