Gold miners brace for mixed third-quarter results as falling prices squeeze margins - Proactive Investors

AI desk brief

Gold miners head into Q3 earnings with another quarter of margin compression as realised prices fell 6% q/q to $4,266/oz and silver dropped about 14%, while elevated energy costs kept pressure on operating margins, RBC Capital Markets said. RBC expects modest production improvement as second-half ramp-ups come through, with AISC set to ease slightly on higher volumes and fixed-cost leverage, but warned that execution risk is elevated into year-end, with several names skewed to Q4 delivery.

The bigger concern is 2027 budgeting: RBC sees AISC rising 4% and capex up 16% next year versus consensus at 0% and 8%, reflecting higher energy and labour costs, reserve-price changes and grade declines. M&A also picked up in the quarter, while current sector valuations of 1.1x P/NAV and about 6x 2026-27 EV/EBITDA imply the medium-term gold outlook remains constructive even as near-term reporting risk skews downside.