Kinross Gold generates record cash again

Kinross Gold (TSX: K, NYSE: KGC) has reported its fourth consecutive quarter of record cash flows, generating nearly $850 million (C$1.43 billion) for the January-March period, a large part of which it expects to return to shareholders.

The increase in cash flow was attributed to margins that continued to outpace gold prices, the company said in its results release late on Wednesday.

For the quarter, Kinross’ margins surged to a record $3,476 per oz. gold equivalent — representing a 92% jump from last year and 22% over the previous quarter. Compared to the average realized gold price, the first-quarter 2026 margin was 20% higher year-over-year.

“Production and costs were better than us and [a] consensus” of analysts, BMO Capital Markets analyst Matthew Murphy said in a note on Wednesday evening.

“Kinross has returned $350 million in capital year-to-date through April via the buyback and dividend, and now has a net cash balance of over $1.4 billion,” Murphy said. “Guidance is unchanged and cost sensitivity this year at $100 per barrel of oil is only about 1.5% to all-in sustaining costs. Projects are on track or ahead of schedule.” 

Earnings beat

The higher gold price led to a 61% surge in total revenues, from $1.5 billion last year to $2.4 billion. Earnings for the quarter came to $843 million (or 70¢ per share), while adjusted net earnings were almost identical at $854.1 million (71¢ per share). Both figures were more than double those of the year-ago period.

“Strong operational performance and disciplined cost management drove record margins that continue to outpace the rise in the gold price, which highlights our ability to continue to hold the line on costs,” CEO Paul Rollinson said in the release. 

Kinross’ shares rose as much as 5% on Thursday in New York following the results release, as its adjusted earnings per share beat analysts’ expectations of 68¢. Trading at about $30.50 in New York, the company has a market capitalization of $36.5 billion.

Returning cash

Given these results, Kinross said it remains committed to returning the generated capital to shareholders. For 2026, it expects to return 40% of its free cash flow in the form of dividends and share buybacks. So far, it has already returned $350 million to shareholders, including $300 million from buying back 9.2 million shares.

“Over the past 12 months, we have returned over $1 billion to shareholders, and through our share buyback program, have reduced our outstanding float by over 3%,” Rollinson noted.

On the operations side, the Canadian gold miner said it still expects to produce 2 million gold-equivalent oz. at an all-in sustaining cost of $1,730 per ounce.

Great Bear

Toronto-based Kinross is developing the Great Bear project in Ontario to produce 518,000 oz. gold a year by 2029 at an all-in sustaining cost of $812 per oz., according to a 2024 preliminary economic assessment. It would be in the leading handful of Canadian producers by output and among those with the lowest cost.

“Great Bear has received permits for the advanced exploration program and surface construction is 90% complete,” BMO’s Murphy said. “Main project detailed engineering is now 45% complete; procurement of major equipment is ongoing. The company is seeing high-grade intercepts 2.4 km away in the new Strider zone.”

An environmental impact assessment for the Lobo Marte project in Chile’s northern Andes was submitted this month, while development at Round Mountain in Nevada — including the Phase X expansion — and the Kettle River-Curlew project in Washington state is progressing ahead of schedule. At Bald Mountain in Nevada, execution of the Redbird project is also advancing.

At Round Mountain, the company is developing Phase X as an underground extension to support mine life, while at Bald Mountain it is advancing Redbird through a series of satellite pits across its broader land package.

In Washington, plans to restart underground mining at Kettle River-Curlew are leveraging existing infrastructure to bring higher-grade production back online. Together, the projects point to a continued focus on sustaining output from operations in established jurisdictions over the longer term.