Q2 2024 Kinross Gold Corp Earnings Call

Unknown Executive: Thank you for standing by.

Thank you for standing by my name is jail and I'll be your conference operator today at this time I would like to welcome everyone to the second quarter 2024 results conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press star followed by the number.

Unknown Executive: My name is Jail, and I will be your conference operator today.

Unknown Executive: At this time, I would like to welcome everyone to the second quarter 2024 results conference call and webcast. All lines have been placed on you to prevent any background noise.

Unknown Executive: After this figure's remarks, there will be a question and answer session. If you would like to ask questions during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again.

One on your telephone keypad.

If you would like to withdraw your question Press Star one again.

Chris Lichtenheldt: I would now like to turn the conference over to Chris Lichtenheldt, by his president of investor relations.

I would now like to turn the conference over to Chris Licht, and Health Vice President of Investor Relations you may begin.

Unknown Executive: You may begin.

Paul Rollinsen: Thank you and good morning. With us today, we have Paul Rollinsen, CEO, and from the Kinross senior leadership team, Andrea Freberal, Claude Schimper, Will Dunford, and Geoff Gold.

Chris Licht: Thank you and good morning with US today, we have Paul Rollinson, CEO and from the Kinross Senior leadership team Andrea free barrel Quad Chamber will dunford and Jeff called for a complete discussion of the risks and uncertainties, which may lead to actual results different from estimates contained in our forward looking.

Unknown Executive: For a complete discussion of the risks and uncertainties, which may lead to all different from estimates contained in our forward-looking information, please refer to page two of this presentation. Our news release date of July 31st, 2024, the MD&A for the period ended June 30th, 2024, and our most recently filed AIF, all of which are available on our website.

Speaker Change: For information please refer to page two of this presentation. Our news release dated July 31, 2024, the MD&A for the period ended June 32024, and our most recently filed Aif all of which are available on our website I will now turn the call over to Paul.

Paul: I will now turn the call over to Paul. This morning, I will discuss our Q2 margins and cash flow, and update you on our sustainability initiatives, at a cost of sales of just over $1,000 per ounce, our two largest assets. Cassius had an excellent quarter and was once again the highest margin mine in our portfolio, driving a significant free cash flow. Erika, too, continued its consistent contribution with strong throughput and recoveries, helping drive a steady order of production and cash flow to optimize throughput.

Paul Rollinsen: I will now turn the call over to Paul. Thanks, Chris, and thank you all for joining us. This morning, I will discuss our Q2 margins in cash flow, provide high-level updates on our operations and projects, update you on our sustainability initiatives, and reaffirm our outlook.

Paul: Thanks, Chris and thank you all for joining us.

Paul: This morning, I will discuss our Q2 margins and cash flow.

Speaker Change: Provide high level updates on our operations and projects.

Speaker Change: Great you on our sustainability initiatives.

Speaker Change: And reaffirm our outlook.

Paul Rollinsen: I will then hand the call over to Andrea, Claude, and Will to provide more detail. Following a strong start to the year in Q1, we delivered another strong quarter in Q2, establishing an excellent first half and positioning as well to meet our four-year guidance. In Q2, our operating margins grew by over 20% compared to the prior quarter. Once again, outpacing the relative increase in the gold price over the same period. As a result, three cash flow more than doubled in the second quarter to $346 million, the first half total of just under a half a billion dollars.

Speaker Change: I will then hand, the call over to Andrea.

Andrea: We'll provide more detail.

Andrea: Following a strong start to the year in Q1.

Andrea: We delivered another strong quarter in Q2.

Andrea: Establishing an excellent first half.

Andrea: Positioning us well to meet our full year guidance.

Andrea: In Q2, our operating margins grew by over 20% compared to the prior quarter.

Andrea: Once again outpacing the relative increase in the gold price over the same period.

Andrea: As a result free.

Andrea: Free cash flow more than doubled in the second quarter with $346 million.

Andrea: The first half total.

Andrea: Just under a half a billion dollars.

Paul Rollinsen: Turning now to operations, our production in the second quarter was on plan, delivering 535,000 ounces at a cost of sales of just over $1,000 per ounce. Our two largest assets, Cassius and Perricot 2, both performed well, with production and costs improving over the prior quarter. Cassius had an excellent quarter and was once again the highest margin mine in our portfolio, driving significant free cash flow. Perricot 2 continued its consistent contribution with strong throughput and recoveries, helping drive a steady quarter of production and cash flow. At La Coipa, production remains on track for the full year, and we continue to use strong mill grades and recoveries to optimize throughput in order to address some maintenance opportunities.

Speaker Change: Turning now to operations.

Speaker Change: Our production in the second quarter was on plan delivering 535000 ounces.

Speaker Change: At a cost of sales of just over $1000 per ounce.

Speaker Change: Our two largest assets.

Speaker Change: Cassius Erika to you all.

Speaker Change: Both performed well with production costs improving over the prior quarter.

Speaker Change: Tasiast had an excellent quarter.

Speaker Change: It was once again, the highest margin mine in our portfolio.

Speaker Change: Driving significant free cash flow.

Speaker Change: <unk> continued its consistent contribution with strong throughput and recovery, helping drive a steady quarter of production and cash flow.

Speaker Change: At La Coipa production remains on track for the full year, and we continued strong mill grades and recoveries.

Speaker Change: To optimize throughput.

Speaker Change: In order to address some maintenance opportunities.

Paul Rollinsen: At our U.S. operations, production was on-planed with notably strong to performance to report off. Turning now to our development activities in the second quarter, at Round Mountain, the Phase X open pit and the Phase X underground development work continue to advance well. Stripping at Phase X and the expansion of the Heath Leach Pad are progressing on schedule to support initial open pit production next year. At Phase X, the development of the exploration decline is progressing on plan. As outlined in our press release, we are excited that the expansion drilling at Phase X intersected mineralization with strong grades and widths outside of the primary exploration target.

Speaker Change: And our U S operations production was on plan with notably stronger performance from Fort Knox.

Unknown Speaker: In order to address some maintenance opportunities, turning now to our development activities in the second quarter. At Round Mountain, the Phase S open pit and the Phase X underground development work continues to advance well. Sherping at Fay's House.

Speaker Change: Turning now to our development activities in the second quarter.

Speaker Change: At round Mountain Phase <unk> open pit and <unk> underground development work continues to advance well.

Speaker Change: Stripping phase out.

Speaker Change: Based on the heap Leach pad are progressing on schedule.

Speaker Change: Our initial open pit production next year.

Max: Hey, Max.

Max: Element of the exploration decline is progressing on plan.

Max: As outlined in our press release.

Unknown Speaker: Is that why you're not doing a press release? We are excited that the extension drilling at Phase X intercepted mineralization with strong grades and width. These results demonstrate the potential for expansion of the primary resource target. Moving to Alaska.

Max: We are excited that the extension drilling at Ajax intersected mineralization with strong grades and widths outside of the primary exploration targets.

Paul Rollinsen: These results demonstrate the potential for expansion of the primary resource target and are expected to support high productivity bulk mining.

Max: These results demonstrate the potential for expansion of the primary resource hard yet.

Max: And I expect it to support high productivity bulk mining.

Paul Rollinsen: Moving to Alaska, consistent with our guidance, I was recently at Fort Knox to celebrate the first Cold War from Manjo. This important milestone represents the hard work and dedication of our project team and partners to bring this high-grade mine into production, both on budget and on schedule. Mining operations at Manjo are performing as planned, and the Fort Knox mill modifications are on track for final commission in Q3. As a result, we look forward to delivering several years of strong production at attractive costs from the combined operations in Alaska. At Great Fair, we continue to make strong progress in the second quarter.

Speaker Change: Moving to Alaska.

Unknown Speaker: Consistent with our guidance, we are on track for final commissioning in Q3, from the Combined Operations in Alaska. And in Q2, we drilled the deepest hole on the property today, at a vertical depth of nearly 1.6 kilometers down plunge of the main LP zone, indicating strong upside potential to supplement the main LP zone from these satellites. The long-term potential of the resource will need to be drilled off from underground, beyond the current resource in the PEA. For the AEX, the start of surface construction is targeted for later this year. Baseline studies, permitting, and engineering for both the AEX and main project are all progressing well. We would be remiss to not address

Max: Consistent with our guidance.

Max: As recently at sport marks to celebrate the first gold pour Rancho.

Max: This important milestone represents the hard work and dedication of our project team and partners.

Max: Bring us high grade mine into production, both on budget and on schedule.

Speaker Change: Mining operations Man show.

Speaker Change: Are performing as planned.

Speaker Change: And the Fort Knox no modifications are.

Speaker Change: We're on track for final commissioning in Q3.

Speaker Change: As a result, we look forward to delivering several years of strong production at attractive costs.

Speaker Change: From the combined operations in Alaska.

And great Bear we continued to make strong progress in the second quarter.

Paul Rollinsen: The ongoing exploration drilling campaign continues to focus on targeted extensions, the resource at depth, and in Q2, we drill the deepest hole on the property to date. This hole intersected attractive grades and widths at a vertical depth of nearly 1.6 kilometers down plunge of the main LP zone. This intercept is outside of our current resource and demonstrates significant potential for further resource growth. Drilling at hinge and limb also return attractive results for depth extensions and both zones, indicating strong upside potential to supplement the main LP zone from these satellites. It's important to note that this recent deep drilling will not be reflected in the upcoming PEA because the PEA is a point-in-time estimate.

Speaker Change: The ongoing exploration drilling campaign continues to focus on targeted extensions the resource gap.

Speaker Change: And in Q2, we drilled the deepest hole on the property to date.

Speaker Change: This hole intersected attractive grades and widths and a vertical gap of nearly one six kilometers down plunge of the main L. P zone.

Speaker Change: This intercept is outside of our current resource.

Speaker Change: And demonstrated significant potential for further resource growth.

Speaker Change: Drilling at hinge on land also retirement track of results for depth extensions at both zones.

Speaker Change: Indicating strong upside potential to supplement the main L. P zone from the satellites.

Speaker Change: It is important to note that this recent deep drilling will not be reflected in the upcoming <unk>.

Speaker Change: Because the P. A is a point in time estimate.

Paul Rollinsen: And will only include drilling up to April. The PEA will provide visibility on the open pit and a window into the initial production scale costs and margins for the underground. Given the depth of the mineralization, the long-term potential of the resource will need to be drilled off from underground as we progress development ahead of mining. However, this deep drilling today shows the continuation of high-grade mineralization beyond the current resource in the PEA, indicating the potential for significant resource growth over time.

