KGC - Earnings call transcript Q1 2021 | Kinross Gold Corporation

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Operator

Hello and thank you for standing by and welcome to Kinross Gold Corporation First Quarter Results Conference Call and Webcast. [Operator Instructions] Please be advised that today’s call is being recorded. I would now like to turn the conference over to your speaker today, Tom Elliott, Senior Vice President, Investor Relations. Please go ahead.

Tom Elliott

Thank you and good morning. have leadership President Tomory team, Gold. we the CEO and today, senior Kinross Andrea us Paul and Rollinson, and Geoff With Freeborough, Paul

we this presentation. attention bring will Before making like that be during fact we your statements forward-looking I’d begin, the to

the results XXXX, discussion in XXXX recently actual our X AIF, please available XX, to performance a dated over forward-looking lead the complete assumptions, of may from Page our XX, all the will information, for are to May ended March I call of For MD&A and period being which news turn website. our filed this uncertainties, the on different risks, which Paul. to now and contained release most our presentation, estimates refer of

Paul Rollinson

thank all us today. and Tom joining you for Thanks,

we to are this environment While our will continues to the pandemic. employees global of The expectations. but to well challenging, momentarily, are protocols our impacts order many top elaborate on our communities. first, a business of safety of and maintaining remains priority I to that our in the are want people is quick well-being our our against update protect and pandemic-related provide perform how on report pleased the and managing we through I we

also return mines take am a signs of operational I and some and this starting our projects to cautiously to the our on optimistic work normal to all we result are schedule. of remain see of local our As continued report a support form. governments, and from remain that development pleased

continued and government for for to in Andrea performance, ESG. we start will for briefly relations, pleased an outlook on commitment an over are Overall, update call operating financial a the to our Mauritanian our to review, and year. turning our with comment the leadership QX I on Paul Geoff review Before

of approximately our once lowest the production and three cost mines, During Paracatu, portfolio. and in XX% our represented the first again Kupol the delivered Tasiast, largest quarter,

portfolio, there our but were always, the against is takes production throughout consolidated As tracking some well puts and plans.

production ounce previously, quarter As for per which expect the was with budgeting, being the above our also used $X,XXX Adjusting quarter line performance internal the were for we in gold year, our indicated the we increase prices, to the fourth financial with strongest. plans. first in throughout

of in expected, which is which million payments free the XXXX. in anticipated flow production, relates received we being cash to expect our lower prices each also Like in tax quarter, recent As with which first generated approximately strengthen quarters Brazil, due our to business. gold we flow of free than is QX strongest, cash primarily $XX higher higher quarter, typical to

and finished approximately net cash Our million. the of balance billion sheet we remains debt with first $X and of over just strong quarter $XXX

the Mountain’s north meet life track by do the goals. Paul forward, impacted comprehensive but in well Looking also our movements mine year full and ore as are wall area, production the our cost Round our term to and activities costs long-term taken The later, site indicated, impact remedies W not on production guidance sales Round XXXX X-year remain detected in during on access Phase delayed this potential the will positioned longer after and or total the in mine’s QX achieve and deferred affected production expect of issue guidance, measures were guidance we and for CapEx production. production profile performance which mining to the quarter. I the of mining precautionary by we were production, monitoring to Mountain, our pit At system. of and to site’s elaborate

gas emission quarter greenhouse more commitment sector. line our by greenhouse specific detailed Notwithstanding by our XXXX. strong emissions financial also important results. Kinross this took review XXXX. lowest we of as the targets of are now net-zero step call gas environmental greenhouse a our one in stewardship, in an ranks currently reach we strong identifying ranking, to with committing Finally, our emitters I for to for the will over gas Andrea turn to

Andrea Freeborough

due an I will in during approximately and outlook. to Paul. from particularly commentary the quarter, a of begin in ounces were XXX,XXX financial highlights XXX,XXX West Thanks, to with XX,XXX quarter sheet ounces some Mountain on of of shipments, our than was Nevada. Sales and Bald our balance less ounces. give Production at overview provide lesser Africa production timing the extent,

this quarter per ounce as and up due variances Attributable to primarily last QX production QX, robust operating All-in compared QX discipline. sustaining and CapEx time. mainly $XXX last As of $XXX and cost which in per tend at smooth and such in quarter, quarter. from out sustaining of XX%, roughly gold a prior over reminder, lower margins prices the by with were of line last to were are not the in due were down unusual again costs year, in year. QX driven quarterly strong ounce first lower to to Production was cost

