KGC - Earnings call transcript Q1 2022 | Kinross Gold Corporation

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Operator

Good day and thank you for standing by. Welcome to the Kinross Gold First Quarter 2022 Results Conference Call and Webcast. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your first speaker Mr. Lichtenheldt. Chris please and ahead. go you Thank

Chris Lichtenheldt

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

Before be forward-looking will we that this making begin, to statements would state I we presentation. during like

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

Paul Rollinson

during performance remain key the due Two the track low our to expected quarter capital key year for up Then to our today. quarter our and M&A. focus, set sheet quarter as you It and respect will an planned throughout that, comment who provide will morning, results, achieved briefly to and overview Thanks, This going stronger a guidance. milestones will additional allocation But and mine detail thank operations to seasonality first the Paul, on update our turn first areas ramp a as of our quarter. expiration, were our to our I Andrea operating as including on plans, schedule. Chris our was to updated I and joining After deliver are planning call and our us on provide brief production and quarter outlook. our over With provide on then and assets all of we balance the results progresses. largely year. I'm performed and

on in XXK the on and by of with its quarter delivered with and of is approximately target poured of Tasiast the year. we up year. La its pending last target And track in outlook news Chirano. and guidance, per the secondly, Russian release to tonnes exited and gold production night, day, record of operations is divestitures ramp Coipa throughput the February reflect our mid bar With production to to our next First, XX,XXX in updated respect back our first half

have and Chirano all of We guidance. targets, With Russia and with other X-year original original XXXX track future our effectively restated remaining operations excluding production all on years. our for

and point, later also that years. are This continue to monitoring allocation will our catalysts updated at adjust to comment instead guidance environment guidance more see exclude higher major position our we the moving Regarding with reflect have gold we assets pending prices these our on the macro strategy, our given grade across business. which Russian to reflect of impacted namely are this not guidance. divestitures but our With not strong focus to objectives making and costs, to have respect original our want oil At to in balance are our a we over currently year to capital we we appropriate. business sheet, respect Chirano, now left strengthening costs, we sheet, changed. the higher to of ounce financial expect our balance the we With fundamentally continuing are the our an and coming investment per address the on in forward, I the in we But pressures the us, prices. inflationary experiencing. operating lowering provisions will Russia Chirano, $XXX that and closely if further this shortly. meant Andrea two the and

return maintain shareholders. buyback plans capital the continue price share our will reinvest In and current to environment, dividend million shareholders. we returning sheet the business, $XXX with to and our to baseline expect of our continue balance approximately in We per strength gold to our year

However, price the go on as inflation monitoring forward. of gold given and environment, will our margins we the impacts be the closely we current

the cost Americas. to area our Turning operations, to reserves divestitures with We focused continuous in to half approximately potential the our geographic and strong pending focus assets, XX% accounted production. with in development for the for and has ongoing through have X A low-cost production this return now class Great operations our help are improvement, coming Tier our Bear growth Canada. with of mix the continuous from combination of in maintaining are further reshaped project cost the of inflation. a on growth Tasiast, Paracatu and our acquisition we maintaining portfolio. of of the manage and Chile we world very In Management, improvement environment, Starting current exploration. our Two

Round For to example, Bald Mountain. and we synergies executing are a between in Mountain enhance Nevada, plan

are to dilution. grade control in investments We minimize making

in turn our pricing today's to strategies support with the of focus upward total of have ownership the economics And reserves, gold possible. new in analyzing the context puts vendor reserve inflation environment. pressure on structures, of lock ongoing supplier certain alternate cost that developed and a where the pricing price are payments We we respect have recognize projects. With in required We our on preferential maintaining advancing to over we lifecycle. cost been to

of environment. today's considering of the price accurately evaluating assumptions realign not input prices. Rather, cut quality we are to both off light in are we on ounces grades to or gold and otherwise reserve inflationary how more dropping higher reflect the mined gold price We costs compromising

We we it something continue pricing are is but our analyze. yet, not to reserve changing

coming to class we program, will to over value world in and the investments our and over of our projects number top this and assets highest layer Great increased to an recent continued our I potential our demonstrate quarters. profitability to that respect extensions With in at Finally, in Curlew over brownfield's and a existing about budget value Bear, mines area have of excited be ultimately projects, its including pipeline level to plan growth am exploration, in we the surface are programs, exciting prospects several with respect have production. particular, years. underground our on and advance our we time. our of potential about will area time, the exciting and for of excited I our investment significant exploration baseline expect exploration

getting. to we've want the I Next, question on provide brief M&A a comment been

XX% pipeline with our first a comes we'd production now of our all quarter this And operating our from are from things the contribute challenging profile from pending any to and Russia production It's positively We exit equal, of happy With being our to Russia opportunities replace been and Americas. price. and pressure sheet, with feel don't or Chirano. to that, see like balance our portfolio current share Ghana. the rebalanced

our Before we handing Andrea, briefly off sustainability to I released XXXX ESG. Last report. will night discuss

major the rank peers our rankings ground. and in importantly, to among ratings, continue We more on well right focused ESG remain and what's on doing

in year, solar step used example, benefits of of approximately recycled countries. $X.X in reducing We host we intensity. strong our our sites, an Tasiast, billion we For in goal investment gas economic last approved and at water at a generated XX% towards our greenhouse the

achievements I to now aspects our of of our call over the will in turn and ESG. proud are consistent Andrea. We performance all

