Q2 2025 Kinross Gold Corp Earnings Call

Operator: Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Kinross Gold Q2 2025 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 would like to ask a question 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. Thank you. It is now my pleasure to turn the call over to David Shaver, Senior Vice President. Please go ahead.

Tina: Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the KINROSS GOLD Q2 2025 results conference call and webcast. All lines have been placed on mute to prevent any background noise. 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 followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. It is now my pleasure to turn the call over to David Shaver, Senior Vice President. Please go ahead.

Thank you for standing by. My name is Tina and I'll be your conference operator. Today at this time I would like to welcome everyone to the Ken Ross Gold second quarter 2025 results call and webcast all lines have been placed on mute to prevent any background noise.

You would like to ask a question. 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. Thank you. It is now my pleasure to turn the call over to David Shaver Senior Vice President. 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 Jeff Gold. For a complete discussion of the risks and uncertainties which may lead to actual results differing from estimates contained in our forward-looking information, please refer to page 3 of this presentation, our news release dated 30 July 2025, the MD&A for the period ended 30 June 2025, and our most recently filed AIF, all of which are available on our website. I will now turn the call over to Paul.

David Shaver: Thank you and good morning. In the room with us today on the call, we have Andrea Freeborough, CEO, and from the Kinross Senior Leadership Team, Claude Schimper and William Dunford, and Geoff Gold. For a complete discussion of the risks and uncertainties which may lead to offshore results differing from estimates contained in our forward-looking information, please refer to page three of this presentation, our news release dated July 30, 2025, the MD&A for the period ended June 30, 2025, and our most recently filed AIF, all of which are available on our website. I will now turn the call over to Paul.

Thank you and good morning in the room with US today on the call we have all rollinson CEO.

And from the Kinross senior leadership team Andrea <unk>.

Shipper will dunford and Josh goals.

For a complete discussion of the risks and uncertainties, which may lead to actual results differing from estimates contained in our forward looking information. Please refer to page three of this presentation. Our news release dated July 32025.

The MD&A for the period ended June 32025.

And our most recently filed Aif all of which are available on our website.

I will now turn the call over to Paul.

Paul Rollinson: Thanks, David, and thank you all for joining us. This morning, I will discuss our Q2 results, provide high-level updates across our portfolio, comment on sustainability, and confirm our outlook. I will hand the call over to the team to provide more detail. Following a good Q1, we delivered another strong quarter in Q2, establishing an excellent H1 and positioning us well to achieve our full-year guidance. Our production in Q2 was on plan, delivering 513,000 ounces at a cost of sales of $1,074 per ounce. Our strong production and cost management, combined with the gold price, resulted in record operating margins. As a result, we also delivered record free cash flow in Q2 of almost $650 million and an H1 total of just over $1 billion.

Paul Rollinson: Thanks, David, and thank you all for joining us. This morning, I will discuss our second quarter results, provide high-level updates across our portfolio, comment on sustainability, and confirm our outlook. I will then hand the call over to the team to provide more detail. Following a good Q1, we delivered another strong quarter in Q2, establishing an excellent first half and positioning us well to achieve our full-year guidance. Our production in the second quarter was on plan, delivering 513,000 ounces at a cost of sales of $1,074 per ounce. Our strong production and cost management, combined with the gold price, resulted in record operating margins. As a result, we also delivered record-free cash flow in the second quarter of almost $650 million and a first half total of just over $1 billion.

Thanks, David and thank you all for joining us.

This morning I will.

I'll discuss our second quarter results.

Provide high level updates across our portfolio.

Comment on sustainability.

And confirm our outlook.

I will then hand, the call over to the team to provide more detail.

All of them in Q1, we delivered another strong quarter in Q2.

Establishing an excellent first half.

Positioning us well to achieve our full year guidance.

Our production in the second quarter was on plan delivering 513000 ounces.

At a cost of sales of $1074 per ounce.

Our strong production and cost management combined.

Combined with the gold price resulted in record operating margins.

As a result.

We also delivered record free cash flow in the second quarter of almost $650 million.

And our first half total of just over $1 billion.

