Kinross Gold Cuts 2026-2027 Production Outlook, Raises Cost Guidance
Mining News | 2026-09-24 10:08:11 | By Paul Ploumis
Kinross Gold cut its 2026 and 2027 production outlook to 1.84-1.86 million gold-equivalent ounces after weather and operational setbacks at La Coipa and Round Mountain. The miner also raised cost guidance while increasing its 2026 shareholder-return target.
MONTREAL (Scrap Monster): Kinross Gold has cut its 2026 and 2027 production outlook after severe weather and operational setbacks at its La Coipa mine in Chile and Round Mountain operation in the United States, while also raising expected unit costs for the year.
The gold producer now expects attributable production of approximately 1.84 million to 1.86 million gold-equivalent ounces in each of 2026 and 2027, representing a 2% to 3% reduction from the lower end of its previous guidance range.
Kinross also expects attributable production of approximately 425,000 gold-equivalent ounces in the third quarter of 2026.
SCRAPMONSTER EDGE
The production downgrade is concentrated rather than portfolio-wide. La Coipa and Round Mountain are driving the weaker outlook, while Paracatu and Tasiast — Kinross' two largest and lowest-cost operations — are still expected to deliver a combined 1.1 million ounces for a fifth consecutive year.
Kinross Cuts 2026 and 2027 Gold Production Guidance
Kinross had previously guided to approximately 2.0 million attributable gold-equivalent ounces, plus or minus 5%, for both 2026 and 2027.
The revised range of 1.84 million to 1.86 million ounces places expected production roughly 40,000 to 60,000 ounces below the former 1.9-million-ounce low end of that range.
The company said the reduction is concentrated at La Coipa and Round Mountain rather than across its broader operating portfolio.
Severe Winter Weather Hits La Coipa
At La Coipa in Chile, a series of severe winter weather events during the third quarter disrupted both mining and milling operations.
The weather resulted in lower-than-planned mining rates and mill throughput, with effects continuing into September.
Kinross also encountered higher-than-expected copper grades and weaker recoveries in some of the sulphide ore mined during the quarter.
The company has adjusted its 2026 and 2027 production forecasts to reflect the lower recoveries and the stockpiling of some higher-copper material for possible future processing.
Kinross said weather and mining conditions have begun to stabilize and the operation is implementing measures aimed at improving plant throughput and recovery.
Kinross Studies Flotation Option at La Coipa
The changing ore characteristics at La Coipa could also have longer-term implications for the operation.
Kinross is carrying out a pre-feasibility study on the potential addition of a flotation circuit designed for higher-copper sulphide mineralization identified beneath several open pits.
The company said the transition from oxide mineralization toward higher-copper sulphide material across several nearby deposits may also indicate the presence of an underlying copper porphyry system, which Kinross is actively exploring.
Round Mountain Phase S Misses Expectations
At Round Mountain in the United States, production expectations were reduced because of lower mining rates and lower-than-expected grades and recoveries at Phase S.
The lower mining rates are deferring some higher-grade Phase S ore into future periods, while weaker mill grades and recoveries have reduced expected production.
Kinross said the operation is working to improve mining rates, mill grades and recovery.
Phase S is serving as a bridge to the longer-term Phase X underground operation, which remains scheduled to begin contributing production in 2028.
The company has also reported encouraging infill drilling results at Phase X, with higher-than-expected ounces in early planned stoping areas.
Paracatu and Tasiast Continue Strong Performance
Performance at Kinross' two largest and lowest-cost operations remains strong despite the problems at La Coipa and Round Mountain.
Paracatu in Brazil and Tasiast in Mauritania are expected to produce a combined 1.1 million ounces for the fifth consecutive year.
Kinross said the performance of those operations continues to support significant free cash flow generation.
Kinross Raises 2026 Cost Guidance
The lower production outlook has also led Kinross to revise its 2026 unit-cost expectations upward.
Attributable production cost of sales is now expected to range between $1,420 and $1,460 per gold-equivalent ounce sold.
Attributable all-in sustaining cost is forecast at $1,850 to $1,900 per ounce sold.
Earlier in 2026, Kinross had targeted production cost of sales of approximately $1,360 per gold-equivalent ounce, plus or minus 5%, and AISC of about $1,730 per ounce, plus or minus 5%.
COST WATCH
Using the midpoint of the new guidance, production cost of sales is about 5.9% above Kinross' earlier $1,360 target, while the new AISC midpoint of $1,875 is roughly 8.4% above the earlier $1,730 target.
Kinross nevertheless said total operating and capital costs remain on track despite higher oil prices.
Shareholder Return Target Raised to 50% of Free Cash Flow
Despite the production downgrade, Kinross raised its 2026 return-of-capital target from 40% to 50% of free cash flow.
The company said the increase reflects its strong cash-flow outlook and balance sheet.
Kinross has returned approximately $800 million to shareholders so far in 2026, including about $655 million through share repurchases.
Since the first quarter of 2025, the company has returned more than $1.5 billion to shareholders and repurchased more than 4% of its outstanding shares.
Development Pipeline Remains on Schedule
Kinross said its broader development pipeline remains on schedule, including Great Bear and Lobo-Marte.
Looking to 2028, the company expects production contributions from Phase X and Curlew, while Tasiast is expected to advance into higher-grade material at the bottom of its open pit.
People Also Ask
What is Kinross Gold's 2026 production guidance?
Kinross now expects attributable production of approximately 1.84 million to 1.86 million gold-equivalent ounces in 2026.
Why did Kinross lower its gold production forecast?
The reduction is primarily tied to severe winter weather and recovery issues at La Coipa in Chile, together with lower mining rates, grades and recoveries at Round Mountain in the United States.
What is Kinross Gold's 2026 AISC guidance?
Kinross expects attributable all-in sustaining costs of approximately $1,850 to $1,900 per ounce sold in 2026.
How much cash is Kinross returning to shareholders?
Kinross increased its 2026 return-of-capital target to 50% of free cash flow and has returned approximately $800 million to shareholders so far this year.
Which Kinross mines are performing strongest in 2026?
Paracatu and Tasiast remain the company's two largest and lowest-cost operations and are expected to produce a combined 1.1 million ounces for the fifth consecutive year.
Market Read
The guidance revision is significant because it combines lower expected production with higher unit costs, but the weakness is concentrated at two operations rather than across Kinross' entire portfolio.
Strong performance at Paracatu and Tasiast, combined with a higher shareholder-return target, suggests Kinross expects its larger operations and current gold-price environment to continue supporting free cash flow despite the operational setbacks.
Also Read
Sources and Methodology
This article was reviewed against Kinross Gold Corporation's September 23, 2026 operational, guidance and return-of-capital update and the company's previously issued 2026 production and cost guidance.