$XXX net from up to approximately XX% of adjusted due largely million the gold stronger last year prices. were Our same earnings quarter

was increased to offset million Our in the due by flow earnings. operating year, current operating adjusted slightly cash expense last higher of from down mainly of tax partly quarter $XXX QX

million free quarter during approximately working $XX taxes of reported a of included flow million. approximately $XXX paid an payment basis net unadjusted includes of $XX cash including related XXXX. quarter Brazil the outflows, Cash is million in First taxes on capital and to

lowest quarter expected is As on year, prices. gold flow Paul cash free mentioned, our the of depending QX be to

strong balance our billion $X with our cash cash we and remains equivalents. sheet, finished over of and cash position the to Moving quarter

our final down payment was interest balance was as the end cash as Our well the flow cash on regular slightly and $XXX of dividend XXXX as from offset of by million positive Chulbatkan payments. free

announced Subsequent X, we XX-month our stood the These that debt maturity a X.Xx. and net at was redeemed approximately $XXX ratio we net June X. trailing be debt-to-EBITDA notes. senior Our million at the quarter on of end, will have million September of quarter end of notes $XXX to

as to while few a repaying have senior we able saving months without we in and the of early do so repay we elected as any next XXXX. future the $X.XX to After billion also costs. we remaining notes, notes date However, interest will approach maturity on will penalties, repayment additional incurring any are assess March

flow the now levels over call from to if internally. projects be is metrics fund cash Tomory. to robust. our and current able debt very expect are Even leverage Paul Our position cash gold remains to free prices our our to decline strong, were we manageable levels, outlook turn I will and

Paul Tomory

will COVID Andrea. update very across I brief portfolio, updates operations we much, followed how Thanks a on and provide projects. are on the managing by

to regions signs are we to Nevertheless, returning a and see with we some see positive earlier, out COVID. to mentioned across signs maintaining we normal our are our rolling respect been Paul As of have operating precautions. encouraged more Vaccines environment. potentially operating

ability thus COVID made tireless operating to the employees, Our has by through efforts strong our our our far well manage host communities of possible support very governments. been from and

on production of our quarter. review the to operations began year Moving projects, detailed was lower plan and portfolio a of more

and Kupol, production Paracatu was recent delivered approximately the throughput, to with accounted indicated, Paul Paracatu, strongest again continued of somewhat although record their for These quarters margins mill and XX% a quarterly mines, assets biggest portfolio. production down the As once our Tasiast strong grades. compared performance. due had three in lower

prospective slightly In At lower production advancing on Udinsk to year costs last on XXXX rates Paracatu to to activities be of quarter, the were lower expect expected to Udinsk, in on unit We was quarters. targets with the these costs. and higher targeted with year’s plan our larger processing first exchange drilling resource have Favorable drilling Dvoinoye due completed be also we the on first we some of exploration in license commenced down permits XXXX. is similar areas. geopolitics PFS were stockpiled pit. at the to still And near coming costs have Russia, Chulbatkan the to and mining mining complete focused showing activities commence Russia soil are some received fourth as new ore. for and production in This and anomalies foreign contributed quarter at production is

to Tasiast, and record shift site ease continue quarterly COVID schedules to achieved throughput are restrictions normalizing. The rates. Moving Africa,

and the quarter end mid-XXXX. grades lower was of West to project in on on lower the more budget the by material move strip for day phase day quarters expected and branch. planned tons per a production of than we However, first result remains tons focus the year of throughput previous next schedule in per as of as activities and stockpiled to reach XX,XXX on XX,XXX capacity by a performing Tasiast is the as mining the our

and somewhat for year power production energy evaluation higher At maintenance, an quarter with in roughly was potential X operating line the elevated to in begun relative costs. higher have We at milling were Costs Tasiast. and higher also waste to mined, QX due source Chirano, renewable ago.

to U.S. winter mill challenging quarters down due weather. with previous lower largely Turning from Fort slightly operations, QX production in our Knox at Alaska, to was throughput

However, last of results compare year. favorably with QX

subsequently quarter, the Gil During project approved. the for also we satellite completed pits. The our was FS

for year. which track Manh of later consultation from is Choh continued in to at and a village close appendix advancing We was in planned production second the Manh renamed local FS Choh completed from presentation. this The recently on the to included this scoping is project, Highlights quarter. in for our be this Progress study Tetlin. are as peak are expected with

currently Moving in mentioned, setback which Round we are through. to a encountered Paul the we Mountain, as quarter, working

instability as the area pit, temporarily wall, in mining which processing our mining pit continue and top mine early paused uninterrupted. other prompted we priority, to some the to team adjustments safety With During plan. in the us of while quarter, the this uncovered of our areas make

currently dewatering monitor the wall by stability, north the the enhance mitigating and while to issue continuing waste situation. this We to accelerating top are area relocating the from of potential in

mining for deferred with total expect our with impact wall, holistic as the are we potential As of the mine the us activities by mine a of result to addition to to the plan a done the to other in opportunity expected W to re-optimization although be perform couple in of Phase north is to phase Furthermore, in within providing a some grades life several changes to with production. of disruption this have the parameters potential area, success higher great assets. we of geotechnical as access pushback, don’t any the years,

and XXXX. costs mine’s to year-over-year expect our and this up Mountain we capital around January XX% Following is Chile, Coipa. over we very of be refurbishments our quarter, Starting NPV progress in to to in La good and expected impact the well. pre-stripping with a continue Fleet projects results advancing of second La expected quarter re-optimization, had production Bald in as make Shifting planned. refurbishment and construction and and completed with Lobo again. the second with the to minor began are significant good don’t are declining quarter, a both plant Coipa, advancing work at

be delivering the to that, this social stakeholders, consistent of on Lobo, Geoff I and the and be quarter fourth and turn is FS to our budget. the And and year. and at our license health time continue call projects our delivering results To Finally, operate advancing expected our over with on completed operating well-being the and our communities priorities Gold. of in strong, to the on employees, safety up, is schedule of to wrap will

