Diesel price surge putting mining profits to test: cost control lessons for planners - Geomechanics.io

AI desk brief

Soaring diesel prices tied to Strait of Hormuz energy disruptions are lifting mining costs sharply, with TD Cowen projecting a 15% YoY rise in AISC and 22% higher all-in costs. The piece says Antofagasta lifted copper cash cost guidance to $2.60–$2.70/lb, while Capstone’s Mantos Blancos C1 costs jumped 88% to $3.93/lb, including about $0.34/lb from diesel.

For gold, Barrick’s production cost rose 17% but Q2 2026 EBITDA still increased 51% to $2.55bn on record bullion prices. The article also cites Newmont’s estimate that every $10/bbl increase in oil adds $110m, or $21/oz, to costs, and notes WGC data showing diesel prices up 54% in the US and nearly 100% in Australia.