Kinross Gold Corporation (K:CA) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed outlook. While financial performance appears stable, with no major disruptions, there are concerns about inflation impacts and unclear timelines for project developments. The Q&A reveals a cautious sentiment among analysts, particularly regarding inflation and project timelines. The lack of specific guidance and hedging strategies for future fuel costs add uncertainty. However, positive elements include strong asset performance expectations and no significant supply chain issues. Overall, the stock is likely to remain stable in the near term, resulting in a neutral sentiment.
Key Financial Performance
Free Cash Flow Approximately $840 million in Q1 2026, marking the fourth consecutive quarter of record free cash flow. This was driven by strong operating margins and higher gold prices.
Gold Production 493,000 ounces in Q1 2026. Strong performance from Tasiast and Paracatu mines contributed significantly, with Paracatu achieving record mill recoveries and Tasiast benefiting from higher grades and strong recoveries.
Cost of Sales $1,380 per ounce in Q1 2026, on plan. Supported by grade enhancement and hedging strategies.
All-in Sustaining Costs (AISC) $1,732 per ounce in Q1 2026, on plan. Supported by cost management strategies.
Margins Record $3,476 per ounce in Q1 2026, outpacing the increase in gold prices.
Adjusted Earnings Per Share $0.71 in Q1 2026. Impacted by a $65 million withholding tax expense, which reduced EPS by $0.05.
Adjusted Operating Cash Flow Record $1.1 billion in Q1 2026. Driven by strong operational performance.
Taxes Paid Approximately $450 million in Q1 2026, largely related to 2025 earnings.
Cash Position $2.2 billion in cash at the end of Q1 2026, with $3.9 billion in total liquidity and $1.4 billion in net cash. Strengthened by adding $440 million in cash after funding CapEx and shareholder returns.
Share Repurchases $250 million in Q1 2026, representing approximately 7.7 million shares or 0.6% of shares outstanding. Since restarting repurchases in 2025, $900 million worth of shares have been repurchased, representing over 3% of outstanding shares.
Dividend and Shareholder Returns $350 million returned to shareholders in 2026 to date, including dividends and share repurchases.
Paracatu Mine Production 161,000 ounces in Q1 2026. Increased due to record mill recoveries driven by continuous improvement programs.
Tasiast Mine Production 130,000 ounces in Q1 2026. Increased due to strong grades and recoveries.
La Coipa Mine Production 54,000 ounces in Q1 2026. Decreased due to a planned 16-day mill shutdown.
U.S. Operations Production 148,000 ounces in Q1 2026. Higher quarter-over-quarter due to strong contributions from Fort Knox and Manh Choh.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Mine Life Extensions and Growth Projects: Strong progress in Q1 across pipeline of mine life extensions and growth projects, including Great Bear, Lobo-Marte, and U.S. projects.
Advanced Exploration Program: Great Bear project advanced with key permitting milestones achieved.
Environmental Impact Assessment: Submitted for Lobo-Marte in Chile, marking a significant milestone in permitting process.
Gold Production: Produced 493,000 ounces in Q1, with strong contributions from Tasiast and Paracatu mines.
Free Cash Flow: Achieved record free cash flow of approximately $840 million in Q1.
Shareholder Returns: Targeting to return 40% of free cash flow to shareholders in 2026 through dividends and buybacks.
Operational Efficiencies: Paracatu achieved record mill recoveries; Tasiast saw strong output supported by higher grades and recoveries.
Cost Management: Maintained attractive cost position through grade enhancement and hedging strategies.
Safety Initiatives: Focused on Safeground brand and leadership training to prevent high potential incidents.
Grade Enhancement Strategy: Phase X, Curlew, Great Bear, and Lobo-Marte projects to bring higher grade ore into future production profile.
Sustainability Commitment: 18th annual sustainability report to be published, highlighting progress and future goals.
Exploration and Development: Advancing studies on opportunities across resource base to enhance production profile in the 2030s.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Geopolitical Events: Potential cost pressures due to geopolitical events, though mitigated by hedging strategies.
Oil Price Volatility: Elevated oil prices could increase costs, with a potential impact of $30 per ounce on all-in sustaining costs if oil prices remain high.
Tax Expenses: Timing of a $65 million withholding tax expense in Q1 impacted earnings and skewed the effective tax rate higher.
Permitting Delays: Potential delays in obtaining permits for projects like Great Bear and Lobo-Marte could impact project timelines and production targets.
Operational Costs: Higher costs at certain operations, such as Round Mountain and Bald Mountain, due to lower production and processing of lower-grade ore.
Supply Chain Disruptions: No current disruptions, but potential risks remain in securing fuel and other consumables.
