Kinross Slashes Production Guidance, AISC Jumps 8% — Stock Plunges 11%
KGC is trading near its 52-week low of $22.01 (12% above the low).
Summary
Kinross cut FY2026-27 attributable production guidance to 1.84M-1.86M gold equivalent oz from 1.9M-2.1M oz, and raised FY2026 AISC guidance to $1,850-$1,900/oz from $1,730/oz. The company blamed extreme weather and operational challenges at La Coipa and Round Mountain, while Paracatu and Tasiast continue to perform well. To offset the weaker outlook, Kinross increased its return of capital target to 50% of free cash flow from 40%, having already returned ~$800M YTD including $655M in buybacks. Desjardins cut its price target to C$53 from C$58, noting the new production forecast is 8-9% below consensus and AISC is ~8% above prior guidance. The stock fell 10.9% on the news, reflecting the material negative revision to near-term earnings power. Kinross expects Q3 2026 attributable production of approximately 425,000 Au eq. oz. Attributable production cost of sales guidance is $1,420-$1,460 per Au eq. oz. sold. La Coipa's lower recoveries are due to higher copper grades in sulphide ore, and the company is stockpiling high copper material for potential future processing while weather and mining conditions have begun to stabilize. Round Mountain Phase S has lower mining rates, grades, and recoveries, deferring higher-grade ore to future periods. Paracatu and Tasiast are expected to produce a combined 1.1M oz for the fifth consecutive year.
Updated with an SEC 6-K filing · What changed
Updates
· SEC 6-K — Kinross expects Q3 2026 attributable production of approximately 425,000 Au eq. oz. The company has returned approximately $800 million to shareholders in 2026, including $655 million in share repurchases.
- La Coipa
- La Coipa's lower recoveries are due to higher copper grades in sulphide ore.
- La Coipa is stockpiling high copper material for potential future processing.
- La Coipa's weather and mining conditions have begun to stabilize.
- La Coipa is implementing measures to improve plant throughput and recovery.
- La Coipa is conducting a pre-feasibility study for a flotation circuit for sulphide mineralization.
- La Coipa mine plan includes processing higher copper sulphide ore blended with oxide ore through the existing circuit.
- Round Mountain — Phase S has lower mining rates, grades, and recoveries, deferring higher-grade ore to future periods. Infill drilling at Phase X indicates higher ounces than expected in early stoping horizons.
- Cost Guidance
- Attributable production cost of sales guidance is $1,420-$1,460 per Au eq. oz. sold.
- Cost guidance assumptions include $4,350/oz gold, $100/barrel oil, 5.10 Brazilian reais.
- Cost guidance assumptions include 920 Chilean pesos, 40 Mauritanian ouguiyas to the U.S. dollar.
- Total operating and capital costs for the year remain on track.
- Portfolio — Paracatu and Tasiast are expected to produce a combined 1.1M oz for the fifth consecutive year. Tasiast advances into higher-grade orebody at the bottom of the open pit.
All 20 details
- Attributable production cost of sales guidance is $1,420-$1,460 per Au eq. oz. sold.
- La Coipa's lower recoveries are due to higher copper grades in sulphide ore.
- La Coipa is stockpiling high copper material for potential future processing.
- La Coipa's weather and mining conditions have begun to stabilize.
- La Coipa is implementing measures to improve plant throughput and recovery.
- Round Mountain Phase S has lower mining rates, grades, and recoveries.
- Lower mining rates at Round Mountain Phase S defer higher-grade ore to future periods.
- Round Mountain Phase S lower mill grade and recoveries result in production loss.
- Round Mountain Phase S is a bridge to longer-term operations at Phase X underground.
- Cost guidance assumptions include $4,350/oz gold, $100/barrel oil, 5.10 Brazilian reais.
- Cost guidance assumptions include 920 Chilean pesos, 40 Mauritanian ouguiyas to the U.S. dollar.
- Total operating and capital costs for the year remain on track.
- Paracatu and Tasiast are expected to produce a combined 1.1M oz for the fifth consecutive year.
- Tasiast advances into higher-grade orebody at the bottom of the open pit.
- La Coipa is conducting a pre-feasibility study for a flotation circuit for sulphide mineralization.
- Infill drilling at Phase X indicates higher ounces than expected in early stoping horizons.
- La Coipa mine plan includes processing higher copper sulphide ore blended with oxide ore through the existing circuit.
- Round Mountain is implementing initiatives to improve mill grade, recovery, and mining rates.
- Grades, recoveries, and production at Round Mountain are expected to improve as Phase X underground ramps up and higher-grade ore is blended with Phase S ore.
- Revised 2026 and 2027 outlook is concentrated at La Coipa and Round Mountain and does not change the quality of the Company's broader portfolio or its ability to generate strong cash flow.
- La Coipa
At the time of this announcement, KGC was trading at $24.61 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $29.2B. The 52-week trading range was $22.01 to $39.11. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.