Q1 2025 Kinross Gold Corp Earnings Call
Ian: Thank you for standing by. My name is Ian and I will be your conference operator today. At this time I would like to welcome everyone to the Kinross Gold first quarter 2025 results conference call and webcast.
All lines have been placed on mute to prevent any background noise.
Ian: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, fall by the number one on your telephone keypad. If you would like to withdraw your question, again press star one. Thank you.
Speaker Change: I would like to hand the call over to David Shaver, Senior Vice President, Investor Relations and Communications. Please go ahead.
David Shaver: Thank you and good morning. In the room with us today, on the call, we have Paul Rollinson, CEO , and from the Kinross senior leadership team, Andrea Freeborough, Claude Schimper, Will Dunford, and Geoff Gold.
MDNA from the period ended March 31st, 2025.
David Shaver: and our most recently filed AIF, all of which are available on our website.
and we'll now turn the call over to Paul.
Paul: Thanks David, and thank you all for joining us. This morning I will discuss our first quarter results
provide high-level updates across our portfolio.
Comments on Sustainability and Confirm Our Outlook . . .
Speaker Change: I will then hand the call over to Andrea, Claude, and Will to provide more detail.
Speaker Change: Following outstanding performance in 2024, we continue to deliver strong results in the first quarter.
Our Culture of Technical Excellence in Financial Discipline [inaudible]
Speaker Change: complemented by our consistent operating performance, continues to drive significant margins in cash flow for our business.
Our financial position in cashflow outlook remains excellent.
Speaker Change: And as a result, we are enhancing capital returns for shareholders.
Speaker Change: D1 was a great start to the year with production of 512,000 ounces.
As he is from Paraceture, he had another notable quarter [inaudible]
Speaker Change: and together, accounted for more than half of our production and drove significant cash flow.
Speaker Change: Jazia Saw, Strong Output in Q1, Supported by Strong Grades and Recovery's
Claude: Claude will elaborate further, but after a brief shutdown due to a fire in April , the no was recently restarted.
Claude: and Tasis remains on track to make its original, full year guidance.
Claude: Jury continued to deliver another excellent quarter on the back of strong rates and improved
Claude: La Coipa, and her US assets also delivered production costs as planned.
Journey now to updates on our projects
Claude: Our in-house technical and project execution teams made notable progress in Q1.
Claude: across our pipeline of mine-life extensions and growth projects that underpin our long-term production profile.
At Curloon, ongoing resource drilling is returning exciting results.
Claude: With recent assays demonstrating substantial grades and widths supporting future high-margin production.
Claude: at Ram Mountain, Underground Development at Phase X is advancing well.
Claude: And as outlined in our news release, we are continuing to see strong exploration results from infield drilling.
Claude: at Lobo Marta, baseline studies to support the project EIA are progressing well.
Claude: At Great Bear, the Advanced Exploration Program continues with construction and earthworks underway.
Claude: Regarding the main project, we continue to advance our permanent efforts working with the Impact Assessment Agency of Canada.
Claude: and we've also kicked off detailed engineering on the Mill and Site Infrastructure.
to advance the main project towards construction.
Turning now to sustainability ability
Claude: I am pleased to say that our annual Sustainability Report will be published later this month.
His Comprehensive Report, which is in its 17th edition, [inaudible]
Claude: provides an update on all the progress we made in 2024.
and what we aim to accomplish this year and beyond.
Claude: It is an impressive document which I encourage you all to review. Thank you.
Moving to our outlook. Thank you.
Claude: Following a strong first quarter, we are firmly on track to achieve our production, cost and capital guidance for the year.
Claude: As we did last year and in Q1, we will continue to maintain our financial discipline and prioritize cost management in order to deliver strong margins in cash flow.
Claude: With this positive outlook, I am pleased to say that in addition to our dividend
Claude: We have enhanced our return of capital by reactivating our share bye-bye
Claude: This should provide a substantial year-over-year increase in return of capital to our shareholders.
With that, I'll now turn the call over to Andrea.
Andrea: Thanks, Paul. This morning, I will review our financial highlights from the quarter, provide an overview of our balance sheet and return of capital plans, and comment on our outlook.
Andrea: As Paul noted, we had a strong start to the year in G1. We produced 512,000 gold equivalent ounces and sold 506,000 ounces.
Andrea: As per plan, Q1 cost of sales of a thousand and thirty-eight dollars per ounce and all in sustaining costs of a thousand three hundred and fifty-five dollars per ounce, we're lower than our guidance for the year.