Geoff Gold

Thanks, Paul.

in has engagement operating agreement with last government by principle. delays maintain a couple successfully track have success to particularly of has announced caused under and in than that frequent constructive, the previously COVID, and of our We XX the months. and record have able been on Mauritania of continued Despite been discussions we more the ongoing years

with agreements. held multiple the charged the virtual have finalizing committee with We meetings government definitive

this In including we our on progress call report weeks, making government team a can last also Mines, few was Economy the I substantial meetings and committee agreements. fact, of Finance on the week. In finalizing negotiation and productive the with there Minister cabinet towards have high-ranking I our and with are Monday members, been of

to not including community customs and occur matters discussions health Mauritania of and had other assessments. and principle, also our on have are discussions and covered mutual Such tax by in We work permit our interest unique agreement other countries operations. not arrangements and of initiatives,

encompass arrangements definitive the agreements commercial are in principle process of concessions to the the the will for the into ensuing and continuity call X South back now properties. of time during announcement remarks. North work our finalization agreement Tasiast the we pandemic. have principle agreement the maintain business Since continued Paul parties detailed the of agreements, part together incorporate in taking from for mining our definitive and discussions, will and/or that over As I turn closing to the to the

Paul Rollinson

gratitude work want help to reiterate I our host employees, safe suppliers, who to communities Geoff. governments together productive. to all Thanks, to stay our and continued have and us

Our positioned. well very business remains

attractive We of a have opportunities. portfolio of with pipeline operations, projects exploration robust an coupled and

for track We record all of across proven operational excellence have project a our and geographies. execution

are in we and questions. continue the to ESG sheet. to cash driving strengthen we strong and all our commitments would continue great our With now I and position years. generate meaningful the operator, like over sector And flow quarters open creation With to investment We on focused free a balance that, call grade leading value further remain characteristics, these up performance. coming to

Operator

JPMorgan. you. Okay, from first Instructions] Langton from comes thank Your [Operator question Tyler

open. is line Your

Tyler Langton

thanks for my Paul questions. morning good Hey, taking and

I Lobo-Marte, Manh study of are you that just did the movements like guess a of those little materials? given of we just items you sort can the sort costs the First, materials, using level you talk have from fuel, that energy all bit and seen upcoming Choh just for for about upward

Paul Rollinson

to And signs of to is at we Yes. will system. early think there maybe Look, out I I there are early I the days Paul. start see coin. look in inflation starting to in mean, hand it, sides two and off I I guess the

On side, in call the we I our few, quiver. guess, a it cost arrows have I

and gives We leverage continuous procurement currencies consumables, so are us place. to offset favor both now, negotiation do in years opportunities. hedge we and drive currencies around globally there and are our that is We a we inflation moved got have oil negotiating to several Right to on global cost carefully constantly hedges somewhat and improvement initiatives strategy using in oil ago. efficiency savings

price. see cost we to things inflation the we would do continue, may on mitigate specific, could of side. further But you can the manage with proactively And the extent side revenue maybe, gold also I to expect the then benefit on see of things lots do So the we anecdotes we Paul, some some and think of for project give see. we kinds –

Paul Tomory

see has the that the talking this investment In pressure calls. noted a inflationary year, the on this near-term, internally consumables. within of among both big our range we and I been we the Yes. any guidance. several mean, on for their to that impact of inflation mining have companies our about theme have see that media, community buffer a It’s operating do on But – we we in topic don’t other on question guidance. the lot also this

into areas. For our supply is as environment put inflationary chain of pipeline, these iron price, projects and $X,XXX of at the advance really the in copper we more ore, but two resources fiscal just projects, chain. projects. input equipment see studies policy, we there companies seeing commodities. where planning still inflation signs by the a supply is a limited continue these to One And starting for macro driven inflation, are early signs in inflation, are competition we the be monetary the And and to will more micro of mining particularly to

some amount on projects be it are is So, that the those days seeing. early in we pressure expected, on ought CapEx of to still indicators but

Tyler Langton

in quarter, about just kind throughout follow-up I year was just little versus XXX,XXX helpful. Paracatu, the more of just through know is just QX grade, but – expect No, sort ‘XX strong there? per was color remainder think last the lower one October, ounces of the about I talked I bit very great. And grades production That’s question exceeding production you production just but sort on then sequentially that any ‘XX. know of a and we increase throughput throughput? on to talk should year of

Paul Tomory

definitely. Yes,

expected. in see XXX – in We And XXX range quarters We QX much range. better on that on was were of the grade, QX. comments pit it a expect strong And QX the to I lower yes, that as the more part Paracatu was previously remain. question, your we our it mean, and plan. so answer was QX mining had

Tyler Langton

Great. Thanks so much.

