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Kinross Q3 Earnings Call Highlights '26 Guidance and Project Spending
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Key Takeaways
Kinross maintains its 2026 production outlook of 1.84-1.86 million ounces despite operational setbacks.
Round Mountain recoveries improved to 60%, while La Coipa stabilized after weather and ore-blending issues.
Great Bear capital costs are set to rise, with updated estimates due in the first half of 2027.
Kinross Gold Corporation (KGC - Free Report) maintained its updated 2026 production outlook while signaling higher investment requirements for its development pipeline. Management emphasized operational stabilization, cost discipline and higher-grade production beginning in 2028.
KGC’s third-quarter adjusted earnings of $0.50 per share beat the Zacks Consensus Estimate of $0.46. However, revenues of $1.77 billion missed the $2.08 billion estimate. The call centered on execution risks and capital commitments.
Kinross Gold Corporation Price, Consensus and EPS Surprise
CEO Paul Rollinson said the portfolio remains on track to produce 1.84 million to 1.86 million attributable gold equivalent ounces in 2026 following earlier adjustments tied to La Coipa and Round Mountain.
CFO Andrea Freeborough expects fourth-quarter production of 430,000 to 450,000 ounces. She reiterated full-year attributable cost-of-sales guidance of $1,420 to $1,460 per ounce and all-in sustaining costs of $1,850 to $1,900 per ounce.
Freeborough reaffirmed the same production range for 2027. Rollinson expects higher-grade material from Phase X, Curlew and Tasiast to support higher production in 2028.
Kinross Focuses on Two Operating Weak Spots
COO Bernard Wessels attributed La Coipa's production disruption to severe winter weather and unexpectedly high copper grades that complicated ore blending. Mining and milling activities have since stabilized.
At Round Mountain, recoveries improved to 60% from 44% in the preceding quarter, although performance remained below the original plan.
Responding to a Jefferies analyst, Wessels said recoveries still need to approach 80%. Meanwhile, Paracatu and Tasiast contributed more than half of quarterly production.
KGC Faces Inflation and Higher Capital Needs
Responding to UBS, Freeborough indicated that 2027 cost inflation could resemble the approximately 5% factor experienced in 2026. She identified diesel prices as an uncertainty but noted that roughly half of 2027 oil exposure is hedged.
A Scotiabank analyst also questioned management about labor costs. Freeborough cited expected labor inflation of approximately 5% to 6%, while Rollinson highlighted competitive staffing conditions in Nevada.
Freeborough expects 2026 capital spending near the midpoint to the upper end of the $1.5 billion guidance range, plus or minus 5%. The 2027 baseline remains subject to inflation and additional project approvals.
Kinross Advances Its U.S. Growth Projects
Chief technical officer William Dunford said underground development at Round Mountain's Phase X is approximately 8% ahead of schedule. Infill drilling also identified more contained ounces than initially modeled in early stopes.
Curlew's development and mill refurbishment are progressing toward first production in 2028. At Bald Mountain, Redbird 1 poured its first gold in October, while Redbird 2 construction continues.
Dunford identified Fort Knox Phase 11 as another potential mine-life extension, containing approximately 2 million ounces. A project update is expected in the first half of 2027.
KGC Details Great Bear Spending and Permitting
Dunford reported that Great Bear's detailed engineering is more than 55% complete, with first production targeted for late 2029. Capital costs are expected to exceed earlier estimates because of inflation and scope modifications.
During UBS questioning, Dunford referenced approximately $500 million of 2027 spending in the original project assessment, before inflation adjustments. An updated capital estimate is planned for the first half of 2027.
President Geoff Gold said main-project permitting remains on schedule despite an appeal involving separate advanced-exploration permits. Negotiations with Lac Seul and Wabauskang First Nations continue.
Kinross Keeps Buybacks Central to Shareholder Returns
Freeborough said Kinross increased its capital-return commitment to 50% of full-year free cash flow from 40%. Shareholder distributions exceeded $950 million through Oct. 28, including dividends and repurchases.
Responding to Bank of America, Rollinson characterized dividends as a lasting commitment while identifying buybacks as the more flexible distribution mechanism.
He also told UBS that Kinross continues monitoring acquisition opportunities but faces no pressure to pursue deals given its internal projects and financial strength.
KGC Emphasizes Operational Execution
Rollinson emphasized safe operations, cost controls and disciplined investment. Management acknowledged two fatalities involving business-partner employees at Bald Mountain and outlined company-wide safety measures.
The immediate priorities remain stabilizing weaker operations while advancing projects intended to improve grades and extend production into the 2030s.
What KGC's Zacks Rank & Style Scores Indicate
KGC carries a Zacks Rank #4 (Sell) at present, reflecting an unfavorable earnings-estimate revision outlook despite its Value Score of A and Growth Score of B.
Its Momentum Score of C indicates a less favorable momentum profile, while its VGM Score of A reflects attractive combined style characteristics. The weaker Zacks Rank tempers these favorable signals and may change as analysts revise earnings estimates following the latest results.