Andrea: Q1 costs were also lower than the prior quarter, benefiting from more ounces produced, lower energy and lower maintenance costs.
Andrea: Q1 margins were strong at over $1,800 per ounce, increasing over the prior quarter and outpacing the increase in the gold price.
Andrea: In Q1, our adjusted earnings were 30 cents per share and adjusted operating cash flow with $676 million.
Andrea: A tributeable cat-back with $204 million, with higher spending expected for the rest of the year to conform with our annual guidance.
Andrea: A tributeable free cash flow with $371 million or $472 million excluding changes in working capital.
Andrea: Free cash flow in Q1 was lower compared to the prior quarter as expected due to annual tax payments in Brazil and Mauritania.
Andrea: Turning to the balance sheet, our financial position continued to improve in Q1. Following the repayment of the final $200 million on our term loan, we ended the quarter with $695 million in cash, and approximately $2.3 billion of total liquidity, both increasing from year-end.
We improved our net debt position to $540 million.
Andrea: And our trailing 12-month net debt to EBITDA ratio to 0.2 times compared to 0.3 times as of year end.
Andrea: With the turmoil now fully repaid and our strong cash balance at the end of Q1, we are increasing our returns to shareholders.
Andrea: Our quarterly dividend of three cents per share remains in place.
Andrea: In addition, we have reactivated our share buy-back program and to date have repurchased $60 million in shares.
Andrea: Based on recent gold prices, we're aiming to repurchase a minimum of $500 million of our common share this year, which would increase our total return of capital to $650 million, representing an increase of over 300% compared to last year.
Andrea: Our shares continue to represent an attractive use of excess cash given our favorable relative valuation and strong free cash flow metrics.
Andrea: With our strong cash flow outlook, we expect to continue returning a substantial amount of capital to shareholders while also building cash on the balance sheet.
Andrea: with a view to repay the 500 million 2027 notes at or perform maturity.
Andrea: At today's gold prices, we expect to be in a net cash position by the end of the year.
Andrea: Lastly, during the quarter, Moody's performed their annual review, revising our outlook to positive from stable and reaffirming our investment grade credit rating.
Turning to our guidance.
Andrea: We remain solidly on track to produce 2 million ounces at a cost of sales of 1120 dollars per ounce and all in sustaining costs of 1,500 dollars per ounce.
Andrea: Operating costs are expected to increase throughout the rest of the year for three reasons.
Andrea: First, stripping costs at Ralph Mountain phase S and Fort Knox phase 10 are currently being capitalized, and we expect both to be characterized as operating costs for accounting purposes from mid-year.
Andrea: Second, we continue to expect inflation in a range of 3 to 4% on average for the year. And third, we had slightly stronger production in Q1, providing a favorable denominator on fixed costs.
Andrea: with production in the remaining quarters expected to deliver our annual guidance of two million ounces.
Andrea: Capital expenditures remain on track to meet guidance of $1.15 billion $1.
Claude: I will now turn the call over to Claude to discuss our operations with you.
Thank you, Andrea.
Claude: Delivery of our Safety Excellence program has now been completed, including at the Corporate Office and Refresher Training has begun at some sites.
Claude: In the first quarter, we placed significant focus on our leading safety practices.
Claude: We conducted 54 operational learning teams and over 28,000 field engagements.
Claude: Marty McZazius, Martin David Stronger, results in the first quarter, this production of 138,000 ounces.
at the cost of sales of $811 per ounce.
Claude: That is performed well during the court year, turned by strong great and recoveries, following a variety of optimization initiatives in the mail.
Claude: Production was lower over the prior quarter due to lower throughput as we continue to work through enhancements to improve recoveries.
Claude: Following the fire incidents in mid-April, I'm pleased to see how effectively our side team responded to quickly restart them all.
Claude: With critical spare parts already on site, the site team was able to expedite repairs, reducing the downtarm and mitigating the impact to production.
Claude: With the strong mining rates we saw in the first quarter, Tanya was attracting ahead of its smart plan, allowing for the accumulation of high-grade material.
Claude: Processing of this high grade material has commenced and is expected to offset production that was budgeted from lower grade stockpiles this year.
Claude: Stasienst is still expected to deliver its production guidance of 500,000 ounces and a target cost of sales of $860 per ounce this year.
Claude: Rebecca Tuey delivered another solid quarter with production of 147,000 ounces at a cost of sales of $951 per ounce.
Claude: Production increased over the prior quarter due to the strong grades and the timing of the ounces process.
