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Gold

We believe increasing geopolitical uncertainty and escalating fears of a global slowdown could continue to increase investment demand for gold as a safe-haven asset, providing some support for the price over the near term. However, we maintain our cautious stance on gold’s long-term fundamentals, as it is still trading above its long-term average and is unlikely to outperform in a rising yield environment, in our view.

Renaissance Capital

14 January 2019

Metals & Mining

Gold cost curve (38.4mn oz)

Figure 80: 2017 gold all-in sustaining costs net of by-products, $/oz

1,400

	1,300	Spot price: $1,285/oz*
	1,200
	1,100
$/oz	1,000

Average all-in sustaining costs: $897/oz

900

800
700	620
600	Polyus,
500

Note: Priced as at market close on 4 January 2019.

90th percentile: $1,064/oz

70th percentile: $944/oz

50th percentile: $924/oz

Polymetal, 893

Gold Fields, 944

AngloGold, 1,055

Sibanye, 1,129

Harmony, 1195

Source: Company data, Thomson Reuters

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