Andrea Freeborough

on Thanks, overview like capital our a all and to and updated With been comment second and sheet with of expand respect allocation our quarter, transaction will begin And on which as quarter, include operations, balance outlook. first highlights financial until metrics I'll out of point has time. exclude results Paul. discussing classified provide discontinued I'll our finally, today operating to targeting I the be financial Chirano, the operations strategy. operation. that that the close to Chirano the the our our Russian then from first we're quarter in

Tasiast. first improvements the was the lower As and our partially quarter to production of in were costs was QX and per record and due costs our production our Production than cost year, Paul year production anticipated inflationary XXX,XXX due the sales with to operations, of half. the ounces first than half lower with primarily all-in through U.S second pressures. lowest by ounce mentioned, particular $X,XXX as first per be being $X,XXX the of last expect than we production last year, quarter to offset of production, lower at we year, higher stronger production from Starting sustaining of progress ounce,

net was First of $X a cash outflow flow free a quarter million.

this capital $XXX of includes outflow. would free However, million. flow cash working million Adjusting $XXX this, have our for been

driven $XXX first and lower quarter by lower spend to Our with is higher quarter Lower and rest for us of year CapEx the last stripping first the capital throughout year. spending we timing. was CapEx expect typical compared million a

of divestiture the value payment non-cash to based $XXX the release discount our given as last accounting Lastly, $XXX political the consideration The million of related operation. be the in deferred impairment in to charge was night, elevated a million to with planned rate an received noted Russia. current news recorded Russian climate of determined on subject our fair we

our QX, expand strategy. to of capital I'll the also our in commenting on balance position Moving at end addition our financial sheet, allocation to on

liquidity of the end remains $XXX position the and liquidity. of million cash Our strong $X.X quarter at and billion cash of with approximately

from repaid we with During closing our from loan. Great transaction the subsequently new connection Bear proceeds of $X.X with term the quarter, billion revolver billion drew the in $X the and

EBITDA and Russia, to the As from increased excluding ratio still $X.X such, billion, QX just X.Xx billion the our manageable. to at net debt is our at XX-month QX increased end which trailing X.Xx debt approximately from to end of very net of under $X.X

allocating return cash of we considering remain prices. cash, business With balance by this and its depending a well-positioned range Tasiast or expect current we generate on our leverage assuming scenarios to We of gold significant entering plans end for to ratio priorities. coming below years. best the Americas slightly price to year, over When free flow installation our the look X at to free gold along our with now around years, the focused

capital As our program. Paul we committed remain to baseline of return mentioned,

plan we that, EBITDA repayment to expect about our prices, years the billion we $X environment. next to forward. Beyond allocate debt inflationary prioritize gold current to debt going debt we continue to to the and X to a plan given net At decrease over reducing

and note Turning referenced exclude revised million guidance, both Russia X.XX and to XXXX XXXX, and that production, ounces for XXXX forward. and or we million minus consistent is produce Starting guidance of of all to our plus and when X% typical range X.X Chirano. figures I expect which within our X.X original are all Ghana going Russia in million in with in XXXX, with excluding our

Looking guidance, assumptions updated gold be metrics, were we more given price our of environment. to the reflective at and for we prevailing revisiting cost these oil

XXXX spend to gold CapEx, previously. With our per right now $X,XXX than prices in projects. million ounce remain profile we're expect in $XXX and to assuming Specifically, $XXX following X sized beyond over now year respect this million barrel $XXX have rather and CapEx plan and before range oil $X,XXX per we CapEx in additional the inflation to years, and of factoring the growth additional potential

on budget and we and quarter, and Moving to to inflation into beyond inflation, factored what our see through some we above instances the continue first in guidance.

reflected we assumption, XX% but XX% this reminder, our are we a noted, monitoring operating and necessary. as and point, CapEx. adjusting this Paul costs inflation As in update assumption if trend inflation a we're our to views not At we'll X% in our

guidance Bear Russia $XXX funds and Lastly, planned $XX Great approximately of exploration related million for Chirano. previously a revised includes to million and excludes

modest. a announced I divestitures although cash generated contribution coming Free year. I'll over our its profile has scale, into that, now I'd reinvested that reiterate impact do be Kupol to the Tomory, to turn With Paul off to call And expected have the recently of the smaller, like gotten Before cash to Chirano's production with on at over not our consolidated free expected flow to Udinsk. was our significant was profile smaller Paul. flow the construction hand