Operator

And next World come Soni from question Anita your from Markets. CIBC will

Your line open. is

Anita Soni

morning. good Hi,

Mountain this is to question more can you just have you a the respect if Paul wall, Tomory at color, Round got imagine a I an me I wall. ask. the Can think, Mountain pit mean with bit pit this for mean had the is movement, you it going of well top Round I little years So, to mentioned idea am the that pit was give I X wall you as of and waste ago

that that, I are X%? there? will guidance the minus So mitigate have impact it X.X think, there – be year’s there is you serious this? think – Is moving is that will to So And fracturing? you do well? plus dewatering as you Is production you how next issue that sufficient mentioned, at or

Paul Tomory

Yes.

and Anita, answer were Mountain So on to a many are shoes, really will a there I processing because Mountain. here your anticipating I very with probably X Round that quite try I a there in I years, guidance streams lead within difficult questions Round expect Mountain model, provide the actually the few is it’s at this on But very if year our flow long range Round will asset are give will that. to X% next we that impact context of plus/minus production for in some range.

will that add And several in to ounces million forward see our that X-year that system. it’s a guidance clear Round it’s is well current goal So to significant million, year I that our mineralized At over XX the get holds context, make aspirational pipeline for in timeframe. decades the operated. want the a that to prolific for Mountain XX we and production. produced It’s

reconciliation. I historical in the Mountain Round actual certainly, decades of the higher model The at Mountain, is than the pretty first is were the positive characterize Round couple – grades thing significant And much grades other grades.

where so of truth, how in amounts contain even know don’t we of those have a estimates. gold heaps And well, have remains I that our And of gold previous are say situations lot to much we in excess well heaps.

So a often W actually Round quite profile goes approved since into added unheralded. we Phase Mountain’s production the we of that lot have study,

a time. Round for cases, year, a next So, third heaps, from the at our and really In about are and fourth production example, year ounces. some legacy of quarter Mountain leaching actually comes this we

We have W experienced North pit There had other issues. part mining is main also of called a added which areas. since the the Phase Fairview, study geotechnical previously

we We and have in it. gone there back are mining

We called have pit where approved a Gold got Hill, have of a we extra pushbacks. satellite couple

So, into all of isn’t Mountain the sources Round we that going ore show is just reason I upon. there a detail Phase W, that quite this of am is lot rely

For example, also mill have we stockpiles.

dump X, it outperformance similar waste that and is to have we of our move around example years W, Another the of over in initial was last now what dtump turns having do mineralized. to waste out are the X we concept Phase to as

And up the ended were in are We so effect on putting that bonus. heaps. ounces those them

an even yielded has Round currently from since grades bonus grades than approval, the ounces in ore really different arising what and that even we historical W Phase are better important sources modeling. of opportunity So being and context point situ of these from

didn’t geotech know layer considered W study. account take question of about, your we which clay the which our significant into issues, the But we a have – in unit at how it depth was just clay was. on in was assumptions at the hindsight, Phase Round that presence to Now Mountain, specific

over detection is in pit, we there more we area, that result now the make We the the a room, W will there. putting So, dump because geotech pit need don’t waste that extensive that study. what very exactly as out, going what where dump to be expect, have north in there. that, which and of are a have why the to putting land, the the XX going wall a know to moved of we are take fine tons as dewatering million the would portion are pit more waste number by was holes. the we to XX unload are addition to is contemplating We are it of And September, to work water and And program And be million, Phase Anita, won’t doing several that to above performance in impact we right the early have on the results you quite detail going us is through of a on drawdown up idea there and shallow. is will we months improvement here. of better will of carrying

ore we activity tied the what know have to a that are wall become mining a but for at, portion access grade this body, remediation, portion just the up sleep Phase production looking is W, do of the all we what incremental are X And we angle as being Phase in to deferring by grade the in will years. higher So not higher result of W shallower.

fleet the near-term this mine pit will other and tied be the combination obviously, but Round deferred the actually Round, in made study But higher Phase maintain is final study, to range the S layback several high while a here doing the the years. Phase production the up bonus XXX that the on I at by and the at ounces And now to lining described, land. next ore X slopes that is this sources at production saw possible in of silver high are ounces level now of we wall years near-term. XXX-ounce our the we would my ‘XX/XX. because results a ourselves years may of will of be to Mountain call XXX range to So release bonus ramping what’s still we that The know In the Phase for W. guess going are to sum conservative is of extends grade Those these based substantial the wait in where expect first to the W in what We ‘XX. things. the up of production we these, total point the that re-optimization, over now, life in XXXs I’ve other portion ‘XX

going are a Phase study we for defer re-optimization the of S about entire the holistic to So, and into it year pit. pull release the a of

about have to have And ounces S. other Round X at that, in at Phase We we million addition opportunities there Mountain.

