Kinross Gold Cuts Production Guidance and Raises Return Target to 50%

Kinross Gold Corporation (KGC ) said on September 23, 2026, that it now expects full-year 2026 and 2027 attributable production to be 2% to 3% below the low end of its previously disclosed guidance, at approximately 1.84 million to 1.86 million gold equivalent ounces per year. The revision was disclosed in an operational, guidance and return-of-capital update that also raised the company’s return-of-capital target for 2026 from 40% to 50% of free cash flow to shareholders.

Kinross expects third-quarter 2026 attributable production of approximately 425,000 gold equivalent ounces. The company said the change to its 2026 guidance is concentrated at two smaller assets, La Coipa in Chile and Round Mountain in the United States, and is the result of extreme weather and operational challenges. According to Kinross, the balance of its portfolio continues to perform well, led by Paracatu and Tasiast, which it described as its two largest, lowest-cost operations.

Paracatu and Tasiast are expected to produce a combined 1.1 million ounces for the fifth consecutive year, in line with previously disclosed guidance, the company said, adding that their performance supports significant free cash flow generation. Kinross said the revised 2026 and 2027 outlook does not change the quality of its broader portfolio or its ability to generate strong cash flow. The company also said it continues to advance its development projects on schedule, including its U.S. projects, Great Bear and Lobo-Marte. In 2028, Kinross expects the commencement of production at Phase X and Curlew, while Tasiast advances into the higher-grade portion of the orebody at the bottom of the open pit.

La Coipa and Round Mountain

At La Coipa, what Kinross described as “a series of unprecedented winter weather events” throughout the third quarter disrupted mining and milling activities. Continuing weather impacts have resulted in lower-than-planned mining rates and mill throughput into September, the company said.

Kinross also recorded higher-than-expected copper grades and lower-than-expected recoveries in some of the sulphide ore mined at La Coipa in the third quarter. The company has adjusted its production forecast for 2026 and 2027 to reflect lower recovery and the stockpiling of some high-copper material for potential future processing.

The La Coipa mine plan includes processing some higher-copper sulphide ore blended with oxide ore through the existing circuit. A pre-feasibility study is underway on the potential addition of a flotation circuit focused on the higher-copper sulphide mineralization identified below multiple open pits at the site. Kinross said the transition from oxide to higher-copper sulphide mineralization across multiple deposits in close proximity also indicates the potential for an underlying copper porphyry system, which it is actively exploring.

Weather and mining conditions at La Coipa have begun to stabilize, improving mining rates and the ability to blend, according to the company, and the site is implementing a variety of measures to improve plant throughput and recovery with what Kinross described as recent positive results.

At Round Mountain’s Phase S, lower mining rates and lower-than-expected grades and recoveries have reduced annual production expectations for 2026 and 2027. The company said the lower mining rates defer higher-grade Phase S ore into future periods, while the lower mill grade and recoveries result in a loss of production versus prior estimates. The operation is focused on implementing initiatives to improve mill grade, recovery and mining rates.

Phase S is being mined as a bridge to longer-term operations at the Phase X underground. Kinross said grades, recoveries and production are expected to improve as the Phase X underground ramps up and higher-grade ore is blended with Phase S ore. The company reported recent positive results from infill drilling at Phase X indicating higher ounces than expected in the early stoping horizons, and said Phase X remains on track to contribute production as planned in 2028.

Cost Guidance and Shareholder Returns

As a result of the updated production estimates, Kinross adjusted its 2026 cost guidance. Attributable production cost of sales is now expected to be approximately $1,420 to $1,460 per gold equivalent ounce sold, and attributable all-in sustaining cost is expected to be approximately $1,850 to $1,900 per gold equivalent ounce sold. The company said total operating and capital costs for the year remain on track despite higher oil prices. All dollar figures are expressed in U.S. dollars.

The updated cost guidance assumes a gold price of $4,350 per ounce, an oil price of $100 per barrel, and foreign exchange rates of 5.10 Brazilian reais, 920 Chilean pesos and 40 Mauritanian ouguiyas to the U.S. dollar for the remainder of 2026.

Kinross said approximately 70% to 80% of its costs are denominated in U.S. dollars. The company stated that a 10% change in foreign currency exchange rates would be expected to result in an approximately $30 impact on attributable production cost of sales per equivalent ounce sold, a measure that assumes all currencies in the countries where it operates fluctuate simultaneously by 10% in the same direction, taking into account hedging and each currency’s weighting in its consolidated cost structure. Specific to the Brazilian real, a 10% exchange-rate change would be expected to result in an approximately $50 impact on Brazilian attributable production cost of sales per equivalent ounce sold, while for the Chilean peso the corresponding impact would be approximately $60. A $10-per-barrel change in the oil price would be expected to result in an approximately $10 per-ounce impact, and a $100 change in the gold price would be expected to have an approximately $5 per-ounce impact as a result of a change in royalties.

On shareholder returns, Kinross said it is increasing its return-of-capital target by 25%, from 40% to 50% of free cash flow for 2026, citing what it described as its strong cash flow outlook and balance sheet strength. To date in 2026, the company has returned approximately $800 million to shareholders, including approximately $655 million in share repurchases. Since the first quarter of 2025, Kinross has returned more than $1.5 billion to shareholders and has repurchased more than 4% of its outstanding shares.

The company noted that attributable production, attributable cost of sales and attributable all-in sustaining cost are non-GAAP financial measures with no standardized meaning under International Financial Reporting Standards and may not be comparable to similar measures presented by other issuers. Attributable figures include Kinross’ 70% share of Manh Choh production, costs and capital expenditures, while financial figures include 100% of Manh Choh results except when denoted as attributable.