Claude: The court has also saw strong production on the back of improved recoveries, which are benefiting from our continuous improvement initiatives.
Claude: including the recent implementation of an additional gravity circuit at the plant.
Claude: The site team were able to mitigate the impacts from the significant rainfall experience in the first quarter, delivering on budget.
Claude: Production at Barricot 2 is expected to be higher and cost slower this year, this mining continues
Claude: Cracker 2 remains on track to meet his guidance of 585,000 answers at a cost of sales of $1,025 per ounce.
Claude: I'd look like, but we produce 52,000 ounces at a cost of sales of $1,147 per ounce in the first quarter.
Claude: Production was lower over the prior quarter, mainly due to the timing of answers processed through the month and lower planned throughput, partially offset by higher grades from the pure end deposit.
Claude: The quick ways on track committed guidance of 230,000 ounces and across the sales of $1,060 pounds in 2025.
Will Victoria, U.S. Operations? [inaudible]
Production in first quarter was as planned [inaudible]
Claude: Collectively, the US sites delivered first-core production of 176,000 ounces at a cost of sales of 1246 dollars per ounce.
Claude: At Fort Knox, first quarter production of 94,000 houses was higher over the prior quarter as a result of higher processing grades.
Claude: and higher recoveries from Manjo Hall, driving strong and free Tesla.
Claude: Houghtonich from Manchester was hired and budgeted in the first quarter due to the timing of and some improvements in the odd transport system.
Claude: The stronger volumes in the first quarter, the remaining campaigns this year are expected to see slightly lower average tonishes
Claude: Then the 200, 220,000 tons per campaign that was outlined at year end.
Claude: At Bolt Mountain, we produced 46,000 ounces and a cost of sales of $1,123 pounds.
Claude: Production was in line over the prior quarter while cost was slightly lower due to higher capitalized mining costs.
Claude: at Redbird Mining Activity for Phase 1, commenced in January and is advancing on schedule.
Claude: At Rowan Mountain, production of 36,000 ounces was lower compared to the prior quarter due to the mind sequencing as mining transitions from the end of phase W into phase S-tropic.
Claude: Cost of sales of $1585 per ounce was lowered due to the lower consumable costs.
Claude: With that, I'll now pause the call over to William to discuss our projects.
William: Thanks, Claude. As highlighted last quarter, we have significant optionality from a number of line-life extensions and growth projects that sit in our resource space and underpin our potential future production profile.
William: Our strong internal technical team is focused on drilling, technical studies, and permitting across this pipeline of growth projects to advance them into our production profile. We'll also progressing exploration to bring new projects into our resource.
William: Here you can see updates on a few of those studies that our team is working on. At LaCloiba, study and permanent work is progressing well for the oxide extension opportunities.
William: The extensions being permitted are primarily focused on an additional open pit layback at Purin, an area where we are already mining today.
William: At Bald Mountain, technical studies, optimization work, and detailed engineering for phase two is progressing well.
William: Phase 2 would bring in an additional 680,000 contained ounces to the mine plan and extend production
William: We expect to complete our technical work to support an execution decision by year end at Redbird.
William: Natasius, we are progressing both drilling and technical studies to support mine life extensions beyond 2035 through optionality that we can see in our resource, which includes 2.4 million ounces of M&I and 1.6 million ounces of inferred.
William: We're working on both open-pid and underground extension options at West Branch, where mineralization clearly extends at depth, alongside exploration for satellite mining targets on wider property.
William: and Noble Marta, baseline studies to support our EIA are progressing well.
William: We are also progressing technical work and will provide a project update by next year.
William: Moving to Curlywood, Drilling in Q1 continue to highlight wider and higher grade zones of mineralization, further improving the quality of the project and showing potential for high margin production.
William: For example, at stealth, we intercepted 10 meters at 16 grams per ton, and at K5 we intercepted 26 meters at a grams per ton
William: Technical studies and detailed engineering are progressing well to support a potential restart of operations at CURLU using our Tettle River Processing Facility.
William: Under ground development was also re-initiated in Q1 to extend our decline at depth towards Roadrunner and along strike at Stealth, the target further extensions of high grade mineralization.
William: You can see on the slide we are extending our development along a paleo surface that controls our productive horizon and has produced multiple historic minds.
William: It has been under-explored at depth, providing potential for further extension of mineralization.
William: We expect to provide a resource and project update for Curlu with our 2025 year end results.
William: At FaZex, Underground Development continues to advance with over 3900 meters developed to date.
William: Infield drilling is also progressing well and as you can see on the slide we now have good coverage of the upper target zone and are focused on expanding coverage in the lower zone.