approved which plant mill So a expansion will couple all to Round goes there, an to flotation add through the of of Mountain. for recently at we points that recovery example, the gold

So, the year and the S we intend a program, the to floatation on dewatering, construct incremental geotech with to Mountain the the optimization, complete a pull-in comprehensive complete potential plant, do Phase view Hill pushbacks Round from at come Gold now. market

more deliberately Mountain. Anita, hope So of I have your I question? that been questions anticipation detailed answers Round in further on And

Anita Soni

one do more But or Yes. have two follow-ups. I

So, the Bald – our guys and we you have to visited after from I tour Round put mine XXXX when that. bought happen actual

angle, at the is as correct looking around it – it that XX-degree to wall supposed am be overall? it looks slope, I pit around was So – was I tell, like can

Paul Tomory

degrees. view meeting current we guidance so based our the softening what comments on slope years next And on are XX right. to for our That’s production say – base that X

Anita Soni

XX is pretty shallowest.

Paul Tomory

shallow, that why back. think opportunity pretty to like – we is there this is cost that which we is on It it

but I don’t on is back. where quite So drilling, that we have of results will don’t know far geotech from yet XX, land. program, outcome up the them back the depending And we end may laying we that because of slope we here what the done have the steepening are

Anita Soni

was. I the has grade or the then the leaches, of going somewhat was the been in was portion think gone as in of some per question ton been last when W? ore, of have we Phase about higher portion gram recall X.X the higher the just what as heap it be think we I that to that like range modeling, it mill? thinking the through the And general, X X.X through of would And material have would I grade were about But

Paul Tomory

not grade. high but IR back to grades average definitely the the Yes, the is maybe with It’s you’re will mill are as high as implying. that team saying, you, what get you’re line in portion is certainly, but

got off we’ve mark. the IR grade team you – to far will the of back We’re a X.X, are you’re lower. but get not on but grades reserve the mill The breakdown,

Anita Soni

Okay. I other I people Thanks. let questions. will will ask leave there.

Paul Tomory

Okay.

Operator

Carey Your MacRury Canaccord come next question from will from Genuity.

Your line is open.

Carey MacRury

Hi, to year, the but of split help give model in you terms us production? expecting can sort Maybe just HX improvement good an know us morning HX are everyone. you through the sequential to I of out quarters,

Paul Tomory

Yes. Well, through it’s don’t to easier why way. I each you that actually do take probably site,

We the higher are ramping up production in second quarter. to

Fort higher It at were mid-XXs, to costs We this ramping in Knox, the we and is quarter. up. had up subsequent you the XXs and it saw XXs high in expect around ramp to quarter.

the Paracatu, to out has couple fourth then and the range up So dropping the from the put first an up more fourth quarter, the basically, quarter. the in Fort XX in for high I indicated, just Knox next the profile quarter. we XXX in as moving increasing quarter, into the XXX off XXs the in

issue, XX,XXX Probably view impact but ramp our I XX actually the be Round And we this to geotech to the initial a in think one. a quarter. of that’s as per year is, range expect Mountain, important an to we’re biggest still this XX,XXX seeing mover result is ounce Tasiast. XX

As processing get campaign into is fourth for phase you the know, proceeding we’re expect to high mining we’re stockpiles right And there principal now. the stockpiles in branch in right and well, next West quarter. or grades the we now stripping

the upswing for balance the of are then And last Tasiast year. in steady Kupol, biggest will have the So quarter. the

to that gives So context. Fort roughly Knox, the is rest increases Tasiast, some flat. going I and see Paracatu hope of about the portfolio

is So well. as Russia flat

Carey MacRury

levels grade what That’s of of Tasiast, maybe QX? for helpful. assuming And sort just sort on we should be

Paul Tomory

be some We’re up X in cases, We’ll QX, about well towards the X. over depending X.X, on X.X day, pushing in now. in

Carey MacRury

pretty tons else day doing Paracatu, in a have been you something quarter, great. maybe to hardness due XXX,XXX big up something you – there? or in Okay, where Is or jump. And is that just on just guys per then the are the pit

Paul Tomory

world-class truly solid It’s just in performance. really has a asset a become operating all regards. Paracatu

We a down there. phenomenal team have

It’s complex well, it gone get if on but improving. what has We you’ve still technical mill, takes to to mill. throughput really there, the continuously been team And have understanding. handle huge years Earth. great and they’re just the – know don’t I huge know mill gold think, a I and big a really that has something largest on

will Now and have setbacks we here there.

events. solid But no You operating was may unplanned really downtime have quarter performance just confluence downtime. of a first and really,

Carey MacRury

in Knox. that look expansion the in last does sorry, can guidance Fort but a give one XXXX – just Can versus XXXX what Fort there, on Maybe know said XXXX? the you Gil like there’s on or I one, some you as I appendix on whole? some Knox

Paul Tomory

Yes.

