AIG Realized Commodity Prices 2026
American International Group Inc Pricing Power & Price Realization Analysis
Realized Price
$2035
per ounce
Spot Price
$2050
per ounce
Premium/Discount
-0.7%
Net Realized
$2020
after TCs
Price Realization Breakdown
Gross Realized Price
$2035/oz
Discount of $15 vs spot
Price before treatment charges and refining costs
Spot Benchmark Price
$2050/oz
London PM Fix / LBMA
Market reference price for gold transactions
Treatment Charges
-$15/oz
Smelting & refining costs
Charges for processing concentrate to pure metal
Net Realized Price
$2020/oz
After all deductions
Actual revenue per ounce sold
Factors Affecting Realized Prices
Hedge Book Positions
Forward sales contracts and derivatives lock in future prices. While providing revenue certainty, hedges can result in below-spot realization if gold prices rise significantly. Companies report hedge positions quarterly - check mark-to-market values and roll-forward schedules.
Product Quality & Purity
Gold purity (fineness) affects pricing. London Good Delivery bars (99.5% pure minimum) are standard. Higher purity (99.99% "four nines") may command small premiums. Doré bars (unrefined gold-silver alloy) face refining charges. Silver by-product credits offset some costs.
Treatment & Refining Charges
TCs/RCs vary based on concentrate market conditions. Tight concentrate supply (high demand for smelter capacity) results in lower charges, benefiting miners. Oversupply increases charges. Benchmark negotiations occur annually. Integrated producers with own refineries avoid external charges entirely.
Sales Contract Terms
Pricing mechanisms in sales contracts affect realization: quotational periods (month of shipment, arrival, or average), provisional pricing subject to final adjustment, fixed-price contracts, or spot-based pricing. Longer quotational periods increase price volatility exposure.
Revenue at Different Spot Prices
Spot: $1800
$1772
net realized/oz
Spot: $1950
$1921
net realized/oz
Spot: $2150
$2119
net realized/oz
Spot: $2300
$2268
net realized/oz
Get Complete AIG Pricing Analysis
Access detailed realized prices, hedge book positions, quality premiums, and AI-powered pricing insights
Frequently Asked Questions
What is AIG's realized gold price?
AIG (American International Group Inc) achieved a realized gold price of $2035 per ounce, compared to the spot gold price of $2050/oz. This represents a discount of 0.7% versus benchmark pricing. Realized prices differ from spot due to timing (hedge positions), quality adjustments (fineness premiums), treatment charges, and sales contract terms.
Why does realized price differ from spot price?
Realized prices diverge from spot prices due to: (1) Hedge positions - forward sales contracts lock in prices, (2) Treatment & refining charges (TCs/RCs) - costs to refine concentrate to pure metal, (3) Quality premiums/discounts - higher purity commands premiums, (4) Timing differences - sales recognition versus spot price dates, (5) Transportation & logistics costs, (6) Sales contract terms - quotational periods and pricing mechanisms.
What are treatment charges?
Treatment and refining charges (TCs/RCs) are fees paid to smelters and refiners to process ore concentrate into pure metal. For gold, typical charges are $15-25/oz. For copper, TCs are ~$60-100/tonne plus refining charges of $0.06-0.10/lb. Lower charges indicate tight concentrate supply (favorable for miners). Integrated miners with their own smelters avoid these charges, improving realized prices.
Does AIG use hedging?
Mining companies use hedging to lock in future prices and protect cash flow. Common strategies: (1) Forward sales - selling future production at fixed prices, (2) Options - buying puts for downside protection, (3) Collars - combining puts and calls to limit price range. While hedging provides certainty, it can cap upside if spot prices rise. Review AIG's hedge book disclosures to understand price exposure and locked-in positions.
How do quality premiums affect realized prices?
Product quality impacts pricing: Gold - higher purity (99.99% vs 99.5%) commands small premiums. Copper - premium for cathode vs concentrate. Iron ore - significant premiums for high-grade (65%+ Fe) versus benchmark 62% Fe pricing. AIG's product mix and quality profile affect whether realized prices trade at premiums or discounts to benchmark indices.
What is price realization percentage?
Price realization = (Realized Price / Spot Price) × 100%. AIG achieved 99.3% price realization. Industry best-practice is 95-98%. Lower realization may indicate: high treatment charges, unfavorable hedge positions, quality discounts, or poor contract terms. Higher realization (>100%) suggests premiums for quality, favorable hedges, or timing benefits.