Zacks Investment Research
26 May 2026, 13:46 UTC · 1h ago
Source · https://www.zacks.com/stock/news/2926679/is-kgc-facing-margin-risks-from-higher-unit-costs-in-2026?cid=CS-STOCKNEWSAPI-FT-analyst_blog|quick_take-2926679
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Kinross Gold (KGC) expects 2026 All-in-Sustaining Costs (AISC) to increase to $1,730 per ounce from $1,571 in 2025. — Rising sustaining costs directly compress profit margins, offsetting the benefits of higher gold prices.
-0.60Barrick Gold (B) projects a significant year-over-year increase in 2026 AISC, with a projected range of $1,760-$1,950 per ounce compared to $1,637 in 2025. — A substantial projected increase in production costs suggests systemic margin pressure for one of the world's largest gold miners.
-0.60Kinross Gold's first-quarter attributable production cost of sales per gold equivalent ounce rose 33% year-over-year to $1,380. — Rapidly increasing unit costs highlight inflationary pressures that erode the company's operational efficiency.
-0.40Agnico Eagle Mines (AEM) reported a roughly 26% year-over-year increase in AISC to $1,483 per ounce in the first quarter. — Consistent with peers, AEM is facing rising cost headwinds that could limit upside during price rallies.
-0.30Kinross Gold's first-quarter profits surged due to a 71% rise in average realized gold prices. — Strong pricing power provides a critical buffer against the rising cost of production.
+0.30Impact vectors
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Experiencing higher production costs with a 26% year-over-year rise in all-in-sustaining costs.
Projects a significant year-over-year increase in all-in-sustaining costs for 2026.
Beat estimates on gold pricing but faces significant headwinds from rising production costs and margin compression risks.
[mutual] Barrick and Agnico Eagle Mines are identified as peers in the gold mining industry.
[mutual] Kinross Gold and Barrick are identified as peers in the gold mining industry.
[mutual] Kinross Gold and Agnico Eagle Mines are identified as peers in the gold mining industry.
