Kinross reports strong 2025 third-quarter results

Executive Summary

• Kinross Gold Corporation reported its third-quarter 2025 financial results, achieving record attributable free cash flow of approximately $700 million and reaching a net cash position of $485 million.
• The company increased its 2025 share buyback target by 20% to $600 million and raised its quarterly dividend by 17% to $0.035 per share ($0.14 annualized), reflecting strong cash generation and balance sheet strength.
• Kinross remains on track to meet its 2025 annual guidance for production, costs, and capital expenditures, with S&P upgrading the company's outlook from stable to positive.

Key Details

• Financial Performance (Q3 2025):
  • Reported net earnings: $584.9 million ($0.48 per share).
  • Adjusted net earnings: $529.6 million ($0.44 per share).
  • Operating cash flow: $1,024.1 million.
  • Attributable free cash flow: $686.7 million (record).
  • Margins: Increased 54% to $2,310 per Au eq. oz. sold.
• Production and Costs:
  • Attributable production: 503,862 Au eq. oz.
  • Attributable production cost of sales: $1,145 per Au eq. oz. sold.
  • Attributable all-in sustaining cost (AISC): $1,622 per Au eq. oz. sold.
  • Average realized gold price: $3,460 per ounce.
• Capital Allocation & Shareholder Returns:
  • Share buyback target increased by 20% to $600 million for 2025 (previously $500 million); $405 million repurchased year-to-date.
  • Quarterly dividend increased by 17% to $0.035 per common share; payable December 10, 2025, to shareholders of record November 26, 2025.
  • Total capital returned to shareholders in 2025: ~$515 million (including dividends and buybacks).
• Balance Sheet & Debt:
  • Cash and cash equivalents: $1.72 billion.
  • Net cash position: $485 million.
  • Total liquidity: ~$3.4 billion.
  • Early redemption of $500 million Senior Notes due 2027 announced; $750 million aggregate principal of Senior Notes remaining outstanding.
  • S&P upgraded outlook to positive; affirmed BBB- rating.
• Operational Highlights:
  • Paracatu: Highest producing mine, driven by higher grades and strong recoveries.
  • Tasiast: Strong mill performance and high recoveries.
  • La Coipa: Production increased and costs decreased quarter-over-quarter due to transition to higher-grade ore from Phase 7.
• Development & Exploration Updates:
  • Great Bear: AEX program infrastructure (camp, gas pipeline) complete; detailed engineering advancing; Impact Statement submissions on track.
  • Round Mountain Phase X: Over 5,200 meters developed; extensive infill drilling completed with strong widths and grades.
    • Key drill highlights: DX-0152 (53m @ 4.5 g/t), DX-0161 (123m @ 3.5 g/t), DX-0176 (74m @ 6.5 g/t), DX-0190 (56m @ 5.8 g/t).
  • Bald Mountain Redbird: Mining advancing on schedule; Phase 2 extension studies progressing.
  • Curlew: Infill drilling showing high grades and good mining widths; initial development of Roadrunner decline completed.
  • Lobo-Marte: Baseline studies progressing for Environmental Impact Assessment.
• Chirano Divestiture:
  • Received $232 million in cash proceeds since Q3 2025 ($136 million in Q3, $96 million post-Q3).
  • Total realized proceeds since 2022: $314 million (vs. original sale price of $225 million).
• Guidance:
  • 2025 Production: Slightly above midpoint of 2.0 million Au eq. oz. (+/- 5%).
  • 2025 Attributable Production Cost of Sales: In line with $1,120 per Au eq. oz. (+/- 5%).
  • 2025 Attributable AISC: Tracking toward higher end of $1,500 per Au eq. oz. (+/- 5%).
  • 2025 Attributable Capital Expenditures: On track for $1,150 million (+/- 5%).
  • 2026/2027 Production: Expected stable at 2.0 million attributable Au eq. oz. (+/- 5%).

Notable Quotes

• J. Paul Rollinson, CEO: “Kinross delivered another excellent quarter, underscoring the strength of our operating portfolio, which together with disciplined cost management, produced robust margins and record free cash flow of approximately $700 million. With free cash flow exceeding $1.7 billion in the first three quarters of the year, and the further strengthening of our balance sheet to a net cash position, we are well positioned to continue generating strong returns for our shareholders.”
• J. Paul Rollinson, CEO: “We are also pleased to announce enhancements to our return of capital program as a result of our robust financial position and strong free cash flow, and are now aiming to return approximately $750 million through both share buybacks and dividends.”