Environmental and Regulatory Compliance: Ongoing need to meet environmental and regulatory requirements, particularly for new projects like Lobo-Marte and Great Bear.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Production Guidance: Kinross Gold is on track to produce 2 million ounces of gold in 2026, with production costs of $1,360 per ounce and all-in sustaining costs of $1,730 per ounce. Production in the second half of the year is expected to be slightly higher than the first half.
Capital Expenditures: The company is maintaining its capital expenditure guidance of $1.5 billion for 2026.
Oil Price Sensitivity: Kinross Gold's 2026 cost guidance is based on $70 per barrel oil. For every $10 per barrel change in oil price, the cost of sales is expected to change by $3 per ounce, with a potential total impact of $30 per ounce on all-in sustaining costs if oil prices remain elevated.
Grade Enhancement Strategy: The company is advancing projects such as Phase X, Curlew, Great Bear, and Lobo-Marte to bring higher-grade ore into future production, supporting cost management and margin improvement.
Great Bear Project: The Great Bear project is progressing well, with construction of the AEX decline expected to begin in summer 2026. First production is targeted for late 2029, with detailed engineering approximately 45% complete.
Lobo-Marte Project: The environmental impact assessment for the Lobo-Marte project has been submitted, with updates expected in the second half of 2026. The project is expected to produce 4.7 million ounces over a 16-year mine life, starting in the 2030s.
U.S. Projects: Three high-return projects in the U.S. are advancing, with Phase X at Round Mountain expected to begin production in 2028. Other projects include Bald Mountain and Curlew, which are progressing well.
Exploration and Resource Development: Kinross is focused on advancing studies and exploration to enhance its production profile in the 2030s, including projects at Bald Mountain, Fort Knox, and La Coipa.
Return of Capital: The company plans to return approximately 40% of its free cash flow to shareholders in 2026 through dividends and share repurchases.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Quarterly Dividend: Kinross Gold continues to return meaningful capital to shareholders through its quarterly dividend. In Q1 2026, the company returned $300 million to shareholders, which includes dividends.
Dividend Target: The company is targeting to return approximately 40% of its free cash flow in 2026 through dividends and share repurchases.
Dividend History: Since the first quarter of 2025, Kinross Gold has returned over $1 billion to shareholders, including dividends.
Share Buyback Program: Kinross Gold continued its share buyback program in Q1 2026, repurchasing $250 million worth of shares, representing approximately 7.7 million shares or 0.6% of its outstanding shares.
Additional Buybacks: Subsequent to Q1 2026, the company repurchased an additional $50 million worth of shares.
Total Buybacks Since Restart: Since restarting its share repurchase program one year ago, Kinross Gold has repurchased approximately $900 million worth of shares, representing over 3% of its outstanding share count.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is the pathway and timeline for deeper exploration at Great Bear with the AEX permit in place?
A:The company plans to work on water management over the summer and expects to start blasting and getting underground by August or September. Initial focus will be on infill and extensional drilling in the LP ore body, as well as exploring Hinge and Limb areas over the next couple of years. Deeper exploration at the bottom of the ore body will take several years.
Q:What is the company's outlook on inflation for non-energy-related items and CapEx inflation trends for Lobo-Marte and Great Bear?
A:The company included a 5% inflation factor in its cost guidance and is still on track for that. For CapEx inflation, the company acknowledges inflation will impact both Lobo-Marte and Great Bear projects, with updates expected in the future. They aim to mitigate inflation impacts where possible but are subject to macroeconomic conditions.
Q:What is the outlook for Tasiast grades for the rest of the year?
A:Tasiast grades were high in the first quarter due to processing stockpile inventory from West Branch 4. Grades are expected to taper off slightly for the rest of the year, but the company is exploring opportunities to enhance output.
Q:Are diesel prices regulated in Mauritania, and is there any concern about the security of supply?
A:Diesel prices are regulated by the government for the country but not for the company, which has long-term contracts with suppliers. There are no concerns about supply security as the company sources fuel from regions outside the Middle East.
Q:What is the baseline water usage strategy for the Lobo-Marte project?
A:The baseline strategy involves using existing permitted pumping wells that currently supply La Coipa. These wells have a strong history of monitoring with no detrimental impact. The company plans to redirect this water to Lobo-Marte. Additional water sources are being explored for long-term optionality.
Q:What is the explanation for Round Mountain recoveries in the quarter, and are there any changes in metallurgical assumptions for Phase X?
A:The lower recoveries were due to processing lower-grade stockpile material. Phase X is expected to have different grades and recoveries, similar to higher levels in Phase W. The company is optimizing recovery processes and expects improvements with different material types.