Speaker Change: And we will only include drilling up to April.

TJ: T J will provide visibility on the open pit.

Speaker Change: And our window into the initial production scale cost and margins for the underground.

TJ: Given the depth of the mineralization.

TJ: The long term potential of the resource will need to be drilled off from underground.

Speaker Change: As we progressed development ahead of mining.

Speaker Change: However, this deep drilling to date shows the continuation of high grade mineralization beyond the current resource in the pega, indicating.

Speaker Change: Indicating the potential for significant resource growth over time.

Paul Rollinsen: We look forward to outlining more project details when we release the PEA in September. For the AEX, the start of surface construction is targeted for later this year. Regarding permitting for the main project, the Federal Impact Assessment is underway. Baseline studies, permitting, and engineering for both the AEX and main project are all progressing well.

Speaker Change: We look forward to outlining more project details when we released in September.

Speaker Change: For the Aes startup surface construction is targeted for later this year.

Speaker Change: Regarding permitting for the main project et.

Speaker Change: A federal impact assessment is underway.

Speaker Change: Any client studies permitting and engineering for both the AE X and main projects are all progressing well.

Paul Rollinsen: In summary, we are very pleased with how things are progressing at Great Care.

Speaker Change: In summary, we are very pleased with how things are progressing a great care.

Paul Rollinsen: Before I make a few comments on sustainability, we would be remiss to not address the recent incidents that have occurred around heap-leach facilities within the mining industry. Will is going to discuss why we are confident in the quality of our heaps in more detail later on this call.

Speaker Change: Before I make a few comments on sustainability.

Speaker Change: We would be remiss to not address the recent incidents none of them occurred around heap leach facilities within the mining industry.

Paul: Will is going to discuss why we are confident in the quality of our heaps in more detail later on this call. Last night, we published our fourth annual climate report, which provides our latest comprehensive climate-related disclosures and provides details on our climate change strategy, with combined greenhouse gas reductions of more than 29 kilotons of CO2, at a cost of sales in line with our guidance. Looking ahead, we remain on track to achieve our production and cost guidance for the full year. Our continued focus on cost is driving strong margins and significant free cash flow. With that, I will now turn the call over to Andrea. Thanks, Paul.

Speaker Change: Will is going to discuss why we are confident in the quality of our heaps in more detail later on this call.

Paul Rollinsen: Turning now to sustainability. Last night, we published our fourth annual climate report, which provides our latest comprehensive climate-related disclosures. The report also outlines our progress towards our climate-related goals and provides details on our climate change strategy, including our plan to reduce greenhouse gas emission intensity. In 2023, we implemented 15 energy efficiency projects across our sites, with combined greenhouse gas reductions of more than 29 kilotons of CO2. As a result, our percentage of renewable energy increased 23% of total energy consumed last year. Looking forward, we are on track to achieve our targeted 30% reduction in scope one and scope two emission intensity by 2030.

Will: Turning now to sustainability.

Speaker Change: Last night, we published our fourth annual climate Corp.

Speaker Change: Which provides our latest comprehensive climate related disclosures.

Speaker Change: The report also outlines our progress towards our climate related goals.

Speaker Change: And provides details on our climate change strategy.

Speaker Change: Including our plan to reduce greenhouse gas emission intensity.

Speaker Change: In 2023, we implemented 15 energy efficiency projects across our sites with.

Speaker Change: With combined greenhouse gas reductions of more than 29 kilo tons of C O two.

Speaker Change: As a result.

Speaker Change: Our percentage of renewable energy increased 23% of total energy consumed last year.

Speaker Change: Looking forward, we are on track to achieve our targeted 30% reduction in scope, one and scope two emissions intensity by 2030.

Paul Rollinsen: In summary, we continue to be very proud of our work in the area of sustainability, and I encourage everyone to read our recent climate report to learn more. Turning now to what year-to-date, we have produced over 1 million ounces at a cost of sales in line with our guidance. Looking ahead, we remain on track to achieve our production and cost guidance for the full year. Our continued focus on costs is driving strong margins and significant free cash flow.

Speaker Change: In summary, we continue to be very proud of our work in the area of sustainability and I encourage everyone to read our recent climate report to learn more.

Speaker Change: Turning now to our what.

Speaker Change: Year to date, we have produced over 1 million ounces.

Speaker Change: Cost of sales in line with our guidance.

Speaker Change: Looking ahead, we remain on track to achieve our production and cost guidance for the full year.

Speaker Change: Our continued focus on costs.

Speaker Change: It is driving strong margins and significant free cash flow.

Andrea Freeborough: With that, I will now turn the call over to Andrea. Thanks, Paul. This morning, I'll review our financial highlights from the quarter, provide an overview of our balance sheet, and comment on our guidance and outlook. Our second quarter performance was strong, with production and cash flow exceeding the prior quarter. We produced 535,000 ounces with gold sales of 521,000 ounces. Cost of sales was $1,029 per ounce, and with an average realized gold price of $2,342 per ounce, we delivered strong margins of over $1,300 per ounce. All-in sustaining costs was $1,387 per ounce. First half cost of sales of a thousand and six dollars per ounce is in line with our full year cost guidance range of a thousand and twenty dollars per ounce.

Speaker Change: With that I will now turn the call over to Andrea.

Andrea: This morning, I'll review our financial highlights from the quarter and provide an overview of our balance sheet. Our second quarter performance was strong, with production and cash flow exceeding the prior quarter. Cost of sales was $1,029 per ounce, and with an average realized gold price of $2,342 per ounce, we delivered strong margins of over $1,300 per ounce.

Andrea: Thanks, Paul This morning, I'll review, our financial highlights from the quarter provide an overview of our balance sheet and comment on our guidance and outlook.

Andrea: Our second quarter performance with strong production and cash flow exceeding the prior quarter.

Andrea: We produced 535000 ounces with gold sales of 521000 ounces.

Speaker Change: Cost of sales with $1029 per ounce and with an average realized gold price of $3342 per ounce, we delivered strong margin of over $1300 trends.

Alan: Alan gaining cost with $1387 per ounce.

Speaker Change: First half cost of sale and $1006 per ounce is in line with our full year cost guidance range of $1020 per ounce.

Andrea Freeborough: First half all in sustaining costs of a thousand three hundred and forty-eight dollars per ounce is also in line with our full year guidance range of a thousand three hundred and sixty dollars per ounce. In Q2, adjusted earnings for 14 cents per share and adjusted operating cash flow was $478 million, both improving over the prior quarter. We generated three hundred and forty-six million dollars of attributable free cash flow in the quarter, or two hundred and thirty-seven million dollars, excluding working capital changes. Turning to the balance sheet, our financial position continues to improve in the second quarter and remains strong.

Speaker Change: Firsthand all at a cost of $1348 traffic also in line with our full year guidance range of $1360 per annum.

Speaker Change: In Q2, our adjusted earnings for 14 cents per share and adjusted operating cash flow was $478 million, both improving over the prior quarter.

Speaker Change: We generated $346 million attributable free cash flow in the quarter or $237 million, excluding working capital changes.

Speaker Change: Turning to the balance sheet, our financial position continued to improve in the second quarter and remained strong.

Andrea Freeborough: After repaying two hundred million dollars of debt against the term loaning Q2, we ended a quarter with four hundred and eighty million dollars. We currently have approximately two point one billion dollars of total liquidity. Over the past twelve months, we've reduced our net debt by approximately four hundred and fifty million dollars, and our net debt to EBITDA from one point three times last year to just under point eight times of the Q2. Looking forward, we plan to continue allocating access free cash generated against the remaining eight hundred million dollars due on the term loan in 2025.

Speaker Change: After repaying $200 million of debt against the term loan in Q2, we ended the quarter with $480 million.

Speaker Change: We currently have approximately $2.1 billion of total liquidity.

Andrea: Over the past 12 months, we've reduced our net debt by approximately $450 million and our net debt to EBITDA from 1.3 times last year to just under 0.8 times as of Q2. Looking forward, we plan to continue allocating excess free cash generated against the remaining $800 million due on the term loan in 2025. Turning to our guidance, following Q2, we remain solidly on track to meet our guidance to produce 2.1 million ounces at a cost of sales of $1,020 per ounce and all-in sustaining costs of $1,360 per ounce. Capital expenditures are on track for our full year guidance of $1.05 billion, split roughly evenly between sustaining and non-sustaining capital. I'll now turn the call over to Claude. Thank you, Andrea.

Speaker Change: Over the past 12 months, we've reduced our net debt by approximately $450 million.

Speaker Change: And our net debt to EBITDA from one three times last year to just under eight times.

Speaker Change: Kim.

Kim: Looking forward, we plan to continue allocating excess free cash generated against the remaining $800 million deal on the term loan in 2025.

Andrea Freeborough: Turning to our guidance, following Q2, we remain solidly on track to meet our guidance to produce 2.1 million ounces at a cost of sales of a thousand and twenty dollars per ounce and all-in sustaining costs of a thousand three hundred and sixty dollars per ounce. Capital expenditures are on track for our full year guidance of 1.05 billion, but roughly easily between sustaining and not sustaining capital.

Kim: Turning to our guidance. Following Q2, we remain solidly on track to meet our guidance to produce 2.1 million.

Speaker Change: And our cost of sales of $1020 per ounce and all in sustaining costs at $1360 per ounce.

Speaker Change: Capital expenditures are on track for our full year guidance of 1.05 billion split roughly evenly between sustaining and non sustaining capital.

Claude Schimper: I'll now turn the call over to Cloud. Thank you, Andrea. In 2023, we launched our Global Safety Excellence Program. I'm pleased to say that we have now shared this program with over sixty percent of the workforce, including both employees and business partners. We are proud of the program's impact today and look forward to continuing to share it with the rest of the organization. This Q2, we remain focused on continuing to implement our human and organizational performance program and our operational learning teams. This program is improving our team collaboration and operationalizing our putting people first call value. Results today are very positive, and it will continue to be focused through the remainder of 2024.

Claude: I'll now turn the call over to Claude.

Claude: Thank you Andrea.

Claude: In 2023, we launched our global safety Excellence program.

Unknown Speaker: And I'm pleased to say that we have now shared this program with over 60% of the world, including both employees and business partners. This quarter, we remain focused on continuing to implement our human and organizational performance program and our operational learning. This program is improving our team collaboration and operationalizing our putting people first core values. Results today are very positive, and it will continue to be a focus through the remainder of 2024, with Armand delivering as planned in the quarter and the first half of the year. The cost of sales was $656 per ounce, improving over the prior.