Paul Tomory

site several our new earlier provide ounces. and throughout strong delivered year. XXX,XXX rates with I'll the [ph] variant this per Thanks, in on encouraged Omicron overcame highlights and and production Bear as projects day well improvements a morning, Andrea. were share of went to strong XX,XXX some start Tasiast. quarter by Great tonnes the the updates operations with with quarter record ramp from by This some we're threshold. this quarter, up the our project. mining challenges a It reaching days quarter The Head-grades I'll first in posed in key the

the with outlook typical were days tie-ins remains a down ups, strong, is is XXX,XXX on with But and with during the track record associated quarter Tasiast for As year site the ounces troubleshooting. ramp of there on production. over and

is the middle a in tank tons third of the the remains on track XX% to to XX,XXX XXXX. complete. Engineering The second completed and phase planned of leech of ramp be day, up project for now also construction QX, is

are against the our our projects rest to the our continue plan tracking operations of and across portfolio, Looking advance. well

and production year and with over focused half, As and throughout activities La quarter year. and profile Andrea deliver on Tasiast improve, this also. Starting At weighted is to our this Paracatu, anticipated, the extent La is stripping. particular, lesser remain on mentioned, the stockpile a the year milestone on our increase given expect Coipa, sites full during a processing of Paracatu second the first to during the gold middle Coipa, strong We project of quarter. a which was poured as expected achieved significant of we a the while of through year The Production the environment in advancing, we mining production and bar the production year. other grade is grades delivered production pandemic. to to with levels budget, we challenging the schedule team track under ramp achievement half to the as another worked significant up saw lighter Paracatu, the lower material, reach by first

Round Mountain. Turning to

happened W, the far. like of so summary Given provide has to brief learned a I’d at [indiscernible] what that Phase we've what complexity and

know needed than issue mining our detected with As underground. brings is we angles there's otherwise more which pit extends at us our W systems substantial with for to Phase so sooner where a to need to additional what geotechnical open pit it warning off a a the than decide W depth, point amount we case with or of thought, we've which open pushback at pause last be and The caused that on is originally area far capital Phase at open extensive than whether we next the need often trade intensive. would transition an mineralization to year, continue to When stripping an assess this Based early have. envisioned, optimization learned need wall stripping. shallower initially through the study, additional mines

in portions with Phase returns the pit. and done in work mine geotechnical a exploration underground. sooner the exploring the of opportunity of we've the exciting W we're So from is we've X, to to the The process combined open better Phase with success move potential underground enhancing capital had less

original 'XX would Moving production underground in 'XX plan. annual and result [indiscernible] lower in level versus the

extend However, to the CapEx lower Underground serves and life. mine ultimately moving needs

Our the well sequencing optimization study outlined, is Phase also as while and plan. progressing incorporating into mine optimal over next few the years. S

will first Phase plans forward open the in pushbacks. of W We discuss detailed of Phase prepared the be we for to by of know we mine But year. couple as now going complete pit phases the second we'll the S once half followed our study

results gold and project. confirm our that over positive The to back a provide has to Starting potential Bear reaffirm to mine, depth. and thesis will be call further mineralization, Paul, update exploration our asset brief which open the with operation. transition the is turning open assay underground large potential receive with results Bear, pit our drill Great continue along that this high-grade we Before to a I strike to on a Great program and

program start to Advanced initial We underground drilling, analyzing compress as of highlights Alexandria us and extensive decline schedule would to for for for sampling. high-grade drilling Mountain Other with Project, Round Mountain, PFS, We the on Fault along Exploration an program an estimate This At gold the that well zones, production We're commence close remain Gold LP support advance the to with well, to next with to discovered ways exploration Curlew was scheduled and Basin year With encouraging for look required timeline Hill Limb XXXX. more year. of the vein, underground early of local exploration results as previously the at initial plans and allow At XXX,XXX the exploration declaring confirmed mill. our have potentially which environmental continue program an bulk results, extension including the down-dip encountered which last would Kettle we Program, year. of areas extension Hinge River At an over the the bring which drill respect our to vein, results several current process project, drift to in earlier establish XXXX. an year-end an of as track continue goal nearby holes along Galaxie for an portfolio with efficient allow unidentified is the with positive as this potentially proximity and of later which also discovered to than quarter. for zone, planned last infill exploration baseline began of late resource recent meters permitting with of which studies a underground the to this veins, year. to at we Phase for from we this Round studies see we exploration X, drilling continue and is of at discovering socio-economic year. include the Curlew, construction deeper

While focus off call with restoration width And is back be our seeing programs it's remain to that where and summary, Paul. on a our the permitting, promising in another still have depth mine we start. early to more around remains over are by both on great I'll leveraged. can the and existing infrastructure operations areas the that, current In targets And encouraged turn and Americas. the we're exploration support to potential grades and needed work

Paul Rollinson

Thanks, Paul.

