KGC - Earnings call transcript Q2 2022 | Kinross Gold Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Kinross Second Quarter 2022 Results Conference Call and Webcast. All lines have been placed on mute to prevent background noise. [Operator Instructions] During today's call, there will be a question-and-answer session. [Operator Instructions] I will now turn the conference over to Chris Lichtenheldt, Vice President of Investor Relations. ahead. go Please

Chris Lichtenheldt

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

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

Paul Rollinson

opportunity quarter and business to on currently Andrea joining developments expectations all the over and for more our will our thank who of that, going for us. of and call Beginning offer. detail the Chris, comments state compelling second to portfolio. Paul, and our and you provide key operations. financial our will comment with our on performance, some update our will the you half on performance on I'm Thanks, I second Then XXXX our After across results. provide shares Today, briefly I turn on value our the review

year. with a that operational this in our happy years, results guidance of has am nine met I out first As not company XX of the last the half

from supply recovery we increase to we Tasiast see per the drop highly encountered, XXX,XXX the we these the working production expected of meet mill. our you given be we in more slower be our end we and produce We the our our guidance now the Coipa challenges have Given I and confident movement areas. delivery a particularly ASIC. from focused increases will Mountain. my Two, throughput of to sales four, combined following portfolio. need of for guidance at cost U.S. Coipa want enhanced across seasonally relative remain to first. On our the the at half the in give the Three, first that to the overall, half, on in that ramp-up second inflation, higher commitment ounces day will we in La costs, have achieved with strong XX,XXX to the order cost half end will nearly will in moments. we expectation elaborate with in resulting guidance, this the in of We leach through Andrea lower performance than to the heap second tonne our ounce in objectives. production grades Bald with production grade on In did challenges maintaining per are at in planned targeting expect above at at the few the production chain range. low Paracatu. operations from One, the already coming four low

and debt our repay During million paying million $XXX plan we down an half. to second of quarter, the $XXX we improved $XXX by million additional the liquidity to in

We program continue in dividend our to to our also return plan second buyback shareholders to continue and the capital program half. through

Manh progressing results for are a Things yesterday XX% project. study projects. evening, our note, our to Choh we the Moving high-grade released well. In particular owned

forward. the be We and study results moving will of the are pleased with

received on of quarter, with closing. $XXX Russian we completed for $XXX During cash business the the of million our consideration total million sale

coming of closing the have our which towards advance the we finalized be expect to production Americas. approximately of continue Chirano, from now in resulted in divestitures August. will XX% We These

proposition. value our at Looking

attractive flow, a return index the of We and and have an Americas, significant margin substantial free balance a life the focused production in into capital. competitive cash reserve sheet decade, next strong

of Our X together assets, an to next Tasiast in Nevada ounces Paracatu, The than which we annually into top rest more on million the portfolio ounces, annually. X expect decade. produce up million Chile expected X additional make produce, to our are average, and Alaska, and

our Great In world-class addition, Bear we development our project expect future to into production carry decades.

work turn taking over, I our unfortunate risk all call fatality on practices. want we standards a we I to done, of every need our above focus area that for to team. Before touch continuously incident the and is the constant mine. and safety, despite July, our of now financial suffered our and member reminder continuously over to systems priority. Sadly our of and are steps a safety, This a the our first improve on I'll is be call to review the at important in of workforce our never safeguard our safety results. our With else management improving We turn Andrea value safety that, health and Tasiast to

Andrea Freeborough

then and and an provide capital on Thank balance of you, cover quarter financial sheet the allocation. our overview highlights Paul. touch our I'll from

I'd and Russian I’ll like our out the metrics asset Chirano. today former point First, that all exclude on to financial comment

second production the increases primarily driven ounces Paracatu noted, operations. by our XXX,XXX quarter, Paul of of quarter our and first As than was U.S. stronger

quarter, at cost QX comp at higher sales and Tasiast. Mountain $X,XXX which costs increased largely fuel per relative due was to Our to ounce, Round first of the increased

second sales were decrease expect capital. costs sales cost sustaining of and back half, We sustaining QX in increase in the than All-in the cost higher to come I’ll due to. per which to higher $X,XXX of of ounce