William: The table on the slide shows all the results from Q1 in the lower zone. As you can see, the grades and what's further reinforced are exploration thesis of a bulk 3-4 gram per ton to pause at face-axe.
William: The completion of this drill program will put us in a position to provide an initial underground resource estimate and a project update for phase acts with our 2020-25 year end results.
William: In parallel, we are progressing technical studies and detailed engineering to support project execution.
William: Moving to Great Bear, AEX Surface Works are progressing, including excavation for the decline of infrastructure and construction of pads for the camp and stockpiles.
William: Detailed engineering is nearly complete for AEX, and our procurement is advancing in line for construction schedule.
William: who remain on track to start the Underground decline later this year, subject to permitting.
Paul: I will now turn the call back to Paul for closing remarks.
Paul: Next, well, after a strong start to the year, we are well positioned to meet our targets in 2025.
Looking forward, we are excited about our future.
We have a strong production profile.
We are generating significant free cash flow.
We have an excellent balance sheet [inaudible]
Paul: We have an attractive return of capital through a dividend and share buybacks.
We have an exciting, organic pipeline.
Paul: and we are very proud of our commitment to responsible mining that continues to make us a leader in sustainability.
Paul: And with that operator, I'd like to open up the line for questions.
Paul: At this time, we'd like to remind you that in order to ask a question, please press star, fall by the number one on your telephone keypad to enter the question queue. Once again, that is star, fall by the number one.
Speaker Change: Our first question comes from the line of Anita Soni with CIBC. Your one is opened.
Anita Soni: Good morning, Paul, everyone, and congratulations on a strong result. Can you just, I just want to take ask a couple of questions about them.
How long was the repair?
Good morning, Anita, Scott. The other we did the-
Speaker Change: The repairs were the total shutdown time was for our feet three weeks, but we did thank the opportunity to do some other work as well so...
Anita Soni: It's sort of a convoluted thing to just assign the all three weeks to the-
Anita Soni: Define to it, we use the opportunity to do some other work at the same time.
Okay.
Anita Soni: and then I just another question on paraka 2. Grade started out pretty strong for paraka 2 but at 0.43 for this quarter. Are they going to accelerate over the course of the year from that 0.43, or is it, was this a little stronger than you were looking for for this quarter?
Anita Soni: Yeah, again, Anita was trusted to barricade too. It's pretty stable for the year. We do have ups and downs as we move different portions of the pack.
Speaker Change: Our target is the point for three for the rest of the year.
Speaker Change: Okay, and then just a quick question on the koopa. I think you mentioned that you were looking at extensions in the urine pit. Can you just give it, sorry, just a little bit more color on the timeline on which when you think you might be able to deliver results to the market on that.
Speaker Change: Yeah, we, I mean, our current base case are reserves that are already permitted take us through 2027 in terms of a production profile. So obviously we're doing the permitting work now and we'll update the market as we eat.
Speaker Change: Submit those permits and get everything in line. But I think we'll, you know, we can find some more detail early next year. You can see, and you can see those, that pad is part of our resource that's there on our resource statement.
Okay, and the last question on great there.
Speaker Change: Could you remind me what the next key deliverables are? What permits are you waiting for at Great Bear, and have you seen any movements from provincial or federal bodies in terms of being a little bit more, I guess, amenable to accelerating some of these permits and latives.
sort of the MacRury Economic Environment that we've seen lately. [inaudible]
Speaker Change: Trump and sort of a refocus on a resource extraction here in Canada.
Come. [inaudible]
Speaker Change: Hi, Anita, it's Geoff Gold, I'll take the permitting question. You'll remember that there's both a provincial piece and a federal piece to our permitting.
Speaker Change: So, I'll start with our AAX program. We currently have all the permits that we need for our current AAX activities, and we're closely working with the provincial authorities on the remaining.
Speaker Change: Permits, which are basically water treatment permits, which we expect to get when required later in the year.
Speaker Change: on the federal side and for the main project, we continue to work with the impact assessment agency at Canada, who we call IAC, to advance our draft impact statement.
Speaker Change: and in terms of legislative initiatives, which you also refer to.
Speaker Change: Clearly there's a desire both provincially and federally to streamline the overall permitting system.
Speaker Change: Provincially, you know, new legislation has been, has been, uh, tabled. You know, obviously we, we, we, we welcome this positive initiative to, to streamline permitting.