View the Zacks #1 Rank List
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Kinross Q3 Earnings Call Highlights '26 Guidance and Project Spending
Key Takeaways
Kinross Gold Corporation (KGC - Free Report) maintained its updated 2026 production outlook while signaling higher investment requirements for its development pipeline. Management emphasized operational stabilization, cost discipline and higher-grade production beginning in 2028.
KGC’s third-quarter adjusted earnings of $0.50 per share beat the Zacks Consensus Estimate of $0.46. However, revenues of $1.77 billion missed the $2.08 billion estimate. The call centered on execution risks and capital commitments.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Kinross Gold Corporation price-consensus-eps-surprise-chart | Kinross Gold Corporation Quote
KGC Holds Its Revised Production Targets
CEO Paul Rollinson said the portfolio remains on track to produce 1.84 million to 1.86 million attributable gold equivalent ounces in 2026 following earlier adjustments tied to La Coipa and Round Mountain.
CFO Andrea Freeborough expects fourth-quarter production of 430,000 to 450,000 ounces. She reiterated full-year attributable cost-of-sales guidance of $1,420 to $1,460 per ounce and all-in sustaining costs of $1,850 to $1,900 per ounce.
Freeborough reaffirmed the same production range for 2027. Rollinson expects higher-grade material from Phase X, Curlew and Tasiast to support higher production in 2028.
Kinross Focuses on Two Operating Weak Spots
COO Bernard Wessels attributed La Coipa's production disruption to severe winter weather and unexpectedly high copper grades that complicated ore blending. Mining and milling activities have since stabilized.
At Round Mountain, recoveries improved to 60% from 44% in the preceding quarter, although performance remained below the original plan.
Responding to a Jefferies analyst, Wessels said recoveries still need to approach 80%. Meanwhile, Paracatu and Tasiast contributed more than half of quarterly production.
KGC Faces Inflation and Higher Capital Needs
Responding to UBS, Freeborough indicated that 2027 cost inflation could resemble the approximately 5% factor experienced in 2026. She identified diesel prices as an uncertainty but noted that roughly half of 2027 oil exposure is hedged.
A Scotiabank analyst also questioned management about labor costs. Freeborough cited expected labor inflation of approximately 5% to 6%, while Rollinson highlighted competitive staffing conditions in Nevada.
Freeborough expects 2026 capital spending near the midpoint to the upper end of the $1.5 billion guidance range, plus or minus 5%. The 2027 baseline remains subject to inflation and additional project approvals.
Kinross Advances Its U.S. Growth Projects
Chief technical officer William Dunford said underground development at Round Mountain's Phase X is approximately 8% ahead of schedule. Infill drilling also identified more contained ounces than initially modeled in early stopes.
Curlew's development and mill refurbishment are progressing toward first production in 2028. At Bald Mountain, Redbird 1 poured its first gold in October, while Redbird 2 construction continues.
Dunford identified Fort Knox Phase 11 as another potential mine-life extension, containing approximately 2 million ounces. A project update is expected in the first half of 2027.
KGC Details Great Bear Spending and Permitting
Dunford reported that Great Bear's detailed engineering is more than 55% complete, with first production targeted for late 2029. Capital costs are expected to exceed earlier estimates because of inflation and scope modifications.
During UBS questioning, Dunford referenced approximately $500 million of 2027 spending in the original project assessment, before inflation adjustments. An updated capital estimate is planned for the first half of 2027.
President Geoff Gold said main-project permitting remains on schedule despite an appeal involving separate advanced-exploration permits. Negotiations with Lac Seul and Wabauskang First Nations continue.
Kinross Keeps Buybacks Central to Shareholder Returns
Freeborough said Kinross increased its capital-return commitment to 50% of full-year free cash flow from 40%. Shareholder distributions exceeded $950 million through Oct. 28, including dividends and repurchases.
Responding to Bank of America, Rollinson characterized dividends as a lasting commitment while identifying buybacks as the more flexible distribution mechanism.
He also told UBS that Kinross continues monitoring acquisition opportunities but faces no pressure to pursue deals given its internal projects and financial strength.
KGC Emphasizes Operational Execution
Rollinson emphasized safe operations, cost controls and disciplined investment. Management acknowledged two fatalities involving business-partner employees at Bald Mountain and outlined company-wide safety measures.
The immediate priorities remain stabilizing weaker operations while advancing projects intended to improve grades and extend production into the 2030s.
What KGC's Zacks Rank & Style Scores Indicate
KGC carries a Zacks Rank #4 (Sell) at present, reflecting an unfavorable earnings-estimate revision outlook despite its Value Score of A and Growth Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Momentum Score of C indicates a less favorable momentum profile, while its VGM Score of A reflects attractive combined style characteristics. The weaker Zacks Rank tempers these favorable signals and may change as analysts revise earnings estimates following the latest results.