On we guidance. XX% inflation. La full be our the around the factor in XX% production to ounce expect incorporated be impact a to release indicated full of we are and lower cost range, are due our now we the to mainly to our Coipa inflation, from increase $XXX and approximately cost guidance We year. above our and X% sales previously into now As cost for for year, per operating expecting in all-in that yesterday, revised our we're approximately previous ounce. $X,XXX per sustaining costs press to be tracking year and

XX% assumption our still inflation of hold. initial to XX% to CapEx, For

Our in in comes confident particular. this per examination at of cost at sales production $XXX lower the ounces which and across in Tasiast incorporates ramp-up second lower per approximately half the portfolio the ounce. Coipa La in and reduction, of increased We're ounce cost the from benefit $XXX from

flow $XXX spend we increase still changes, range our adjusted half. which in was We was during excluding consistent working by Free quarter still million CapEx quarter or higher operating QX. of to second cash the CapEx than of $XXX million the than pace million year-end. guided what a was million, planned Our QX capital second $XXX significant was over with cash QX is lower $XXX relatively $XXX a flow expect QX, million. but for of at

our cash production and and We in and expected total future further expect to cash and investment to in cost position going QX, three and reaffirm forward our cash remains of prices. in billion approximately XXXX. XXXX year in from of ph liquidity. credit financial half liquidity with is of strengthen rating free of and $XXX quarter the flow gold particularly We the position which subject solid With two We half, to our rating to further, second strong second increases both maintained million ended increase regard ph our agencies, grad second during the into sheet, $X.X quarter. the decrease balance as the ratings

quarter July we Paul $XXX paid in the million in million plans forward. $XXX down with going for second of debt and continued another repaid mentioned, As repaying

times. XX-month trailing ratio Our slightly X.X at debt-to-EBITDA XX June net improved to

We expect this ratio year throughout to come year. this down continue to and last

which our Paul capital our noted, dividend, we've with planned expect Finally, continue we prices. allocation, long term, including gold to on for the as lower

yield a X%. to amounts Our dividend of now compelling nearly

to and think buyback the Paul. priorities. our We now inflation the But as call monitoring we our program about over plan capital also as line allocation prices base dividend. maintain that, to share our same gold we're always, With as I'll at turn level

Paul Tomory

on mentioned. updates Andrea. portfolio, as news it the proceed decision I'll QX, details This from improved as on some Manh growth was share share ongoing with highlights not our Paul morning, exploration. projects with to Thanks, and but QX as challenges, from without our operations, Across provide compared well Choh, our key

with remain strong across this, provide more on are than achieving of a Tasiast. we good with ounce half the Looking head with starting portfolio. for track from the remains remain of year forward, We're of of average record production. day the on driven sustained per half X higher tonne. out $XXX,XXX by XXX,XXX to grades regularly planned least we're in ramp up and the for produced, X, tonnes quarter of and the a grams coming year, few QX, throughput production mining encouraged the increase expecting examples grades ounces I'll July, second where Branch ramp-up below strong, The largely in levels by Tasiast Tasiast throughput in a track we XX% of production a second delivered XX,XXX driven over remains second mill of outlook a year, throughput at ongoing increasing the Tasiast day. and now. tonnes the West by example, and grades just on grade per In XX,XXX site

The roughly for ramped engineering later the XXXX, Tasiast for also completion the underway. with power Construction the remains with to of track to Paracatu, was middle project second initial At site with in ounces, on tonnes procurement this the up up phase activities ongoing underway quarter. substantially of XX% and compared with of is first with start complete advancing detailed the solar XX,XXX well procurement day engineering production expected XXX,XXX plant quarter at year. a

grams grade expect the Paracatu I'll the grade is ounces move Southwest the averaging Coipa. and as this a of produce month first planned. The which a We in see higher ph complete now expect half, higher over higher largely than to to area year, of a July, is to alone. the year. lower grade have in La of processing through we remainder we Throughout ore grades of this for X.XX tonne, stockpiles approximately around mining XX% into been Paracatu enters XX,XXX the

the second in quarter. more As commissioning the initial the Paul than mill mentioned, planned progressed of slowly

portfolio recently supply reaching The of hindered contributor will the by in availability delays temporary throughput However, progress commissioning were are pumps levels, issues of the exacerbated cash terms mill, XX,XXX which Coipa is day. tonnes going making improving La primarily global the have problems, and showing and including to its flow. production some a components. by critical components forward driven of be July in per ongoing meaningful other and chain the Mitigations in our