several some company past significant changes. gone through months, the has Over our

strong our now warrants continued we Americas share updated margins, With growth our In returns support and on hitting What decade, that the exits and our view, Russia that capital changed La Ghana operator, sheet and significant like things look is that dividends production a Coipa materialize we up through is projects and that, ramping our on Q&A. to up Tasiast portfolio repurchases. reshaped line and a portfolio include: a milestones to reached X-year have seeing our with production. has planned has a our focused strong some been haven't execute focus open by our balance as through to valuation, production and and from I'd to changed plans. better more portfolio full profile, However, strong for targets a throughput the continue forward its this business

Operator

comes the World of from line have Soni Instructions] our question first from [Operator Anita We CIBC Markets.

open. ahead. line is Your Please go

Anita Soni

Thanks taking Good guess morning, My I the grades averaging and for XXXX year. report for the -- back everyone. next I grades XXXX. technical first is, with X.X my regards at the half Tasiast the call. question, up one around in pulled had for of the and old to

should still of we X.X, overall the the the gearing towards year? Given be X.X that course for

Paul Tomory

actually X Yes, the be words, the higher to towards second grades we'll for hitting than higher year. half. be full other tracking we're X.X In into going going

Anita Soni

than you're X.X? So X.X hitting be going or higher to

Paul Tomory

higher shy the just than in We and X of of to X average than still intend year, over X.X year. course Higher year for full the pieces for the 'XX.

Anita Soni

Full mean, 'XX, Okay. you right? year

Paul Tomory

full Yes. 'XX. Yes, sorry. year Yes,

Anita Soni

I Okay. of half And the we mean, grades should a gearing you've major, towards be grades for Paracatu? higher Paracatu, been guess kind for of for that now been then you've it's nothing saying the but and year I I looking at similarly at you're just what -- second know year

Paul Tomory

the stripping. lower quarters lower have through grades stockpile been the of putting on last fleet the So is focused we've couple the been we've rate that had mill. And because over reason

point second in we're the above and year, to QX, QX, QX, .X to trend closer into higher going finishing get we .X. then half, the nearing QX, for .X As

great last and you've So quarters we been what stockpile seeing is And sequencing mine at for simply Paracatu. the with couple milling. on are track

Anita Soni

Okay. ask then And I and to to on will one it question more others some Mountain, then questions. Round leave ask

said could lost you open sort stood. for and we in giving that to potentially Phase little an like? -- on and should see sorry, that of for But idea you're like, us currently 'XX W terms look XXXX, the and extraction that the we So assuming you then where that XXXX of the as we on quarter? rates what what course I a was -- now. improvement sorry, what's us open some pit does just pit modeling will thanks of Or going an XXXX of there. Are have in you bit some and -- current -- gave year? S run look over kind around is Phase -- this clarity be But modeling there of right

Paul Tomory

thanks we early And topic as -- We of issues Yes, a Mountain Geotech layer be going the is year, last then, know, extensive. Round knew is question. causing movement that focus. the this you this the that for the we year. early Well, had is to more wall we've clay that determined

are so the at And pulled Phase one had plan. of the sequence relook to we've And bits we how of that here we've news forward. S

later to again then So XX so closer to next the direct S. approaching months. Phases going Phase that Phase sequence near-term next this to we're will production And to year, and going what from for XXX S be stripping year, XX on And targeting WX, feed to year, focus do, same what immediately the and going to we're then in W, several then start is we're we're or we're WX, that. to is the after what first over the of this starting that's going two

of But to So half study, W of established fourth determine is the to quarterly will up balance X, pit are the And then at production their versus we the mine the here whether third year we're answer couple what working Round. S. question, second ramp then this of in and we've Phases of next configuration optimization going what pit W open underground. and is Phases open which of going Phase the we're on to and that then our

thought quarter because than initially the underdosing first heap. lower of The was of cyanide in

then in year I again finish to that and issue, same the ramp heap not So mining it And like a expect starting XXX in said, and 'XX. necessarily next we year, to a up issue. range, was

Anita Soni

were -- from from Ghana for so in what if then slipping you and out was And and came the Okay. we saying XX. under little I Chirano, Russia some capital a

if that was of at it to there we we're see if differential? stripping allocated Mountain? shortfall that -- there's sort a -- So be would Round to is the somewhat a should of Is expect

Paul Tomory

will say. Andrea, Yes,

Andrea Freeborough

XXX think and billion or from the so 'XX of I biggest -- about $X adjustments And [technical the chunk said for we out of difficulty]. really were 'XX directional. that the XXX sort was had was biggest taking previously where the a CapEx for Udinsk

So than it's precise. really more of a too directional number

Paul Tomory

And are Mountain, by the we at Round limited fleet.

constant have we a So stripping rate.

total will around But the basically every likely lower. so be And same moved will tonnes this CapEx be year the the year.

Anita Soni

rate, If mining I overall? what that ask could is

Paul Tomory

XXX We target about a year. million

Anita Soni

Transparent.