Speaker Change: But it's a little bit too early to sort of comment on the impact that it would have on our overall permitting timeline until we obviously see the final legislation and accompanying regulations. But again, we do see it as a potentially positive impact.
Speaker Change: Okay, and this is the timeline I think the last time we spoke was an expectation of around two years for the permitting.
Speaker Change: Yeah, that's an estimate federally again and that two years is referring to the federal review period by IAC and that would be triggered upon filing of our compact payments.
Speaker Change: Okay, sorry, and when did you expect to file that impact statement again? [inaudible]
Yeah, we've targeted later in the year for that.
Speaker Change: You know, I would start by saying our objective there remains to file a comprehensive impact statement that addresses all the key impacts upfront.
Speaker Change: I'm out of course, will help facilitate the federal consultation process that I just referred to. Again, picking up in your comments, out of course will be subject to the recent legislative initiatives that we're hearing about and seeing.
Speaker Change: to harmonize the overall permitting process and also are ongoing engagement with the federal regulators and stakeholders.
Okay, thank you, that's it from the questions. [inaudible]
Speaker Change: Our next question comes from the line of Carey MacRury with Canacard Genuity, your one is opened.
and Chris Lichtenheldt.
Carrie McCrory: Good morning, guys, and congrats on the strong quarter. Maybe just to follow up on the permitting question, maybe looking at a different way. If permitting wasn't a gating factor or limiting factor.
Paul: I'm not sure it's Paul here. Yeah, look, I think as we've always said and as you'd expect.
Speaker Change: We're going to undertake a comprehensive process. As Geoff has indicated, there's been a lot of positive commentary in the media, both federally and provincially.
Speaker Change: But we haven't got enough yet to really change our course or our strategy. Well, you know, historically we would have expected to be in the federal review process.
Speaker Change: There's been a lot of talk about the feds kicking it back to the province. Our objective is to be prepared for whatever, and there's nothing changeable or concrete yet but we're...
Speaker Change: We're optimistic, there might be some schedule, compression, opportunities, and with legislation, but we haven't seen anything definitive as yet.
Speaker Change: Okay, fair enough. And then maybe a question for Andrea on the share by a back minimum. What sort of floor gold price would you have to hit where you don't think you would execute the 500 none?
Hi, Carey.
Andrea: I guess I'll answer that by saying, you know, as we're sitting here today,
Andrea: That's what we're planning for. If the 500 million, we don't need the gold prices that we have today.
Andrea: and we would plan to execute that at, you know, reasonably lower gold prices but there's been a lot of fluctuation. So as of today we're planning for the 500 and we'll just continue to update every quarter as to how much we've done and then how we're looking at progress against the 500.
Speaker Change: Okay, great, and maybe one for Claude as well, just one, sorry, go ahead.
Speaker Change: No, I was just going to add to that. I'm going to add a key here, Carey, as we have in the past. And as we have already just here, we've demonstrated when we say we're going to buy back that we do.
Speaker Change: You know, having bought 60 million already since reactivating with the gold price where it is, we feel pretty good about this. It's obviously our intention and our objective.
Speaker Change: to continue with that by-back. But we are going to be a little cautious around to go price.
Speaker Change: Okay, maybe just one last one if I could. Just on Tassia circling back on Tassia for Q2, should we be expecting similar grades and therefore proportionally see Tassia's come down by three weeks and then make it up in the back half of the year? How do we think about Tassia for Q2 specifically?
Speaker Change: Yes, so Gary, Tanya just always had a bit of a, very few, compared to last year it had a declining profile for this year.
Speaker Change: We sort of extended the higher grade through the first quarter, which made them perform very well, as we anticipate going into the second quarter, the expectations were lower, and now, as I noted, in just...
Speaker Change: Earlier on, we have some high-grade material, let's do some flexibility. So the second corridor will be quite...
Speaker Change: A little bit like that, but then as we go through the rest of the year, we expect as is to meet its objectives for our end.
Okay, great. Thanks everyone.
Thanks.
Speaker Change: Our next question comes from the line of Ralph Profiti with Stifle. Your line is opened.
Speaker Change: Thanks very much operator. Good morning. Two questions from me. The first one on Paracut 2.
Speaker Change: and whether the additional gravity circuit infrastructure is related to the progress into the higher grade wars and the harder wars that as you deal with some of those differential density factors.
Speaker Change: and conceivably, are we into a period where we're going to see progress or acceleration into those harder, higher grade doors in the second half and into 2026.
Speaker Change: Ralph, I'll say that the gravity circuit was a CI project between initiated a couple years ago, and as we went through the process of commissioning it, we've now seen improved recoveries.
