UBS said recent updates from Australian gold miners focused on FY2026 production
and cash performance and were broadly ahead of its expectations. The bank said
it has yet to see FY2027 guidance and, given high input prices, the Middle East
conflict and persistent industry inflation, market cost expectations remain too
low. UBS expects FY2027 industry all-in sustaining costs (AISC) to rise about
A$150/oz and said cost inflation will be a key theme in upcoming annual
guidance. UBS continues to favour Newmont and Capricorn Metals for high-quality,
defensive exposure and stronger margins.
