PRECIOUS METALS | UBS: Australian Gold Miners Beat Output Expectations, but Cost Risks Persist

UBS said recent updates from Australian gold miners have focused on output and cash performance for fiscal 2026, with results generally stronger than UBS had expected. According to Jin10, UBS said it has not yet seen expectations for fiscal 2027, and it believes the market is still underestimating cost expectations given the impact of high prices, conflict in the Middle East, and ongoing industry inflation. UBS forecast that all-in sustaining costs for Australia’s gold industry will rise by about A$150 per ounce in fiscal 2027, and said cost inflation will be a key theme in upcoming annual guidance. UBS said it remains positive on producers it described as having high-quality, defensive exposure and higher margins, including Newmont and Capricorn Metals.