Paul Rollinson: Our financial position and cash flow outlook remain excellent, and we plan to continue to return meaningful capital to shareholders through ongoing share repurchases and our quarterly dividend. With respect to our operations, Paracatu and Tasiast together accounted for more than half of our production and contributed significant cash flow. Paracatu delivered another strong quarter and was the highest producer in the portfolio, generating substantial cash flow. At Tasiast, we delivered our budgeted production in the second quarter. The mill has been performing well, and the site remains on track to meet its full-year guidance. At La Coipa, despite encountering some excess groundwater in the pits, production was higher quarter over quarter, and the site remains on track to meet its full-year production guidance. Our U.S. assets delivered strong production and costs as planned.

Paul Rollinson: Our financial position and cash flow outlook remains excellent. We plan to continue to return meaningful capital to shareholders through ongoing share repurchases and our quarterly dividend. With respect to our operations, Paracatu and Tasiast together accounted for more than half of our production and contributed significant cash flow. Paracatu delivered another strong quarter and was the highest producer in the portfolio, generating substantial cash flow. At Tasiast, we delivered our budgeted production in Q2. The mill has been performing well, and the site remains on track to meet its full-year guidance. At La Coipa, despite encountering some excess groundwater in the pits, production was higher quarter-over-quarter, and the site remains on track to meet its full-year production guidance. Our US assets delivered strong production and costs as planned.

Our financial position and cash flow outlook remains excellent and.

And we plan to continue to return meaningful capital to shareholders through ongoing share repurchases.

And our quarterly dividend.

With respect to our operations.

<unk> and Tasiast together accounted for more than half of our production.

And contributed significant cash flow.

Eric could you delivered another strong quarter.

And was the highest producer in the portfolio generating substantial cash flow.

And Tasiast, we delivered our budgeted production in the second quarter.

The mill has been performing well and the site remains on track to meet its full year guidance.

And la Coipa.

Spike encountering some excess groundwater in the peds.

She was higher quarter over quarter.

And the site remains on track I mean, its full year production guidance.

Our U S assets delivered strong production and cost as planned.

Paul Rollinson: In Alaska, we saw another quarter of contributions from both Fort Knox and Manh Choh that were on plan. In Nevada, we saw stronger production from both Bald Mountain and Round Mountain. At Bald Mountain, mining activity for phase one of Red Bird is progressing well, and study work for phase two is ongoing. At Round Mountain, initial production from the phase S open pit has commenced and is expected to ramp up throughout the year and into next. At phase X, underground development is progressing well, and we continue to see strong exploration results. All of our projects continue to progress well in Q2. Our brownfields projects at Curlew and phase X both had positive exploration updates and are showing potential to contribute to our production profile later in the decade and beyond.

Paul Rollinson: In Alaska, we saw another quarter of contributions from both Fort Knox and Man Choh that were on plan. In Nevada, we saw stronger production from both Bald Mountain and Round Mountain. At Bald Mountain, mining activity for phase 1 of Redbird is progressing well, and study work for phase 2 is ongoing. At Round Mountain, initial production from the phase S open pit has commenced and is expected to ramp up throughout the year and into next. At Phase X, underground development is progressing well, and we continue to see strong exploration results. All of our projects continued to progress well in Q2. Our brownfields projects at Curlew and Phase X both had positive exploration updates and are showing potential to contribute to our production profile later in the decade and beyond.

In Alaska, we saw another quarter of contributions from both Fort Knox and man show that we're on plan.

In Nevada, we saw stronger production from both Bald mountain and round mountain.

At Bald mountain mining activity for phase one of Redburn is progressing well.

And study work for phase II is ongoing.

At round Mountain initial production from the Phase <unk> open pit has commenced and is expected to ramp up throughout the year and into next.

And feedbacks underground development is progressing well.

And we continued to see strong exploration results.

All of our projects continue to progress well in Q2.

Our brownfields projects had curlew and Zacks.

<unk> had positive exploration updates.

And are showing potential to contribute to our production profile later in the decade and beyond.

Paul Rollinson: The greenfields projects at Great Bear and Lobo progressed well and are expected to contribute to our production in 2029 and 2031 respectively. In the current gold price environment, we are seeing value-generating investment opportunities across our portfolio that capitalize on our significant resource base and our recent positive drill results. We see opportunities to extend mine life while maintaining our focus on margins and shareholder value. The team will comment on our resource optionality later. Turning now to a few remarks on sustainability. Our annual sustainability report was published earlier in May. It is a comprehensive document, which I encourage you all to review. In Q2, we made progress across various water management initiatives, which remains a key focus area within our approach to sustainability.

