Kinross provides update on Lobo-Marte project

Kinross Gold Corporation (K) reported second-quarter 2026 net earnings of $844.2 million, or $0.71 per share, on revenue of $2,238.1 million, a 29% increase year-over-year. The company generated $1,145.9 million in operating cash flow and $726.8 million in attributable free cash flow.

Attributable production totaled 492,326 gold equivalent ounces, a 4% decline year-over-year. Production cost of sales was $1,352 per ounce, while all-in sustaining costs (AISC) came in at $1,821 per ounce against a realized gold price of $4,483 per ounce.

Kinross reaffirmed its 2026 guidance, targeting production of 2.0 million ±5% gold equivalent ounces. The company expects a production cost of sales of $1,360 per ounce, AISC of $1,730 per ounce, and capital expenditures of $1,500 million.

The balance sheet remains strong with approximately $1.9 billion in net cash, $2.7 billion in cash, and total liquidity of $44.4 billion. Approximately 40% of free cash flow has been returned year-to-date through buybacks and dividends.

The Lobo-Marte project has been updated with a feasibility study outlining a 15-year mine life and 4.6 million ounces of total gold. Steady-state production is expected to reach approximately 350,000 ounces per year with an AISC of approximately $1,000 per ounce. The project carries a net present value (NPV) of $4.3 billion at a gold price of $4,100 per ounce and an internal rate of return (IRR) of 26%, with initial capital expenditures of $1.8 billion to be self-funded. The Environmental Impact Assessment (EIA) was accepted for review in the second quarter of 2026, with first gold production targeted for the early 2030s.

At the Great Bear project, the environmental assessment is 93% complete and the first blast has been completed. Meanwhile, the Round Mountain Phase X, Curlew, and Bald Mountain Redbird projects are advancing.

Kinross Gold Corporation (K) reported a second-quarter all-in sustaining cost (AISC) of $1,821 per ounce, exceeding its annual guidance range of $1,643.5 to $1,816.5. The $4.5 per ounce variance, representing a 0.25% miss, breaks a 14-year streak of meeting annual cost targets on a quarterly basis.

Despite the cost overrun, the company posted record free cash flow, robust margins, and a balance sheet holding $1.9 billion in net cash. Project execution continued as planned. An update on the Lobo-Marte project presented a net present value (NPV) of $4.3 billion and an estimated AISC of approximately $1,000 per ounce. However, the project remains at least five years from production and faces permitting risks, meaning it is not a near-term catalyst.

The release offered a mixed picture, with the slight cost disappointment partially offset by strong financials and reaffirmed guidance. The Lobo-Marte study does not provide immediate value crystallization. The market is expected to focus on the second-half AISC trajectory. Following the release, the stock had fallen to $33.21 from a recent $34 to $35 range, a move possibly reflecting pre-earnings caution.

Kinross Gold Corporation (K) is a senior gold producer operating six mines: Tasiast in Mauritania, Paracatu in Brazil, La Coipa in Chile, and Fort Knox, Round Mountain, and Bald Mountain in the USA. The company also holds development projects at Great Bear in Canada, Lobo‑Marte in Chile, and Curlew in the USA.

Kinross reported 2025 production of 2.01 moz, with 2026 guidance set at 2.0 moz ±5%. The company maintains long mine lives, with Paracatu operating until 2034, Tasiast until 2038, Phase X until 2038, and Redbird until 2032. Production is diversified by jurisdiction, with approximately 34% coming from the Americas, 30% from Brazil, 25% from Mauritania, and 11% from Chile.

The company’s ESG performance includes a carbon intensity of 707 kg CO₂e/oz, 75% water recycling, no significant spills, and strong governance scores.