Overview
S&P Global Ratings upgraded Kinross Gold Corp. to 'BBB' from 'BBB-' and elevated the issue-level rating on the miner's unsecured debt to 'BBB' from 'BBB-'. The rating agency also assigned a stable outlook to the company. The move reflects what S&P described as a meaningful improvement in adjusted credit measures, underpinned by solid cash flow resulting from higher gold prices and the company's reduction of funded debt.
Balance sheet and liquidity
Kinross has reduced its funded debt to $750 million, with no maturity until 2033, after repaying $500 million of senior unsecured notes late last year. The company held about $2.7 billion of cash as of June 30, 2026. S&P Global Ratings expects Kinross to expand its net cash position to above $4 billion by 2028 from about $1.9 billion as of June 30, 2026, on the assumption the company generates more than $1.5 billion of annual free operating cash flow through 2028.
Gold prices and cost assumptions
The price of gold averaged about $4,600 per ounce year-to-date compared to about $1,945 per ounce in 2023. S&P Global Ratings assumes the price of gold will gradually decline to $3,300 per ounce in 2028, about 20% below the current spot price. Under S&P's assumptions, Kinross' cash cost and all-in sustaining cost remain in the ranges of $1,350-$1,450 and $1,650-$1,750 per ounce, respectively.
Reserves, projects and production outlook
As of Dec. 31, 2025, Kinross held a proven and probable gold reserve base of about 21 million ounces, representing roughly 10.4 times annual production. The company expects to develop the Great Bear project in Ontario, Canada, which S&P estimates could produce about 500,000 ounces per year at about $800 per ounce all-in sustaining cost during the first eight years. Production at Great Bear is expected to commence in late 2029 following around $1.4 billion of development spending between 2026 and 2029.
S&P Global Ratings expects Kinross to maintain annual gold production at about 2 million ounces well into the next decade.
Capital returns and shareholder policy
The rating agency assumes Kinross will return about 40% of its free operating cash flow to common shareholders in the form of dividends and share repurchases through 2028.
Market context
Market indicators shown alongside the rating action included KGC +9.07% and GC +3.99%.
Conclusion
S&P's upgrade reflects a combination of improved liquidity, reduced funded debt and strong cash-generation assumptions tied to elevated gold prices. S&P's outlook for the company is conditioned on Kinross delivering the assumed free operating cash flow and progressing with the Great Bear development as planned.