Paul Rollinson: The greenfields projects at Great Bear and Lobo also progress well and are expected to contribute to our production in 2029 and 2031, respectively. Also, in the current gold price environment, we are seeing value-generating investment opportunities across our portfolio that capitalize on our significant resource base and our recent positive drill results. We see opportunities to extend mine life while maintaining our focus on margins and shareholder value. The team will comment on our resource optionality later. Turning now to a few remarks on sustainability. Our annual sustainability report was published earlier in May. It is a comprehensive document, which I encourage you all to review. Also, in Q2, we made progress across various water management initiatives, which remains a key focus area within our approach to sustainability.

The greenfield projects that great parent Lobo also progressed well.

And are expected to contribute to our production in 2029 and 2031, respectively.

Also in the current gold price environment, we are seeing value generating investment opportunities across our portfolio.

That capitalize on our significant resource base.

And our recent positive drill results.

We see opportunities to extend mine life, while maintaining our focus on margins and shareholder value.

The team will comment on our resource Optionality later.

Turning now to a few remarks on sustainability.

Our annual sustainability report was published earlier in May.

It is a comprehensive document.

I encourage you all to review.

Also in Q2, we made progress across various water management initiatives.

Which remains a key focus area within our approach to sustainability.

Paul Rollinson: For example, at La Coipa, we enhanced water efficiency through an optimization program to reduce the amount of water loss going to our tri-stack tailings. In Alaska, at Manh Choh, a historic mining area that Kinross did not operate, but later reclaimed for the benefit of the environment and local communities, fish populations continue to thrive. Turning now to our outlook. Following a strong Q2 and H1, we have produced just over 1 million ounces at a cost of sales in line with our guidance. Looking ahead, we remain firmly on track to achieve our full-year guidance. We will continue to maintain our financial discipline and prioritize margins to drive strong cash flow, which will support ongoing return of capital and further strengthen the balance sheet. With that, I will now turn the call over to Andrea.

Paul Rollinson: For example, at La Coipa, we enhanced water efficiency through an optimization program to reduce the amount of water loss going to our dry stack tailings. In Alaska, at Fish Creek, a historic gold mining area that Kinross did not operate but later reclaimed for the benefit of the environment and local communities, fish populations continue to thrive. Turning now to our outlook, following a strong second quarter and first half, we have produced just over 1 million ounces at a cost of sales in line with our guidance. Looking ahead, we remain firmly on track to achieve our full-year guidance. We will continue to maintain our financial discipline and prioritize margins to drive strong cash flow, which will support ongoing return of capital and further strengthen the balance sheet. With that, I will now turn the call over to Andrea.

For example.

At La Coipa, we enhanced water efficiency through an optimization program.

To reduce the amount of water loss going to our dry stack tailings.

In Alaska Fish Creek.

Our historic mining area. They can Ross did not operate.

But later, we claimed for the benefit of the environment and local communities.

Fish populations continue to thrive.

Turning now to our outlook.

Following a strong second quarter and first half.

We have produced just over 1 million ounces at a cost of sales in line with our guidance.

Looking ahead, we remain firmly on track to achieve our full year guidance.

We will continue to maintain our financial discipline and prioritize margins to drive strong cash flow.

Which will support ongoing return of capital.

And further strengthen the balance sheet.

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

Andrea Freeborough: Thanks, Paul. This morning, I will review our financial highlights from the quarter, provide an update on our balance sheet and return of capital program, and comment on our guidance and outlook. As Paul noted, we had a strong second quarter. We produced 513,000 gold equivalent ounces with sales of 508,000 ounces. Cost of sales was $1,074 per ounce, and with an average realized gold price of $3,285 per ounce, we delivered record margins of just over $2,200 per ounce. Cost of sales of $1,074 per ounce increased from Q1, largely due to higher royalties. Higher sustaining capital expenditures also contributed to higher all-in sustaining costs compared to Q1. In Q2, our adjusted earnings were $0.44 per share and adjusted operating cash flow was $844 million.

