Australian Gold "Solid June Q production so far, but Costs & Guidance yet..."

Research evidence excerpt

Australian Gold "Solid June Q production so far, but Costs & Guidance yet..."

Global Research

8 July 2026ab

Australian Gold Equities

AustralasiaSolid June Q production so far, but Costs

& Guidance yet to come Mining & Metals

Levi Spry

Analyst

levi.spry@ubs.com

Pre-releases to date have met FY26 guid. but yet to hear on the FY27 outlook +61-3-9242 6709

Pre-reported results to date have largely focused on production and cash, with Al Harvey

outcomes generally stronger than our forecasts. However, we are yet to see FY27 Analyst

guidance and believe market expectations remain too low on costs, given the impact of al.harvey@ubs.com

high prices, the Middle East conflict and ongoing industry inflation. As previously +61-3-9242 6071

highlighted (link), we forecast sector AISC to increase by ~A$150/oz YoY in FY27 (UBSe Ben Wood

A$2,760/oz vs A$2,610/oz in FY26). We expect cost inflation to be a key theme of FY27 Analyst

guidance, with average AISC across our coverage of A$2,760/oz (+4% above ben.wood@ubs.com

consensus; Figure 2). We continue to favour quality, defensive exposure, with higher- +61-39-242 6709

margin producers such as NEM and CMM better positioned than growth peers facing Thomas Nightingale

rising capex, project delays and permitting challenges. Our preferred names remain Associate Analyst

NEM, GMD, CMM and CYL. On UBSe estimates, the sector trades on FY27 FCF yields of thomas.nightingale@ubs.com

~2–21% and EV/EBITDA multiples of ~2–6x across producers. +61-3-9242 6176

Lachlan Shaw

Quality/defensiveness preferred heading into quarterlies/financials Analyst

Noting pre-reporting is well underway, we present our full quarterly expectations for lachlan.shaw@ubs.com

each stock in the tables below, incorporating reported production/cash figures where +61-3-9242 6387