Claude: I'm pleased to say that <unk> now started this program with over 60% of the workforce.

Claude: Both employees and business partners, we have.

Claude: I'm proud of the programs in back today and look forward to continuing to share it with the rest of the organization.

Speaker Change: This quarter, we remain focused on continuing to implement our human and organizational performance program and our operational teams.

Speaker Change: This program is improving our team collaboration and operational rising putting people first core value.

Speaker Change: Results today are very positive and it will continue to be a focus through the remainder of 2024.

Claude Schimper: Moving on to our operations, we so continue strong performance in Q2, with our month delivering as planned in the quarter and the first half of the year. At TASDIUS, production of 162,000 ounces was higher quarter of a quarter; the cost of sales of 656 dollars per ounce improving over the prior quarter. TASDIUS was once again the lowest cost asset within the portfolio, driving significant free cash flow. Following a strong first off, Cassius remains on track to meet its full-year production guidance of 610,000 ounces. At paragraph 2, production of 130,000 ounces and across the cells of $10,039 per ounce were unplanned and also improved over the prior quarter.

Speaker Change: Moving on to our operations. We saw continued strong performance in Q2.

Speaker Change: With our monarch delivering as planned in the quarter and the first half of the year.

Speaker Change: At Tasiast production of 162000 ounces was higher quarter over quarter.

Speaker Change: The cost of sales of $656 per ounce.

Speaker Change: Moving over the prior quarter.

Speaker Change: Tasiast was once again, the lowest cost asset within the portfolio driving significant free cash flow.

Speaker Change: Alright got strong first off Chad.

Speaker Change: This remains on track to meet its full year production guidance of 610000 ounces.

Unknown Speaker: At Barrack 2, production of 130,000 ounces and a cost of sales of $1,039 per ounce were unplanned and also improved over the prior quarter. Priority 2 remains on track to meet its 2024 production guidance of $510,000. As part of this work, the team is actively managing throughput levels to enhance the reliability of the plant while the plant optimization continues. Moving to our U.S. operations, production was higher quarter-over-quarter, benefiting from improved contributions from Fort Knox, while Round Mountain and Bald Mountain were lower as planned due to my. Beginning with Fort Knox, production of 70,000 ounces was significantly higher compared to the prior quarter as mole throughput, heapage performance, The cost of sales of $1,345 per ounce was lower over the prior quarter, primarily due to higher production. Ed Mantow.

Speaker Change: It back into production of 130000 ounces at a cost of sales of $1039 boats were unplanned and also improved over the prior quarter.

Claude Schimper: The mine continues to see steady performance on throughput, grades, and recoveries in line with the mine plan. Mine sequencing continues to transition through the lower grade portions of the pet s plan before moving back into the higher grades by year end into 2025.

Speaker Change: The mine continues to see steady performance on throughput grades and recoveries in line with the mine plan.

Speaker Change: Mine sequencing continues to transition through the lower grade portions of the <unk> plant before moving back into the higher grades by year end into 2025.

Claude Schimper: paragraph 2 remains on track to meet its 2024 production guidance of 510,000 ounces. At the quipa, due to production of 66,000 ounces was lower over the prior quarter, whilst cost of cells was higher mainly due to higher mole maintenance costs and timing of cells. Production at the quipa remains on track for the full-year target of 250,000 ounces, as strong performance on grades and recoveries offset lower throughput. We continue to perform reliability and optimization work on the plant. As part of this work, the team is actively managing throughput levels to enhance the reliability of the plant, while the plant optimization continues.

Speaker Change: Prior to two remains on track to meet its 2020 full production guidance of 510000 ounces.

Speaker Change: As the Coipa Q2 production of 66000 ounces was lower over the prior quarter, while cost of sales was higher mainly due to higher MAU maintenance costs and timing of sales.

Speaker Change: Production at La Coipa remains on track for the full year target of 250000 ounces at <unk>.

Speaker Change: Long performance on grades and recoveries offset lower throughput.

Speaker Change: We continued to perform reliability and optimization work on the blocks.

Speaker Change: As part of this work the team is actively managing throughput levels to enhance the reliability of the plants, while the plant optimization continues.

Claude Schimper: Moving to our US operations, production was higher quarter over quarter, benefiting from improved contributions from Fort Knox, while Round Mountain and Bald Mountain were lower as planned due to mine sequencing. Beginning with Fort Knox, production of 70,000 ounces was significantly higher compared to the prior quarter, as a mole throughput, heapage performance, grades, and recoveries all improved. Cost of cells of 1345 dollars per ounce was lower over the prior quarter, primarily due to the higher production. At Mancho, mining continues on schedule, and ore transportation has ramped up to plant volumes. Processing of Mancho all began in early July and extracting to plant.

Paul: Mining continues on schedule, and all transportation has ramped up to planned volume. Processing of Mantra began in early July and is tracking to plan. The full commissioning of the Fort Knox mill modifications is expected to be completed in Q3. In Phase S, mining activity continues to progress as planned. Meanwhile, the heap leach pad expansion is progressing on schedule, earthworks and procurements are all complete, and initial production from phase S remains on track to begin in the second half of next year.

Claude Schimper: The full commissioning of the Fort Knox mole modifications is expected to be completed in Q3. At Bald Mountain, production of 46,000 ounces was slightly lower than the prior quarter as planned. Cost of cells of 1271 dollars per ounce was higher quarter over quarter. At Round Mountain, production of 62,000 ounces was lower over the prior quarter due to lower mole throughput and grades as planned. The cost of cells of 1564 dollars per ounce was higher quarter over quarter due to the lower production. At phase S, mining activity continues to progress as planned.

Speaker Change: Yeah.

Speaker Change: At round mountain production of 62000 ounces was lower over the prior quarter.

Speaker Change: Due to lower mill throughput and grades as planned.

Speaker Change: The cost of sales of $1564 per ounce was higher quarter over quarter due to the lower production.

Speaker Change: It phases mining activity continues to progress as planned.

Claude Schimper: Meanwhile, the heapage pair expansion is progressing on schedule; earthworks and procurements are all complete, and the initial production from phase S remains on track to beginning the second half of next year.

Speaker Change: Meanwhile, the heap Leach pad expansion is progressing on schedule first.

Speaker Change: First of all and procurements are all complete and initial production from basis remains on track to begin in the second half of next year.

Claude Schimper: With that, I'll now post the call over to you.

Speaker Change: With that I'll now pass the call over to William.

Will Dunford: Thank you, Claude. I'll start out by providing a brief overview of our operating heapage facilities before moving on to an update on our projects. We are currently operating heapage facilities across three sites in the US. As Paul mentioned, we are confident in the quality and safety of our heapage facilities for a few reasons. First off, our facilities are primarily run-of-mind heap-weage pads, meaning they have larger rocks and crushed heap-weage pads, which significantly reduces the risk of liquid-action and increases the structural stability of the pads. The only heap-weage we have with crushing is Round Mountain, where we are only crushing a portion of the ore we are placing on the pads, so overall, still have larger rock sizing than a fully crushed pad.

William: Thanks, Claude ill start out by providing a brief overview of our operating heap leach facilities before moving onto an update on our projects.

Paul: We are currently operating heat bleach facilities across three sites in the U.S. As Paul mentioned, we are confident in the quality and safety of our heat bleach facilities for a few reasons, which significantly reduces the risk of liquefaction and increases the structural stability of the pad. Both Round and Bald Mountain are built on relatively level ground rather than hillsides or valley fields, increasing their stability.

William: We are currently operating heap leach facilities across three types in the U S. As Paul mentioned, we are confident in the quality and safety of our heap leach facilities for a few reasons.

William: First off our facilities are primarily run of mine heap leach pads, meaning they have larger rocks and crushed heap leach pads, which significantly reduces the risk of liquefaction and increases the structural stability of the pads.

Will Dunford: Second, topography. Both Round and Bald Mountain are built on relatively level ground rather than hillsides or valley fields, increasing their stability. Ordinox is our only valley-filled heap-weage operation, and again, two pads there are 100% run-of-mind ore. Finally, it is also worth noting that the embankments at the toe of the valley pads of Ordinox are designed, engineered, operated, and monitored as dams based on state regulation in Alaska, which ensures strong governance on construction and stability.

Will Dunford: So overall, we are confident in the quality of our heap-weage facilities, and as always, we will maintain a safety and environmental impact of these facilities as our top priority.

Unknown Speaker: So overall, we are confident in the quality of our heat bleach facilities, and as always, we will maintain the safety and environmental impact of these facilities as our top priority. As you can see in figure one at the top of this slide, we have received multiple strong assay results on intercepts outside of the phase X target. Of particular note, you can see in the bottom of Figure 2 an impressive intercept of approximately 30 grams per ton over 32 meters above the lower portion of our primary exploration target, shown in purple.

Will Dunford: Moving to updates at Round Mountain. At Phase X underground, the development of the exploration decline continues to progress well, but over 2.2 kilometers develops so far. Exploration drilling has also progressed well, as we have started infield drilling of the primary Phase X target and continued opportunity drilling outside of the target to extend the mineralization. As you can see, on Figure 1 on the top of this slide, we have received multiple strong assay results on intercepts outside of the Phase X target. A particular note, you can see in the bottom of Figure 2 an impressive intercept of approximately 30 grams per ton over 32 meters above the lower portion of our primary exploration target shown in purple.

Will Dunford: There is also a link to a video on the slide and our press release that can give you a better sense of the location of these intercepts. We are pleased to see these results on confirmation of the potential to extend the mineralization that we are targeting for underground mining. We will continue our exploration program at Phase X through the remainder of this year and into next as we advance technical studies in parallel.

Paul: There is also a link to a video on this slide in our press release that can give you a better sense of the location of these intercepts.

Unknown Speaker: We are pleased to see these results and confirmation of the potential to extend the mineralization that we are targeting for underground mining. We will continue our exploration program at FASAX through the remainder of this year and into next as we advance technical studies in parallel. Moving to Curlew Basin, exploration continued to advance in the second quarter. Drilling from both surface and underground also continued on the Roadrunner vane zone, with a recent hole returning 12.5 grams per ton over 2.4 meters.

William: We are pleased to see these results and confirmation of the potential to extend the mineralization that we are targeting for underground mining.

William: We will continue our exploration program at Pes acts through the remainder of this year and into next as we advanced technical studies in parallel.

