Kensington mine's gold output falls 21%, but high gold prices keep it profitable

Coeur Mining's Kensington mine north of Juneau produced 21% less gold this summer than a year earlier, the company reported Wednesday, even as high gold prices kept the mine making money.

The mine produced 21,483 ounces from July through September, down from 27,231. The mill handled about as much rock as before, but the rock held less gold, 4.32 grams per metric ton, down from 5.47.

The mine's adjusted operating costs rose to about $2,304 an ounce in the quarter, up from $1,659 a year earlier, according to the company's release. Over the first nine months of the year, Coeur says, costs per ounce rose because the mine produced less and paid more for labor and supplies.

Kensington sold about 21,900 ounces in the quarter for $91.3 million, according to Coeur's quarterly report, or roughly $4,170 an ounce, about $1,860 more than the mine's reported operating cost per ounce. Sales were down from $98.9 million a year earlier, and the mine's free cash flow, the money left after operating costs and capital spending, fell to $25.6 million from $30.8 million.

Coeur still expects Kensington to produce 98,000 to 110,000 ounces this year. Hitting even the low end would take about 34,500 ounces in the last three months of the year, more than the mine produced in any of the past five quarters. Coeur's filings don't say how Kensington would close that gap. Companywide, Coeur says it expects production at the low end of its guidance.

Kensington made up 9% of Coeur's metal sales in the quarter, a smaller share since the company bought New Gold. General Manager Steve Ball told the Juneau Assembly in June that the mine supported about 400 year-round jobs and spent more than $70 million with Alaska businesses in 2025. He was testifying on a proposed change to the city's sales tax cap, which the mine had said could cost it about $5 million a year.

Coeur's drilling this year aims to keep about five years of mineable gold ahead of the mine and find more.