Kinross Pushes the Button on Three US Expansion Projects
Organic growth projects to add 3Moz of gold production
Kinross Gold Corporation (TSX: K) has approved the construction of Round Mountain Phase X, Bald Mountain Redbird 2 and the Kettle River-Curlew project, all in the US.
The projects are expected to produce of 400,000 gold equivalent ounces per year between 2029 and 2031 and a total of 3 million ounces of AuEq between 2028 and 2038.
The three projects have a combined internal rate of return of 55% and a combined incremental post-tax net present value (4% discount rate) of US$4.1 billion at a US$4300 an ounce gold price, and all three have payback periods of less than two years.
“Today, we are announcing plans to reinvest our business to generate additional value from internal projects that are underpinned by a low cost structure and demonstrate excellent economics at a range of gold prices,” Kinross CEO Paul Rollinson said on a conference call on Thursday.
“Our decision comes on the back of positive exploration results and robust project studies, with all projects demonstrating attractive all-in sustaining costs.”
The approvals build on Kinross’ portfolio and grade enhancement strategy, which has comprised the restart of La Coipa in Chile in 2022, the Tasiast 21K/24K expansion in 2022-23 in Mauritania and the development of Manh Choh in Alaska in 2024.
The company continues to target first production at the Great Bear project in Canada in 2029 and Lobo-Marte in Chile in the early 2030s, both of which are greenfields developments.
“Today’s results demonstrate the strength of our extensive resource base, the success of our internal exploration programs, and the strategic advantage of our strong in-house technical team,” Rollinson said.
“At today’s gold prices, our substantial resource base provides excellent optionality and beyond these projects, our technical team continues to study many other opportunities within the portfolio.”
Kinross plan to self-fund the projects from operating cashflows and has forecasted capital expenditures of around US$425 million this year within its total 2026 capex budget of US$1.5 billion.
In 2025, Kinross repaid US$700 million of debt, returned over US$750 million to shareholders through its increased dividend and share buyback plan, and ended the year with approximately US$1 billion in net cash and available credit of US$1.6 billion as of September 30, 2025.
The company has no debt maturities until 2033 following the early repayment of the 2027 senior notes in Q4 2025.
Rollinson said he hoped the company would be able to strengthen its balance sheet while also returning cash to shareholders.
“We are delivering on all fronts through consistent operational execution and strong financial performance the outlook for our overall business and our North American portfolio has never been stronger,” he said.
Round Mountain Phase X
Round Mountain in Nevada is currently an open pit operation and Phase X will see a bulk tonnage underground mine developed below the current Phase W pit, based on an initial underground reserve of 1.2Moz AuEq at 3.2 grams per tonne gold.
Capital costs are forecast at US$400 million and the project delivers a post-tax NPV4 of US$1.04 billion and an IRR of 40%, based on a US$3200/oz gold price, rising to US$1.9 billion and 67%, respectively, at US$4300/oz.
The project will add 1.4Moz AuEq to life-of-mine production at Round Mountain, extending the mine life to 2038, with expected average incremental production of roughly 140,000ozpa AuEq at all-in sustaining costs of US$1576/oz.
Kinross already has federal permits in place for underground mining at 3000 tonnes per day and expects to receive a minor modification to increase the mining rate beyond 3000tpd in the current quarter.
The company said potential remained to extend reserves and resources via proximal and down-dip drilling.
Kettle River-Curlew
Curlew, in Washington, is roughly 40km northwest of Kinross’ Kettle River mill and tailings facilities, which produced 2.8Moz up until it was put on care and maintenance in 2017.
The underground development, with an average grade of 5.8g/t gold, is expected to produce around 940,000oz of gold over an initial 11-year mine life from 2028, averaging 100,000ozpa for the first five full years, and 85,000ozpa for the life-of-mine at AISC of US$1726/oz.
Capex is forecast at US$485 million.
At US$3200/oz, the project has a post-tax NPV4 of US$528 million and IRR of 24%, rising to US$1.2 billion and 44%, respectively, at US$4300/oz.
All permits, aside from a state permit required to increase the height of the tailings facility, have been received.
Site construction is underway, as well as drilling programs aimed to growing the resource.
Bald Mountain Redbird 2
The approval of Phase 2 of the Redbird pit at Bald Mountain in Nevada follows Phase 1, which was approved in late 2024.
Redbird 2 also comprises the development of five additional satellite pits to incrementally produce a total of 640,000oz of gold, or 155,000ozpa from 2028 to 2032 at AISC of US$1466/oz.
Capex is forecast at US$490 million, which includes the installation of a sulphidisation, acidification, recycling and thickening plant.
The project has a post-tax NPV4 of US$484 million and IRR of 32%, using a gold price of US$3200/oz.
At a gold price of US$4300/oz, the NPV increases to US$1 billion and IRR increases to 58%.
The Redbird pit, three of the five satellite pits, and the two heap leach facilities are fully permitted, allowing for the start of project ramp-up this year.
Kinross expects further exploration to extend the mine life of Bald Mountain.
The 1Moz Top pit is already permitted for mining and will be the next focus of project studies at Bald Mountain.