Between [indiscernible]. Okay.

All right. get the I'll in Thanks, questions. other for Okay. back Thanks. all. queue

Operator

Financial. from line question comes next Mike Parkin National the Bank of Our from

Your is open. Please ahead. line go

Mike Parkin

to the Thanks, color XX,XXX guys. the per of in give already tonnes around in Could quarter. Tasiast that day just running any you is terms you of noted kind of exit kind

date? How Sounds what of good, -- any color April May seeing what in you can give to La Coipa? or terms but in you're about there

Paul Tomory

the very On downtimes. spotty. And throughputs, there. We're had still in the the and stages typical we've it's been early tie-in of commissioning

steady state for XX,XXX been X,XXX, June, early half, throughput, Our we And started you've got we targeting there. the pushing July. May, to second a late our a been as ramp up more X,XXX, X,XXX, small always has see as really very day. reliable plan has production, into seen But tonnes to to

ramp down, been into but the that will was and expect So spotty state we half. the get definitely schedule. up But that second steady in to up has it commissioning do

Mike Parkin

of that as [indiscernible] up alarmed, everything Nothing expected, like kind of typical challenges? kind largely ramp

Paul Tomory

pumps but entirely Coipa expected consistent ramp Tasiast and power bumps, modeled had both and for had what tie-ins downtimes have ups. Yes, with we La and Yes. and and braking commissioning

Mike Parkin

Can are I some kind us Okay. guys think there's with a regions With some things rate. from give I in update your stand obviously I respect Brazil. just on to generally okay. of when that of don't there's recall, factors power -- water regional But affect challenges you Paracatu, there? where you

Paul Tomory

was This our are Water year's anything, to plants the a is having site water. manage -- power fine. also we record. doing fine. rainy take, if offtake a And doing problem season at was our last how can much balance our from than plants excess The that And was the the power sailing was the drought right now through site unit to year. and operationally higher power smooth certainly is line power benefited at plants prices. plants, both owned And But has it water. having it's those due opposite greatly bottom

Mike Parkin

you an that that's just guys with just there? Kettle do bit And come us great. -- often, It's goal Okay, the Curlew, can and what is thinking results pretty in very for like are of give you interesting. then do a color, River obviously the what kind asset doesn't guys up Where of conversation you of that project?

Paul Tomory

really be encouraging. about, Kettle we've overall infrastructure. there. start place We're River the were Project And starting very in looking Basin the the at much on what excited But project are sight of grams. the to Curlew, at quarters, reopening close. excited the we we're similar like we economics. be have attractive you've it to we what a seeing what next The we're X grams, what at River here the we we're quite a about is Curlew at not we're And that. very infrastructure. to be at effect thinking mining would Kettle looking the a like about is depth, parallel program, at refurbishing a do Mill already X things shorter focus million something and of underground. more we're did It'd from we from yet, meters And the line potential -- we'll is than in over targeting now trucking we're And bit background decline the And getting project. that that in And [indiscernible]. fact already drilling is of what pretty be million in Kettle will but getting because here there the at is the in tone, have down investing looking little a ounces. we're Mill We're to doing we're ounces, meters X X to about our permitting got that aspects at La seen Well, the talk use to which there to at mill, the Exploration the we're we Coipa that there. couple River intercepts

yet, So targeting the it ounces but exciting. prospects. where not models at a million quite about we in we're our is adding as that We're go. We're million them we're excited

Mike Parkin

we a in that of greater year? place, potentially through volume actually reported decline of with move we getting as drill could the kind holes So see

Paul Tomory

as the we do That's obviously drilling granular allowing that And did the targeted a yes. veins and done some underground the where had is is are there, program to surface we us years and much over more discovering with not drilling from they're. we intent, know

really the hypothesis up proving at and a we're So and depth continues mineralization been positive. down it's that dip

Mike Parkin

Okay, Thanks very it for great. Super. much, That's guys. me.

Operator

Our Greg comes from the TD Securities. Barnes next line question from of

Please open. is line ahead. Your go

Greg Barnes

your risks Do pay to of Rollinson, concern some the able in see Thank dollars? any Russian the about on close that counterparty sale being you particular some the ability around the overhang perhaps stock still is you. assets. on or Paul your of to

Paul Rollinson

here. segue Sure. Thanks, as we're know, little -- a maybe on It's a mean, a I'll to situation. uncharted background I'll I are day bit Geoff, then the very maybe to you transition territory of -- fluid in Look, give Look Greg. day. over and who's

miner people Our government of the instance, our focus first and a laid effect region to we process safety the strategy someone by and taken a a an We've to, the the in government. as position to industrial health the with environmental our we underground pursued were that's on the been we've where responsible out operator operate. logic, with in And trying priority standards. really of transition our has as

in we in our I so And again, buyer really we've can. give done people, sense the responsible want we're of you a environment, looking terms a territory. looking maybe following and after feel do to at? we -- everything would where uncharted finding we're we're But after of the Geoff, process, say

