All-In Sustaining Costs Explained: Why Gold Price Is Not Margin

AISC shows what it costs to keep a gold mine running. It leaves out taxes, interest and growth capital. A worked look at Q2 2026 numbers.

Key takeaways

All-in sustaining cost measures what it takes to keep an existing gold mine producing and was introduced by the World Gold Council in June 2013.
AISC excludes income and mining taxes, interest, non-sustaining growth capital, growth exploration, dividends and share buybacks.
In Q2 2026, Agnico Eagle reported AISC of US$1,459 per ounce against a realized gold price of US$4,483.

All-in sustaining cost, or AISC, is the most quoted cost number in gold mining. It covers what it costs to keep an existing mine running at its current rate. It does not cover taxes, interest, or the capital to build new mines, so the gap between the gold price and AISC is not what a miner keeps.

Where AISC comes from and what it covers

The World Gold Council (WGC) introduced AISC in June 2013 in a guidance note written with its member mining companies. It updated the note in November 2018, with companies expected to apply the update from January 1, 2019. Before 2013, miners mostly reported “cash costs,” which left out much of the spending needed to sustain production.

AISC is a non-GAAP measure. It is not defined by IFRS or US accounting rules, and each company is responsible for its own calculation. The WGC encourages companies to reconcile it to their audited financial statements.

What goes in, and what stays out

Under the WGC guidance, AISC per ounce starts with the cost of running the mine and adds the spending needed to keep it producing:

On-site mining, processing, and site administration costs
Royalties and production taxes
Community and permitting costs tied to current operations
Third-party smelting, refining, and transport
Corporate general and administrative costs
Reclamation accretion and amortization for operating sites
Sustaining exploration, sustaining capitalized stripping and underground development, and sustaining capital expenditure
Minus by-product credits, such as copper or silver sold alongside the gold

What stays out matters as much. AISC excludes:

Income and mining taxes
Interest on debt
Non-sustaining capital, meaning new mines and major expansions that would materially increase production
Growth exploration and study costs
Dividends and share buybacks

The WGC also defines a broader “all-in cost” that adds the non-sustaining items back. Few investors quote it, and fewer companies lead with it.

Q2 2026: what the big producers reported

Three of the largest gold producers reported second quarter 2026 results in July and August. The margin column is simple subtraction: realized gold price minus AISC per ounce.

Company	Realized gold price (US$/oz)	AISC (US$/oz)	Price minus AISC	As % of price
Agnico Eagle	4,483	1,459	3,024	67.5%
Newmont	4,414	1,621	2,793	63.3%
Barrick	4,417	1,866	2,551	57.8%

Those are wide spreads. Barrick’s AISC was up 11% from the second quarter of 2025, and Agnico Eagle’s rose from $1,281 a year earlier (restated). Costs are climbing, just more slowly than the price did.

The measures are not fully comparable. Agnico Eagle reports AISC per ounce produced. Barrick reports per ounce sold, on an attributable basis. Newmont quotes a gold by-product figure. Each uses its own treatment of by-products and non-controlling interests.

The math: rebuilding Barrick’s AISC

Barrick’s second quarter release includes a full reconciliation. In US$ millions:

Line item	Q2 2026 (US$ millions)
Total cash costs	1,141
General and administrative	31
Minesite exploration and evaluation	4
Minesite sustaining capital	500
Sustaining leases	2
Rehabilitation accretion and amortization	17
Non-controlling interest, copper operations and other	(201)
All-in sustaining costs	1,494

Divide $1,494 million by 801,000 attributable ounces sold and you get about $1,865 per ounce. Barrick reports $1,866, and the gap is rounding. Sustaining capital, at $500 million, was the largest item after cash costs, roughly $624 per ounce.

The same table shows why cash costs understate the bill. Barrick’s total cash costs were $1,426 per ounce. The extra $440 per ounce to reach AISC is mostly sustaining capital, the spending needed to keep existing mines producing at their current rate. Also note that Barrick’s realized price of $4,417 was below the $4,506 average market price for the quarter, so the margin math should start from realized price.

Barrick notes that project capital is not included in AISC. Neither are taxes. That is where the gap between AISC margin and cash in hand opens up.

Taxes, one example. Agnico Eagle’s 2026 guidance calls for cash taxes of $3.4 billion to $3.6 billion on production of 3.3 million to 3.5 million ounces. At the midpoints, $3.5 billion divided by 3.4 million ounces is about $1,029 per ounce. That is on top of AISC. The company also guides to total 2026 capital expenditure, including capitalized exploration, of $2.9 billion to $3.2 billion, part of which is growth spending outside AISC.

So Agnico Eagle’s $3,024 per ounce AISC margin for the quarter is a starting point. After a tax bill of roughly $1,000 an ounce at guidance midpoints, and before growth capital, interest, and dividends, the remaining cash per ounce is much smaller.

Why AISC moves with the gold price

AISC is not a fixed cost. Royalties and production taxes are usually a percentage of revenue, so they rise with the gold price. Barrick said its higher second quarter cost of sales was partly due to “higher royalties associated with the stronger realized gold price,” along with lower grades and higher fuel costs. Barrick’s 2026 AISC guidance of $1,760 to $1,950 per ounce assumes a gold price of $4,500.

By-product credits work the other way. A mine that also sells copper reports lower gold AISC when copper prices rise, even if nothing changed at the mine.

A quick screen for any AISC figure: check whether it is per ounce produced or sold, whether by-products are credited, what gold price the guidance assumes, and how large sustaining capital is relative to depreciation.

What to watch

Third quarter 2026 results from the large producers, and whether AISC tracks inside full-year guidance: Agnico Eagle $1,400 to $1,550, Barrick $1,760 to $1,950.
The split between sustaining and growth capital in each company’s reconciliation tables.
Changes in how companies define AISC. Agnico Eagle revised its method for periods from January 1, 2026, and restated 2025 figures.
Royalty and tax changes in producing countries, which flow straight into AISC.

Sources

Frequently asked questions

What does all-in sustaining cost include?

Under World Gold Council guidance, AISC starts with on-site mining, processing and site administration costs, then adds royalties and production taxes, refining and transport, corporate general and administrative costs, reclamation, sustaining exploration and sustaining capital. By-product credits, such as copper or silver sold alongside gold, are subtracted. It is a non-GAAP measure each company calculates itself.

Is gold price minus AISC a miner’s profit?

No. AISC leaves out income and mining taxes, interest on debt, growth capital for new mines or major expansions, and dividends. For example, Agnico Eagle’s 2026 guidance implies cash taxes of about US$1,029 per ounce at the midpoints, on top of AISC. The gap between gold price and AISC is a starting point, not the cash a miner keeps.

Why does AISC rise when the gold price rises?

Royalties and production taxes are usually a percentage of revenue, so they increase with the gold price. Barrick said its higher Q2 2026 cost of sales was partly due to higher royalties tied to a stronger realized gold price. By-product credits work the other way: higher copper prices can lower a mine’s reported gold AISC even if nothing changed at the mine.