We’re year the will putting Fort will And Gil going higher actually year forward We’ve main no, be XXX lower – at looking this at – will it be Kinross, comes these Fort Knox, be be range. into Knox as is next We’ll slightly plan. the ounces. it now expecting looking we’re pit. in Alaska. slightly Gil the got And high-grade

of these Choh know, high-grade trucking in to course, Knox. pulling as Manh satellites. be you We’re Gil will And Fort

as as look we have in Manh plan. going it’s good Choh to Fort an from profile we a at the get starting Knox production Gil into to plan we’re and So the and Alaska get perspective,

of other on almost at make The taking cutover prices, is can time can do advantage we Fort decisions grade. Knox, that thing gold higher we game

mill preferentially material good money more the on gold it. day, So to make we and send

way take to higher sort advantage of a risk it’s less gold. of So

as year. upward we’ve But in Fort benefit Knox a plan got production general, to over well. that next trending XXX So at

Carey MacRury

for Great. That’s Thanks it me. everyone.

Operator

And next National Parkin come from from Mike Bank. question your will

Your line is open.

Mike Parkin

the for details. helpful. That’s Hi, guys. Thanks very

results, the drilling question you’re underway. earnings? from When results hitting expect kind exploration assuming QX see believe focusing Udinsk, I the one possibly you’re we And left, of some Just plan? shell. on main pit that on stuff? could you I mentioned discussions, the resource the we know past still could initial really programs from with step-out Is

Paul Tomory

you at a out exploration. in results QX. So We described year-end, we and with the basically are We typically that program – do have typically modest more our put we’ll perfectly. update

Mike Parkin

running Great. Thanks guys. much. Keep so

Operator

Scotiabank. And will from your next question Jakusconek Tanya come from

open. is line Your

Tanya Jakusconek

it additional color tons. that be to more to as more can wanted looks needs needs didn’t additional costs stripping Paul of And all incur sort that morning if that you just to touch us million, Round on of done, come some profile short-term? the we’re – going back I be production moved, could. in to to we Thanks have get that there’s of going million that on Great. everybody. just on just give to production ore sort stay But Appreciate Good color to what costs. the can XX mentioned. be sources you and of I just get you. XX Mountain, I maybe mean the like the dump you waste to T,

Paul Tomory

in again least waste We XX we that’s move this That’s a have slopes. exactly asking don’t And million back know waste amount the question XX short-term at on to it. that dump. cut looking to is, we Anita at Yes. And on pit tons the dump. how million, have on the But impact wall. just far we’re the was

going expansion the we the the Gold Paul NPV-neutral flotation will some can the pit impact about ways the get wall through potentially be of additional things dollars is I to about say ton. commented for, – plant there impact. at $X.XX, talked the a cost of it to stripping earlier when offset incremental as that at that deeper And up and move When looking NPV implications. you are obviously will those talk into for But Andrea pushbacks Hill. layback, it, like call accounting a $X.XX dump comment, go we waste cost. on We in So

Andrea Freeboroughb

I the this just we that planning to I the same ounces year coming worth making in are that production activity it’s points do one Yes. of the mining think in, amount is without is revenue. of mean,

from costs So what an we’re to are a of accounting terms perspective, the probably in ton more closer $X moving.

Tanya Jakusconek

Okay.

So...

Paul Tomory

other in opportunities. movement. the to a impact as mine definitely expect point the of with and said, dump cost we offset a additional from of life stripping It’s that But view waste I

Tanya Jakusconek

Okay.

to be to tons the cost take that put X, X by I that years, the and the if next to movement so multiply and XX a it it would assumption? was just it’s reasonable million times XX for and over million layback So

Paul Tomory

yes. pretty is That reasonable,

Tanya Jakusconek

Paul to then – to on maybe Paul, Perfect. just Rollinson in touch wanted I Okay. just general dividend follow and through and and Tasiast [indiscernible] on And on share buyback.

stripping? just else you’re by you put get anything to day pre-stripping thickener on that the except saw just in, Tasiast, looks do to you the to year-end, if the for that could, critical like – get everything on tons I So XX, to I track that need a to or XX,XXX

Paul Tomory

tie-ins the It’s on thickener. the final

tie to but is thickener have complete, So we in. it construction

as really see to very we the we’ve had pictures, yet, wire well and we’re have of sheet fourth the I tie-ins a last line mean pretty key year. going run woods don’t quarter quarter say at and yes, doing X year, a fashion. the So X, the all certainly electrical a in mechanical, will the in flow the But construction place. finish But tie-ins. over end to next strong you weeks. at of this want It’s to commissioning. the but actually from first all are good elements it heading the of are I now be out And we’re right just busy

Tanya Jakusconek

And inflation of pressures. on you’re some and just seeing us appreciate then you I on clarity some inflationary that where Okay. those gave

a of Just big area, to labor, ask is cost which which wanted is the structure. one component

