Kinross Gold Stock Plunges on Reduced Production Guidance and Elevated Costs

Kinross Gold Corporation (NYSE:KGC) stock fell Thursday afternoon due to reduced production guidance for 2026 and 2027, a lower price target from Scotiabank, and broader weakness in the precious metals sector.

The company cut its attributable gold equivalent ounces per year by approximately 8%, or around 1.84 million to 1.86 million, down from 1.9 million to 2.1 million. Kinross also raised its all-in sustaining costs estimate for 2026 to between $1,850 and $1,900 per ounce sold.

The reduced production targets and elevated cost outlook led market sentiment against the company, despite management's decision to increase shareholder cash returns by raising its 2026 payout target to 50% of attributable free cash flow from 40%. Scotiabank analyst Tanya Jakusconek maintained a Sector Outperform rating on Kinross Gold stock but reduced her price target from $41 to $39.

Kinross attributed the production cuts to operational challenges at its La Coipa and Round Mountain mines. At La Coipa, severe winter weather disrupted mining and milling operations in the third quarter, while metallurgical issues involving higher copper grades in sulphide ore reduced gold recovery rates. At Round Mountain, lower mining rates, grades, and recoveries delayed processing of higher-grade ore.