10:20 AM EDT, 07/10/2024 (MT Newswires) -- Senior precious metal producers are expected to post flat production and flat total cash costs -- quarter over quarter, RBC Capital Markets said in a Wednesday note.

While the second quarter will represent a continuation of seasonally weaker operating results, higher average gold prices are forecast to result in an inflection point for financial results of companies, RBC said.

For senior producers, RBC forecast a 45% increase in earnings quarter over quarter, while free cash flow will mark 2.5-year quarterly highs.

Meanwhile, RBC said all-in sustaining costs (AISC) are projected to rise 1% to $1,455 per ounce, while calculated fully loaded costs would increase by 5% to $1,965/oz, reflecting the impact of rising capital spending at stable production levels, higher cash taxes in the current environment, and slightly higher energy prices.

For the full-year, RBC estimates that senior producer output will decline 1% (excl. the NEM-NCM acquisition impact), while AISC will increase by 4% to $1,421/oz and fully-loaded costs will rise 14% to $1,944/oz.