Speaker Change: because of it. So it was a great project for us and it's-
Delivered very well. The different...
Speaker Change: Hardness of the law relative to the different parts of the pitch, it's just coincidental [inaudible]
At this point, so where we are now? [inaudible]
Speaker Change: When we get back into running the greater process, the higher taniages again.
Speaker Change: Gotcha, okay, and maybe as a separate question for Paul and how you're thinking about sort of more of that generative exploration as we see this pivot at
Speaker Change: Great Bear, into some of the more regional targets. And if you look at the exploration portfolio, there's a lot of brownfield exploration, less so on Greenfield. Just wondering as a capital allocation decision, how you're thinking about sort of more that generative work to establish more exploration targets, thinking out, you know, many, many years ahead. [inaudible]
Yeah, no, it's a good question. I mean, historically, Ralph.
And I guess philosophically,
I would say crudely, our exploration budget is probably 90 percent.
Speaker Change: Brownfields, 10% Greenfields. So we've got a, we've got the geologists in both Brownfields and Greenfields, but our priority and our focus has been around mine X and Brownfield targets.
Speaker Change: Keep going where we're already mining. Having said that, we've got a great team out there. We're more selective.
in our Regents in terms of Greenfields, Canada, Nevada.
Speaker Change: Finland, we think it's important to keep the team there and we've got some exciting prospects.
Speaker Change: And as well, those exploration geos are also our lens, if you will, into...
Speaker Change: Other exploration situations that are going on, as you know, we occasionally will take a minority interest in a junior explorer where we like the management team, the geologists, we like the prospectivity so we do our own green fields.
But we also leveraged some of that in-house intellectual knowledge.
Speaker Change: on Greenfield by looking at some external JV opportunities. And that split I think is what we're comfortable with right now.
Gotcha. Thanks, Paul and Tim.
Speaker Change: There are no further questions at this time. I would like to hand the call back. Oh, my apologies. We did just have one more call or get into Q. Our next question comes from the line of
Tanya Jakusconek, with Scotiabank, your wine is opened.
Tanya Jakunasek: Thank you, operator. Good morning, buddy. Thank you for taking my question. Sorry, I had to jump on the call a bit late. Maybe you've already discussed this, but I wanted to get an update if I could on that great bear. Where are we with the First Nation complotations?
Tanya Jakunasek: How are those going and when are we expecting to have agreements in place? That's my first question.
Tanya Jakunasek: Thanks Tanya, it's Geoff, I'll take that one. Yeah, look, in terms of the...
Tanya Jakunasek: of the IVA, what we call a project agreement. We continue to advance our negotiations.
with our First Nations partners, obviously. [inaudible]
Tanya Jakunasek: Negotiations remain confidential, so I can't comment on any detail but I can tell you that you know the negotiations have been you know productive respective and constructive. Thank you very much.
Tanya Jakunasek: and the parties are continuing to sort of advance what you would expect to see in one of those agreements, including the financial terms procurement training and employment.
Tanya Jakunasek: and all that kind of stuff. And so we will provide sort of further updates as we get further into that.
Yeah, I think it's important to add, Geoff, that-
as we describe it. [inaudible]
Speaker Change: We sit on the traditional lands of two first nations. That's who we're having the discussions around the IBA with and
Speaker Change: You know, have supported us every step of the way. So we're working through it, but we have, I would say a great relationship with
The two nations use traditional land, the project resides upon.
Speaker Change: And Paul, are we expecting to have these agreements in place this year or...?
Is that the target?
Yeah, hello, kid.
Speaker Change: It's a bit of a, I don't know that we ideally sure, but it's going to run its course and you know it's it's um we're not here to rush it doesn't hold up our timeline. When Jeff talked about the impact statement. [inaudible]
Speaker Change: and that's assuming we are in a federal review, we may not be...
Depending upon what happens at the federal provincial level,
Speaker Change: But the timing of filing that impact statement, we are the opponent, Geoff, and we control the timing. That's exactly right. At the project proponent, we control the timing of the filing of the impact statement, and just to say it, we don't expect our IVA negotiations to negatively impact our overall man project timeline.
Speaker Change: as Paulson. But we don't need the IVA to file the impacts tape in us at the point. No, we don't.
Speaker Change: Okay, thank you for that. And then maybe just quickly I'm just looking at your slide 19.
Speaker Change: and I'm just looking at it from two perspectives. One of it is just, oh thank you for the slide by the way. One of it is just looking at what your optionality is and all of those Lobo Marte, which...
