The opportunity is strong in Australia and beyond.
Gold is considered a counter-cyclical commodity and a safe-haven asset during times of economic uncertainty, created by events such as US-China trade negotiations, the COVID-19 pandemic, and the conflict in Ukraine.​
Increasingly, investors have turned to gold and gold-backed exchange-traded funds as a hedge against high inflation. While higher gold prices have affected the demand for gold from jewelry and electronics manufacturers, gold prices and domestic production volumes are still expected to rise in the near term, driving a 4.4% growth in revenue, according to the 2023 IBISWorld industry report Gold Ore Mining in Australia. ​The industry reached revenues of $27.9 billion by the end of 2023, and profit margins have increased in concert due to continuously rising prices.
However, despite this growth, the impact of rising prices on profitability has been limited by labour shortages and growing input costs. Mining firms have faced consistently rising costs, with average all-in sustaining costs (AISCs) hitting record highs in 2022. Gold producers have faced higher energy prices as well; for example, supply disruptions created by the Russia-Ukraine conflict have caused transport and production costs to increase. These factors have created myriad challenges within the industry.
Founded in 2023, AU Gold was created to address these challenges—both in Australia and globally—by delivering critical operating capital to mine owners so that the full value of in-ground assets can be realised.