Kinross Gold cuts output, boosts shareholder payout

Kinross Gold has reduced its production outlook for 2026 and 2027 by around 8%, following issues at two of its mines—La Coipa in Chile and Round Mountain in Nevada. The Canadian-based gold producer now anticipates generating between 1.84 million and 1.86 million attributable gold-equivalent ounces annually, down from the previous range of 1.9 million to 2.1 million.

All-in sustaining costs for the year are projected at $1,850 to $1,900 per ounce, up from $1,730 earlier. Kinross expects to produce approximately 425,000 gold-equivalent ounces in the third quarter, which is lower than the earlier forecast of 478,000 ounces. Bryce Adams, an analyst at Desjardins, expressed disappointment with the updated guidance, cutting his target share price from C$58 to C$53 while retaining a "buy" rating.

The company, however, partially mitigated the negative impact by increasing its 2026 shareholder return target to 50% of free cash flow from the previous 40%. Kinross has paid out about $800 million in shareholder returns this year, including $655 million through share buybacks. The company's stock saw a decline of 3.8% to C$38.91 following the announcement, while its US-listed shares dropped another 3.2% to approximately $26.75 in premarket trading.

Analysts' assessments suggest the changes could reduce Kinross's average earnings and cash-flow-per-share forecasts by around 10% for 2026-27, but only marginally decrease its net asset value by about 3%.