La down of quarter. as plant expect underway, throughput a the of per year price to tonnes than the reflect silver We second fourth XXX,XXX day revised our initially from well ounces. La in of deferral ounces forward expect have sustained impact assumed gold ounces. to the we we XXX,XXX commissioning issues in the These equivalent not production this up. higher the going With we're Coipa have do resulted now guidance, delay XX,XXX To once a Coipa to production in ratio reach gold approximately to our production expected as ramped line XX,XXX delay, of for

XXXX quarters. grams per Mining in will we beyond ounces a gold tonne and deferred equivalent to ready this rates production have planned for up have intact, be future XXX,XXX So mill. the the now as grade and and year in tonnes stockpile ramped is X.X realized of the also of

completion most to Moving Overall, from remains on for changes our optimization expectations there The to later significant our comments. are Mountain. no project this Round year. site recent track

open will expect be WX and two sub to Phases sequence. and mined according Round will in Mountain this this past month for and develop QX priority added the X an W of to phase the of necessary the phases in S Then be We WX, next June. are as the following XXXX, for Phase pit were Phase years. permits X received starting to

sub WX Following the expect WX last mine W. that, to we phases X of and which are

to versus between open for the pit continue these evaluate trade-off We phases. underground

improved options we're of our recap, X to X a At advancing To from the Paracatu. term, grades confidence the line U.S. and both approach XX,XXX Hill underground our second of picking tonnes are now Phase relates more longer coming up half for of in on expected. combination the study. year I Tasiast this details later the the plant. is Gold sequence which throughput and Looking as at move and we both leaching La for commissioning growth And a higher progressively of grade optimization completion Coipa, advancing We'll the strong day of mining to a of as update project. planned Choh where provide showing production sites Manh lastly, ore of West Branch second sustaining the promise. our at are we at study will from as an

production We the Manh Fort growth project the provides of a proceeding returns for and low-cost are Knox. with pleased to adding inflation. announce Choh that of Alaska. high-grade, the project impact project Kinross, Choh robust we're remain despite execution in The Manh attractive to

construction $XXX is and also Our contingency road of inflation. preproduction a capital Permits for half ph to in investment allow for remainder higher season for will to setting million the expect the future typical production be of during of XXXX. the we of in than XXXX, The the XXXX, progressing up possibility of be includes priority well. field successful second a Earthworks us acquisition and

drill on that track Paul, Before update for advances, Bear, the turning become on our exploration programs. will over program the mine. our as complete results brief I'll exploration provide Starting program this our to with year. world-class XXX-kilometer a call to back a reaffirm remain the expectation the exploration We Great

XXX meter positive mineralization, below and recent depth. month great exciting the core improved continuity our has of results our project this envisioned initial Results completed, along This has program XX,XXX receive assay mine from XX the understanding complement for drill zone. received program intercepted the grams XX of and LP session continue gold per vertical hole confirm of meters of confirming confirmed. originally during that update at clarify a Fault per is meters. approximately pit. a vision like depth open we Of been meters. view underground our control have Also, a our XX.X results strike at nature depths We On to we of gold, that made grade this been earlier point to these sizable the open tonne and tonne misunderstood. open We X to the support drill note, including The may of a which that X.X meters distribution. on high-grade June high-grade want XXX I topic, pit gram been has

discovered and stockpiled mill this, high-grade we've In material we low-grade to incremental that is addition maintain to ensure will be feed.

drill studies results So All to date baseline this and encouraged of we all awarded news remain project expect Curlew, results the have it for Other deal drilling to has the veins is have engineering include with at level of resource by highlights results. year-end begun Environmental scoping Round initial our packages disclosing to part our look exploration Curlew Basin our from in work. Gold in late and work and our in portfolio the very the understanding At good value. improved all, underground extensions encouraging of Mountain orientations. been XXXX. forward to identified add the key mineralized vein work