Geoff Gold

circumstances. as look unprecedented Sure. Paul said, Yes. Yes, Greg,

Western the that. on process there's we is advanced closing our uncertainty of the effectively And off the sub a we've at We've was effectively, tantamount speculate Ministry Industry sign newly set was in something parties Service everything approval there company approvals so And that's and required. of there the approve as we've require, required, to But that trust and required. can. our the lodged timing is around is for Antimonopoly trade Russian constituted the a some Federal foreign agreements. then outcome, which obviously And approval, of want sort in is to or transactions, government a world. we addition, any And ancillary applications, that done to commission as that don't up there our

with And can. and larger supporting a in show we're So close, everything those applications the we're up and doing approvals update at and position waiting. market to buyer we're we the We're if that when we'll time.

Greg Barnes

you this X% at an ounce and you is color terms now, helpful. also my about That's going there? used What on I is you simplistic, price in pricing, overly use how $X,XXX get $X,XXX forward? It use know per inflation, there are numbers might ballpark ounce. if one that Or gold of you thinking was situation. Paul, would you some Okay. you guess but was considering mentioned

Paul Rollinson

the look Well, through that our you hit operating strictly start it's the then whether or inflation run capital, seeing, you it's you that. When on bang head. It's nail of mathematical. we're like spend, numbers at on to kind you total

and around, up. growth essentially, the to anything past is we sins grades still at the Reserves our we in Kind set use about haven't X,XXX, higher drop thinking at our maintaining cut where of a Paul, people to, got our so plan I as looking the of And story, inflation carefully about, done reserves by gold is really account indicated but I commentary, paint take there? not I say the of talking word off that to we're cost effect. yet, strategy would mine to prices try our I prices mean, into

Paul Tomory

the the you're oil in right. with other on that we cushion the hedge the impacted. from near-term. X% hedges I X%, words, is so guess X,XXX. Yes, But have In

higher look as through into inflation we term, trending getting first is higher anticipating. per is we May, been the X%. the quarter number than As $XXX we And than here, at had longer barrel got probably

to is X,XXX now. X,XXX So what right as now right modeling we're sensitivities

Paul Rollinson

oil. $XXX With

Paul Tomory

$XXX With oil, exactly.

Paul Rollinson

Yes.

Paul Tomory

off elaborate the were And thinking to impacts. we quarters internal move or our bit pit to that X,XXX grades. plans we what that If see sites to increase would size accompany going our to do X,XXX an move higher, little with change are but higher with not we're cut we're on instruction and subsequent a going to running more, is we to at

pit the And because situations, other pit price to recognize would maintain geometries in we look some higher a reserve, We're here. we're to just what environment. inflationary reserve increase might maintain So not size. do that's words, to trying trying the in

Paul Rollinson

to whole that what with in a Brazilian particular, side think inflation rial. is, currencies other then about have the happen will we And of

Greg, we're putting here. So I inflation just there, out we're that -- guess notice is a

year. we our watching guys into know, some put have the it transparent guidance our of you pretty and at you is. were what just trying As understand thinking We're we percent the to when beginning closely very

Greg Barnes

That's great context. very lot color. Thanks of a Gives much.

Operator

Our comes Genuity. line from Canaccord Carey of next MacRury from the question

line is Your go Please open. ahead.

Carey MacRury

morning, Good Hey. everyone.

Just sort guidance be with maybe is terms going assumed and you that there noncommercial of production? Or what commercial Coipa. to associated for about on you've back that? was production in of talk production some La all there Can

Paul Tomory

here. remarks, my XXX,XXX production year. Almost back very prepared all like be in ounces, Coipa I is the the will clearly, production heavily we're said for assuming weighted ounces actual and And around La

Carey MacRury

would in So probably HX? XX% of be XX%, like what that

Paul Tomory

that's about right. Yes, Yes. Yes.

Carey MacRury

assumption a way costs. what Okay. X.XX there then on be? were cost Is you you unhedged? there any of would this you of number like can that quantify sense year, Is if hedges fuel And the mentioned impact for the the the

Andrea Freeborough

guess exposures that I are helpful? we're below Well, our XX% by saying Is of start about just an I'll just price average at $XX. hedged

Carey MacRury

maybe for then Tomory. one Paul And one Okay. last

the on Bear. Just Great

you're drive doing there. surprises control drive? grade control You're the grade seeing on [ph] Any

Paul Tomory

done and no, better we also of it's hoping a no the out XX for. model, practices. have We've construct surprises. for But of are up about we operational terms we're seeing to kilometers but program, mineralization, everything delineate of set to In and a the planned how really resource understanding $XX,XXX

Carey MacRury

Okay. Thank you.

Operator

from have Markets. We from Anita the CIBC of World line Soni another question

line is open. Your go Please ahead.

