Canada gold output jumps 22% as global supply slips
Growth shows how new operations are adding meaningful volumes while some established mining countries struggle with lower grades and changing mine plans.
In the third quarter, Canadian gold production surged by 22%, driven by new mines like Equinox Gold's Valentine mine and B2Gold's Goose mine, alongside strong performance from existing operations. This growth outpaced global increases, despite rising production costs that pushed the average all-in sustaining cost to a record C$2,698 per ounce in the second quarter, up 22% from the previous year.
Worldwide mine output reached a record 1,071 tonnes, but the overall supply response remained modest due to subdued recycling and a further reduction in producers' outstanding hedges, resulting in a 1% drop in global gold supply to 1,369 tonnes.
Indonesia's gold output climbed 21%, while Chile's production rose 19%, supported by new operations like Salares Norte and Fenix. These gains contrasted with declines in Australia (-12%) and the United States (-7%). Costs rose faster than production, with BMO Capital Markets forecasting annual sustaining costs to average $1,795 per ounce this year, up 16% from 2025 levels.
Central banks, particularly China and Poland, provided significant demand support, with China's purchases extending its accumulation trend. Gold prices averaged $4,262 per ounce in the third quarter, 23% higher than a year earlier, yet sustaining costs remain a concern for producers.
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