Kinross Gold: Less Gold, More Profit
Less gold mined, significantly higher profits achieved: that is how the current situation at Kinross Gold can be described. The Canadian mining group produced 424,693 gold-equivalent ounces in the third quarter, around 16% less than in the same period last year. Nevertheless, adjusted net profit reached USD 591.3 million while operating cash flow amounted to USD 714.4 million.
This was driven by strong price momentum in the gold market. Even after the latest correction, the precious metal is trading at a level that allows established producers to achieve substantial margins. However, costs are also rising. Kinross had to contend with production costs of USD 1,502 per gold-equivalent ounce sold in the third quarter. All-in sustaining costs were as high as USD 1,947.
Stock market opinions are therefore divided. On October 29, Stifel reiterated its Buy recommendation with a price target of USD 43. Scotiabank also takes a positive view of the shares and cites USD 39. Bank of America, by contrast, remains sceptical and reduced its price target from USD 32 to USD 25.
Kinross itself has long been looking ahead to the coming production years. At the Phase X expansion project at the Round Mountain mine in Nevada, underground development is around 8% ahead of schedule. More than 9,600 m have already been developed. First production is scheduled for 2028.
There is also progress at Bald Mountain. In early October, gold was extracted from the new Redbird mining area for the first time.
The strong balance sheet also allows higher distributions. Kinross intends to return half of its free cash flow to shareholders in 2026. Since April 2025, the group has already repurchased around 5% of its outstanding shares.
Lahontan Gold: USD 820 Million – Nevada’s Historic Mine Ahead of Restart
Between 1988 and 1995, the Santa Fe mine in Nevada produced 359,202 ounces of gold and more than 702,000 ounces of silver before operations ceased. Three decades later, Lahontan Gold is working to make the historic mine site economically viable again. The latest economic assessment provides remarkable figures to support this.
At an assumed gold price of USD 3,600 and a silver price of USD 49 per ounce, Santa Fe has a calculated after-tax net present value (NPV) of USD 820 million. The internal rate of return (IRR) is 40.1%. Over a planned mine life of 11 years, the project could produce an average of 91,900 gold-equivalent ounces annually. Initial capital expenditure is estimated at USD 172 million.
This calculation is particularly interesting against the backdrop of the latest gold price correction. Although the precious metal has fallen significantly from its highs, the price was still well above the gold price assumption used in the PEA. However, the results are preliminary and depend not only on metal prices but also on construction costs, permits and actual production.
Meanwhile, Lahontan is working to further expand its geological database. On October 27, the company reported drilling a total of 13,334 m in the current year across Santa Fe and West Santa Fe. Results from more than 100 drill holes are still pending. These include investigations of historical stockpiles and leach pads that could identify additional economically viable mineralisation.
Indicated resources of 1.195 million and inferred resources of 1.190 million gold-equivalent ounces have already been documented.
Lahontan aims to begin construction in 2027. The pending drilling results and further permitting work could lay important foundations for the planned resumption of gold production. As a result of the general gold price correction, Lahontan shares lost almost half their value compared with their annual high of CAD 0.52 and are currently trading at CAD 0.27 in a broad support zone.
Agnico Eagle: Billions in the Bank
USD 3.6 billion in cash and cash equivalents, free cash flow of USD 852 million within just three months and production of 814,012 ounces of gold. Agnico Eagle has established a financial position that many mining companies can only dream of. Even the latest gold price correction does little for now to change the fact that the Canadian group is generating substantial funds for investment and further growth.
A look at costs also demonstrates this. In the third quarter, all-in sustaining costs (AISC) were USD 1,648 per ounce. At the same time, Agnico Eagle achieved an average selling price of USD 4,264. The difference of more than USD 2,600 illustrates the strong operating profitability, even though taxes, other expenses and capital expenditure still have to be funded from it.
Analysts largely acknowledge this positioning. On October 29, Stifel confirmed its Buy recommendation with a price target of USD 222. Bank of America reduced its target from USD 240 to USD 233, but maintained its Buy rating. On October 30, J.P. Morgan raised its price target from USD 190 to USD 193 and maintained its Neutral rating.
The group operates mines in Canada, Australia, Finland and Mexico. At the same time, it is investing in new production opportunities, including the Hope Bay and Upper Beaver projects. Such ventures are intended to secure the long-term production base and unlock additional resources.
For the full year 2026, management continues to expect production of 3.3 to 3.5 million ounces of gold, although now more likely at the lower end of the range. Costs are also showing signs of moving towards the upper end of the previous guidance.
Conclusion
The gold price correction is putting the mining industry to the test. Kinross continues to generate strong earnings and is investing in its Nevada projects. Thanks to strong cash flows and reserves in the billions, Agnico Eagle can press ahead with expanding its production. Lahontan Gold faces a different stage of development: the new Santa Fe PEA shows a promising economic scenario at a gold price of USD 3,600. With further drilling results and the planned permitting steps, the historic mining project could make decisive progress in 2027.
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