Kinross Gold Corporation

Kinross reported second-quarter production of 492,000 gold equivalent ounces. Adjusted earnings were $0.71 per share, adjusted operating cash flow was over $1.1 billion, and attributable free cash flow was $727 million after $406 million of capital expenditures and $327 million of tax payments. Q2 cost of sales was $1,336 per ounce, all-in sustaining costs were $1,821 per ounce, and margins were over $3,100 per ounce. The company ended the quarter with $2.7 billion in cash and $1.9 billion in net cash, after adding over $470 million in cash in the quarter and returning $275 million to shareholders. For full year 2026, management said it remains on track for approximately 2 million ounces, cost of sales of $1,360 per ounce, AISC of $1,730 per ounce, and capital guidance of $1.5 billion. Management also said third-quarter production should be in line with the first two quarters, with the fourth quarter higher, and that costs in the second half should be modestly higher but still within guidance.

Paul Rollinson struck an upbeat tone, saying the company had a strong first half and was positioned well to meet 2026 targets. He emphasized operational discipline, free cash flow generation, balance-sheet strength, and continued capital returns, while highlighting a pipeline of growth projects and resource conversion opportunities. He also framed Lobo-Marte and Great Bear as central to the company’s longer-term grade enhancement strategy and future production profile.

Andrea Freeborough focused on the financial strength of the quarter, pointing to $0.71 per share in adjusted earnings, over $1.1 billion in adjusted operating cash flow, and $727 million in attributable free cash flow. She noted that Kinross added over $470 million in cash in Q2, ended with $2.7 billion in cash and $1.9 billion in net cash, and returned $275 million to shareholders through buybacks and dividends. She reiterated the 40% free-cash-flow return target, said the company bought back 7.9 million shares for $230 million in Q2, and said the company remains on track for approximately 37% returned in the first half. On costs, she said the company is still expecting to be within guidance, that fuel hedges extend through 2026 and 2027, and that recent oil prices should have less than a 2% impact on AISC if they persist.

Analysts pressed on Lobo-Marte timing, capex, and whether a redesign is needed at current gold prices. Management said the EIA submission was the key next step, permitting could take roughly 2 to 3 years, and construction would likely be toward the end of the decade; they also said any redesign and optimization work would be focused later, after operations begin, with Lobo-Marte viewed as a high-quality 15-year mine-life base case. Questions also focused on costs, balance-sheet deployment, and M&A. Andrea said inflation assumptions remain within guidance, fuel impacts are manageable, and Nevada labor and higher Alaska power costs are the main areas being watched. Paul said Kinross is comfortable with a growing cash balance, is sticking with the 40% return framework for now, and remains highly disciplined on M&A while prioritizing its organic pipeline.