What Kinross Gold (KGC) Said on Its Q3 Earnings Call

Key Points

• Kinross reaffirmed its 2026 guidance, targeting production of 1.84–1.86 million gold equivalent ounces, cost of sales of $1,420–$1,460 per ounce and all-in sustaining costs of $1,850–$1,900 per ounce.
• The company generated $391 million in attributable adjusted free cash flow during the third quarter and returned more than $950 million to shareholders year-to-date through dividends and share repurchases. Kinross raised its capital-return target to 40%–50% of annual free cash flow.
• Growth projects remain on schedule, including Redbird, Phase X and Curlew, while Great Bear and Lobo-Marte remain key longer-term projects. Kinross also reported two contractor-employee deaths at Bald Mountain and said it was strengthening safety controls.

Kinross Gold NYSE: KGC said it remains on track to meet its updated 2026 production and cost guidance after reporting third-quarter results that management said were in line with its plan, supported by strong contributions from its Tasiast and Paracatu mines.

The company also reported the deaths of two employees of business partners at its Bald Mountain operation in Nevada. Chief Executive Officer Paul Rollinson said Kinross was “deeply saddened” by the incidents and was committed to reinforcing safety controls across its operations. Chief Operating Officer Bernard Wessels said the company held safety stand-downs across the business and would maintain its focus on fatality prevention and risk management.

Quarterly production, cash flow and shareholder returns

Kinross produced 425,000 gold equivalent ounces and sold 410,000 ounces in the third quarter. Andrea Freeborough, executive vice president and chief financial officer, said the gap between production and sales reflected timing, including a bank holiday on Sept. 30; the unsold ounces were sold in early October.

Third-quarter cost of sales was $1,485 per ounce, while all-in sustaining costs were $1,947 per ounce. The company reported adjusted earnings of $0.50 per share, adjusted operating cash flow of $831 million and attributable adjusted free cash flow of $391 million excluding working-capital outflows.

Free cash flow was affected by higher short-term stockpiles at Manh Choh, lower payables and higher prepayments, according to Freeborough. She characterized the working-capital impact as temporary and said some of it was expected to reverse during the fourth quarter.

For the first nine months of 2026, Kinross generated more than $1.8 billion of free cash flow and more than $3 billion of adjusted operating cash flow. The company ended the quarter with $2.6 billion in cash and $1.9 billion in net cash. S&P upgraded Kinross’ credit rating to BBB with a stable outlook during the quarter, matching its ratings at Moody’s and Fitch.

Kinross increased its capital-return commitment in September to 40% to 50% of full-year free cash flow through dividends and share repurchases. During the third quarter, the company repurchased 8.6 million shares for $230 million and paid about $50 million in quarterly dividends. It subsequently bought another $100 million of shares.

• Kinross returned more than $950 million to shareholders year-to-date in 2026.
• Capital returns represented about 46% of attributable free cash flow in the first nine months.
• Since restarting repurchases in April 2025, the company has repurchased more than $1.4 billion in stock, equal to about 5% of its outstanding share count.

Rollinson said the company views its dividend as a lasting commitment, while buybacks offer more flexibility to increase or decrease capital returns over time.

Guidance reaffirmed as La Coipa and Round Mountain stabilize

Kinross reaffirmed its updated full-year production guidance of 1.84 million to 1.86 million ounces, with fourth-quarter production expected to range between 430,000 and 450,000 ounces. The company also maintained cost-of-sales guidance of $1,420 to $1,460 per ounce and all-in sustaining cost guidance of $1,850 to $1,900 per ounce.

The company expects capital expenditures within its original $1.5 billion guidance range, plus or minus 5%. Freeborough said spending could reach the midpoint to upper end of that range as sustaining and growth investment rises in the fourth quarter.

Paracatu produced 146,000 ounces at cost of sales of $1,202 per ounce, while Tasiast produced 120,000 ounces at $1,072 per ounce. Wessels said both operations remained on track to meet full-year plans, with Tasiast continuing as Kinross’ lowest-cost operation.

La Coipa produced 29,000 ounces at cost of sales of $2,194 per ounce. Production was affected by severe winter weather that restricted ore access, as well as higher-than-expected copper grades in sulfide ore that complicated blending. Wessels said mining and milling have since stabilized, with the company rebuilding stockpiles, strengthening ore control and adjusting mill operations.

Round Mountain produced 27,000 ounces at cost of sales of $2,557 per ounce. The operation improved quarter over quarter but remained below the original plan because of lower-than-expected mill grades, recoveries and slower mining rates. Recovery improved to 60% in the third quarter from 44% in the prior quarter, and management said it was targeting approximately 80% recovery during the latter part of the year.

Growth projects advance

Kinross said its three U.S. growth projects—Phase X at Round Mountain, Redbird at Bald Mountain and Curlew in Washington—continue to advance. Redbird 1 produced its first gold in early October, and the company said Redbird 1 and Redbird 2 are expected to extend Bald Mountain’s mine life into the early 2030s.

At Phase X, underground development is about 8% ahead of schedule, with more than 9,600 meters completed. Initial production remains targeted for 2028. Infill drilling has indicated potentially higher tonnes and ounces in early stopes than modeled, although Dunford said the results remain early-stage.

Curlew remains on track for first production in 2028, with underground development ahead of schedule and work progressing on mill refurbishment and tailings dewatering infrastructure.

Kinross is also assessing additional internal mine-life extension opportunities, including Fort Knox Phase 11, which contains approximately 2 million ounces and could begin pre-stripping as early as 2027 if approved. The company expects to provide an update on that project in the first half of 2027.

Great Bear and Lobo-Marte remain long-term priorities

At Great Bear in Ontario, Kinross has completed more than 500 meters of combined underground development on its north and south exploration declines. Detailed engineering for the main project is more than 55% complete, and the company expects to substantially complete that work in the first half of 2027.

First production at Great Bear remains targeted for late 2029. Dunford said capital costs are expected to exceed the prior preliminary economic assessment because of inflation, contractor and labor-market conditions, and scope changes made during detailed engineering. He said management does not expect project capital to double from the prior estimate of $1.4 billion plus $400 million in additional spending associated with the assessment.

Geoff Gold, president of Kinross Gold, said main-project permitting at Great Bear remains on schedule. The company expects a federal decision on its impact statement by late spring 2027 to support construction beginning in summer 2027. Kinross is also progressing impact-benefit agreement negotiations with Lac Seul and Wabauskang First Nations.

In Chile, Kinross continued permitting, detailed engineering and execution planning for Lobo-Marte, where first production is targeted for the early 2030s. The company characterized Lobo-Marte, alongside Great Bear, as a key component of its strategy to increase grades and improve its production profile beginning in 2028.

About Kinross Gold (NYSE:KGC)

Kinross Gold Corporation is a Canadian gold mining company headquartered in Toronto, Ontario. Founded in 1993, the company explores for, develops and operates gold mines, with silver produced as a byproduct at some operations.

Kinross's producing assets have included mines in the United States, Brazil, Chile and Mauritania. Its operations have included Fort Knox in Alaska, Round Mountain and Bald Mountain in Nevada, Paracatu in Brazil, La Coipa in Chile and Tasiast in Mauritania. The company also pursues exploration and development projects intended to support future production.

Kinross sells the gold it produces to customers in international bullion markets and manages activities spanning mine development, extraction, processing and reclamation.

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