Lower Output, Higher Returns
Kinross Lowers Production Guidance While Raising Capital Returns on Strong Cash Flow
Anonymous
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At La Coipa, Kinross reported higher-than-expected copper grades and lower recoveries in some sulphide ore, prompting it to stockpile some high-copper material for possible processing later.
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Kinross said it is pursuing a potential flotation circuit and additional copper exploration at La Coipa as part of efforts to improve the operation’s future performance.
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The company expects production to begin at the Phase X and Curlew projects in 2028, while Tasiast moves into the higher-grade section at the bottom of its open pit.
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At Round Mountain, Kinross plans to ramp up higher-grade underground mining at Phase X to help support future production after weaker mining performance affected the outlook.
Kinross Gold slashed its 2026 and 2027 production outlook to 1.84 to 1.86 million ounces annually, down 2% to 3% from prior guidance Benzinga. The cuts stem from extreme winter weather at La Coipa in Chile and lower mining rates at Round Mountain in the United States. The stock fell more than 10% on the news BNN Bloomberg.
Despite the production miss, Kinross boosted its 2026 capital-return target from 40% to 50% of free cash flow, citing strong balance-sheet strength Yahoo Finance. The company expects third-quarter 2026 output of about 425,000 ounces and raised production costs to $1,420–$1,460 per ounce.
La Coipa Weather and Metallurgical Troubles Bite Hard
Kinross's La Coipa mine in Chile faced a brutal combination of extreme winter conditions and processing setbacks BNN Bloomberg. The operation hit higher-than-expected copper grades but suffered lower recovery rates in some sulphide ore, forcing the company to stockpile high-copper material for later processing.
To fix the problem, Kinross is exploring a potential flotation circuit and additional copper work at La Coipa Yahoo Finance. These upgrades aim to boost the operation's future output and efficiency after the current production shortfall.
Paracatu and Tasiast Remain Profitable Workhorses
While La Coipa stumbled, Kinross's two largest and lowest-cost mines kept humming. Paracatu and Tasiast are expected to produce a combined 1.1 million ounces for the fifth consecutive year, anchoring the company's cash generation despite overall output headwinds Benzinga.
New Projects Stay On Track For 2028 Start
Kinross said development projects including Great Bear, Lobo-Marte, Phase X, and Curlew remain on schedule, with production expected to begin in 2028 Yahoo Finance. At Tasiast, the company will move into a higher-grade section at the bottom of its open pit, boosting future ore quality.
Round Mountain will ramp up higher-grade underground mining at Phase X to support production after weaker performance this year BNN Bloomberg. These expansions position Kinross to recover output growth once current operational challenges ease.
Stock Falls on Guidance Cut and Wall Street Skepticism
Kinross shares dropped nearly 13% following the guidance revision Yahoo Finance. Scotiabank cut its price target on the stock from $41 to $39, signaling analyst concern about near-term production weakness Watch List News.
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