Andrea Freeborough: Thanks, Paul. This morning, I will review our financial highlights from the quarter, provide an update on our balance sheet and return of capital program, and comment on our guidance and outlook. As Paul noted, we had a strong Q2. We produced 513,000 gold equivalent ounces with sales of 508,000 ounces. Cost of sales was $1,074 per ounce, and with an average realized gold price of $3,285 per ounce, we delivered record margins of just over $2,200 per ounce. Cost of sales of $1,074 per ounce increased from Q1, largely due to higher royalties. Higher sustaining capital expenditures also contributed to higher all-in sustaining costs compared to Q1. In Q2, our adjusted earnings were $0.44 per share and adjusted operating cash flow was $844 million. Attributable CapEx was $302 million, split relatively evenly between sustaining and growth.

Thanks, Paul.

Morning, I will review our financial highlights from the quarter provide an update on our balance sheet and return of capital program and comment on our guidance and outlook.

As Paul noted, we had a strong second quarter.

<unk> 513000 gold equivalent ounces with sales of 508000 ounces.

Cost of sales was $1074 per ounce.

And with an average realized gold price of $3285 per ounce, we delivered record margins of just over $2200 per ounce.

Cost of sales and $1074 per ounce increased from Q1, largely due to higher royalties.

Higher sustaining capital expenditure also contributed to higher all in sustaining costs compared to Q1.

In Q2, our adjusted earnings were 44 cents per share and adjusted operating cash flow was $844 million.

Andrea Freeborough: Attributable CapEx was $302 million, split relatively evenly between sustaining and growth. Attributable free cash flow was a record $647 million, or $542 million excluding changes in working capital. Turning to our balance sheet, which remains in excellent shape and continued to strengthen in Q2, we ended the quarter with just over $1.1 billion in cash and approximately $2.8 billion of total liquidity, both increasing from Q1. We improved our net debt position to approximately $100 million at the end of Q2, expect to be at net cash in Q3. In Q2, we repurchased and canceled approximately $170 million in shares, subsequently have completed another $55 million for a total of $225 million to date. Including our quarterly dividend, we have returned almost $300 million to shareholders so far, we're on track for our minimum target of $650 million this year.

Attributable capex of $302 million split.

Split relatively evenly between sustaining and growth.

Andrea Freeborough: Attributable free cash flow was a record $647 million, or $542 million, excluding changes in working capital. Turning to our balance sheet, which remains in excellent shape and continued to strengthen in Q2, we ended the quarter with just over $1.1 billion in cash and approximately $2.8 billion of total liquidity, both increasing from Q1. We improved our net debt position to approximately $100 million at the end of Q2 and expect to be at net cash in Q3. In Q2, we repurchased and canceled approximately $170 million in shares and subsequently have completed another $55 million for a total of $225 million to date. Including our quarterly dividend, we have returned almost $300 million to shareholders so far and were on track for our minimum target of $650 million this year.

Attributable free cash flow was a record $647 million.

Our $542 million, excluding changes in working capital.

Turning to our balance sheet, which remains in excellent shape and continue to strengthen in Q2, we ended the quarter with just over $1 $1 billion in cash.

And approximately $2 $8 billion of total liquidity.

Both increasing from Q1.

We improved our net debt position to approximately $100 million at the end of Q2.

The net cash in Q3.

In Q2, we repurchased and canceled approximately $170 million in shares.

And subsequently have completed another $55 million for a total of $225 million to date.

Including our quarterly dividend, we have returned almost $300 million to shareholders. So far and we're on track for our minimum target of $650 million this year.

Andrea Freeborough: As we look forward, we expect to continue to return a substantial amount of capital to shareholders while also strengthening our balance sheet with a view to repaying our $500 million 2027 note. Turning to our guidance, following the first half, we remain solidly on track to produce 2 million ounces at a cost of sales of $1,120 per ounce and all-in sustaining costs of $1,500 per ounce. Production over the two remaining quarters this year is expected to be relatively even at approximately 500,000 ounces each to deliver our full-year production guidance. Operating costs are budgeted to increase in the second half to meet our full-year cost guidance.

