Kinross Bets Big in Chile with $4.3 Billion Lobo-Marte Gold Project

TORONTO, ON – July 29, 2026 – In a move signaling immense confidence in both the gold market and the Chilean investment climate, Kinross Gold Corporation today unveiled a striking financial update for its Lobo-Marte project. The revised plan stamps the high-altitude Atacama project with a formidable $4.3 billion net present value (NPV), positioning it as a future cornerstone of the global miner's portfolio and a significant economic engine for Chile.

The updated feasibility study, which accounts for post-2021 inflation and an enhanced execution strategy, outlines a project of immense scale. Kinross plans to self-fund the initial $1.8 billion in capital from its own cash flow, a testament to the company's balance sheet strength and a disciplined approach to growth. The project is slated to produce an average of 350,000 ounces of gold annually over an initial 15-year lifespan, with first production targeted for the early 2030s.

The Billion-Dollar Blueprint

The economics of Lobo-Marte are compelling, driven by a combination of scale, grade, and today's elevated commodity prices. The project's 26% internal rate of return (IRR) and rapid 2.3-year payback period are based on a gold price of $4,100 per ounce. While this assumption is on the higher end of recent project valuations, it aligns with the company's average realized gold prices in late 2025, reflecting current market realities rather than conservative hopes.

Beneath the headline numbers, the project’s low all-in sustaining cost (AISC) of approximately $1,000 per ounce provides a substantial margin buffer, a critical factor in the historically volatile metals market. This cost structure is supported by a strong heap leach grade of 1.3 g/t and an efficient strip ratio of 2.0:1. However, the figures also reflect the broader economic pressures shaping global commerce; the projected AISC has risen from an estimated $680/oz in 2021, and the initial capital expenditure has nearly doubled from the $995 million projected in a 2020 study, underscoring the pervasive impact of global inflation on heavy industry.

Kinross's strategy to fund the hefty $1.8 billion price tag internally, without taking on new debt, speaks volumes. With a reported free cash flow of nearly $2.5 billion in 2025, the company is leveraging a period of strong performance to build its next generation of assets. “Lobo-Marte is an exciting, high-quality development opportunity in our portfolio,” said CEO J. Paul Rollinson. “The project’s combination of scale and low operating and capital costs generates attractive returns and underscores its potential to become a cornerstone asset for Kinross.”

A New Model for Mining?

Beyond the financials, the Lobo-Marte plan reflects the evolving demands of 21st-century resource extraction. Permitting, noted as the project's critical path, is now underway after Chile's Environmental Assessment Service (SEA) accepted the Environmental Impact Assessment (EIA) for review in the second quarter. Kinross appears to be front-loading its environmental and social commitments to smooth this complex process.

The project design incorporates a suite of sustainability features, including a commitment to 100% renewable grid power, the use of electric shovels, and regenerative braking on conveyors to recapture energy. This ESG-by-design approach is no longer a peripheral concern but a core component of de-risking a multi-decade, multi-billion-dollar investment. In a region where water is precious, the company's rigorous approach to protecting water resources and local wildlife will be under intense scrutiny.

Engagement with local stakeholders, particularly the Colla Indigenous communities near the project site, is another critical pillar of the strategy. Kinross has emphasized its commitment to mutually beneficial partnerships, building on its nearly three decades of operations in Chile. For a project of this magnitude, securing and maintaining a social license to operate is as vital as the gold in the ground.

A Catalyst for Chile's Atacama Region

The project's significance extends far beyond Kinross's balance sheet. For Chile, Lobo-Marte represents a major injection of foreign direct investment and a reaffirmation of the country's status as a top-tier mining jurisdiction. A recent visit by Chilean President José Antonio Kast to Kinross's Copiapó office highlighted the constructive dialogue between the miner and the government.

As Mr. Rollinson noted, “We appreciate the government’s focus on providing a stable framework that supports responsible investment, sustainable development, and long-term economic growth.” This high-level engagement signals a symbiotic relationship: Kinross needs a stable and predictable regulatory environment, while the government seeks the substantial economic benefits the project promises.

Those benefits are considerable. Lobo-Marte is expected to create approximately 2,800 jobs during its peak construction phase and sustain around 1,000 operational roles thereafter. This will provide a major economic boost to the Atacama Region, creating opportunities for local suppliers and businesses. The development will extend Kinross’s presence in Chile well into the 2040s, ensuring a long-term stream of employment, procurement, and tax revenue.

Unearthing Long-Term Potential

While the initial 15-year mine plan is impressive, it may only scratch the surface of Lobo-Marte's true potential. The plan is based on 6.7 million ounces of proven and probable reserves, but the site holds a further 2.8 million ounces of measured and indicated resources and nearly 700,000 ounces of inferred resources. Company officials emphasize that the current pit designs were conceived in a much lower gold price environment and do not capture the full extent of the known mineralization.

This suggests a clear pathway for future expansion and mine life extension. As the project advances, higher gold prices and ongoing technical work will likely be incorporated into long-term planning, potentially converting resources into reserves and expanding the pit shells. The project's geology, characteristic of a large gold-copper porphyry system, hints at mineralization extending at depth, offering decades of upside potential. Once the initial infrastructure is built and paid for, leveraging it to process satellite deposits or expand the main pits becomes a highly attractive, capital-efficient proposition for generating future value.