David Finch from Ixios Asset Management discusses the Q2 production numbers in the gold market. He highlights that while the rise in gold price has improved margins for most producers, there were no positive surprises on the cost front. Finch suggests that sustaining capex is cyclical and that the postponement of capex in 2022 and 2023 has led to increasing sustaining costs. He also mentions that currency movements and labor cost inflation in services have impacted costs. The conversation touches on the performance of major producers versus mid-tier producers, the outlook for mergers and acquisitions in the gold space, and the interest from generalist investors in the gold mining sector.
Mining Stock Daily