Gold miners warn of higher costs as diesel prices bite - AFR

AI desk brief

Western Australia’s gold miners are facing sharply higher operating costs, with Regis Resources saying unit costs rose almost 30% between the March and September quarters to more than A$3,600/oz, driven partly by higher diesel prices and heavy rainfall that also hit production. The piece underscores margin compression even after an extended run of historically high bullion prices that had boosted cash generation and deal activity.

For the sector, the key risk is that elevated fuel costs and weather-related disruption could keep squeezing lower- and mid-tier producers, limiting near-term output growth even as gold prices remain strong.