Kinross Gold (TSX: K) has trimmed its production outlook for 2026 and 2027, while lifting the share of free cash flow it plans to return to shareholders this year.
The senior gold producer now expects attributable production of roughly 1.84 million to 1.86 million gold equivalent ounces in each of 2026 and 2027, which is 2% to 3% below the low end of its prior guidance. Third quarter output is pegged at about 425,000 gold equivalent ounces.
The shortfall sits almost entirely at two of the company’s smaller operations.
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At La Coipa in Chile, a series of severe winter weather events throughout the third quarter disrupted mining and milling, with lower mining rates and mill throughput persisting into September. Some sulphide ore mined during the quarter also carried higher copper grades and delivered weaker recoveries than planned, prompting Kinross to stockpile part of that material for potential future processing.
A prefeasibility study is underway on adding a flotation circuit to treat the higher copper sulphide mineralization identified beneath several of the site’s open pits. Conditions have since begun to stabilize, according to the company.
At Round Mountain in Nevada, slower mining at Phase S pushed higher-grade ore into later periods, while lower mill grades and recoveries resulted in production being lost outright. Phase S serves as a bridge to the Phase X underground, which remains on track to contribute production in 2028. Recent infill drilling there points to more ounces than expected in the early stoping horizons.
Cost guidance was adjusted to reflect the smaller production base. Attributable production cost of sales is now expected at US$1,420 to US$1,460 per gold equivalent ounce sold, with all-in sustaining costs of US$1,850 to US$1,900 per ounce. Total operating and capital spending remains on track despite higher oil prices, with the update assuming US$100 oil and US$4,350 gold for the balance of the year.
Paracatu and Tasiast, the company’s two largest and lowest-cost mines, are still expected to produce a combined 1.1 million ounces for a fifth consecutive year.
Kinross also raised its 2026 return of capital target from 40% to 50% of free cash flow. The company has returned US$800 million to shareholders so far this year, including roughly US$655 million in share repurchases, and has bought back more than 4% of its outstanding shares since the first quarter of 2025.
Kinross Gold last traded at $38.91 on the TSX.
