Gold stocks went on a bigger roller coaster than gold in 2022. Cost increases combined with lower gold prices caused some companies to miss earnings. The industry guided to cost increases in the five percent range early in the year, however, higher commodities prices brought on by the Ukraine war forced many companies to revise costs higher.
It looks like 2022 costs will average around $1,200 per ounce, up about 10% over 2021. While a couple of companies plan on trimming dividends, most dividends remain intact and stock buybacks have continued along with healthy margins. The recent positive gold price trend along with early indications that costs should remain around current levels bodes well for gold miners in 2023.
MVIS® Global Junior Gold Miners Index
9/1/2022-9/1/2023
Source: MarketVector IndexesTM. All values are rebased to 1,000. Data as of January 9, 2023.
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