Speaker Change: You know, I think it could be something that could come in in 2030's time frame, and I think it was about 300,000 ounces in production. So what I'm trying to really think about is the optionality.
Can we just review?
Speaker Change: when some of these things could come in and what they could add. Obviously, great bear, I know. But Maricongo, Lobo Marche, Curlo, and then within today, to 2030, some of the current operation, the extensions that you're looking at. What else could they do in terms of supplementing your two million ounce of production profile from now until for the next three years?
Speaker Change: Yeah, as you can see on the side, we've kind of tried to split it into what has the near-term impact and what's more, you know, 20-30 and thereafter as you noted.
Speaker Change: We see Global Marta as more, you know, kind of after 2030 and part of that is because we have continued resources.
at La Coipa.
Speaker Change: that are going to take us out into 2030 and maybe into 2031-2032. So it's somewhere in that range for Lomo.
Speaker Change: For the other projects that you refer to, Curly was one where given the nature that this is really a restart and it's using an existing male facility, you know, we think that's something that could come back online in around 20-28 if everything goes well.
Speaker Change: and then same thing on Faith Axe, it's probably a similar timeline, forgetting that underground one. So those are two things that are kind of later end of this decade that could bring in some impact.
Speaker Change: You can see a lot of the other optionality. The page is really just continued extensions through our MNI resources.
Speaker Change: at our existing sites and that also contributes through the end of the decade. A great example of that. We released more info last quarter on all mountain on the open pit extensions there and Redbird 2, we have noted we're going to hopefully bring that into the portfolio soon or into the pipeline and make an approval decision and that takes us out to 2031 and would really start contributing it in 2028.
Speaker Change: So those are the key ones for that time period, obviously great bears, you guys have lots of information on that and that's a key contributor at the end of the decade.
I'm just going to add a couple...
Go ahead
Speaker Change: Yeah, no, I was just going to make a couple of other additional points, again, also on that late 19th.
Speaker Change: It's the bottom line there. I think also underpins the optionality with...
Speaker Change: You know, the fact that we've got about 26 million ounces in M&I.
Speaker Change: Beyond the 2P, and another 13 incrementally inferred above that, which again, we're running our resources at 2000. The other point I was going to make just to supplement what Will was saying.
The other point to keep in mind is, [inaudible]
Speaker Change: We've generally been pursuing what we've been calling a bit of a great enhancement strategy. And so, for me what's exciting is
as we're going to move into phase X.
Speaker Change: That's where we're going to get into that ball-kinder gram, three to four gram.
Speaker Change: But again, we'll be blending with a lower open fit. Just like we're doing with Matt Cho today, we've got a...
Speaker Change: You know, a high grade supplement to a low grade pit. Curly, again, we still got lots of work to do, but looking at the widths and grades, feeling like, you know, again, we've got a small but higher grade opportunity to bring grade into the, into the, before the end of the decade. [inaudible]
Speaker Change: Profile, and then as you, and those to me and my mind are sort of the 28 kind of potential contributors, beyond that as you say.
Speaker Change: Great Bear starts to come into view, and Lobo comes into view, and Will, I mean we haven't said a lot about Lobo, but you know it's definitely a low strip
Jason Grade, 1.3 gram.
Speaker Change: I think we're going to refresh our thinking. Thank you for that.
Speaker Change: I, you know, 300,000 maybe life of mine average, but I think you'll see years where we do much better than that, and maybe closer to 400 and again, we've got an inflation adjustment. Think about that towards the end of the decade, but
Speaker Change: I say it's not as great as great there, but I still think we're gonna have a pretty attractive asick there. So again, another great margin.
Speaker Change: Improvement, as we move out towards the end of the decade. Yeah, and I think the key there, as you mentioned, lobo, it's a low strip, and it's also a 1.3 gram grade, but that's all going through a few weeks. So it is the high margin operation.
to Quality Project.
Speaker Change: Okay, and if I can remember correctly, Curly could be plus 100,000 ounces, would that be a fair assumption?
Speaker Change: It's in around that range. Yeah, yeah, it's, again, it's a smaller, smaller scale, but really good grades, as you've seen, it continues to tick up every time we do a resource update, and that's really what our exploration is focused on, that higher grade, higher margin material.
Speaker Change: Okay, thank you, and then just want my last question, if I can start. Sorry.
Speaker Change: I just got one more and I'm sorry I missed this but I think I just came in when you were talking about some of the...
