Kinross proceeds with construction of Phase X, Curlew and Redbird 2
Kinross bets $1.5 billion on US growth as high-margin projects move to construction phase
On January 15, 2026, Kinross announced the formal decision to proceed with the construction of three major organic growth projects: Round Mountain Phase X and Bald Mountain Redbird 2 (both in Nevada), and the Kettle River-Curlew project (Washington). These projects are expected to contribute 3 million gold equivalent ounces (Au eq. oz.) between 2028 and 2038. The economics are robust, boasting a combined post-tax NPV of $4.1 billion and an IRR of 55%, though it must be noted these figures are based on a gold price assumption of $4,300/oz. The company expects to self-fund the development through operating cash flow. Forecasted capital expenditures (CapEx) for 2026 are approximately $1.5 billion, with $425 million specifically allocated to these three new starts.
This news is a significant positive for the company's long-term production profile, specifically addressing the need to replace depleting reserves in the United States. - Production Longevity: The projects extend mine lives in Nevada well into the 2030s. - High Returns: A 55% IRR is exceptional for the mining industry, though the $4,300 gold price assumption appears aggressive compared to the spot prices observed in late 2025. - Financial Strength: The decision to self-fund from cash flow highlights the strength of the balance sheet, which was recently upgraded to Baa2 by Moody’s (Dec 2024) and moved to a net cash position of ~$500 million. - Strategic Execution: This follows the successful repayment of $1.5 billion in debt over 2024-2025, allowing the company to pivot from defensive deleveraging to offensive growth.
Kinross Gold is a senior global gold miner with operations in the US, Brazil, Mauritania, and Chile. - Flagship Assets: Paracatu (Brazil) and Tasiast (Mauritania) are the current "cash cows," consistently producing high volumes at low costs ($860-$1,025/oz). - Future Flagship: The Great Bear project in Ontario, Canada, is the most significant development asset, targeting 500k oz/year production starting in 2029 at an AISC of ~$800/oz.