Platinum emerged as the best performing precious metal for the week despite declining 1.44%, while silver posted the worst performance with a 6.36% drop. Gold rose on Tuesday and Wednesday after cooler-than-expected US inflation data eased concerns that the Federal Reserve would need to raise interest rates soon to curb price pressures. Fed Chair Kevin Warsh downplayed the inflation data during his testimony before Congress on Tuesday, saying he did not want to read too much into a single data point, according to Bloomberg. The moves occurred as gold fell 24% since January to US$4,017 an ounce, pressuring mining company margins and prompting strategic consolidation across the sector. Mining companies reported mixed quarterly results while navigating regulatory uncertainty in Ghana and rising operating costs driven by higher fuel prices.
Platinum and Gold Rise After US Inflation Data
Platinum was the best performing precious metal for the week, declining 1.44%. Gold rose on Tuesday and Wednesday following cooler-than-expected US inflation data. Fed Chair Kevin Warsh testified before Congress on Tuesday, stating he did not want to read too much into a single data point, according to Bloomberg. Gold has fallen 24% since January to US$4,017 an ounce.
Mining Companies Report Mixed Quarterly Production
Evolution Mining's 4QFY26 results missed CLSA's forecasts, with group gold production of 180,000 ounces, 7% below consensus. Cowal was the main drag, impacted by poor weather and an additional mill shutdown, while Red Lake and Mungari also underperformed.
Wesdome produced 43,800 ounces in Q2 2026, slightly below the consensus estimate of 46,000 ounces. Eagle River had a weaker quarter due to planned stope sequencing, partially offset by Kiena, which exceeded expectations on both grade and throughput. Management continues to guide to a second half weighted production profile.
Orezone reported 2026 production of 59,000 ounces, below Raymond James' estimate of 64,000 ounces, due to lower grades at both Bomboré and Casa Berardi. Bomboré in Burkina Faso produced 76,000 ounces in the first half of 2026, while Casa Berardi produced 21,000 ounces during its second quarter ramp up. The company maintained 2026 production guidance of 160,000 to 180,000 ounces at an AISC of US$2,100 to US$2,300 per ounce.
Rox Resources' Youanmi Gold Project in Western Australia is now fully permitted after receiving the Works Approval for the processing plant, tailings storage facility, power station, and associated infrastructure. The approval is the final major environmental approval required for development and marks another significant milestone as the project advances toward first gold production in mid 2027, according to Canaccord.
Genesis Minerals and Vault Minerals Announce $12.6 Billion Merger
Genesis Minerals will scrap or defer hundreds of millions of dollars in infrastructure spending, including a $280 million Leonora mill, following its $12.6 billion merger with Vault Minerals. Executive Chairman Raleigh Finlayson said the merger will deliver close to $2 billion in synergies over 10 years and make the group more resilient. The deal was effectively secured after rival bidder Regis Resources declined to make a counteroffer. Finlayson is targeting completion by November, with analysts expecting divestments outside the Leonora district. The market has responded positively, with Genesis holding above its 50 day moving average for most of the week before slipping below it on Friday as gold and silver prices weakened.
Ghana Proposes Mining Lease Renewal Limits
Gold Fields sold off sharply after reports that the Ghanaian government could transfer control of the Tarkwa mine to a local company when the lease expires in April 2027. The stock has underperformed its peers by about 10% year to date. Based on this underperformance and Gold Fields' lower valuation, JPMorgan estimates the market is assigning little to no value to the company's Ghana operations, which it values at approximately US$5 billion.
The latest proposed mining legislation would limit mining lease renewals to a maximum of 10 years and reduce existing 30-year leases to 20 years. According to the source, unless companies can fully mine and develop an ore body within 10 years, the changes are likely to discourage new capital investment.
Scotiabank Forecasts 6% to 9% Cost Increase for Gold Miners
Scotiabank expects gold mining costs to increase 6% to 9% quarter over quarter, driven largely by higher fuel prices, with margins expected to decline quarter over quarter but remain higher year over year. All in sustaining costs are forecast to rise 9% quarter over quarter, with fuel accounting for 21% of 2026 cost structures. According to Scotiabank, every US$10 per barrel increase in oil prices adds approximately US$20 per ounce to costs.
Gold equities remain inexpensive relative to bullion, with companies now holding strong net cash positions, generating robust free cash flow, and likely to increase capital returns, according to Scotiabank. Bank of America noted that free cash flow for mid tier and major gold producers has increased tenfold since 2020 and expects this trend to continue through 2027, supported by its gold price forecast. Fidelity International said this week it plans to rebuild the gold positions it reduced earlier this year, citing confidence in bullion's long term fundamentals.
Predictive Discovery said it will invest approximately US$10 million in West Africa focused explorer Awalé Resources for an undiluted stake of about 12%, before the potential exercise of participation rights held by certain existing Awalé shareholders, according to Alliance News.
According to Morgan Stanley, the PGM sector has underperformed the gold sector since the Iran conflict. The bank attributes this to greater operating leverage, as PGM sector margins have been lower than the elevated margins in the gold sector, a weaker industrial demand outlook for PGMs, and broader macroeconomic headwinds.
FAQ
What did Fed Chair Kevin Warsh say about US inflation data?
Fed Chair Kevin Warsh downplayed the inflation data during his testimony before Congress on Tuesday, saying he did not want to read too much into a single data point, according to Bloomberg.
Why did Genesis Minerals defer infrastructure spending after the Vault merger?
Genesis Minerals will scrap or defer hundreds of millions of dollars in infrastructure spending, including a $280 million Leonora mill, following its $12.6 billion merger with Vault Minerals. Executive Chairman Raleigh Finlayson said the merger will deliver close to $2 billion in synergies over 10 years.
How much will gold mining costs increase according to Scotiabank?
Scotiabank expects gold mining costs to increase 6% to 9% quarter over quarter, driven largely by higher fuel prices. All in sustaining costs are forecast to rise 9% quarter over quarter, with fuel accounting for 21% of 2026 cost structures.