Q:Which assets are expected to perform stronger in the second half of the year?
A:The U.S. assets, particularly Round Mountain, are expected to perform stronger in the second half as production ramps up in Phase X.
Q:What is the company's hedging strategy for fuel and exposure levels for 2026 and 2027?
A:The company is 63% hedged for fuel exposures in the U.S. and Tasiast for 2026, representing about 50% company-wide. For 2027, they are 42% hedged for the U.S. and Tasiast, which is about 30% company-wide. Brazil is not hedged due to price controls.
Q:What is the cadence of sustaining and growth capital spending for the year?
A:The company had a slower start in Q1, which is typical. Growth capital spending is expected to ramp up on U.S. projects as the year progresses.
Q:Are there any supply chain issues or concerns about labor market tightness?
A:There are no significant supply chain issues, and the company has secured long-term agreements with major labor groups. Turnover in Nevada has decreased, and there are no current pressures on labor supply or costs.
Q:What are the timelines and expectations for the Lobo-Marte environmental impact assessment and project development?
A:The EIA process is expected to take a couple of years, followed by approvals and construction, which will take another couple of years. First production is anticipated in the early 2030s, following the Great Bear project.
Q:What is the cost benefit of the solar power plant at Tasiast, and are there plans for expansion?
A:The solar plant saves about 14 million liters of fuel annually, providing 22%-24% of the site's electricity. Expansion is limited by storage capacity, but the company is exploring wind energy and battery-powered vehicles to further reduce fuel dependency.
Q:Were there any additional costs or shutdowns expected for Fort Knox due to conveyor belt repairs?
A:No additional costs or shutdowns are expected. The repairs did not impact production, and the system is on track with commissioning and testing of the new belt.
Q:Review of Unclear Management Responses
A:Management avoided providing specific timelines or cost estimates for certain projects, such as the exact inflation impact on CapEx for Lobo-Marte and Great Bear. Additionally, while they discussed water usage strategies and solar power benefits, they did not provide detailed numerical data or concrete plans for expansion in these areas.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Bald Mountain
Curlew
Executive VP
Fort Knox
Great Bear
Lobo Marte
Mines Energy
Ministry
North Stealth
Pit
Project
Top
anchor
assessment
barrel
equipment
extension
flow record
fuel
grade enhancement
hedge
improvement
kilometer
layback pit
mine life
oil price
operation
plant
potential ounce
process project
processing
procurement
rate tax
sensitivity
tax rate
KGC Transcript
Kinross Gold Corporation (K:CA) Q1 2026 Earnings Call Transcript
Unknown4-30
The earnings call presents a mixed outlook. While financial performance appears stable, with no major disruptions, there are concerns about inflation impacts and unclear timelines for project developments. The Q&A reveals a cautious sentiment among analysts, particularly regarding inflation and project timelines. The lack of specific guidance and hedging strategies for future fuel costs add uncertainty. However, positive elements include strong asset performance expectations and no significant supply chain issues. Overall, the stock is likely to remain stable in the near term, resulting in a neutral sentiment.
Kinross Gold Corporation (KGC) Q2 2025 Earnings Call Transcript
Positive7-31
Kinross Gold's Q2 2025 earnings report highlights strong financial performance, with record margins, free cash flow, and operating cash flow. Despite some anticipated cost increases and slightly lower production in the second half, the company has a robust shareholder return plan, including significant share repurchases and dividends. The Q&A section revealed cautious but optimistic management responses, with promising exploration results and a focus on long-term value creation. Overall, the positive financial metrics and shareholder returns suggest a likely positive stock price movement.
Kinross Gold Corporation (KGC) Q1 2025 Earnings Call Transcript
Positive5-7
The earnings call highlights strong financial performance, with record production, sales, and margins. Despite some project delays, the company has a robust share buyback plan and increased return of capital, indicating confidence in financial health. The Q&A session revealed stable operational outlooks and no immediate risks, while the management's cautious approach to project timelines is balanced by proactive permitting and exploration efforts. The overall sentiment is positive, with strong financial metrics and shareholder returns likely to boost stock price.
Kinross Gold Corporation (KGC) Q3 2024 Earnings Call Transcript
Positive11-6
Kinross Gold's earnings call reveals strong financial performance with improved free cash flow, reduced costs, and enhanced operating margins. Despite some uncertainties in production forecasts and regulatory challenges, the optimistic outlook on production and capital allocation, alongside a solid debt repayment strategy, supports a positive sentiment. The Q&A section indicates management's confidence in maintaining stable production levels, and the company's attractive dividend policy further bolsters investor sentiment. These factors suggest a likely positive stock price movement in the short term.
KGC Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
