Kensington gold output falls 21%, leaving mine needing best quarter in five to hit forecast

Coeur Mining's Kensington mine north of Juneau produced 21% less gold in the third quarter than a year earlier, the company reported Wednesday. To reach even the low end of its 2026 forecast, Kensington would need more gold in the fourth quarter than it produced in any of the past five quarters.

The mine produced 21,483 ounces, down from 27,231. The mill processed about the same amount of rock, but ore grade, the amount of gold in each tonne, fell to 4.32 grams per tonne from 5.47.

Coeur kept its full-year production guidance for Kensington at 98,000 to 110,000 ounces. That leaves about 34,464 ounces needed in the fourth quarter to hit the low end, more than the mine's best quarter in the release, 29,567 ounces in the fourth quarter of 2025. The release does not explain how Kensington would close that gap. Coeur's chief executive said in the release that the company overall expects strong fourth-quarter results and a record year, without addressing Kensington specifically.

Costs have climbed as output fell. Adjusted costs applicable to sales were $2,304 an ounce in the quarter, up from $1,659 a year earlier, and averaged $2,290 for the first nine months, above the company's $1,750 to $1,950 full-year guidance.

Higher gold prices cushioned the drop. Kensington's metal sales were $91.4 million, down from $98.9 million, and free cash flow fell to $25.6 million from $30.8 million.

Kensington is one of the smaller pieces of Coeur since its acquisition of New Gold: the mine accounted for 9% of the company's total metal sales in the quarter. General Manager Steve Ball told the Juneau Assembly in June, while testifying on a proposed change to the city's sales tax cap, that the mine supported about 400 year-round jobs and spent more than $70 million with Alaska-based vendors in 2025. The mine had earlier said removing the cap could cost it about $5 million a year, Alaska News reported May 27.

Coeur's 2026 exploration at Kensington aims to maintain a five-year reserve-based mine life and add inferred resources, with drilling on the Raven and Elmira Hanging Wall targets.