Will Dunford: Moving to Curly Basin, exploration continued to advance in the second quarter. Results from the underground drill program continue to confirm thicker zones of high-grade mineralization near the cell zone where a recent assay returned approximately 14 grams per ton over 19 meters. Drilling from both surface and underground also continued on the Roadrunner Bay and zone, with a recent hole returning 12 and a half grams per ton over 2.4 meters. We are encouraged by these higher-grade results, which indicate potential to expand the resource and improve the overall resource quality.

William: Moving to currently basin exploration continued to advance in the second quarter.

William: Results from the underground drill program continue to confirm thicker zones of high grade mineralization near the cell phone or a recent assay returned approximately 14 grams per tonne over 19 meters.

William: Drilling from both surface and underground also continued on the road runner vein zone with the recent whole returning 12 five grams per tonne over two four meters.

William: We are encouraged by these higher grade results, which indicate potential to expand the resource and improve the overall resource quality.

Will Dunford: At Grape Bear, drilling continues to focus on demonstrating that high-grade mineralization continues well beyond our current resource. As Paul mentioned in Q2, we drilled the deepest hole on the property to date. This hole returned 3.8 meters at a grade of 9.5 grams per ton at nearly 1.6 kilometers vertical depth, demonstrating the impressive continuity of this system that will ultimately need to be drilled out from under. Drilling in the second quarter also showed good grades and widths at depths well beyond our current resource at the Discovery, Yarrow, and Arrow zones, as can be seen on this slide.

William: Accuray bear drilling continues to focus on demonstrating that high grade mineralization continues well beyond our current resource.

Unknown Speaker: As Paul mentioned, in Q2, we drilled the deepest hole on the property to date. Drilling in the second quarter also showed good grades and widths at depths well beyond our current resource at the Discovery, Yarrow, and Arrow zones, as can be seen on this slide. At hinge, we had multiple strong intercepts at around 850 meters, including 9.3 grams per ton over 3.1 meters and 22.7 grams per ton over 3.1 meters.

Will Dunford: Similar to Yuma, these zones continue to show potential for significant resource outside and growth at depth.

Will Dunford: Lastly, drilling at hinge and limb this quarter has returned promising results for depth extensions at both zones. At Hinge, we had multiple strong intercepts at around 850 meters. Including 9.3 grams per ton, over 3.1 meters, and 22.7 grams per ton, over 3.1 meters. We are excited to be seeing confirmation of depth extensions to mineralization across the board at Grave Bear, continuing to support our original thesis of a long-life, high-grade mining complex.

Unknown Speaker: We are excited to be seeing confirmation of depth extensions to mineralization across the board at Great Bear, continuing to support our original thesis of a long-life, high-grade mining system. We are targeting the start of early works later this year and the start of the underground decline in mid-2025. Beyond the strong exploration results, we're encouraged to see the in-depth technical work continuing to show positive results across the board, including simple metallurgy, high recovery, and competent geotechnical conditions.

Will Dunford: Moving to a few other updates at Grave Bear. For the AEXD client, detailed engineering, execution planning, and procurement continue to progress well. We are targeting a start of early works later this year and start of the underground decline in mid-2025. For the main project, in Q2, we continue to advance technical studies, field work, and comprehensive baseline studies. Beyond the strong exploration results, we're encouraged to see the in-depth technical work continuing to show positive results across the board, including simple metallurgy, high recovery, and competent geotechnical conditions.

Paul Rollinsen: Work on the initial project PEA is well advanced, and we look forward to releasing these results from the study in early September.

Paul Rollinsen: I will now turn the call back to Paul. Thanks, Paul. Following a strong first half, our business remains in great shape and on track to deliver our full-year commitments. There's much to look forward to for the remainder of the year and beyond that, we remain excited about our future. We have a strong production profile. We are generating significant cash flow. We have an investment-grade balance sheet that is continuing to strengthen. We have an attractive dividend. Looking forward, we have an exciting pipeline of both exploration and development opportunities.

William: Following a strong first half.

Speaker Change: Our business remains in great shape and on track to deliver our full year commitments.

Unknown Speaker: There is much to look forward to for the remainder of the year, and beyond that, we remain excited about our future. We have a strong production profile. We are generating significant cash flow. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. Again, press star 1 to join the queue.

William: There is much to look forward to for the remainder of the year and beyond that we remain excited about our future.

William: We have a strong production profile.

William: We are generating significant cash flow.

William: We have an investment grade balance sheet. It is continuing to strengthen.

William: We have an attractive dividend.

William: Looking forward, we have an exciting pipeline of both exploration and development opportunities.

Paul Rollinsen: We are very proud of our commitment to responsible mining that continues to make us a leader in sustainability.

William: And we are very proud of our commitment to responsible mining.

William: That continues to make us a leader in sustainability.

Unknown Executive: Would that operator like to open up the line for questions? Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star one to join the queue.

Speaker Change: With that operator, I'd like to open up the lines for questions.

Speaker Change: Thank you the floor is now open for questions. If you have dialed in and we'd like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.

Speaker Change: If you would like to withdraw your question simply press Star one again.

Joshua Wolfson: Your first question comes from the line of Josh Wolfson of RBC Capital Markets. Your line is open. Thanks very much. The first question is on the production guide. I think there was commentary earlier this year about the first half being softer. Given that production has been so strong, is it reasonable to expect to step up still in the second half on some of the prior guided items? Yes, I can go on and judge, oh yeah.

Joshua Mark Wolfson: Your first question comes from the line of Josh Wolfson of RBC Capital Markets. Your line is open. Setups going and making sure that we meet to, you know, continue to go with our guidance. Okay, so you wouldn't expect an improvement for those specific assets in the back half. Now we're remaining on our plan, which did have us pushing a little bit harder in the first quarter for those two big ones, and then the rest of the portfolio. We've got some puts and takes, which gives us, Yeah, yeah, we will plan to update the resource at the time that we put out the PEA just to make sure it's kind of the two pieces of the picture tied together with the latest information. We've closed off the drilling So that's where we'll be. Yeah, there's always, as you can appreciate, a lag.

Paul Rollinsen: Now we've been re-focused, we've had a very solid first half of the year, but we've got some mind sequencing setups going and making sure that we meet to continue going to our guidance. So relative to the mind sequencing both at Tanya's and at Berwickton, we expect to be right on guidance for the year.

Paul Rollinsen: Okay, so you say you wouldn't expect an improvement for those specific assets in a back half. Now we're remaining on our plan, which did have us pushing a little bit of order in the first quarter for those two big ones, and then the rest of the portfolio. We've got some puts and thanks, which gives us a set just right up on guidance.

Joshua Wolfson: Okay, second question on the Great Bear upcoming PEA: you know, there's been some impressive exploration that we've seen, at least reported, post the cut-off dates of April for the study. Is there any sort of potential we get a resource update as well that might, even though it might not be included with the economics, but possibly we'll see what the expiration upside has been this start? Yeah, we will plan to update the resource at the time that we don't put out the PEA, just to make sure it's kind of the two pieces of the picture tied together with latest information.

Paul Rollinsen: We've closed off the drilling for that as of April, but that's where we'll be. Yeah, there's always, as you can appreciate, a leg. But obviously, as we're coming to the market with an update, we'll bring whatever else we can at that time.

Speaker Change: As you can appreciate a lag.

Speaker Change: But obviously as we're coming to the market with an uptick will bring whatever else we can at that time.

Joshua Wolfson: And then last question is just on the cash flow side of things, you know, a little bit of some moving parts this quarter and also the first quarter. You know, working capital inflows are very strong, which helps recover low, but cash taxes also have been tracking, at least in the first half, fairly high versus annual guide. Any sort of commentary you can provide on whether we'll see, you know, cash taxes maybe decline in the back half or are working capital outflows or reverse at least in the second half. Sure. So working capital, you know, as in flow, so in Q1, we had a networking capital outflow to do with an inflow.

Speaker Change: Thank you and then last question is just on the on the cash flow side of things.

Speaker Change: A little bit of some moving parts this quarter and also the first quarter.

Speaker Change: Working capital inflows were very strong, which helps free cash flow, but cash taxes also have been tracking at least in the first half fairly high versus the annual guide any sort of commentary you can provide on whether we'll see.

Speaker Change: Cash taxes, maybe a decline in the back half.

Speaker Change: Our working capital outflows are reversed at least in the second half.

Speaker Change: Yes.

Andrea: Sure Hi, Josh Andrea.

Andrea: Working capital Ebbs and flows so in Q1, we had a net working capital outflow.

Joshua Wolfson: So, you know, that's just sort of cycles throughout the year. It's really just around timing. At the end of Q2, our payables were higher at; you know, those are just things that we paid in July. So, nothing really of note there on the taxes. We did make an installment payment in more training of 25 million, so that wasn't, that's probably the one piece that outside of where we started the year. Other than that, our taxes should be kind of as expected through the year. With the gold price sensitivity, which anybody provided in our guidance. Okay, thank you very much.

Andrea: So.

Speaker Change: Thats insurance cycle throughout the year, it's really just around timing at the end of Q2, our payables were higher.

Speaker Change: Those are just things that we paid.

Lawson Winder: Thank you. Your next question comes from the line of Lawson Winder of Bank of America Securities. Your line is open. Thank you, operator. And good morning, Tim, and thank you for the update.

Unknown Speaker: You know, a little bit of some moving parts this quarter and also the first quarter. Working capital inflows are very strong, which helps free cash flow, but cash taxes also have been tracking, at least in the first half, fairly high versus the annual guide. Any sort of commentary you can provide on whether we'll see, you know, cash taxes maybe decline in the back half, or our working capital outflows reversed, at least in the second half? Okay, thank you very much. Good morning, team, and thank you for the update. Just a couple for me.

Lawson Winder: Just a couple for me, where I actually wouldn't mind starting is just on your thoughts around the year-end Reservant Resource Update, for the assets other than Great Bear. Is there any thought internally to potentially increasing the gold price assumption? And if so, which assets would have the greatest sensitivity to that?

Unknown Speaker: Where I actually wouldn't mind starting is just on your thoughts around the year-end reserve and resource update for the assets other than Great Bear. Transcripts provided by Transcription Outsourcing, LLC. Sure, I'll start, and others can maybe jump in.

Paul Rollinsen: And then secondly, hence now given, you know, a full half of drilling, which assets are looking well placed and potentially replace reserves. And thanks. I'll start on others; can maybe jump in. It's a fair question. I think we're all sort of looking at spot and where we've had our reserve resource price assumptions and thinking about what we will or will not do. Later this fall, that's a decision we'll make later in the fall as we go into our budget cycle. Towards November and December. So I think it's for today. All I say is that sort of steady as she goes. I would say, though, that our focus is really about margin and cash flow.

