Kinross Gold's attributable free cash flow fell 59% in the third quarter despite higher gold prices, as lower output, rising costs and heavier development spending cut cash generation. The miner also disclosed that two contractor workers died after separate accidents at a Nevada mine.
At a glance
- La Coipa in Chile produced 29,203 gold-equivalent ounces, nearly half its output a year earlier.
- Round Mountain in Nevada produced 27,068 ounces, down 27%.
- Kinross says it remains on track for its updated full-year guidance.
Background
Kinross Gold, listed in Toronto and New York, runs mines including La Coipa in Chile and Round Mountain, Bald Mountain and Fort Knox in the US. Free cash flow is the cash left after operating costs and capital spending. Gold-equivalent ounces convert other metals a mine produces into gold terms.
What happened
Kinross reported attributable free cash flow of C$394.8 million ($281.3 million) for the third quarter, down 59% from a year earlier, MINING.COM reported. Lower output, rising operating costs and heavier development spending reduced cash generation.
"We remain on track for our updated guidance, supported by operational improvements at Round Mountain and La Coipa," chief executive Paul Rollinson said.
Kinross shares closed 0.4% lower in Toronto at C$32.18 before the results were released.
Why output fell
La Coipa in Chile produced 29,203 gold-equivalent ounces, nearly half its year-earlier level. Ore processed fell 26% and gold recovery dropped to 62% from 76%, after winter weather disrupted mining and milling.
Round Mountain in Nevada produced 27,068 ounces, down 27%, because lower mining rates delayed access to higher-grade ore, though output improved from the second quarter. Fort Knox in Alaska had mill maintenance and planned lower grades.
Safety
Two employees of the same contractor died after separate accidents on September 3 at Kinross's Bald Mountain mine in Nevada, according to preliminary reports from the US Mine Safety and Health Administration. Kinross said the incidents were unrelated and that it held company-wide safety stand-downs afterwards.
The agency said its preliminary reports are not final findings on the causes.
Our read
Outlook: neutral. Lower output at a mid-tier producer has little effect on global gold supply.
What to watch
- Recovery rates and throughput at La Coipa as the weather improves.
- Access to higher-grade ore at Round Mountain.
- Final findings from US safety regulators on the Bald Mountain accidents.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-09-03: Two contractor workers are injured in separate accidents at Bald Mountain, Nevada.
- 2026-10-28: Kinross reports third-quarter results and discloses the deaths.
Inflation
Rising operating costs reduced Kinross's cash generation despite higher gold prices.
Mining Production
Output fell sharply at La Coipa and Round Mountain because of weather, lower recoveries and grade access.
What could lift prices
- Lower output at a major producer slightly reduces gold supply.
- Rising mining costs raise the price gold needs to support new supply.
What could weigh on prices
- Kinross expects output to improve as weather and plant work help La Coipa.
- Gold prices are already falling, which will further squeeze miners' cash flow.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Chile | Medium | La Coipa's output nearly halved after weather disruption. |
| United States | Medium | Two contractor workers died after accidents at a Nevada mine. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Negative | Rising costs and lower output are cutting cash flow even with high gold prices. |
Who gains, who loses
- Workers at Kinross mines: The company held company-wide safety stand-downs to reinforce procedures after the accidents.
- Kinross shareholders: Free cash flow fell 59% from a year earlier.
Other ways this could play out
- If La Coipa's recoveries keep improving, Kinross's fourth-quarter output could recover.
- If gold stays below $4,000, its cash flow could weaken further.
Price risks
- Further weather disruption in Chile could hit La Coipa again.
- Safety findings could lead to changes at Bald Mountain.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
United States