Kinross Gold (TSX:K) says in a 23 September update it expects annual production in 2026 and 2027 to be 2–3% below the lower end of its previous guidance, while increasing its shareholder-return target.
The company now forecasts attributable production of 1.84–1.86 million gold equivalent ounces in each year.
Kinross attributes the reduction primarily to its La Coipa Mine in Chile and Round Mountain Mine in Nevada, US. At La Coipa, winter weather disrupted mining and milling, while higher-than-expected copper grades and lower recoveries affected some sulphide ore.
A Prefeasibility Study is assessing a flotation circuit for sulphide mineralisation with higher copper grades beneath several La Coipa open pits.
At Round Mountain’s Phase S, lower mining rates, grades, and recoveries have deferred some higher-grade ore and reduced expected production. Kinross says Phase X underground remains on schedule to begin contributing production in 2028.
Third-quarter attributable production is expected to total approximately 425,000 gold equivalent ounces.
Kinross now expects production costs of US$1,420–$1,460 ($2,021–$2,078) for each gold equivalent ounce sold. Its broader all-in sustaining cost, which also includes expenditure required to maintain existing operations, is forecast at US$1,850–$1,900 per ounce.
Kinross says total operating and capital expenditure remains on track despite higher oil prices.
Kinross has raised its target for returns to shareholders from 40% to 50% of the free cash flow it generates in 2026, through dividends and share buybacks. It has returned approximately US$800 million to shareholders during 2026, including about US$655 million through share buybacks.
Paracatu in Brazil and Tasiast in Mauritania remain on guidance to produce a combined 1.1 million ounces for a fifth consecutive year. Kinross says its Great Bear and Lobo-Marte development projects also remain on schedule.
Kinross Gold is a Canadian gold producer with operations and projects in the US, Brazil, Mauritania, Chile, and Canada.
Write to France Pinzon at Mining.com.au
Main image: Kinross Gold



