Agnico Eagle flags diesel-driven rise in gold production costs - Mining.com.au

AI desk brief

Agnico Eagle warned that higher diesel prices could lift gold production costs by US$50–60/oz in Q4, up from US$30/oz previously, with diesel, sulphur and sulphuric acid costs rising on supply disruptions tied to the Middle East conflict. The company said diesel makes up about 11% of operating costs and it has hedged some fuel needs, but it remains exposed if energy prices stay elevated.

Agnico also flagged tariff-related pressure of about US$5/oz from US-Canada trade tensions, with CFO Jamie Porter saying the impact could rise in 2027 if no trade deal is reached. Third-quarter AISC rose to US$1,648/oz, near the top of 2026 guidance of US$1,400–1,550/oz, while full-year gold output is now expected near the low end of 3.3–3.5Moz.