Speaker Change: Quarterly production profile that has a bit lower in Q2 and then sort of, you know, picking up in Q3, Q4. I think paragraph two is supposed to be evenly distributed. I think last quarter you mentioned that you have no major maintenance downtime in any of the operation so. So, you know, I think we're going to be able to do that. I think we're going to be able to do that.
Speaker Change: The pro-file for the year should be evenly distributed quarterly, would that still be a fair way to think about it?
Speaker Change: Yeah, I would say it's a fair way to think about it.
with the carrier that we hovered. [inaudible]
Speaker Change: We exceeded our expectations in Q1. So the rest of the years are pretty evenly distributed and we still targeting that card in summer of 2 million.
Speaker Change: Operational Excellence Focus for the rest of you. Okay, with just the movement, the three-week down-to-time at Tavia. Okay, thank you so much for taking my question. I appreciate it.
Betty
Speaker Change: Our next question comes from the line of Josh Wolfson with RBC Capital Markets. Your line is opened.
Thanks very much. Back to the great bear permitting questions.
Um...
Speaker Change: for the decision to, I guess, reallocate resources from drilling at the LP faults to some of the surface targets. I'm just wondering...
Speaker Change: Is it any of the drilling for some of the AEX program, you know, infill related and, you know, on the edge or any element of that that would be, I guess, critical path that I'm just wondering, you know, bigger picture here when would we expect the drilling there to resume? Thanks.
Speaker Change: Yeah, a-a-extrilling is in till drilling, that's the point of getting underground, so that's one key piece of it. You get underground to convert from your inferred up to your indicated facing. You know, we're also going to do exploration from underground, particularly engine-lame as a target that we're going to get a lot closer to and get more in fill-on, so that should be interesting, given that was not in the PEA that we put out there.
Speaker Change: We see a lot of opportunity there, but the move away as we, you know, try to outline in the materials.
Speaker Change: from doing that exploration right now. It's really just a financial decision. These are very deep goals. It does not make sense to do a lot more in fill and continue trying to expand that resource from service. So we get underground in terms of your critical path question.
Speaker Change: We're very far ahead of the critical path in terms of when we get underground.
Speaker Change: versus when we have to start mining because you know it is the permitting that's more the critical path and the construction of the asset so. [inaudible]
Speaker Change: We've got lots of time to get underground and do that drilling from underground and be in a position to start mining and we've done a lot of work at surface with with infield drilling and RC drilling.
Speaker Change: to confirm our understanding of how we confer from inferred to indicated. So we've got a good understanding of your body. It's not critical path to get that drilling in the DAX, and it is the right way and the more efficient way to do with the infill.
Yeah.
Speaker Change: Yeah, and the other thing, you know, we are doing a bit of work on this. Step out is just condemnation drilling for the major infrastructure, just to be a hundred percent sure given the nature of the deposits and the high grades that we don't put any facility in the wrong place. That's the only other kind of exploration and drilling work we're doing this year.
Thanks. And then just one more question, you know, looking at the current high-goal price environment.
Speaker Change: You know, it sounds like at least in prior quarters the opportunity to look at a buyer sort of pricing assumption has enabled some the ability to leverage upside at ball mantain with you know, face to the red bird pit. Are there any other opportunities the company is sort of thinking about over the next couple of years, you know, that maybe make more sense in today's environment? Thank you.
Speaker Change: Yeah, I think, you know, that the slide we had gone over for Tanya earlier at slide 19 is a good one that really just illustrates it's a great place.
Speaker Change: The nature of Kinross, frankly, and all over our house sets.
Speaker Change: They continue at depth. That's why we've got such a large M&I resource. And the gold price always helps when you're going to the next layback, the next pushback. So things like Causius that we spoke about a bit, but we're looking at that next layback.
Speaker Change: A higher-goal price environment is very beneficial. The one thing we've communicated and we've been quite strict on as the companies where we don't want to start dropping cutoff grades today because our milling facilities are full with the fire-margin material.
Speaker Change: The long term, there does without hard gold price, there's stock pile optionality, a material that otherwise would have been waste, that were mining through anyways, that we get the benefit of at the end of life of mine, and the gold price helps significantly with each of these next pushbacks at our assets.
Thank you.
Thanks.
Speaker Change: There aren't no further questions at this time. I would like to hand the call back over to Paul Rowanson's CEO for closing remarks.
Paul Rowinson: Thank you, operator and thanks everyone for joining us this morning. We look forward to
Speaker Change: Catching up with you in person in the coming weeks. Thank you everyone.
This concludes today's conference call. You may now disconnect. Thank you very much.
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