Anita Soni

Hi.

on So also about Gilmore? stands And ask pits wanted Knox, what's just of where sequencer? sort going with on I the You my like assets. to that memory I mining guess and those could the Gil where in Fort Satellite refresh and we are

Paul Tomory

So the running. is up Gil and Satellite

main mill a a to Knox well. it's It's with there tracking contract and are We Fort [indiscernible] progressing the we're reusing fleet. And one. over the smaller minor year

And of a Gilmore going Gil So Gilmore end case part longer of between In grade of higher sense, of rough non-Gilmore. plant. all by the the pits. up mine Knox well there. no XX% mill just you the will differentiate fundamental this the to give make slightly a principal and about than Fort that's now the year We at

Anita Soni

too what like Yes, -- so million start it that proportion I up going to from quarter not XX:XX, thought the specific the I to -- X,XXX was think assumed proper? up ramp like saying? tonnes get was and that's is that so I the you're kind we And -- going of I to that this XX just to Gilmore is was versus

Paul Tomory

total tonnes, the In back terms on of … we'll get tonne to have split to you total

Anita Soni

Okay.

Paul Tomory

… low. but tonnes relatively the Gil are

it's higher-grade, in said main XXX smaller principal Knox fleet. fit The fleet. movement tonnes is I a the Fort As with

Anita Soni

quarter with us and an -- fairly ramp you year? how just is the over the like idea the where up I will around in evolve We question CapEx. then like CapEx just And have -- that low. of of give second Obviously spend was Okay. can course this the the

Andrea Freeborough

relative Typically we a start. year on the slow will to I start have CapEx.

CapEx is usually So QX our quarter. lowest

the guidance maintained our year for Chirano. have We ex Russia and

was expect ramp lower costs stripping, less CapEx up our that in reasons year. capital the QX we do and to the stripping of less through just was One

Paul Tomory

couple probably we of end be will will budget Coipa, a a pretty And with there. on under significant specifics. million CapEx underrun La $XX

Andrea Freeborough

in is good Which a way.

Paul Tomory

In a good exactly. way,

Andrea Freeborough

Yes. Exactly.

Paul Tomory

have Tasiast. are is a been has power developing we that deferred solar we a little And bit. at plant, And --

little. we anticipating didn't So up, QX the capital a in deferred and show it's that were been

Anita Soni

I question was overall. just the have And that guidance the last Okay. respect think with then I to

have ounces of which that X.XX like million delivered understand probably any I been, excludes the mean, that XX,XXX you now would geo quarter. Chirano, or so completely you right, I this from so Just contribution have

you've take stripped out X.XX the that you million? So when

Andrea Freeborough

we continuing We've guided right. be to That's operations expect there for that basically forward. going

from within back to we in as until part about there And ounces all X, early as ounces produced of operations. for almost Chirano the and some you QX XXXX that's January obviously, it's XXX,XXX QX Russia, in discontinued but of So well we be will in XX,XXX close. said,

Anita Soni

Chirano be And XX you any up XXX for to spend already was that the shouldn't that excluded, number Russia but the year. including Chirano similarly, spend in is, any then had, and like our we

Andrea Freeborough

right. That's

Anita Soni

In cap.

right. All Okay.

Okay, thank you very much.

Operator

the from Scotia. Instructions] [Operator comes Our of next question Tanya from Jakusconek line

open. Your go line Please is ahead.

Tanya Jakusconek

Hi, great. for circle you just I answered. But to back. taking lot questions. want Good been morning, everyone, have A thank my and

mentioned -- stand do So buybacks. just -- Paul, or capital that out? had debt million $XXX pushed for you allocation billion the were resource share transaction? on guidance, those on the now the we going Have What off to do one where $X mentioned maybe Great were on that dividends just you just finish Andrea, buying Priority and million issued $XXX on those million, reduction. you to from It been look been on that? at back. shares that Bear been previously stand Where has $XXX

Paul Rollinson

I something we Yes, it's want Thank to you. question, also Tanya. looking a a of going gold and the be It's that's growing. that revenue away. it is Obviously, in the the price inflation in mean address, the address, to line still do want at good And year-over-year and in we're environment we're context. to holds how mindful We're on trying today. closely we we're not seeing pretty

issued like million. take margin about Great out absolutely for to as the would we're we So the from shares same at transparent that, We that be this but think to we thinking we Bear, committed well. a to $XXX as about perspective want issue -- those are time,

Tanya Jakusconek

Okay.