You inflation didn’t Are labor? there. mention any seeing anything in we

Paul Tomory

starts a It’s it tie to and into macro good factors. question,

good we really in is very a combination equation gold whipsawed continues which is a from Brazil FX weakness macro – us. real, by costs. the year, in XX ago. still it’s because agreement words, get compare XX, In X% example, there, Paracatu local is call a example going labor point to always do the to of for it, things this it like on be there. is labor of to increase of saw, So view, really years the I can in and for a back And positive else Brazil, other tailwind. a – price, The a then which say, rates, And – everything rates, byproduct labor on we refresh

labor COVID-impacted So our XX, local if inflation, heads wrap equation driven we but I cost were still the principally is input Brazil, around inflation suppose about depending we ago? start what of we lesser early Tough But in saw and some this where on tame, economies, in increased, costs the XX seeing for a the been of it, net some of places in And but seeing still really go very to years numbers are we’ve a cost just local than question, we Chile. are is quite positive. those repeat course, to and complex Brazil to by say. could be answer decade. in and increases but thinking Russia, seeing now that. things There a indications extent, to particularly now, of is are the normal run your higher right slightly last labor there, it’s like are yearly equation. recovery the But everything

indicators there yes, market. early are an So the inflationary of labor in environment

Tanya Jakusconek

Okay, of can thank share allocation talk maybe, just How ramping flow, do Paul, debt and we’re start you’ve this cash of in at going after you. dividends about we’re then lot you buybacks? paid generating June, you to this and/or just flow? your Cavius, a And cash for up see free free and

Paul Rollinson

cash obviously, through and as redeeming flow have our Thanks. cash style, whilst final sheet good I we’re and on we’re is whether note. carefully Tanya. the non-recurring Yes, our year, do the the cash watching mean this the next certainly, to And gold that balance go we this we next in predict watching is not dramatic of after, it’s year as sort in is cash installment very the growth we payments. some those looking flow. year, year windshield And items, and production Sure, we non-recurring agree you’re the there fairly right. But terms to much into and the both and in going year. – balance year of well so of price

hearing and are we are it investors from we about it. yes, thinking So

just the we that’s we to plan little the think been of a with point. more of come on say, through out the we’ve dividend. And price and anecdotally, want has the say, I at a second sort for quarter a to get our got the of would I where I to here, the buyback of go a see swung a I out more of of theme year. bit note as get kind through way, that this on top investor say meetings, our pendulum would all desire IR, go would

sort of So all lower that just prices. would year. want we another buybacks. on top be at baseline a our the see sustainable give layering we’re thinking see shakes would haven’t how that to macro right enhancement, dividend gold that as but quarter board. And out we’re it this But finalized to the of taking forever, We on be dividend, dividend – sustainable potentially the

Tanya Jakusconek

Okay.

that dividend point? take the towards I more you’re the buyback that, versus from enhancing So at this leaning

Paul Rollinson

but I well I say I scientific that’s that’s, we’re it’s be to work received. would would – a listening given our again, and think not poll, think, investors,

So we to more the are, yes, leaning bit buyback. a

Tanya Jakusconek

is thank Thank you buy you. bullion, Okay, it discount stock And a to so you at should that the back. trading you.

Paul Rollinson

Tanya. Thanks,

Operator

your Markets. will Capital Jackie come And BMO Przybylowski next question from from

open. line Your is

Jackie Przybylowski

much. so Thanks

back to go to Mountain want I Sorry, Round a just for minute.

not bigger X sounded the like it on what program just the opportunities You optimistic a I need be Phase X.X-year Thanks. see that do X-year this mean X you that S when evaluation for a S. and in back optimization at you to update, more to October, a Phase I Phase Is investor X, get was the reviewing on more to for more bigger drilling noted project? time, about contemplate to study you’re had this looking that. to a at that question and Phase more you X. got talked going I on in mine picture, maybe going as you’ve And that you guess, well? a Phase about And which that that for economic had did do Phase or potential

Paul Tomory

that up. for bringing Yes. Jackie, Thanks,

mentioned will be part optimization it of plan. this won’t conceptually, in out X put but mine life So formal Phase be that weren’t the of

made X accommodation There to we issue pushback drill of Phase have W quick X. anything, project, this Phase X depth. wall probably explore at an reminder, And just guess Phase with our current Phase at a going geotechnical geotechnical is an Phase stage. issue, the continue would We at here, X. been for grades are – If I studies we built there. the W When with a next W. pushback in this be and just conceptual high we’re to could Phase to going that pit open I’m looking is think accommodate that what Phase this but not pit underground

is drilling So ongoing.

state there. do know an in we doing decline to And We at high down we Washington would see, exploration there. putting exploration more We’re like exploration. down what Curlew we we if in are like grades consider there high-grade are detailed

underground and consider we we like see first we But what our in will for decline. capability if step potential. So are is of putting terms we in grade, up drilling then the a surface ramping that on

Paul Rollinson

seeing coming feeder increase we’re grades generally, in and But source we depth that see the from West.

