The production costs of 11 major gold miners rose quarter over quarter in the fourth quarter of 2023, according to an S&P Global Market Intelligence analysis.

The weighted-average mean of the miners' all-in sustaining costs (AISC) rose 3.3% quarter over quarter to $1,345 per ounce of gold, and the median AISC climbed 4.6% to $1,328/oz. The analysis covered miners with an attributable production of above 500,000 ounces in 2023.

The weighted-average mean profit margin of analyzed gold miners was 30.2% in the December 2023 quarter, slightly lower than the previous quarter.

Production costs set to fall after 2024

Three of the world's biggest gold miners, Newmont Corp., Barrick Gold Corp. and Agnico Eagle Mines Ltd., all booked higher AISC during the December 2023 quarter.

Barrick Gold reported the largest quarter-over-quarter increase in AISC, up 8.7% to $1,364/oz. Newmont's AISC increased 4.1% to $1,485/oz, while Agnico Eagle Mines' AISC increased 1.4% to $1,227/oz.

Barrick Gold expects gold per ounce costs to be flat in 2024 compared with 2023 and then start declining in line with increasing production, CEO Mark Bristow told analysts on a Feb. 14 earnings call.

Energy, including indirect impacts on reagents and other consumables, was the key cost driver, accounting for roughly half of AISC, Graham Shuttleworth, CFO of Barrick Gold, said on the call. The miner expects these costs to decline as Brent oil prices fall from $85 per barrel to about $75/b beyond 2024.

S&P Global Commodity Insights projects average AISC for primary gold operations to drop by 4% in 2024 to an average of $1,218/oz, the first decline since 2016. Increased average gold grades and higher recoveries will help the overall cost profile of gold miners in 2024, with about 3% of the cost curve operating above the consensus gold price, according to Commodity Insights.

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Endeavour Mining Corp. was the lowest-cost miner among the 11 analyzed companies, with an AISC of $936/oz, followed by Evolution Mining Ltd. at $1,054/oz and Northern Star Resources Ltd. at $1,188/oz.

Equinox Gold Corp. has the highest AISC at $1,657/oz of gold, followed by Newmont and Pan American Silver Corp. at $1,411/oz.

Northern Star Resources had the biggest percentage decline in AISC at 6.4% quarter over quarter, followed by Endeavour Mining PLC of 3.2% and Pan American Silver Corp. of 2.8%.