[indiscernible]? So $X we'll the few repayments the over prioritize years debt next over this billion then buyback

Paul Rollinson

balance the go we'd seek in margin like sheet environment do always contracting we'll first. Well, obviously, the a both, idea to but is,

Tanya Jakusconek

know. I

For Knox, guidance, you ups off have Fort sure. second just of just La maybe Kupol, finishing Coipa. it's the lot in And on on a ramp half,

quarter-over-quarter from two got Tasiast improvements. packet You've

just overall a on So I'm basis. get trying an to idea portfolio

progressively are XX XX, looking half, a we helpful. year, XX. we that are first at and improvement at guidance second, go through quarter-over-quarter quarter-over-quarter Maybe where you've XX, improvements, then As or we would there over be the got looking portfolio some

Paul Tomory

It assets. by varies

about quarters. quarter, slower example for quarters. of we're probably the for to in Fort up for remaining at Paracatu, two up, and above XXX XXX XXX, So anticipate XX ramp a then to second heading Whereas targeting last then the the and it's we getting at back we Knox want each three did wait

So is definitely back end weighted. Paracatu

earlier As ramping up the question, I the answered grade.

really So and into a is what over million, for we're each of getting then looking at and up ramp QX XXX X.X the here QX. medium QX, in something range

better grades. Given you that by, goes of And of into some there. assets month on we the color better and course, some with Tasiast every get

also is back end Tasiast quite So weighted.

Tanya Jakusconek

for you Thank that.

Paul Tomory

just the so back and be to each the of now. it's nature right We'd portfolio but love weighted, end asset is where

ramp So, heap grade and throughput weighted and timing. and ups leach they on end back are all

Tanya Jakusconek

on now for fast-tracking And in you have and get trying I mentioned about that you that. earlier Dixie to XXXX. maybe, you Okay. than that No, thank

I get is if there earlier XXXX? -- can bring to on it place the than in time access this decline some or capacity the earlier, mail and in terms to and help milling your of milling the how where With of gain areas you there having you should in underground in earlier be tool, production is thinking get you

Paul Tomory

through permitting processes. we as paths critical potential compression, other at look run regulatory some do So the and schedule

For system tie-ins. example, [indiscernible]

the situated advance to also growth do much on The us underground doesn't project, resource drill The but on would target. hinge allow on the for earlier is goal permitting we purposes. it definition necessarily we drilling schedule targets will to and the underground key better underground but definition the LP stakeholders underground with does two, continue better engage acceleration, necessarily the timeline. underground targets, do decline and the not rather between And would Limb all there principal focus decline of for as understanding, be in be the is what our So evolve better engineering targeted go.

Tanya Jakusconek

should I'm then we I Lobo-Marte, -- the then in trying have How of over of my maybe rest and thinking should ounce reasonable out. And I assumption XXXX. should XXXX, of to would if be that sort Obviously, coming you forward? Just than how about, as question. great. go peak earliest, the can Dixie, Would of in your decade? pipeline? that's And that gold how we of pipeline think your the Okay. coming that million a I come understand see be X how last pans to in think all earlier

Paul Tomory

Yes, so a got well. Manh peak you've Choh the at correct. is sequencing, going

on we're the track Knox, there La Coipa. production. that is Fort for in extending you XXXX The one missed the middle

JV extension We're X, extension ask out -- X we've a La got extend got working if at on a we Codelco Puren deposit to Puren as Lobo-Marte, can now where And permitted. we because Don't Lobo-Marte, go phase would from La Puren Coipa, before, we another Coipa's with first So X. push built we X. said we Codelco. we've me -- with called La Coipa in the with that

as here we with minimal minimum the -- on get as talking viable that up Coipa, If And to as La at to to that something Curlew Mike, So production. push could one, other is that the show earlier into mine project. list will add extent I Lobo-Marte. life was to we come we out can the starting well

Somebody come the of decade here. the to have in half back

Tanya Jakusconek

Okay.

Lobo-Marte, in at life you if So mine La even Coipa? come extending are before that could

Paul Tomory

we to want do Yes, would that. Definitely. definitely

Tanya Jakusconek

Okay.

Tanya Jakusconek

in thing in initiated things very We've [indiscernible]. a far a environment The on big very sustained what price got background look a early-stage higher is And study resource other might gold we've the in like there. Chile.

a have do we a starting it's very plan on huge days know, we're As you to And level but some there. early preliminary there. there, studies reopening resource

Tanya Jakusconek

I'll you. questions. you. let else Thank ask great. Okay, Thank someone

Paul Rollinson

Thanks, Tanya.

Operator

like to over questions further Paul no are Rollinson. There turn I call time. this to the would back at

Paul Rollinson

look today up to catching Thank in calls weeks. thanks you, and coming you. everyone the Thank and for Operator, the in-person forward the questions. We

Operator

Thank call. participating. conference today's for concludes This you all

now day. Have disconnect. a You may great

Chris Lichtenheldt	Vice President, Investor Relations
Paul Rollinson	President & CEO
Andrea Freeborough	EVP & CFO
Paul Tomory	EVP & Chief Technical Officer
Geoff Gold	EVP, Corporate Development, External Relations & Chief Legal Officer
Anita Soni	CIBC World Markets
Mike Parkin	National Bank Financial
Greg Barnes	TD Securities Inc.
Carey MacRury	Canaccord Genuity
Tanya Jakusconek	Scotia Capital Inc.

Kinross Gold (KGC) 11 May 222022 Q1 Earnings call transcript