Unknown Speaker: It's a fair question. I think we're all sort of looking at spot and where we've had our reserve resource price assumptions and thinking about what we will or will not do. , , , , , , , , , , , , , , I think it's for today all I all I'll say is it's, Steady as she goes.

Unknown Speaker: I would say though that our focus is really about margin and cash flow. Our mills are full, and we're stockpiling low-grade. And as we sit here today, you know, the higher gold price really drives the margin on the cash flow. So when we think about the reserve resource, The asset in our portfolio that has the largest resource, where we'll think carefully, is Great Bear, sorry, Ball Mountain, where we've got about four million ounces of resource. So we'll be thinking about that as we go further into the fall. Okay, that's very helpful, Culler.

Paul Rollinsen: Our meals are full. We're stockpiling low grade. And as we sit here today, you know, the higher gold price, it really, what it really drives is the margin on the cash flow. So when we think about the reserve resource, there may be some opportunities there, but all under the heading of maintaining margin and cash flow. And, as you point out, each asset's a little different.

Paul Rollinsen: The asset in our portfolio that has the largest resource where we'll think carefully is great there, sorry, Ball Mountain, where we've got about four million ounces of resource. So we'll be thinking about that as we go further into the fall.

Paul Rollinsen: Okay, that's that's very helpful color. If I do a bit a little bit and ask on MNA. And like I'll preface it with the statement that I understand, you know, Kinross is in a pretty good position in terms of projects in portfolio, especially in the near term and long term with Great Bear. But I mean, what is Kinross thinking in terms of potentially being opportunistic in MNA and also with the context that the Kinross Gold valuation has improved over the last year and in the cash position is improving. Yeah, sure, look, and I think you've got it right, loss.

Unknown Speaker: If I could pivot a little bit and ask about M&A, and I'll preface it with the statement that, as I understand it, Kinross is in a pretty good position in terms of projects in the portfolio, especially in the near term and long term with Great Bear. But, I mean, what is Kinross thinking in terms of potentially being opportunistic in M&A and also with the context that Kinross Gold's valuation has improved over the last year and its cash position? You know, sure, look, and I think you got it right, Lawson.

Speaker Change: M&A.

Speaker Change: And like I'll preface it with the statement that I understand Kinross is isn't it.

Speaker Change: Pretty good position in terms of projects in the portfolio, especially in the near term and long term with great bear, but I mean, what what is Kinross is thinking in terms of potentially being opportunistic in M&A and also with the context that.

Speaker Change:

Speaker Change: Kinross gold valuation has improved over the last year and.

Speaker Change: And the cash position is in Britain.

Speaker Change: Yeah, sure look and I think you.

Speaker Change: Got it last one I mean, we were in great shape.

Unknown Speaker: I mean, we're in great shape with our organic portfolio. We've got lots of opportunities within our. When you use the word opportunistic, it's... Where can we see value? Where can we add value? And again, I would say we have a very strong technical acumen; we can bring that technical acumen to bear to help turn things around, to help improve them. We also have an excellent balance sheet, and so we can bring capital to the equation.

Paul Rollinsen: And I mean, we're in great shape with our organic portfolio. We've got lots of opportunities within our within our portfolio. We can turn on, and we will be looking to further advance studies in economics. So that's one bit of good news. The portfolio itself, we've got an excellent balance sheet. We're certainly not under any pressure to do anything in that regard. And so when we think about M&A, it's really, when you use the word opportunistic, where could we see value? Where could we add value? And again, I would say we have a very strong technical acumen.

With our organic portfolio.

Speaker Change: [noise] got lots of opportunities.

Speaker Change: Within our.

Speaker Change: Within our portfolio.

Speaker Change: We can turn on and we won't be looking to further advance studies in economics. So.

Speaker Change: That's that's one bit of good news the portfolio itself, we've got an excellent balance sheet.

Speaker Change: Certainly not under any pressure to.

Speaker Change: Do you have anything in that regard.

Speaker Change: So when we think about M&A its really.

Speaker Change: When you used the word opportunistic it's.

Paul Rollinsen: We can bring that technical acumen to bear to help turn things around to help improve. We also have an excellent balance sheet. And so we can bring capital to the equation. So, not under any pressure, if something came along that made sense where we thought we could create value for our shareholders.

Unknown Speaker: So not under any pressure, if something came along that made sense where we thought we could create value for our shareholders, we'd have a look at it, in an area where, over the past number of years, there's been difficulty with finding skilled labor and there's been some elevated labor inflation. On the Q1 call, you commented that you are seeing improvements, both in terms of employee turnover as well as pressure on wages. Is that commentary still fair?

Paul Rollinsen: So we'd have a look at it. Okay, and then just finally on Nevada, in an area where, over the past number of years, there's been difficulty with finding skilled labor, and there's been some elevated labor inflation. On the key one college, you commented that you are seeing improvements both in terms of employee turnover as well as pressure on wages. Is that commentary still fair? What are you seeing in a one quarter later? Thanks. So again, I think the commentary's fair. We are seeing still positive trend on our turnover rights and the morale and things like that, and as we move forward with the teams in Nevada, we're performing very well.

Unknown Speaker: What are you seeing a quarter later? Thanks, teams in Nevada. We're performing very well. So we're going in the right direction. Yeah, Mike, Claude again, I think our major focus is Tassiest has gone through 10 years of being in the project phase, and we're now six months into it being an operating mine at Full Tilt.

Paul Rollinsen: So we're going in the right direction. It is still a dark labor market, but we feel very comfortable about what it is currently. Okay, thanks, Paul.

Paul Rollinsen: Thanks, Colin.

Mike Tarkin: Appreciate it. Your next question comes from the line of Mike Tarkin of National Bank. Your line is open. Thanks, guys. Congrats on the good quarter. To start with, you know, Tassius looks like it's doing very well to its name plate. Just wondering, now with operations, kind of running around the plate, there are any initial thoughts that name plate capacity could potentially be beaten a bit. And if so, is the mine set up where it could actually leverage that, or is the constraint really more on the mine, or could you actually utilize excess capacity if it exists?

Claude Schimper: Yeah, Mike, Claude, again, I think our major focus is Tassius has gone through 10 years of being on a project phase. And we're now six months into it being an operating mine at full time. We'd like to stabilize it there for some time and make sure that we meet the expectations. And but we're always having said that we're always looking at opportunities on how to improve recovery, how to improve throughput. I don't think we're constrained by the mine. We have some stock file. So the real focus is on just making sure that we attain their reliability that we expect out of that plot and maintain its performance.

Unknown Speaker: We'd like to stabilize it there for some time and make sure that we meet the expectations, but we're always, having said that, we're always looking at opportunities to improve recovery, how to improve throughput. I don't think we're constrained by the mine; we have some stockpile. So the real focus is on just making sure that we attain the reliability that we expect out of that plug and maintain its performance.

Claude Schimper: And then we'll look at sort of incremental continuous improvement for things that I don't foresee in the near to medium term and expansion again at that particular site. Great, thanks.

Unknown Speaker: And then we'll look at, Right, thanks. Um, and then it sounds like we could see an uptick. Give a number of the drill results you've been kind of highlighting with the recent quarterly results, seemingly multiple times what the resource grade is. How are your thoughts there? Are you going to put a fairly significant grade cap on some of those really high-grade hits?

Mike Tarkin: And then it sounds like we could see enough tick in ounces or tons at phase X, but given a number of the drill results, you've been kind of highlighting with the recent quarterly results, seemingly multiple times what the resource grade is. How are your thoughts? Are you going to put a fairly significant grade capping on some of those really high grade hits? With a resource update, can we actually see a lift in grade too with the ongoing impressive results you're seeing from that drill program? Yeah, obviously we're very pleased with the results that we're seeing, and it is higher than the grade of the target that we're going after there from the historic drilling.

Unknown Speaker: You know, with a resource update, can we actually see a lift in grade two with the ongoing impressive results you're seeing from that drill program? Okay, we're really getting into the drilling on the main bulk target now. And that's the key piece, the overall grade for that bulk, high productivity mining. That's our vision for this asset. You know, realize the date versus what you've kind of verbally communicated as a ballpark target for grade.

Paul Rollinsen: Ground mound does have a long history of, you know, positive reconciliation and pretty a lot of visible goals, that type of thing. So there will be capping and some controls on that when we do establish a resource for the underground. We don't have a resource out there yet that's specific to that underground target; that's something that'll come in next year. But certainly there would be, as usual, in that type of process, some amount of capping.

Speaker Change: Yeah.

Paul Rollinsen: Okay, we really aren't looking at it; we're only getting into the drilling. Okay, we're really getting into the drilling on the main bulk target now, and that's the key piece: the overall grade to that bulk high productivity mining. That's our vision for this asset. So, with respect to the results, you know, realize today versus what you've kind of verbally communicated as a ballpark target for grade, are you feeling very comfortable, comfortable, really comfortable, versus kind of delivering to those expectations you've given in the past. You know, we're, we really need to do the work and come up with a better answer once we have an actual resource. We obviously seeing these types of grades makes us more comfortable with why we're down there, and the long-term margin potential that we see there, and there's two pieces; it's not just the grade that has us pleased with the results, the fact that these results are outside of the main target area.

Speaker Change: Okay, well, yes.

Speaker Change: We really are looking at world.

Speaker Change: Yeah.

Speaker Change: Okay, but really getting into the drilling on the main bulk target now.

Speaker Change: It's the key pieces the overall grade for that all high productivity mining that's our vision for this asset.

Speaker Change: So with respect to the results.

Unknown Speaker: Are you feeling very comfortable, comfortable, really comfortable versus kind of delivering on those expectations you've given in the past? You know, we're, we're, we really need to do the work and come up with a better answer once we have an actual resource. We obviously see these types of grades make us more comfortable with why we're down there and the long-term margin potential that we see there. And there are two pieces.

Speaker Change: Realized to date versus what you've kind of verbally communicated as a ballpark target for grade are you feeling.

Speaker Change: Comfortable comfortable really comfortable.

Speaker Change: Versus kind of delivering to those expectations.

Speaker Change: Given in the past.

Speaker Change: Yeah.

Speaker Change: We really need to do the work.

Speaker Change: Come up with a win.

Speaker Change: Better answered once we have an actual resource.

