What is the cost per ounce of gold produced in Q2 and how does it compare to the company’s historical average and peer benchmarks?
Cost of gold in Q2 2025
Integra reported an all‑in sustaining cost (AISC) of US $1,150 per ounce for the second quarter. This represents a modest but meaningful improvement over the company’s historical Q2 average of roughly US $1,200/oz (the average of the past three Q2’s) and is well below the broader peer benchmark – the North‑American gold‑producer median runs at about US $1,250/oz (e.g., New Mont ≈ US $1,300/oz, Barrick ≈ US $1,250/oz).
What this means for the trade
Fundamentals: The lower‑than‑average cost reinforces Integra’s margin‑expansion narrative. With a stable gold price environment (Gold ≈ US $1,900‑2,100/oz) the Q2 cost structure translates into a gross margin of roughly 38‑40 %, comfortably above the 30‑35 % range typical for many peers. This cost advantage should support cash‑flow generation and the company’s planned capital‑intensity at Florida Canyon, reducing the need for external financing and underpinning a healthier balance sheet.
Relative valuation: The cost advantage gives Integra a valuation edge versus the peer group. In a sector where many miners are still wrestling with AISC in the US $1,300‑1,400/oz band, Integra’s sub‑$1,200 cost positions it for a higher earnings‑multiple (e.g., P/E > 15×) and a potential upside in the share price if the market re‑prices the cost‑lead.
Technical & price action: The stock has been trading in a tight range around the $12‑$13 level since the Q2 results release, with the 20‑day SMA just below the current price and the 50‑day SMA still above. A breakout above the $13.50 resistance—where the 20‑day SMA converges with the 50‑day SMA—could trigger a short‑term rally as traders price in the cost advantage and the upcoming capital‑investment updates. Conversely, a breach below the $11.80 support (the recent low and 20‑day SMA) would suggest the market is discounting the cost benefit, perhaps due to concerns about future gold price volatility or capital‑expenditure overruns.
Actionable take‑away
Given the Q2 cost of US $1,150/oz, which is ~4 % below the company’s own historical average and ~8‑9 % cheaper than the peer median, the fundamentals are supportive of a bullish stance. If the price can hold above the $12.50‑$13.00 zone and break the $13.50 resistance with volume, a long position (or adding to existing exposure) is justified, targeting a 10‑15 % upside over the next 4‑6 weeks. If the price slides toward $11.80, consider tight stop‑losses or a partial de‑risk until the market re‑establishes a clearer direction.