Kinross Gold (TSX: K) saw a sharp jump in profitability for the first quarter of 2026, as soaring gold prices more than offset higher unit costs and a pullback in capital returns relative to the prior period.
Revenue climbed 61% year-on-year to $2.41 billion, propelled by an average realized gold price of $4,873 per ounce, a 71% increase from Q1 2025. Margins per gold equivalent ounce sold reached a record $3,476, up 22% from the fourth quarter and outpacing the rise in the gold price itself.
The gold miner reported net earnings of $843 million, or $0.70 per share, up from $368 million, or $0.30 per share, a year earlier. Adjusted earnings came in at $854.1 million, or $0.71 a share, a small miss against some sell-side estimates clustered around $0.73, though Zacks consensus put the bar at $0.68.
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Free cash flow of roughly $838 million marked a fourth consecutive quarterly record. Cash and equivalents grew to $2.2 billion, with total liquidity of about $3.9 billion at quarter end, even after $250 million in buybacks and $48 million in dividends.
One wrinkle worth flagging is that reported earnings absorbed a $91 million withholding tax charge tied to repatriating cash largely out of Mauritania, $65 million of which relates to taxes payable in future quarters. Capital expenditures also stepped up to $283.2 million, from $207.7 million a year ago, as development spending ramped at Great Bear, Curlew, Round Mountain Phase X and Bald Mountain Redbird.
The company has returned approximately $350 million to shareholders so far in 2026 through dividends and buybacks, and over $1 billion in the past twelve months. The board declared a quarterly dividend of $0.04 per share, payable June 4.
On the operating side, Kinross produced 492,563 gold equivalent ounces in the quarter, up from 483,582 in Q4 2025 but down from 512,088 a year earlier. Paracatu led the portfolio with record recoveries, while Tasiast posted higher grades and lower unit costs sequentially.
Production cost of sales rose to $1,397 per gold equivalent ounce sold, compared with $1,289 in the fourth quarter, reflecting higher royalties and input costs. Attributable all in sustaining cost moved the other way, easing to $1,732 per ounce from $1,825 in Q4 2025, though still 28% above year-ago levels.
Management reaffirmed full year 2026 guidance of 2.0 million attributable gold-equivalent ounces, at production cost of sales of $1,360 per ounce and an AISC of $1,730 per ounce, both within a 5% band. Capital expenditures are still pegged at roughly $1.5 billion for the year.
Kinross Gold last traded at $40.86 on the TSX.
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