In data in Hill. the meters mineral new trends open Alexandra results multiple to geophysical confirms veins, Round Mountain excellent strike and potential on report Gold drilling overall dip. after the main resource strike show expected XXX scale portal Stealth and meters track along an at initial ounces Galaxie XXX along At to year-end the from X encouraging results. to from extended veins Gold We down has growth. contribute Hill, zone results lower over deposit inventory million derivative of addition remain to

the of call We with untested the the encouraged Meanwhile, commence continue are the the exploration And an X, to trend. turn that, to back fourth significant in track by of and open I'll advance on Paul. the plans well quarter. continuity remain strike in for to underground Phase construction nature drift

Paul Rollinson

our continue and outlook Paul. operating confident the in strong a half. Thanks, second half, towards our our Despite operations challenges are first in we plans, for advance to

our we free to cash Our company the has better. and been value shares offer meaningful generate never continues think flow,

profile, cash attractive pipeline an a come, a up and open for improved with robust We have line With of program. an to flow balance strong footprint, exciting like and projects the free capital operator, sheet production a that, significant return exploration geopolitical I'd questions. to

Operator

Your Instructions] of line go first of Thank Suisse. from you. comes Credit Please Fahad the [Operator ahead. question Tariq

Fahad Tariq

morning. my taking two good Hi, Thanks questions. for

the kind give ongoing. else chain spare have you whether want been procured, some that is from Can needed mitigation First be? on mentioned you you to are of is supply just details it on get to La mill needed more to perspective parts where a Coipa, what the

Paul Rollinson

issues been steadily expect everything we at had components site, commissioning the sourcing filter number I'd all plant. steadily Fahad. both of but orders them. pumps components to have placed a Yes. fully as of and are have having to we've months. We've next sale need we of the second and the some We new them Thanks, in on right don't nature new new line the We and arrive seals we pumps. for have The say bearings the up couple pumps, we and now, throughput in and ramp been

Fahad Tariq

just with Okay. results. Choh. is the production the And from investment excluded study Obviously, switching positive guidance? gears to Great. still XXXX feasibility and Manh this decision Why

Paul Rollinson

beginning our guidance do typically the We at year. of multiyear the

simply we a when update it's So mechanical step on guidance.

Fahad Tariq

Okay.

like So of or it's lower half XXXX, okay? second expecting the function production not a in of beginning

Paul Rollinson

No, our guidance. no. haven't multiyear just No, we updated

Fahad Tariq

it for me. That's Thank you. Understood.

Paul Rollinson

Thanks.

Operator

of comes Anita Please World Soni the question go next Your ahead. line of CIBC from Markets.

Anita Soni

morning, good And Hi, Paul, taking my thanks question.. for Paul.

The CapEx. – to first is related is regarding just one

the if have Does correct, capital? year cost wrong, the - you in million and and spend gearing the spent heavy does and that more up? me Or guidance the the we about half mean but in I'm that $XXX. of we'll on X% mean minus $XXX a $XXX is but reiterated year, the first you'll if CapEx you've second minus of towards So correct million be should of catch that half that your for the

Andrea Freeborough

half, for we first a have the but spending and we'll XXX to CapEx Yeah, But in in at La second up Manh Those and maintained right, higher that additional plus three in the the Capital reasons. increase, things some now were ramp half stripping, CapEx expect a X%. second CapEx the minus few higher Coipa, and kind range, are of we then Paracatu, particular of our XXK expect spending we mean, Anita, or I you're at the project. it's that's Andrea. low that guidance. Tasiast for We half. at then Choh into factor do to

Anita Soni

in that in Okay. per But guided until year. back understand, the for be the And half as lower pressures the run I out we year, and you've you're be may the I'm planned year? back volume next but then this for should like trying of on inflationary cost Or But of for lower just year to should half coming costs. the the we a the cost February. using give should don't $XXX - we to given rate thinking next you ounce year? offset increase to guiding you that the I appreciate years, have that know guidance that

Paul Rollinson

of is to, sort give at a we said in call, year, the difficult more the and really now alluding the numerator inflation. of and is the from We with at tough bit Anita. X%. at we'd February comfortable And one a It's said an midyear of half you're guided a to the essentially to But perspective, to updating update beginning XX. part again, operational production effect. grade denominator we as we second It as with inflation are a we're around an call here

out how predict wild card. Hopefully, to at going to year trying it abates, So but that's be next the point. to going that's this play

Anita Soni

for it That’s you. questions. thank Okay, my

Operator

MacRury the question ahead. comes line Please of Genuity. Canaccord from of [Operator next Carey Instructions] Your go

Carey MacRury

originally, QX, sorry I La I'm what on Q through that Coipa. Hi, like everyone. up just XXX,XXX ramp the now into Maybe plan into to good do XXXX? morning, – QX was know looks first wondering ounces.

