In Q2’22 costs in the gold mining industry continued rising. The average all-in sustaining cost (AISC) reached a new record high of US$1,289/oz, up 3% q/q and 18% y/y. The average industry AISC has now sequentially increased almost every quarter since Q2’20, rising by 33% over this period. This ongoing rise in costs has been driven by inflation of input costs for miners, combined with high gold prices incentivising higher-cost, often lower-grade, production. By Adam Webb, Metals Focus for Gold Hub

In the second episode of Golden Compass, Philip Newman, the Managing Director at Metal Focus joins Money Control to talk about “valuation of gold”. “I think we have seen quite varying trends from that perspective. What we’ve seen more recently, of course, is with the rising inputs of energy costs, we have seen production costs rising more recently”, said Mr Newman. Higher gold prices allow companies to invest more “either in exploration or to perhaps mine areas that are less economic at lower gold prices. So they do tend to move in tandem to some extent.”

Lode is ramping up exploration in the highly prospective but as yet underexplored New England Fold Belt of NSW as silver demand for solar panels was last week forecast to grow by 15% this year according to independent research consultancy Metals Focus. … Metals Focus last week forecast photovoltaic (PV) systems would break installation records this year as the Russia-Ukraine war underscored the need for a fast track to clean energy sources. By Stockhead

In 2022, Metals Focus expects total PGM demand to grow 11%, breaching 12.8Moz. That’s a record high. “For this year, autocatalyst demand will make up 82% of total palladium demand, eclipsed by 90% for rhodium,” Metals Focus says. “Platinum, having a more diverse range of end-uses, will only see 41% of its demand used in autocatalysis, with jewellery, chemicals, then glass making up the bulk of the remainder.” By Reuben Adams for Stockhead

While much of the country continues to be affected by virus curbs and sporadic shutdowns, jewelry demand is improving, particularly ahead of the week-long national holiday at the start of next month, according to consultancy Metals Focus. That in turn could help bolster international prices, which are under the cosh due to rising interest rates around the world. “As the world’s biggest physical market, China’s local demand can lend some support,” analysts for the firm wrote in a note. “Retailers across China have started building stock for the upcoming National Day Holiday.” Ranjeetha Pakiam and Martin Ritchie, Bloomberg News

“We were very bullish on demand this year at the beginning but we have reduced our demand estimates,” said Chirag Sheth, principal consultant at London-based Metals Focus Ltd. The increase in import duties had a short-term impact and inflation and erratic monsoons in many parts of the country could impact rural demand, he said. BySwansy Afonso for Bloomberg News

According to Metals Focus, global renewable energy sector benefited from the ongoing energy crisis, which is especially important in the context of precious metals demand. The consultancy said that photovoltaic (PV) systems are set to break installation records in 2022 as the Russia-Ukraine conflict highlighted the need for a more rapid transition to clean energy. By Vladimir Basov for Kitco News

According to Metals Focus, one of the world’s leading precious metals consultancies, combined scope 1 and 2 GHG emissions from 16 biggest gold miners fell by 1% y/y in 2021 to 27,617 kt carbon dioxide equivalent (CO2e). By Vladimir Basov for Kitco News

A stronger focus on greener and social principles is helping the gold mining industry to lower its impact upon the environment, according to a new report by precious-metals consultancy Metals Focus. According to the report, which covers roughly 30% of global gold production, scope one and two greenhouse gas emissions fell 1% on year in 2021 to 27,617 ktCO2e, with the industry’s largest names such as Newmont Corp. and Barrick Gold Corp. aiming to cut emissions by 30% by 2030. By Yusuf Khan for Market Watch

“If Fed reiterates the fact that inflation is a top priority and will continue hiking until inflation is formally under control … if they continue to be hawkish we could see fresh downside resuming for gold,” Harshal Barot, a senior research consultant for South Asia at Metals Focus, was quoted by Reuters as saying. By Cleofe Maceda for ZAWYA

“Metal Focus is an independent precious metals consultancy that has employees located across the globe. We only focus on analyzing gold, silver and platinum group metals. Our people have decades of experience across all aspects of the precious metals markets. I have been working in the mining industry since 2009, in my early career I worked at mine sites in Australia as a geologist and then later switched to becoming an analyst.” By Paloma Duran for Mexico Business News

“China has gone from a situation where everything was closed to things are back to semi-normality,” said Nikos Kavalis, a managing director at consultancy Metals Focus Ltd. “The market’s still not great, but it’s definitely a lot better than it was in April.” By BullionVault

“One of the key reasons for the decline in [London] silver stocks has been the recovery in the Indian market,” says specialist consultancy Metals Focus. “Our research suggests that this could signal a revival in India’s investment demand, which has been subdued over the last two years…[after] the pandemic had a pronounced impact [by] pushing the economy into recession for the first time in four decades. By BullionVault

Silver vault holdings in London hit 997Moz (31,023t) at the end of Q2, which was the lowest total since November 2016. It also stands in sharp contrast to the record reporting high of 1,180Moz (36,705t), which occurred in June 2021, Metals Focus says. “This represents a drop of 15% or 183Moz (5,683t),” it says. “This in turn reflects the ongoing strength of physical silver demand. That may sound counterintuitive, given how the silver price has performed recently, but in our view this is the result of a mix of quite different drivers.” By Reuben Adams for Stockhead

“Mexico’s mining industry remains very attractive to investors despite the challenges. First of all, because it is a consolidated industry with years of experience and knowledge. Second, as a result of this, there are highly trained people who understand how to work efficiently from construction to mine operation. Third, the mineralogy of the country is excellent as it has very large and rich mineral deposits. These characteristics will allow Mexico to remain one of the most attractive investment jurisdictions,” Adam Webb, Director of Mine Supply, Metal Focus, told MBN. By Paloma Duran for Mexico Business News

In Q1’22, all-in sustaining costs (AISC) increased by 9% q-o-q to reach US$1,232/oz – their highest level on record back to 2012. This was primarily driven by inflation of miners’ local input costs such a diesel prices, electricity tariffs, wage rates and consumable prices. by Adam Webb for Goldhub