؛TD Cowen Analysts Warn Surge in Energy Costs Could Halt Mining Profit Margin Growth

Fuel Price Spike Puts Pressure on Mining Profitability

TD Cowen analysts warned in March 2026 that a sharp increase in energy prices could put pressure on mining companies' profit margins, with All-In Sustaining Costs (AISC) potentially rising by 15% and All-In Costs (AIC) surging by 22% year-over-year. Rising diesel prices have pushed up extraction and mineral transportation costs; however, elevated commodity prices have helped offset part of this pressure. For example, despite a 17% increase in gold production costs between 2025 and 2026, Barrick Mining reported an adjusted operating profit of $2.5 billion in Q2 2026, up 51% from the same period.