Kinross approves construction of three US growth projects
Gold miner Kinross on Thursday announced the construction of three organic growth projects in the US – the Round Mountain Phase X and Bald Mountain Redbird 2 projects in Nevada, and the Kettle River–Curlew project in Washington – which together are expected to add about three-million ounces of life-of-mine production and extend mine lives well into the 2030s.
The company said the projects would enhance grades, support long-term cost performance and underpin Kinross’s objective of maintaining production of about two-million gold-equivalent ounces (GEO) a year.
Based on initial mine plans, the projects are expected to contribute about 400 000/y of GEO between 2029 and 2031 and about three-million ounces between 2028 and 2038.
Kinross said robust internal studies and continued positive exploration results had demonstrated strong margins, with average all-in sustaining costs (AISC) of about $1 650/oz and attractive returns across a range of gold prices. At a gold price of $4 300/oz, the three projects deliver a combined post-tax net present value (NPV) of $4.1-billion and a combined internal rate of return (IRR) of 55%.
The miner plans to self-fund the developments from operating cash flows and has forecast capital expenditure of about $425-million in 2026 to support their development. Total attributable capital expenditure across the global portfolio in 2026 is expected to be about $1.5-billion, within a margin of plus or minus 5%.
At Round Mountain, the Phase X project is a bulk-tonnage underground development beneath the existing openpit operation, aligned with Kinross’s grade enhancement strategy. Phase X is expected to add about 1.4-million GEOs over an initial 11-year mine life, extending production at Round Mountain to 2038 and delivering average incremental production of about 140 000 GEOs a year from 2029 to 2037. At a gold price of $4 300/oz, the project has a post-tax NPV of $1.9-billion and an IRR of 67%, with incremental AISC of about $1 680/oz.
At Curlew, Kinross plans to restart the Kettle River mill to process high-grade underground ore from the Curlew deposit, about 40 km away. The project is expected to produce about 100 000 oz/y for the first five full years, with an initial mine life of 11 years at an average grade of 5.8 g/t. First production is expected in 2028, with life-of-mine production of about 940 000 oz. At $4 300/oz gold, Curlew has a post-tax NPV of $1.2-billion and an IRR of 44%.
The Redbird 2 project at Bald Mountain, together with five satellite deposits, is expected to add about 643 000 oz of production and extend mine life to early 2032. Average production is forecast at about 155 000 oz/y, with incremental AISC of about $1 466/oz. The project has a post-tax NPV of $1.0-billion and an IRR of 58% at a gold price of $4 300/oz.
Rollinson said the move to higher-grade underground mining at Phase X and Curlew reflected “the next phase of our grade enhancement strategy that we initiated in 2022”, while Redbird 2 would deliver “high-productivity, low-cost production” as the next anchor pit at Bald Mountain.
“By funding these projects with cash flow from our operations, we are reinvesting in our business to generate additional value in internal projects underpinned by a low-cost structure and excellent economics,” he said, adding that the projects were well timed to start contributing from 2028, coinciding with Kinross’s return to higher-grade mining at Tasiast.