Paul Rollinson

Yeah.

we of through now in few XX, fourth up the a days by want up, the to X,XXX these tons tons, had at XX,XXX ramp to because quarter. ramp delays we're running and So X,XXX,

said adjustment you If allowances, in we from the I La that XXX. moving prepared. are make Coipa to production as into XXX

Paul Tomory

getting this to is I just a it The happy those It's would We're straightforward. - parts. obviously It's again, operate. those about - spares, this not is that, just not to just It's pretty context, is for add ramp-up. technical a issue. It's highly really with mine I Carey. mean, it. continues frustrating.

For equipment, that's pretty straightforward.

issue to in. a just We've the and got the is. material on We're we So know top of what it. source job back get

Paul Rollinson

we've And got all in - XXXX.

Paul Tomory

Yeah. be XXXX per plan. as will

at a As fed. we And throughput. Paul of matter the X.X the to up ramping this be just got got stockpile there said, is the grams order, we've waiting

Carey MacRury

Mountain, in Okay. big in on a just switching mean, then production. obviously, a the I And maybe there. jump cost costs just to despite jump around

Just happened wondering bit if you there can a of color on add what quarter? this

Paul Tomory

there. drivers One is There are inflation. just several

and ounces to that But stacking on calls, also a sites versus Nevada ounce the proportion picture, heat particularly Mountain than we cost production more mail will the lower cyanide bigger timing versus at it ramp even in greater a line. intent also to a of back and And said get structure as way look ph are by of function ounces Our back number. cyanide. particularly in of increases, recovery. XXX,XXX a in It's previous is impacted of up where on a we are is, our it's anything to around which cost function figure, year lime

it's picture, I was number particular this production really it specific scale. that those big But by in issues impacted So quarter, of mentioned. just a about

Carey MacRury

to go X,XXX down something To ounce like you that? like , an to like cost

Paul Tomory

production up we costs have intend optimization to back will we to do going to the are which work. down the to up. ramp our But be as cost as will or study ounces, trend cost That on will of we're doing XXXX, XXX,XXX the the last this Well, goes those finish that the in come down bids optimization both. we're but - profile,

Carey MacRury

on quite And Tasiast. XX, the down maybe step the question just for just noticed I is quarters. few last one recoveries which were last

Just happened wondering what there?

Paul Tomory

Yeah.

the and back that back puritites that got with [ph] address over puritite able And that down, the and got it we've we've non- get into sulfide line. some high-grade we the to pulled As the to through better material, in but encountered high oxygenation we material been few the up. recovery puritite last blending weeks,

that we really to do puritite with it's encountered. So some

Carey MacRury

Okay. Thank you.

Operator

of Please line Bank. comes Parkin Mike the go from ahead. with Your next National question

Mike Parkin

Hi, guys.

stronger NCIB a on share cash outstanding and sheet of for bit generating now to balance shares? still given some free repayment, focusing price a still there capital balance a me. thought Just repurchase generate you're expected of maybe of debt Is where terms With towards the in and of is, towards flows. terms putting the to an one but in work

Paul Rollinson

exactly Yes. Mike, the plan. that's

and maintaining down are And the both we the we're dividends the on obviously, of same buyback So top dividend. the debt. paying time, at

So we're all above. doing the of

of And I Where about we gold we'll going? sense, we think think but how we're certainly, expansion approach we're the in any a us. about ramp macro all is taking see inflation or debt are where cautious here bit we that comfortable prices, the a might as margin repayment, we the where through doing as takes higher think going? either the how commodity today. accelerate is sit buyback price three We'll up

Mike Parkin

Okay. guys. Thanks,

Operator

comes the Please from of of Your Tanya next line question Scotiabank. Jakusconek go ahead.