Paul Tomory

or you there, $X,XXX. There’s make but the underground under a a that to could lot hold shapes at a at is, gold together down them of it’s lot get question of mining And Yes. off $X,XXX given economic cut cover.

perspective Phase plan. the up, we optimization it a So be of mine this we’re on to X, it in but have doing, just sum of formal life will part won’t

Jackie Przybylowski

causing going that point you is the you the to be about just about Or underground, wall able something manage that’s that are And underground? is instability, you go underground as concerned underlying on need probably maybe and the would to issue issues?

Paul Tomory

the would known layer that. and the a that issue The be within The is as below clay pit. is of X-silt No. the located strata real formation underground

that highly So fractured it’s we’re with rock. dealing not

clay dealing We’re surface a in greasy very wall. with that north

Jackie Przybylowski

Okay. Thank helpful. really much. That’s you very

Paul Tomory

Yes.

Operator

comes Your [Operator from from Greg next Barnes Securities. Instructions] TD question

open. is line Your

Greg Barnes

Thank going dead really Round flog Yes. horse you. Tomory, a here Paul on Mountain. to I’m

Paul Tomory

expected it. I I it. expected

Paul Rollinson

Clean getaway, please.

Paul Tomory

you That’s questions away. while the Mountain, flog did on practiced have what guys that spent morning Round this all at I shaving

Greg Barnes

you and mine everything of production is mine higher all From this? at out life with coming expect Round an of life net-net, longer Mountain plan, improved hearing I’m

Paul Tomory

talked expansion the deliver That able to definitely. at pushes yes, lining heaps, out been myriad And of you said, like. we Round opportunities actually If the And deferral production the outperformance you substantial about. out these like with silver optimized come continued include expansion hope of Phase the But Phase and been guys S is Mountain this years. that will be an on year real what of the plan to about, we we’ve near-term to least flotation a is I’ve with further now. able at to, W I the yes, X here that expect backfill part, other from I’ve talking in

the a from of certainly lot that and to there, been but project for Round assets year why Mountain to-date we recovered million have ultimately have do, XX XX now, of We work high the that’s have up hopes it’s a and upwards million. pushing sort

have target XX we Round Mountain. million for ounce So this

Greg Barnes

I’m not was expansion, it, floatation but... of sure the And Okay. missed I aware I that, maybe

Paul Tomory

talking the No, first is about we’re this Yes. it.

little approved the as deploy of the life mill high-grade sulfides, a mill we example we of of project But it’s come. an recovery It’s where So the on bit mill, you know, a continuous modest is to expansion can mine the material to little all an capital just good a and of of project. increase to there. flotation recoveries improvement increase

Paul Rollinson

I Yes. would... I mean

Greg Barnes

So ahead. basically sorry, go –

Paul Rollinson

stuff of opportunities, it, lemons situation. here. and here of kind kind guys say, mean, is rotate was things I about to would again, you’re work feeling it’s a we through on, do silver setback, we’ve we working we operations. the come is we time. to pretty anyway, we flashlight of here to that been of as working a I can constantly think we’re going on this And We’ve lemonade and little see of other many so improved up that at bit our confident. No, Bald, word opened refer sites. back, Paul lots all all bunch and And talk the had of of can seeing dial there’s again, of CI what we to there’s Kimono bunch on but initiatives the a talking our Recall a be We lining know, at he’s we bit and the us with specifically, were with just as just I caused the turning an situation earlier, at that to here into lots stuff here a we you

Greg Barnes

Great. Thanks. Okay. That’s for all me.

Operator

Soni next Anita will from question World CIBC come And your from Markets.

open. is line Your

Anita Soni

can Hi, And are to it’s that is again, that thick how give if clay Back pit, you you bottom layer, is? it Paul. me that the saying? what the horse of below

Paul Tomory

Phase was a the near bottom. bit It’s though. little W higher the pushback That

basically So the below layer. body ultimate the pit clay gets

causes north Phase highly lies pit basically it pretty So, but where very competent which reduces that I other of you are top retains effect a down I remember can’t through principally formation. once it’s that exactly strata couple are instability. tour will the and illuvium, ground. the wall you how W layer back and you there It’s is, clay of clay below the not layer, the competent water from you on illuvium. It’s stresses is the into sitting that sick thick. hill – tell is, of clay under a It’s mean

now we’re putting but we to layer, more to layer. also broader, So more of a in pit, the X-silt lower quite are the holes a lot what the wells. really bunch of is regional understand both clay geotech we’re putting And doing more we’re right in proximal dewatering better down incremental level part of the capacity, right dewatering

Anita Soni

Okay, thank you.

Operator

I session the us the our turn over today. call to back end brings closing Q&A the for This for presenters to of remarks.

Paul Rollinson

you. weeks look joining and in coming up And us months. to Thank catching Great. thanks, operator, forward for Thank everyone, today. you, we the and

Operator

will This conclude everyone. conference today’s Thank you call.

You may disconnect. now

Kinross Gold (KGC) 12 May 212021 Q1 Earnings call transcript