Kinross Gold’s (TSX: K) third quarter net earnings fell 31% from the prior quarter, as weaker output at La Coipa and Round Mountain combined with a softer realized gold price to pull revenue down 21% to US$1.77 billion.
Net earnings attributable to shareholders came in at US$583.2 million, or US$0.49 per share, compared with US$844.2 million, or US$0.71 per share, in the second quarter. Adjusted net earnings totalled US$591.3 million, or US$0.50 per share, down from US$0.71.
The company realized an average of US$4,249 per ounce of gold, against US$4,483 in the prior period.
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The steeper decline came in cash generation. Operating cash flow fell to US$714.4 million from US$1.15 billion, while attributable free cash flow dropped to US$281.3 million from US$726.8 million. Capital spending climbed to US$439.6 million as development work ramped up at Great Bear, Round Mountain Phase X, Curlew and Redbird, and the company also pointed to the timing of sales.
The balance sheet was largely unchanged. Kinross ended September with US$2.6 billion in cash and net cash of US$1.9 billion, in line with June, against US$739.2 million in long term debt with no maturities until 2033. S&P Global upgraded the company’s credit rating to BBB in August, and roughly US$230 million in shares were repurchased during the quarter.
Attributable production totalled 424,693 gold equivalent ounces, down 14% from 492,326 ounces in the second quarter. La Coipa’s output roughly halved to 29,203 ounces after severe winter weather disrupted mining and milling, while Round Mountain improved to 27,068 ounces on higher mill grades and recoveries. Paracatu and Tasiast together accounted for more than half of the quarter’s ounces.
Lower volumes pushed unit costs higher. Attributable production cost of sales rose to US$1,485 per ounce from US$1,336, and all-in sustaining costs increased to US$1,947 per ounce from US$1,821, still leaving a margin of roughly US$2,300 per ounce at the quarter’s realized price.
Output landed on the approximately 425,000 ounces Kinross flagged in September, when it cut 2026 guidance to between 1.84 million and 1.86 million ounces, below the low end of its original 2.0 million ounce target. With 1.41 million ounces produced through nine months, the company needs roughly 430,000 to 450,000 ounces in the fourth quarter. Year to date all-in sustaining costs of US$1,827 per ounce sit below the revised range of US$1,850 to US$1,900, although the third quarter alone ran above it.
The quarter also saw two separate incidents at Bald Mountain in September that left two contractor employees dead. The operation poured first gold from its Redbird 1 deposit in early October.
Kinross Gold last traded at $32.18 on the TSX.
