Kinross Gold Corporation KGC topped earnings and revenue estimates in the first quarter of 2026 on gold pricing strength, but remains mired in headwinds from higher production costs. Its attributable production cost of sales per gold equivalent ounce was $1,380 in the first quarter, up 33% from the prior-year quarter’s levels. The rise was partly due to higher royalty costs stemming from increased gold prices.
All-in-sustaining costs (AISC), a key indicator of cost efficiency in mining, jumped roughly 28% year over year to $1,732 per gold equivalent ounce sold on an attributable basis. While a 71% rise in average realized gold prices led to a surge in first-quarter profits, the rise in unit costs underscores a spike in inflation.
KGC’s guidance indicates cost pressures in 2026. The company expects attributable production costs of sales per ounce to reach $1,360 (+/-5%) in 2026 due to higher royalty costs, inflationary impacts and planned mine sequencing. Kinross expects AISC to be $1,730 per ounce (+/-5%) in 2026, indicating a year-over-year increase from $1,571 per ounce in 2025, partly due to inflationary impacts. AISC is expected to be impacted by cost inflation from elevated crude oil prices. Higher expected costs in 2026 signal margin compression risks.
Among its peers, Barrick Mining Corporation B saw a 4% year-over-year decline in AISC in the first quarter, reaching $1,708 per ounce. It, however, rose 8% sequentially. For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint compared with $1,637 in 2025. Barrick forecasts cash costs per ounce to be $1,330-$1,470, up from $1,199 in 2025.
Agnico Eagle Mines Limited AEM is also exposed to higher production costs. Agnico Eagle's AISC was $1,483 per ounce in the first quarter, marking a roughly 26% year-over-year rise. AEM’s total cash costs per ounce for gold were $1,093, 22% higher than $895 a year ago, impacted by higher royalty costs and lower production. AEM forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the respective ranges.
The Zacks Rundown for KGC
Kinross Gold’s shares have shot up 95% in the past year against the Mining – Gold industry’s rise of 66.2%, largely driven by the gold price rally.
Image Source: Zacks Investment Research
From a valuation standpoint, KGC is currently trading at a forward 12-month earnings multiple of 9.71, a 7.5% discount to the industry average of 10.5X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KGC’s 2026 and 2027 earnings implies a year-over-year rise of 58.7% and a decline of 0.7%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
KGC stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X $TWTR Imaging which shot up +129.6% in little more than 9 months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kinross Gold Corporation (KGC): Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
Barrick Mining Corporation (B): Free Stock Analysis Report