Tanya Jakusconek

we of for at do that, issues Are inventories have need everything and supply throughput 'XX for say pumps looking a Good year, that theme, and at site? you adding Tomory, we just we how inventories obviously bigger is circle just getting which picture your in back to questions. want spare site. morning, instrumentation parts. to by one everyone. next just are Tasiast for La ship on we're mid from I these following as that wondering you Coipa given we to 'XX looking additional site Thank at and Paul taking some my expanding [ph] And these

Paul Tomory

few I'll a a on couple there, in hit of this. there's So anecdotes questions and

has chains times. global all are on we the stretched, as supply particularly certain lead and been impacted availability really know, So parts of

We do where on the have, vendors and over months ramped spares, critical X capacity possible, campaign that. had where past inventory the the we've levels to X, up

critical some possible. XX parts XX La where up components building things warehouse - up these So predict to be irresponsibly trade-off the challenges yes, the lead we're would anecdote, want there's times, certain and I can. to always levels. warehouse previously squireling previous and in And components available. chain a an where week supply - buying of on to And specifically to case it's you just components some say seeing pandemic always specific of readily that we that don't really In our ramping cases, with have just been a that away everything will to difficult, there's been and Coipa, give between impacted. have

Paul Rollinson

We manage far… inventory as as carefully

Paul Tomory

can one Yes. all the up And we in we difficult we of anticipate time. to with no failures, to ramping pleading components. suppliers but situations, much equipment as inventory it's begging manage We certain you get a right spares, the as and while more or critical where think can amount get

Sometimes are supply. and what alternative to they have chain source we are, the supply

Tasiast, piece equipment. substandard or what we're from quality in that's So lead buy that normally are better we we equipment and at doing of of put pumps piece a here not as then buying the perhaps wait of a would the substandard place component long the for time

replacement components can it's but are perfectly buying proactively not can, something we we we where are we do a yes, managing, everywhere. So

Paul Rollinson

to the our is the and this finding this with of bit are. part test constant now where context, going La operation, restart again, failures. we equipment, all ran just on all a we've why and to and pumps are But just this ramp-up load the what tested Coipa as the in jump the you we we're right we am on up Obviously, pumps ramp-up constant seen tee for equipment, more. fine. I a of load add these is works mean, with the here I maybe we where

get of testing the seen But that's got. to this found amount these some it the and push why been parts we've continued have routine have failures bit us what to we're we've positive as where given So a spare for the we we've to scrambling parts. wouldn't throughput, that's

Paul Tomory

is something one single not filtration plant XX and And XX every And years, for warehouse. are in a have it's the again, can I you a like replace down said, plant and quick that pumps reminder, in there. there this over was

Paul Rollinson

context, again, pumps, the XX And of talking X for we're or that total. problems the probably are XX% or - XX

we're on that's We're is. what it down. So it know it, we focused and chasing -

Tanya Jakusconek

the what for are seeing - - knowing now about else get is that the south, Given supply have sure concerned that chain but taking La you're the long and chain Tasiast time the the you're to experience Tasiast? a that supply parts, in that you're maybe something you some or expansion? anything Coipa Anything seeing issues take you on now focused to make these of there definitely

Paul Rollinson

equipment lesson of on key a or a is hand. we and capital components for capital spots, spare where it all of where Well, sustaining and are exactly major learned, reviewing hard projects have similar projects pieces weak are we our there should

are we from learned, portfolio. the - critical across yes, are lesson the a reviewing we of So hard rest components

Tanya Jakusconek

in from component critical understanding, just like my anything And it's the for expansion of mill. Tasiast the the

I - we had we on remember think I site. correctly, if thing majority a needed

Paul Rollinson

– screen XXk a activities. project the The the element are of tie-ins. more Yes. Tasiast the asset components for biggest all Segisor there that. sequencing we retrofit, [ph] is so construction yeah, and have

Tanya Jakusconek

I I allocation. had at circle other to million, and time keep $XXX reduce think to you're just I'm Again, you your as to back to want my if understand dividend $XXX understand the your from same million, have buyback your trying maybe share to I going of Okay. and capital collection. just two wanted your I could, debt I well. and I questions, Andrea Paul

