UBS: Australian Gold Miners Deliver Strong Production Results, but Cost Concerns Persist

According to Golden Ten Data on July 9, UBS stated that recent updates from Australian gold miners have mainly focused on output and cash performance for fiscal year 2026, with results generally exceeding UBS expectations. "However, we have not yet seen forecasts for fiscal year 2027, and considering the impact of high prices, Middle East conflicts, and ongoing industry inflation, we believe the market's cost expectations remain too low," said UBS. The bank anticipates that the all-in sustaining costs for Australia's gold industry in fiscal year 2027 will rise by about AUD 150 per ounce, with cost inflation set to become a key theme in the forthcoming annual outlooks. UBS added that it remains optimistic about producers such as Newmont and Capricorn Metals, which possess "high-quality, defensive exposures and relatively higher margins".