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Kinross Gold Updates Production Outlook, Raises Capital Return Target
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Key Takeaways
Kinross lowers its 2026-2027 attributable production outlook to 1.84-1.86M gold-equivalent ounces.
Weather, lower grades and weaker recoveries at La Coipa and Round Mountain weigh on production expectations.
Kinross raises its 2026 capital return target to 50% of the free cash flow after returning about $800M.
Kinross Gold Corporation (KGC - Free Report) announced updates to its operations, guidance and return of capital. Due to operational challenges concentrated in two smaller assets, La Coipa and Round Mountain, arising from extreme weather conditions, Kinross has lowered its 2026 and 2027 attributable production outlook while increasing its target for shareholder returns.
The company expects annual attributable production of 1.84-1.86 million gold-equivalent ounces, 2-3% below the bottom end of its previously disclosed guidance. At La Coipa, extreme winter weather disrupted mining and milling activities, while higher-than-expected copper grades and weaker recoveries in some of the sulfide ore further affected production. At Round Mountain, lower mining rates, lower-than-expected grades and recoveries have reduced expectations for 2026 and 2027.
The company's two largest and lowest-cost operations, Paracatu and Tasiast, continue to perform strongly and are expected to produce a combined 1.1 million ounces for the fifth consecutive year. Meanwhile, Kinross’s development projects, including Great Bear and Lobo-Marte, are on schedule, and the commencement of Phase X and Curlew will contribute to production in 2028.
Incorporating these expectations into the guidance, Kinross expects 2026 attributable production costs of sales of $1,420-$1,460 per gold equivalent ounce sold and all-in sustaining costs of $1,850-$1,900. Despite higher oil prices, total operating and capital costs remain on track.
Taking into account KGC’s cash flow outlook and balance sheet strength, the company raised its 2026 return of capital target to 50% of free cash flow from 40%. Kinross has returned approximately $800 million to shareholders so far in 2026, including $655 million through share repurchases, reinforcing its focus on capital returns despite challenges.
KGC shares have gained 16.8% in the past year compared with the industry’s 26.2% growth.
Image Source: Zacks Investment Research
KGC’s Zacks Rank & Key Picks
KGC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Avient Corporation (AVNT - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Reliance, Inc. (RS - Free Report) .
The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 3.4%. AVNT shares have gained 25.8% over the past year.
The Zacks Consensus Estimate for KRO’s 2026 earnings is pegged at 35 cents per share, indicating a year-over-year rise of 136.46%. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 33.99%.
The Zacks Consensus Estimate for RS’s 2026 earnings is pegged at $22.23 per share, indicating a 55.89% year-over-year increase. RS shares have gained 37.1% over the past year.
View the Zacks #1 Rank List
Image: Bigstock
Kinross Gold Updates Production Outlook, Raises Capital Return Target
Key Takeaways
Kinross Gold Corporation (KGC - Free Report) announced updates to its operations, guidance and return of capital. Due to operational challenges concentrated in two smaller assets, La Coipa and Round Mountain, arising from extreme weather conditions, Kinross has lowered its 2026 and 2027 attributable production outlook while increasing its target for shareholder returns.
The company expects annual attributable production of 1.84-1.86 million gold-equivalent ounces, 2-3% below the bottom end of its previously disclosed guidance. At La Coipa, extreme winter weather disrupted mining and milling activities, while higher-than-expected copper grades and weaker recoveries in some of the sulfide ore further affected production. At Round Mountain, lower mining rates, lower-than-expected grades and recoveries have reduced expectations for 2026 and 2027.
The company's two largest and lowest-cost operations, Paracatu and Tasiast, continue to perform strongly and are expected to produce a combined 1.1 million ounces for the fifth consecutive year. Meanwhile, Kinross’s development projects, including Great Bear and Lobo-Marte, are on schedule, and the commencement of Phase X and Curlew will contribute to production in 2028.
Incorporating these expectations into the guidance, Kinross expects 2026 attributable production costs of sales of $1,420-$1,460 per gold equivalent ounce sold and all-in sustaining costs of $1,850-$1,900. Despite higher oil prices, total operating and capital costs remain on track.
Taking into account KGC’s cash flow outlook and balance sheet strength, the company raised its 2026 return of capital target to 50% of free cash flow from 40%. Kinross has returned approximately $800 million to shareholders so far in 2026, including $655 million through share repurchases, reinforcing its focus on capital returns despite challenges.
KGC shares have gained 16.8% in the past year compared with the industry’s 26.2% growth.
Image Source: Zacks Investment Research
KGC’s Zacks Rank & Key Picks
KGC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Avient Corporation (AVNT - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Reliance, Inc. (RS - Free Report) .
AVNT, KRO and RS currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 3.4%. AVNT shares have gained 25.8% over the past year.
The Zacks Consensus Estimate for KRO’s 2026 earnings is pegged at 35 cents per share, indicating a year-over-year rise of 136.46%. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 33.99%.
The Zacks Consensus Estimate for RS’s 2026 earnings is pegged at $22.23 per share, indicating a 55.89% year-over-year increase. RS shares have gained 37.1% over the past year.