$XXX I you million thinking what Is correct? think second that for is half of it… on of the recently year. I'm million it to the want do about $XXX another As you or done top have

Andrea Freeborough

I half. in gold part - of mean, price Tanya, I depends this second the think Yeah. on

a gave expect what we the to in we add to terms range of debt repayment. So

the million second million loan. the $XXX million we the repaid in In Tasiast $XX clarify, we've $XXX revolver on on another to million. quarter, was That on just repaid revolver. the July, So $XXX and

left outstanding million on $XXX the got we've So revolver.

we million $XXX half. expect to here in and to million sit second today, the repay we As $XXX

taking of be would that So out revolver then debt. and rest addressing the the other

for are And so the just $XXX to where range a year, million of that million. on depends And on again, price. that's gold $XXX total we

Tanya Jakusconek

know share you're year-end. I of before to you to just your there that indicated EBITDA it becomes where sort by think debt at debt-to-EBITDA I an I'm have want [indiscernible] to you're net that you you. from trying be under and get feel your one net Is comfortable a understanding Yes. as targeting buyback debt your looking you level

possible I'm share the to move number. second chance do level to then your debt question what if buyback? wondering is do I have you my from comfortable net So still to feel just to that’s EBITDA And just with

Andrea Freeborough

be Yes. end us. low did slightly of I say expect one. That's ratio end slightly that We'll for at one, probably by mean I being previously means above to guidance the range. the year no below I uncomfortable we think just given now at production our or

by balance we I comfortable where sheet. we year think see getting into and do year end is it We're we to are the well. the but continuing the message next strengthen there as are, working stronger just then this of

Paul Rollinson

the on thought guess where to I flexibility we'll we're commodity, key our the going get we've we debt always from And then that have perspective, the to take is in the of buyback there up again, approach that really we equation. if And amp benefit that's margin then buyback. as flex in the metric continue a some to

Tanya Jakusconek

net EBITDA sort of buyback what in So share again debt your time, you could active then for as be is I understood. we that see more one [indiscernible] to

Paul Rollinson

If the the in is tone commodity. right

Tanya Jakusconek

component that. to key your more it cost And It's inflation? mainly to labor? for you Maybe seeing we're could just memory, are trying the or trying $X.XX for in the just I we've Or components to I'm get look - of the XXXX. components anything I'm is inflationary are structure? yourself else. because where if just Paul your at your of for squeeze understand from back consumables? think everybody just think cost consumables inflation, and that anything is just more labor the continued appreciate trying Tomory. touch Thanks pressures. see And just more a I seeing to for and gone you you fuel has seeing you I you math seeing structure for terms to from the – peaked trying you're XX% of has to in what in one if I I'm peaked in up to

Paul Tomory

of a the of prices, things at out prices XXX. increases So flatter oil see commodities, increase. but course, continue The other perhaps are to in a is petrochemical seeing to Chile. and United the with and rate like the and where Brazil one pressure area of are cyanide States key peaking we we flattening In in explosives, are case tied things ammonia things essentially the impacted in are then chain. most to lesser the seeing we that lime, extent In a labor, of in

So if seeing you're across asking we inflation are - the board.

as the We they the key are in rates of as some were. severe other fuel. said, And attenuation as seeing I signs increase commodities aren't of some of the in

maybe if increases there news rate is a something the the of story, So rate increasing - the us. behind worst good that that's there

Tanya Jakusconek

pressure be in labor U.S. say X% to you should thinking X% I about the that what that you're in when seeing? be used And to

Paul Tomory

that. than And bit in and by X% more rates. people jobs those high typically, And in operators the and U.S. competitive labor really have the keep keep mills by only a it's turnover to the It's X% trucks - way wage. probably a to maintenance very and the little is hiring to pay in and driven It's - on more those you

Tanya Jakusconek

it lot time. appreciate I you. Thank for Okay. a of

So I’ll somebody to else. pass it on

Operator

And question-and-answer Paul. will session. the to concludes turn this back call I the

Paul Rollinson

you, operator, joining weeks. up Thank in us forward to in everyone, thanks, catching and you. the We morning. person coming Thank this look for

Operator

conference This call. today's concludes

lines.+ now may You your disconnect

Kinross Gold (KGC) 28 Jul 222022 Q2 Earnings call transcript