Kinross cuts free cash flow 59% to $281.3 million in third quarter
Key Facts
Kinross Gold reported on October 28 results for the third quarter ended September 30, 2026, recording attributable free cash flow of $281.3 million, compared with $686.7 million a year earlier, a decline of 59%. The company said sales timing and higher capital spending affected cash flow during the quarter. Excluding the impact of working capital, adjusted free cash flow was $391.4 million, compared with $657.9 million in the corresponding period, a decline of 41%. The results came in a quarter in which production fell and the cost per ounce sold rose, despite an increase in the average realized gold price. The company also reported its results after the market closed on October 28, before its shares closed at $21.56 on October 29.
Attributable gold-equivalent production was 424,693 ounces, compared with 503,862 ounces in the third quarter of 2025. Kinross attributed the decline to planned lower output at Fort Knox and Bald Mountain, and to lower production at La Coipa and Round Mountain. Production was stable at Paracatu and Tasiast, the company said. On September 23, Kinross had lowered its production outlook for 2026 and 2027 to about 1.84 to 1.86 million ounces annually for each year, 2% to 3% below the lower end of its previous guidance. It said the outlook revision was focused on La Coipa and Round Mountain because of severe weather and operational challenges, while Paracatu and Tasiast continued to perform well.
Despite lower production, the company's average realized gold price rose to $4,249 an ounce from $3,460 a year earlier, an increase of 23%. But revenue fell 2% to $1,774.7 million, compared with $1,802.1 million in the third quarter of 2025, due to lower production and fewer ounces sold. Attributable cost of sales per gold-equivalent ounce sold rose to $1,485 from $1,145. The company linked the increase to higher energy, contractor and consumables costs, lower production, and higher royalties as gold prices rose. The figures reflect the combination of a higher realized price with lower sales volumes and production and higher unit costs during the quarter.
Adjusted net earnings rose to $591.3 million, or $0.50 a share, compared with $529.6 million and $0.44 a share in the year-earlier period. Reported earnings were $583.2 million. Meanwhile, attributable capital expenditures increased to $439.5 million from $307.6 million in the third quarter of 2025. Kinross said spending included increased development activity at Curlew, Redbird, Great Bear and Round Mountain, Phase 10. Higher capital spending, alongside sales timing, was among the factors the company said affected free cash flow.
Away from the financial indicators, two separate incidents at the Bald Mountain mine in Nevada on September 3 killed two workers employed by the same contractor. A Northern Miner report said 22-year-old Newt B. Wakefield was injured while changing truck box liners after the securing equipment broke and one of the liners struck him; he died from his injuries on September 18. Brandon D. Whitley, 31, also died after a pipe he was working beneath slipped from a hoist and struck him. Kinross said both workers were employed by TJS Welding and that it held company-wide safety stand-downs. The report quoted the U.S. Mine Safety and Health Administration as saying that preliminary reports "do not represent final findings regarding the nature of the accidents or their causes."
At the end of September, Kinross had $2.6 billion in cash and equivalents and net cash of $1.9 billion. The company estimated total liquidity at about $4.4 billion and said it had no debt maturities until 2033. In its September update, the company raised its commitment to return capital to shareholders during 2026 from 40% to 50% of free cash flow. It added that it had returned more than $950 million to shareholders from the start of the year through October 28, through dividends and share buybacks. The commitment comes as the company continues to direct spending to development projects, including Redbird at the Bald Mountain mine.
Kinross said in its third-quarter results that it remained on track to meet its revised guidance, citing improved operations at Round Mountain and La Coipa. The company had announced the first gold pour from the Bald Mountain Redbird 1 project in early October, with development of Redbird 2 continuing. It also declared a quarterly dividend of $0.04 a share, payable on December 3, 2026, to shareholders of record on November 19. The stock's daily closes were $23.00 on October 27 and $22.98 on October 28, before it closed at $21.56 on October 29. The data provided do not include that day's trading range.