Data from the World Gold Council and Metals Focus shows that in the first quarter of 2026, the global average AISC (AISC profit margin) for gold mines rose 16% year-on-year to $1,785 per ounce. However, the average gold price rose 70% during the same period, driving AISC profit margins to a new high of $3,076 per ounce, a year-on-year increase of 134% and a quarter-on-quarter increase of 25%. The rise in gold prices coupled with slower cost increases will amplify mining companies' cash flow more quickly through operating leverage: Newmont's free cash flow reached a record $3.1 billion in the first quarter, returning $2.7 billion to shareholders. (Here, "profit margin" refers to the gold price minus the cost required to maintain current production levels, and is not equivalent to the company's net profit; the chart also shows the cumulative increase after the end of March 2024 as 100, not a leading indicator.)