Speaker Change: Obviously seen these types of grades makes us more comfortable with why we're down there.

Speaker Change: Our long term margin potential that we see there.

Unknown Speaker: It's not just the grade that has us pleased with the results, but the fact that these results are outside of the main target area. So there are two key pieces. One is growing the target.

Speaker Change: And there's two pieces, it's not just the great.

Paul Rollinsen: So there's two key pieces; one is growing the target, the other is growing the grade of the target. These drill results are positive indicators on both of those fronts, but we don't really, until we get more drilling, have a revised view on the entire system.

Unknown Speaker: The other is growing the grade of the target. These drill results are positive indicators on both of those fronts. But we don't really, until we get more drilling, we don't have a revised view of the entire system. Unknown Speaker One last question about that.

Paul Rollinsen: Okay, one last comment: any question on it. You know, some of the intercepts are also showing, you know, very good widths. Is that proving in line with expectations internally, or are you finding some of the really wide intercepts actually proving more part of your facility? Again, this is really, this is really a bulk target. I mean, in what we're envisioning, and some of what we put out there in the past, this is large stoping, wide stopes, transverse, and stoping of some sort. So we've, we see with well in excess of what we've released recently in some of our historic drilling.

Unknown Speaker: You know, some of the intercepts are also showing, you know, very good widths. Is that proving in line with expectations internally? Or are you finding some of the really wide intercepts actually proving that this is really a bald target? I mean, in what we're envisioning and some of what we've put out there in the past, it is. And maybe it's too early, but how do you feel about the quality of the rock there? Do you feel that there'll be any kind of geotechnical challenges? Or do you find that the rock is expected to be extremely competent for underground mining?

Paul Rollinsen: Okay, well, for that high productivity, I think we're contemplating.

Paul Rollinsen: And maybe it's too early, but how are you kind of feeling about the quality of the rocks there? Do you feel that there'll be any kind of geotechnical challenges, or do you find the rock is expected to be extremely competent for underground mining? Yeah, given the history of I guess underground mining and Nevada, we certainly went into this cautiously and with a pretty wide tool set in terms of how we paired ourselves to handle geotechnical conditions. We do have some faults that we were well aware of in advance and before as we progress the decline.

Paul Rollinsen: But really we've been extremely pleased with the progress of the operational team on site and what they've done from a geotech perspective. And that's increased our confidence in our ability to operate in this ground. It's not, you know, it's not extremely competent ground, but it's also not extremely foreground that we see as mother assets in Nevada and the past. So we're comfortable with where we're operating at in the controls we have in place.

Paul Rollinsen: Okay, great. And then just on an overall arching kind of question, obviously you're getting really great expression results that have all these assets: Curulu, Great Bear, Round Mountain, Pay Deck. Is there any thought like could you put more drills to work or is it just, you know, as you kind of need these, you know, additional drill bays and the underground to kind of get things going like I understand it. Great bear, obviously it makes a lot more sense to drill from underground than from surface given the depth. It's your hitting; it makes sense to test it, but, you know, to really infill it cost efficiency from underground makes a lot of sense.

Unknown Speaker: Yeah, Okay, great. And then just on an overarching kind of question. Obviously, you're getting really great exploration results out of all these assets. These Assets, Curlew, Great Bear, Round Mountain Feedback.

Unknown Speaker: You know, to really infill it in cost efficiency from underground makes a lot of sense. But are there thoughts towards increasing the budget? Good morning, guys.

Paul Rollinsen: But is there, you know, thoughts towards increasing budgets. Yeah, go ahead. So I mean, I'd say a great bear specifically the idea of this deep drilling was to provide information for the PA to give you kind of a snapshot in time view of what the potential of the underground is. This is deep and expensive drilling. So, as you clearly understand, it is more efficient to be drilling at one and a half kilometers from underground to the actual infill drilling. But of course, we, you know, when we're encouraged by results, not just a great bear, but at other places like Phase X.

Paul Rollinsen: When you get good results, it does that sometimes open up the opportunity to do more follow-up drilling. So we continue to see review that process. We're going to increase those budgets, most certainly, like you know, but right now we can we've done what we wanted to with a great bear in terms of illustrating and providing a strong view on that kind of core of the deposit so that we'll be able to give a PA with an understanding on costs and margins. And we've shown that the other body continues beyond that. Really, this underground type of system, this resource will develop over a long period of time as we continue to mine and we keep that material in front of us going from underground.

Mike Tarkin: Okay, thanks very much. That's it for me.

Anita Soni: Your next question comes from Lineth Carey MacRury of Canacquired Genuity. Your line is open. Hey, good morning, guys. I'm just looking to 2025, given it's less than six months away. The capital guy said they 50. I know that doesn't include improved projects, but I'm assuming that includes the underground work at Great Bear. But I guess what I'm asking is, are there other projects that we should be expecting that could be approved and bump up the 2025 cat-backed number? Sure, I'll start and we'll maybe jump in after with some specifics, but yeah, I mean we typically say, you know, as you said, we print the guidance for cat-backs for years two and three based on what's approved, and that typically blows up, and we're expecting cat-backs for 25 to be, you know, in the range of where it is for this year and last year.

Unknown Speaker: I'm just looking to 2025. Given that, Sure, I'll start, and we'll maybe jump in after with some specifics. But yeah, I mean, we typically say, you know, as you said, we print the guidance for CAPEX for years two and three based on what's approved. And then it typically floats up, and we're expecting CAPEX for 25, and what are the projects that would be driving that? So Phase X is an example of a project where, you know, we're still doing the work. So that's not that doesn't yet have beyond the kind of exploration work that we're doing. There's not an approved budget for next year.

Andrea Freeborough: So around that billion dollar range for 25 as well. And what are the projects that would be driven that way? So phase X is an example of a project where, you know, we're still doing the work, so that doesn't yet have you on the kind of exploration work that we're doing. There's so those are the things that will extend it currently with somewhere else where it's possible we'll be starting to spend some money, and we're looking at some short extensions of all mountains that could affect that number. And then secondly, could you just remind us how you think of the mine life at La Coypa and how a little bit more, a little bit lower market still gets in.

Paul Rollinsen: You know, the metal prices change that timeline at all. You all start, and then maybe hand over the wheel. So our Chile strategy really, we've got the resources in the ground, around our infrastructure at La Coypa. Continuity of production is really a permitting exercise, and we're going through that right now. As I say, we've got to get a permit to do a layback, that sort of thing. So that work is underway. Our strategy is what we envision is a linear transition from La Coypa to Lobo towards the end of the decade. So our view is we get those permits; we keep mining the oxide.

Unknown Speaker: So those are the things that will extend it. Curlew is somewhere else where it's possible we'll be starting to spend some money. And we're looking at some short extensions of Bald Mountain that could affect that number, how Lobo Marque still gets in. Did the metal prices change that timeline at all? Yeah, I'll start and then maybe hand over to Will.

Unknown Speaker: So our Chile strategy really, we've got the resources in the ground. Toward the end of the decade. So our view is, you know we've been, we have permanent pumping water wells. Let's switch from La Coipa to Lobo towards the end of the decade.

Speaker Change: As a linear transition from la coipa at a logo.

Speaker Change: Towards the end of the decade.

Speaker Change: So our view is.

Speaker Change: We.

Speaker Change: We we get those permits we keep mining the oxide.

Paul Rollinsen: What we're just starting to do right now is ramp up our environmental baseline studies for the longer lead time to start to think about bringing Lobo in behind Great Bear towards the end of the decade. At a high level, that's really what's going on in our strategy. There are key strategies. The strategy is around the water strategy. As you may know, we have permanent pumping water wells that have operated for many years at La Coypa. Those wells are physically closer to Lobo, and our strategy is to use the same amount of water, same wells, but switch from La Coypa to Lobo towards the end of the decade.

Speaker Change: We're just starting to do right now is ramp up our environmental baseline studies.

Speaker Change: Right.

Speaker Change: For the longer lead time too.

Speaker Change: To start to think about bringing logo win.

Speaker Change: Behind Great bear.

Speaker Change: Towards the end of the decade.

Speaker Change: At a high level, that's that's really what's going on in our and our strategy are key strategy is.

Speaker Change:

Speaker Change: Energy is around the the water strategy.

As you May know we've been.

Speaker Change: <unk> pumping water wells.

Speaker Change: And have operated for many years.

Paul Rollinsen: Okay, Greg, and maybe one related question. I know there was regulatory issues at Maracanga a few years back, but there's still six million ounces sitting there. Is there any, is that something that you're looking at as a potential restart at some point or is that you're not going to be on the shelter while? Okay, well, I think again, there's option value there. You're right. It's drilled-out resource. Again, water is always a question. In Chile, why it would be the water strategy, that is a different water source and water basin. But, yeah, there's no plans right now as it relates to Maracanga, but it is a drilled-out resource that will continue to think about.

Unknown Speaker: I agree. And maybe one related question. I know there are regulatory issues with Mariconga.

Unknown Speaker: [inaudible] Okay, well, like I think again, it's this option value there, you're right, it's a drilled out resource. Again, water is always a question in Chile, what would be the water strategy that is a different water source and water basin, but I mean, as we go through the different parts of the question, do we have to say that this year overall is a little bit lower than last time? But as we move from one part of the next, towards the end of the year, we go back into the higher grade piece. And then you'll appreciate that when we talk about higher grade apparatus, it's a marginal difference. Maintain focus on that Favre 10,000 LC card. It's really just a timing thing.

Anita Soni: Okay, great. That's it for me. Thanks, guys.

Anita Soni: Your next question comes from one of Anita Soni of CABC Web Market. Your line is open. Hi, good morning.

Anita Soni: Paul is Claude and Andrea. I just wanted to ask, firstly on parick a two. So the grades picked up in this quarter, and I was just wondering how that evolves over the rest of the year. Anita, so as we go through the different parts of the weekend, do we have to say that this year overall is a little bit lower than last year. But as we move from one part of the next, towards the end of the year, we go back into the higher grade piece. And then you'll appreciate that when we talked about higher graded parick two, it's a marginal difference.

Anita Soni: And next year, our guy higher and similar to last year is the debouts, maintain focus on that power of 10,000.

Andrea Freeborough: Okay, thanks. And then just in terms of the debt repayment, Andrea, I know, I mean, you guys pay the significant amount of debt this quarter. And you indicated that you intend to pay the billion as it comes due in spring. But could I get, you know, assuming gold prices remain where they are for lucky enough for that to happen, what would be your capital allocation strategy after that debt is repaid? Yeah, what I'd say is, you know, at high gold prices where they are now, I don't expect that we'll get through the whole term of this year.

