Gold miner Kinross has delivered a strong first-quarter performance, with higher margins and robust free cash flow underpinned by solid operating results and disciplined cost management.

The Toronto- and New York-listed company produced 512 088 gold-equivalent ounces in the three months to March 31, at a production cost of sales of $1 043/oz and an all-in sustaining cost (AISC) of $1 355/oz. Operating cash flow for the quarter totalled $597.1-million and attributable free cash flow came to $370.8-million – more than double that of the prior year’s comparable period.

Margins rose by 67% year-on-year to $1 814/oz, outpacing the 38% increase in the average realised gold price. Reported earnings were $368-million, or $0.30 a share, while adjusted net earnings were $364-million, also $0.30 a share.

“We had an excellent start to the year built on our continued strong operational performance and disciplined cost management,” said CEO Paul Rollinson. “As a result, we generated over $370-million of free cash flow.”

Kinross is on track to meet its 2025 guidance of two-million gold-equivalent ounces, at a production cost of sales of $1 120/oz and AISC of $1 500/oz. Capital expenditure for the year is expected to be $1.15-billion.

The company also continues to strengthen its balance sheet, ending the quarter with cash and cash equivalents of $694.6-million and total liquidity of about $2.3-billion. It repaid the remaining $200-million on its term loan during the quarter.

Moody’s Investors Service recently upgraded Kinross’s outlook to positive and affirmed its investment-grade credit rating of Baa3.

The board declared a dividend of $0.03 a share, payable on June 12, and the company has reactivated its share buyback programme, repurchasing $60-million worth of shares to date in 2025. Full-year buybacks are targeted to reach at least $500-million, assuming supportive gold prices and operational performance.

Operationally, Kinross reported that the Paracatu and Tasiast mines delivered high-margin production driven by strong grades and recoveries. Tasiast, in Mauritania, has resumed normal operations after a fire incident, with no impact expected on yearly guidance. Fort Knox, in the US, also posted increased production and lower costs.

On the development front, Kinross continues to advance its project pipeline. Construction and engineering at Great Bear are progressing, Round Mountain Phase X drilling continues to yield strong results, and Curlew is showing potential for high-margin production. At Lobo-Marte, baseline work to support permitting is under way.