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.