Andrea Freeborough: So we'll carry some forward into the first half of next year that maturity is March 2025, but you know, typically we've got some more chunky annual cash payments coming at a Q1. So there may be, you know, a little bit left as we get into this, maybe just getting out of it this time next year. And I think that's when, you know, we'll stop and think about what's about our priority during capital allocation. And is it fair to say that about 500 million is the amount that you would like in cash on hand, and just again, historically what you've held?

Unknown Speaker: I mean, we had close to $500 million at June 30. And then, as I commented earlier, our payables were a bit higher at the end of the quarter, so that cash came down.

Andrea Freeborough: It's really a timing thing. I mean, we had close to 500 million at June 30th. And then, as I commented earlier, our payables were a bit up at the end of the quarter, so that cash came down in July. We typically, you know, our minimum cash is around 300 to 350 million. Sometimes it's more, and it just depends on, you know, plans to efficiently move cash around our operation.

Paul Rollinsen: Okay, and then my last question. I'm just going to tie up some loose ends, because if no analysts are asking like around the edges around this one. But as we get to 2027, 2028, before bald, sorry, before a great bear comes on stream in mid 2029. I think there, you know, there, there might be some assets that are scheduled to end my life, like Bald Mountain. Maybe there's a little bit of a dip at pair, sorry, at the Koipa. And Tavgist, I think in 2027, it's still in a low grade phase. Could you talk about some of the things, some of the assets that might see an extension to fill in that dip?

Unknown Speaker: In July, we typically, you know, our minimum cash is around $300 to $350 million. Sometimes it's more, and it just depends on, you know, plans to efficiently move cash around our operations. As we get to 2027-2028, before Great Bear comes on stream in mid-2029, I think there might be some assets that are scheduled to end mine life, like Bald Mountain. Maybe there's a little bit of a dip at Lacoipa, and Tavius, I think in 2027, it's still in a low-grade phase.

Unknown Speaker: Could you talk about some of the assets that might see an extension to fill in that dip? I know you guys have said you see the 2 million ounces sustained to the end of the decade. I just want to get an idea of which assets could turn on stream and flatten that profile and analysis model.

Paul Rollinsen: I know you guys have said you see the two million ounces sustained to the end of the decade. I just want to get an idea of which assets could, you know, turn on stream and flatten that profile analysis models.

Paul Rollinsen: Yeah, sure, it's all here. I think of 2027 in particular; we're thinking about phase X coming on stream in combination with phase S. And of course, as I spoke to a moment ago, continued mining at the Koipa, where the model would suggest we stop in 2027 today. But, as I indicated, our intention is to keep mining through permitting known resources through the end of the decade. So those three in particular, there's also some other things around the margin that we'll be looking at as well. And where does bald mountains and you're not? Yeah, there are some things.

Unknown Speaker: I think. In 2027, in particular, we're thinking about phase X coming on stream. [inaudible] Of course, as I spoke about a moment ago, continued mining at La Coipa, where the model would suggest we stop at 27 today, but as I indicated, our intention is to keep mining through the permitting known resources through the end of the decade. So those three in particular, there's also some other things around the margin that we'll. We do have about 4 million ounces of resource there. We've been focused on the lower capital quick payback opportunities. We see some of those, but there are certain.

Speaker Change: Ah hurdling.

Speaker Change: And of course.

Speaker Change: Hope to a moment ago.

Speaker Change: Mining at La Coipa, where were the model would suggest we stop in 2007 today, but as I indicated our.

Speaker Change: Our intention is to is to keep mining through permitting.

Speaker Change: Known resources.

Speaker Change: Through the end of the decade, so those three in particular.

Speaker Change: There's also some other things around the margin.

Speaker Change: That will be looking at as well.

Speaker Change: And where does bald mountain.

Speaker Change: Okay.

Speaker Change: Yeah, there are some things well.

Paul Rollinsen: Well, mine's a bigger question. Again, as I said earlier, we do have about four million ounces of resource there. We've been focused on the lower capital, quick payback opportunities. We see some of those, but there are certainly on the ball property, some larger capital opportunities. And again, in that regard, it's just really about internal gold price competition for capital return. And the gold is in the ground, we're just looking at the economics and thinking about when you would turn on potentially those larger capital, larger capital, and therefore longer return projects. And we have just received a Juniper permit, which is a significant kind of optionality expansion of Bald Mountains.

Speaker Change: <unk> is a bigger question again as I said earlier.

Speaker Change: We do have about 4 million ounces of resource there we've been focused on the lower.

Speaker Change: Capital quick payback opportunities.

Unknown Speaker: And we have just received a Juniper permit, which is a significant optionality expansion at Bald Mountain. So we're well permitted, and everything is basically internal decision making and capital allocation. Maintenance in Q3. Yeah, I mean, it may have become apparent that we're really trying to flatten out the waves in the quarters over the last couple of years at Kinross.

Paul Rollinsen: We're well permitted. And everything is basically internal decision making capital allocation.

Paul Rollinsen: Thank you. That's very helpful.

Tanya Jakusconek: Your next question comes from line of tenure. Jacuzka connect of Scocha bank. Your line is open. Oh, great. Good morning, everyone. Thank you so much for taking my question. I three. First of all, congrats on a good quarter. And thanks for the heat bleach information. You don't need any more issues in this sector. So it's fast to see that these things happen. This code, starting on the operational front, just wanted to ask about, you mentioned the tire grade, relatively higher grades that pare the two in Q4. Obviously, man show in Q4 to look like Q4 should do better.

Paul Rollinsen: I just want to know, is there any maintenance shutdown and any assets in Q3 or Q4 that I to be considering in the quarterly estimates. Yes, so for taz, yes, we're getting to the point where we have to do big line of changes, so that's happening in Q3, and we do have sort of run of mind stuff happening at the Coipa as well, terms of shutdown, and those two will have an interest as far as better issues concerned on those are in the early next year. Okay, so if I look at that, should I be thinking that these two quarters should be relatively similar if I was to, you know, just for these maintenance in Q3?

Speaker Change: Any maintenance shutdown in any assets in Q3 or Q4, it that I should be considering and in the quarterly estimates.

Speaker Change: So yes, we are.

Speaker Change: Getting to a point, where we have to do big lineup changes that's happening in Q3.

Speaker Change: We do have.

Speaker Change: Some have brought up on stuff that's happening it's quite broad.

Speaker Change: Well in terms of shutdowns.

Speaker Change: Those two will have an interest.

Speaker Change: As far as <unk> is concerned all of those already today for the next year.

Speaker Change: Okay. So if I look at that should I be thinking that these two last quarter should be relatively similar if I was to adjust for these.

Speaker Change: In Q3.

Paul Rollinsen: Yeah, I mean it may have become apparent that we're really trying to flatten out the waves in the quarters over the last couple of years at Kinross. So, you know, we keep focusing on being in that 500, you know, two million divided by four dot branch, five hundred five twenty five two out of two point one. So, we're focusing on making it more sort of repetitious versus these highs and lows.

Speaker Change: Yes.

Speaker Change: They have become a barrier that we have really tried to flatten out.

Unknown Speaker: So, you know, we keep focusing on being in that 500. So, 2 million divided by 4 is our branch, 500, 525; it's just 2.1. Thanks, operator. Just quickly, please, Andrea, on the Mauritania elections... No mining related issues, but just wondering when the next budget is presented, are you expecting any sort of fiscal related matters regarding any sort of tax policy that may impact Kinross and Taziest, either positive or negative? I'll take that, Ralph.

Paul Rollinsen: Okay, now that's helpful. Thank you so much for that.

Ralph Profiti: You're next question, customer line of Ralph, profitee of Eight Capital, your line is open. Thanks operator, just quickly, please, you know, Andrea, on, on Mauritania elections, you know, no mining related issues, but just wondering when the next budget is presented, are you expecting any sort of fiscal related matters regarding sort of tax policy that may impact Kinross and Tazia's, either positive or negative? I'll take that, Ralph. Yeah, look, I mean, as you saw, the president, Kazwani, was just, uh, re-elected, uh, with a strong majority. Um, we're very pleased to see that. Um, we have an excellent relationship with, uh, his administration, and he's, uh, shown himself to be very much kind of pro-business, uh, and is really, uh, you know, the country themselves, uh, I think projects themselves on, uh, the stability that they offer in the region. Um, so we're not expecting anything, uh, really, uh, that's going to change.

Unknown Speaker: Yeah, look, I mean, as you saw, President Ghazwani was just reelected with a strong majority politically there now, and I expect there may be a reshuffling of the cabinet. We're looking for, I'm personally planning to get over there and... (inaudible) Perhaps any new ministers that have been changed out. It's all very stable and very good.

Andrea Freeborough: Um, you may also recall that, um, we actually have a stability agreement that we signed that gives us, you know, clarity on our fiscal regime. We, we negotiated that a few years ago.

Speaker Change: You May also recall that.

Speaker Change: We actually have a stability agreement.

Speaker Change: We signed that gives us clarity on our fiscal regime we.

Speaker Change: We've renegotiated that a few years ago.

Andrea Freeborough: Um, so, you know, short answer is, not, not expecting any changes. Um, it, it's obviously, the elections happened. It's, it's sort of summer, uh, clinically there now, and I expect there may be a reshuffling of the cabinet.

Speaker Change: So.

Speaker Change: Short answer is.

Speaker Change: Not expecting any changes.

Speaker Change: It's obviously elections happened, it's it's sort of summer.

Speaker Change: Politically there now and I expect there may be a reshuffling of the cabinet.

Andrea Freeborough: Um, and, uh, we're looking for, I'm personally planning to get over there and, uh, and hopefully early September, and meet with President Coswani, and perhaps any new ministers that have been changed out, but it's all very stable and very good. Okay, thanks for that.

Speaker Change: And we're looking for and personally planning to get over there and.

Lani: Hopefully early September and meet with the president because lani and.

Lani: Perhaps any.

Lani: Any new ministers that are being changed out.

Speaker Change: It's all very stable and very good.

Unknown Speaker: Okay, thanks for that. If I could just get an update with respect to Great Bear and the AEX permit, We're still a ways off from the underground decline in mid-2025, but just wondering how we're sort of tracking, maybe get sort of a firmer timeline on when that, Provincial permits that will support the AEX, the exploration decline. And, you know, again, we've been hard at work on that and I'll let Jeff comment on sort of our expectations for timing. And then the second part, build the mine. As you recall, if you're greater than 5000 tons per day in the mill, you get kicked into a federal review.

