Kinross Q2 Earnings Call Centers on Costs and Project Execution

KGC Holds 2026 Guidance Despite U.S. Cost Mix

Executive vice president and CFO Andrea Freeborough maintained guidance for roughly 2 million attributable gold-equivalent ounces, production cost of sales of $1,360 per ounce and an all-in sustaining cost of $1,730 per ounce.

Freeborough said third-quarter production should remain near first-half levels before increasing in the fourth quarter. Second-half costs should rise modestly as higher-cost U.S. operations contribute more.

Executive vice president Claude Schimper said Round Mountain should produce 120,000 to 130,000 ounces in 2026. Phase S ore is expected to improve grades and output in the second half.

Kinross Leans on Productivity to Offset Inflation

Freeborough said the annual plan includes 5% inflation. If recent oil prices persist, the effect on all-in sustaining cost should remain below 2%, supported by fuel hedges through 2027.

A Jefferies analyst pressed management on other cost pressures. Freeborough identified higher Alaska power costs and a tight Nevada labor market, but said both remain within guidance assumptions.

Schimper said improvement programs are essential, while stopping short of promising they can always outpace inflation. He cited Tasiast's solar facility, which supplies about 23% of site power, and haul-route changes that saved about 6.4 million liters of fuel.

KGC Makes Lobo-Marte the Next Cornerstone

Executive vice president and chief technical officer William Dunford framed Lobo-Marte as Kinross' next major development after Great Bear. The plan calls for about 350,000 ounces of annual steady-state output, an estimated $1,000-per-ounce AISC and $1.8 billion of initial capital.

A Jefferies analyst asked about timing. Dunford said the Chilean environmental review should take roughly two to three years, placing construction near decade-end and peak spending after Great Bear.

An RBC Capital Markets analyst questioned the higher capital estimate. Dunford attributed most of the increase from the 2021 study to inflation, with new equipment, execution changes and higher contingency also contributing.

Kinross Keeps Great Bear on the Late-2029 Path

President Geoffrey Gold said federal and provincial permitting continues to advance, with Ontario's coordinated process improving efficiency. Management retained its target for first gold in late 2029.

Dunford said advanced exploration surface construction is 93% complete and the first decline blast has occurred. Main-project engineering is about 50% complete.

A Scotiabank analyst asked about the capital update. CEO and Director J. Paul Rollinson said inflation and selective scope enhancements will shape the revision, planned for the first half of 2027.

KGC Sticks With a 40% Cash Return

Andrea Freeborough reaffirmed the target to return 40% of attributable free cash flow through dividends and buybacks. Kinross ended the quarter with $2.7 billion in cash and $1.9 billion in net cash.

A UBS analyst asked whether the cash position could support a higher payout. Freeborough said management will maintain the framework for now and reassess it later this year and into early 2027.

Rollinson said organic opportunities remain the priority over acquisitions. He described KGC as a selective buyer that does not need a transaction and will keep screening external assets for shareholder value.

Kinross Keeps Execution at the Center

Rollinson closed by emphasizing operational delivery, cost control, capital returns and steady advancement of the project pipeline. Management did not change its annual targets.

Management's milestones center on permitting, capital updates and U.S. production sequencing as KGC funds growth while maintaining shareholder returns.

Zacks Signals Stay Mixed for KGC

KGC currently carries a Zacks Rank #5 (Strong Sell), reflecting unfavorable earnings estimate revisions and a negative near-term signal under the Zacks methodology. That rank takes precedence over the stock's A Value Score, A Growth Score and A VGM Score, even though its Momentum Score is C.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The A grades identify favorable value, growth and combined style characteristics, but Style Scores complement rather than override the Zacks Rank. The rank can change as analysts revise estimates after the just-reported results.

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