Gold Prices Outpace Rising Mining Costs in Q1'26
The World Gold Council (WGC) has released a report showing that gold prices outpaced rising mining costs in Q1'26, generating record margins and cash flows for producers.
Global average gold producer All-In Sustaining Costs (AISC) rose by 5 per cent quarter-on-quarter and 16 per cent year-on-year to USD 1,785 per ounce during the first quarter of 2026.
The report highlighted that escalating royalty payments served as the primary cost driver for the quarter, increasing by 24 per cent quarter-on-quarter and 85 per cent year-on-year. This surge in royalty payments doubled their share from approximately 6 per cent of AISC in Q1'21 to 12 per cent of the average operation's cost base in Q1'26.
Newmont returned USD 2.7bn to shareholders after generating its highest ever quarterly free cash flow (FCF) of USD 3.1bn and has approved an additional USD 6.0bn share buyback programme.