The world’s top gold mining executives see cost pressures sticking around into next year, adding to industry headwinds fueled by economic and political uncertainty, supply-chain disruptions and surging interest rates.
Wednesday is the final day of the Denver Gold Forum, with the 34th annual event wrapping up just as the US Federal Reserve is expected to deliver another outsized rate hike to rein in inflation. Investors attending the Colorado gathering privately admit they feel depressed at the level where gold equities and prices are trading, though they also accept that the near-term outlook remains challenging in the face of a stronger dollar.
Rising costs are plaguing mining companies and their operations around the world. South Africa’s Gold Fields has been dealing with high labor costs that are driving up costs in Australia, where the company has nine operating mines, according to CEO. While he has seen a cooling of fuel prices, other components key to mining, including explosives and reagents, haven’t come down yet thanks to persistent inflation.