Paul Rollinsen: And if I could just get an update with respect to Great Barron and the AEX permit, and just wondering if you sort of measure it against precedent. You know, we're still a ways off from the underground decline. Yeah, sure, maybe I'll start, and then I'll ask Jeff to jump in. Please be in charge, so to speak. You're right, so the strategy, the permit strategy, there's really divided into two parts: provincial permits that will support the AEX, the exploration decline. And, you know, again, we'd be hard to work at that, and I'll let Jeff comment on sort of our expectations on timing.

Geoffrey Gold: And then the second part, build the mine as you recall. If you're greater than 5,000 tons per day in the middle, you get kicked into a federal review. So we've got a parallel permit strategy going for the main project, which is naturally somewhat lagging behind the exploration. And in that regard, again, well underway, I'll let Jeff speak to the timing of the main permit and what we're doing there as well.

Unknown Speaker: So we've got a parallel permit strategy going for the main project, which is naturally somewhat lagging behind the exploration. And in that regard, it is again well underway. I'll let Jeff speak to the timing of this. We have a follow-up question from Tanya Jakusconek. Your line is open. Great. Thank you so much.

Geoffrey Gold: Sure, thanks, thanks, Paul. On what I'll do is I'll just quickly divide it up in between the provincial permitting process, AEX, as Paul just described, and the main project. Turning to AEX, our team has completed a tremendous amount of work with the Ontario authorities and our First Nations partners, Wobbos getting a lack soul, and they've provided express letters of support to the authorities for AEX permits. We're expecting our AEX permits in the near term, you know, with a view to commence and got early works and at age 2 of 2024. With respect to the main project, and as previously disclosed, we remain engaged with AEX on the impact assessment process, as we've made the mark and are aware, we previously filed our detailed project description.

Speaker Change: In the near term.

Speaker Change: With a view to commencing early works and at age two or 2024.

Speaker Change: With respect to the the main project and as previously disclosed.

Speaker Change: We remain engaged with IX on the impact assessment process as we've made the market aware, we previously filed our detailed project description.

Geoffrey Gold: We're waiting on AEX to provide the tailored impact study guidelines, which we're also expecting in the near term, and as you'll appreciate that, we'll underpin the impact assessment report. And so on both fronts, I would say we're in good shape, and we're making great progress. All right, thanks. That's what I was looking for.

Speaker Change: We're waiting on <unk> to provide the tailored impact study guidelines, which were also.

Speaker Change: Expecting in the near term and as you'll appreciate that will underpin the impact.

Speaker Change: Assessments.

Speaker Change: Ah report.

Tanya Jakusconek: Appreciate it. We have a follow-up question from Tanya, Jacuzkoneck. Your line is open. That's great. Thank you so much. Operator, please don't cut me off. I have two questions. I had three to start. Now I have two.

Unknown Speaker: Operator, please don't cut me off. I have two questions. I had three to start. Now I have two.

Tanya Jakusconek: Just wanted to come back, Andrea, just on the balance sheet again. I think in the previous conference call, we talked about 300 million reduction this year. You've done 200. Should I be thinking another 100 or with this stronger free cash flow generation? Could we see more occurring in 2024? And then I think you said another 500 million, all there about repayment in 2025, sorted by the first half? Yeah, Tanya, I think looking back at 300 when we were talking about 2000 gold. So our sensitivity is, you know, for every hundred dollars in gold prices, an additional 200 million in cash flow.

Unknown Speaker: Just wanted to come back, Andrea, just on the balance sheet again. I think in the previous conference call, we talked about 300 million reduction this year. You've done 200.

Unknown Speaker: Should I be thinking another 100 or, with this stronger free cashflow generation, could we see more occurring in 2024? And then I think you said another 500 million or thereabout repayment in 2025, sort of by the first half. Yeah, Tanya, I think looking back at 300 was when we were talking about 2000 gold.

Unknown Speaker: So our sensitivity is, you know, for every $100 in gold prices, an additional $200 million in cash flow; that's an annual number. So we've obviously seen higher gold prices. So that 300 is, You know, at what we've seen recently, more in the $700 million range is what we'd expect for this year. So, as I said earlier, we will have some left over next year, but... In total for the year, I think we project 700 in repayment.

Tanya Jakusconek: That's an annual camper. So we've obviously seen higher gold prices. So that 300 is now at what we've seen recently, more in the 700 million range is what we'd expect. That's for this year. So, as I said earlier, we will have some last year by some, you know, a lot lower than we had talked about as we started the year. Okay, so probably more than that repayment to the year after that. Yeah, again, pick your gold price at 2300. You know, in total for the year, I think we project 700 of repayment. Okay, that's very helpful.

Speaker Change: Okay, so probably more than debt repayments or the guarantee.

Speaker Change: After that.

Speaker Change: Okay.

Speaker Change: Got it.

Speaker Change: Again take your coal price.

Speaker Change: But at 2300.

Speaker Change: Yes.

Speaker Change: In total for the year I think we'd project 700 of repeating.

Speaker Change: Okay. That's very helpful. Thank you so much for that.

Tanya Jakusconek: Thank you so much for that.

Andrea Freeborough: And then my last question is just on the right there. And I think all on the previous conference call, we had talked about so the 10,000 ton today scenario, sort of 5 million ounce is giving us that 500,000 annual production. I guess the, you know, we'll get an updated resource in early September. How should we think about the capital and the operating cost? I mean, those numbers of, you know, capital of 1 to 1.2 billion. And I think the oil and sustaining were about $800 an ounce. Those are quite sale numbers. If you should we be thinking something in the sort of 10 to 15% inflation adjusted for these, you know, they're just old numbers.

Speaker Change: And then my last question is just on the.

Speaker Change: Right, there and I think Paul on the previous conference call. We had talked about build a 10000 ton per day scenario.

Paul: Sort of 5 million ounces, giving us about 500000 ounce annual production.

Unknown Speaker: I guess we'll get an updated resource in early September. How should we think about the capital and the operating costs? I mean, those numbers of one to one point two billion. And I think the all-in sustaining costs were about eight hundred dollars.

Unknown Speaker: And now those are quite stale numbers. Should we be thinking something in the sort of ten to fifteen percent inflation adjusted for these? You know, they're just old numbers.

Unknown Speaker: So we just want to make sure that we're not caught off guard on the release. Sure. Yeah, that's a good point, Tanya. I mean, take a look.

Andrea Freeborough: So just want to make sure that you know we're not caught off start on the release. Sure. Yeah, that's, that's a good point. I mean, people have got me an inflation has come down, but it hasn't gone away. So, to the extent we were saying 1 to 1 to 2, I would say 1 to us in today's world, from where we started two years ago, is more, is directionally more where we're thinking for initial capital. On the, on the sustaining cost again, we're going to be out with the detail in a month, but I guess I would just say we're still fine tuning. But directionally, we've always had basic less than 1,000, and we're certainly feeling good about the direction we're going there as well.

Unknown Speaker: I mean, inflation has come down, but it hasn't gone away. So to the extent that we were saying 1-1-2, I would say 1-2. In today's world, from where we started two years ago, it is more, and directionally more where we're thinking for initial capital. On the sustaining cost, again, we're going to be out with the details in a month. I guess I would just say we're still fine-tuning, but directionally, we've always had ASIC less than 1,000, and we're certainly feeling good about the direction we're going there as well.

Andrea Freeborough: So, but again, and that's in the context of today. You know, maybe you're 2024 construction. So won't be happening for a couple of years. So whatever I say today. You know, like the one for two plus inflation, we expect we're probably to continue, but not. I guess what I'm trying to say is this is inflation around the edges; it's not a dramatic departure. In what we thought the Capitol would be, it's this is a very straightforward project. It's in the greater scheme of things. This is not a large capital ticket for us. This is something that.

Unknown Speaker: So look again, and that's in the context of today, you know, mid-year 2024 construction still won't be happening for a couple of years. So whatever I say today, you know, like the 1.2 plus inflation, this is a very straightforward project in the greater scheme of things.

Speaker Change: I'd now like to two plus inflation.

Speaker Change: We expect the problem to continue but but not.

Speaker Change: I guess, what I'm trying to say is this was inflation around the edge of the sort of dramatic.

Speaker Change: Departure.

Speaker Change: We thought the capital would be it's.

Speaker Change: This is a very straightforward project.

Speaker Change: In the greater scheme of things. This is not a large capital ticket for us.

Unknown Speaker: This is not a large capital ticket for us. This is something that We forecast that we'll be, you know, quite manageable with our existing cash flow. And so, I guess I'm trying to, you know, the report will be out in a month, but I'm managing expectations. We're recently on track of where we indicated we would be. Yeah, I appreciate I mean, you know, I appreciate that. It's just, you know, having an idea that, you know, we have seen some inflation, some of those numbers would come into these sort of sale numbers that we had for like three, four years. That concludes our Q&A session.

Speaker Change: This is something that.

Andrea Freeborough: We report that will be quite manageable with our existing cash flow. And so, I guess I'm trying to, you know, the report will be out in a month, but I'm managing expectations that we're reasonably on track is where we indicated we would be.

Speaker Change: We we forecast that will be quite manageable with our existing cash flow.

Speaker Change: And so.

Speaker Change: I guess I'm trying to.

Speaker Change: Yeah.

Speaker Change: <unk> will be out in a month, but managing expectations.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: We're just simply on track with where we indicated we would be.

Andrea Freeborough: Yeah, I appreciate, I mean, you know, I appreciate that it's just, you know, having an idea that, you know, we have seen some inflation, some of those numbers would come into these sort of sale numbers that we had of like three, four years ago. And it's not longer, and it's just, you know, we appreciate that that will be a 2024 number. And then obviously, by the time we build, you know, you know, later a couple of years out, it will be different at that point, but appreciate the color. Thank you.

Paul Rollinsen: That concludes our Q&A session.

Unknown Speaker: I will now turn the conference back over to Paul for closing remarks, operator, and thank you everyone for joining us this morning. We look forward to catching up in person. This concludes today's conference call. You may now disconnect.

Paul Rollinsen: No, not turn the conference back over to Paul for closing remarks. Operator, and thank you, everyone, for joining us this morning. We look forward to catching up in person in the coming weeks. Thank you.

Unknown Executive: This concludes today's conference call. You may now disconnect.

Unknown Executive: Please wait; the conference will begin shortly. Thank you.