Business & Finance
Agnico Eagle (AEM) Flags Diesel Risk to Gold Output Costs Next Year
Key Points
World’s No. 2 Gold Miner Says Diesel Risks Driving Up 2027 Costs Agnico Eagle Mines Ltd. warned that rising diesel prices risk raising the cost of producing gold by as much as $80 per ounce next year, signaling mounting inflationary pressures for the mining industry. The world’s second-biggest gold producer expects elevated diesel prices to add about $50 to $60 an ounce to its costs in the fourth quarter, up from roughly $30 an ounce in the prior period, Chief Financial Officer Jamie Porter...
World’s No. 2 Gold Miner Says Diesel Risks Driving Up 2027 Costs
Agnico Eagle Mines Ltd. warned that rising diesel prices risk raising the cost of producing gold by as much as $80 per ounce next year, signaling mounting inflationary pressures for the mining industry.
The world’s second-biggest gold producer expects elevated diesel prices to add about $50 to $60 an ounce to its costs in the fourth quarter, up from roughly $30 an ounce in the prior period, Chief Financial Officer Jamie Porter said during a call with analysts Thursday. Miners rely heavily on the fuel to power trucks and other equipment.