Andrea Freeborough: As we look forward, we expect to continue to return a substantial amount of capital to shareholders, while also strengthening our balance sheet with a view to repaying our $500 million 2027 notes. Turning to our guidance. Following the H1, we remain solidly on track to produce 2 million ounces at a cost of sale of $1,120 per ounce and all-in sustaining costs of $1,500 per ounce. Production over the 2 remaining quarters this year is expected to be relatively even at approximately 500,000 ounces each to deliver our full year production guidance. Operating costs are budgeted to increase in the H2 to meet our full year cost guidance. The expected increase is due to the following reasons. First, planned mine sequencing, with costs expected to increase at several sites as we transition from capitalized stripping into operating waste.

As we look forward, we expect to continue to return a substantial amount of capital to shareholders. While also strengthening our balance sheet with a view to repaying our $500 million 2027 notes.

Turning to our guidance following the first half.

We remain solidly on track to produce 2 million ounces at a cost of sale of 1100 $20 per ounce and all in sustaining cost of $500 per ads.

Production over the two remaining quarters. This year is expected to be relatively even at approximately 500000 ounce of beach to deliver our full year production guidance.

Operating costs are budgeted to increase in the second half to meet our full year cost guidance.

Andrea Freeborough: The expected increase is due to the following reasons: first, planned mine sequencing with costs expected to increase at several sites as we transition from capitalized stripping into operating waste; second, some expected inflation as we progress through the rest of the year; and third, slightly stronger production in the first half, providing a favorable denominator on fixed costs with production in the remaining quarters expected to deliver our guidance of 2 million ounces. Total capital expenditures remain on track to meet guidance of $1.15 billion, with a slightly higher weighting towards sustaining versus growth capital for the second half of the year. I'll now turn the call over to Claude to discuss our operations.

Expected increase is due to the following reasons.

Sure.

Planned mine sequencing with costs expected to increase at several sites as we transition from capitalized stripping into operating waste.

Andrea Freeborough: Second, some expected inflation as we progress through the rest of the year. Third, slightly stronger production in H1, providing a favorable denominator on fixed costs, with production in the remaining quarters expected to deliver our guidance of 2 million ounces. Total capital expenditures remain on track to meet guidance of $1.15 billion, with a slightly higher weighting towards sustaining versus growth capital for the H2 of the year. I'll now turn the call over to Claude to discuss our operations.

Second some expected inflation as we progress through the rest of the year.

And third.

Lately stronger production in the first half.

Riding a favorable denominator on fixed cost with.

With production in the remaining quarter expected to deliver our guidance of 2 million ounces.

Total capital expenditures remain on track to meet guidance of $1, one 5 billion with a slightly higher weighting towards sustaining versus growth capital for the second half of the year.

I'll now turn the call over to Claude to discuss our operations.

Claude Schimper: Thank you, Andrea. In Q2, our safety programs continued to be focused on proactive identification of hazards, people development, and leadership training. We have continued to roll out our new safety brand, Safe Ground, which has included co-design of site-specific and culturally relevant communication plans of key messages. Our operations continued their strong performance in Q2, delivering production of 513,000 ounces, with strong contributions across the portfolio. Starting with Paracatu, the mine had another steady quarter, the strong production driving significant cash flow. Production of 149,000 ounces increased over the prior quarter due to the higher throughput and strong mill recoveries, while cost of sales of $958 per ounce was in line with the previous quarter. Paracatu remains on track to meet its guidance, producing 595,000 ounces at a cost of sales of $1,025 per ounce.

Claude Schimper: Thank you, Andrea Freeborough. In the second quarter, our safety programs continued to be focused on proactive identification of hazards, people development, and leadership training. We have continued to roll out our new safety brand, SafeGround, which has included co-design of site-specific and culturally relevant communication plans of key messages. Our operations continued their strong performance in the second quarter, delivering production of 513,000 ounces with strong contributions across the portfolio. Starting with Paracatu, the mine had another steady quarter with strong production driving significant cash flow. Production of 149,000 ounces increased over the prior quarter due to the highest throughput and strong mill recoveries. Our cost of sales of $958 per ounce was in line with the previous quarter. Paracatu remains on track to meet its guidance, producing 585,000 ounces at a cost of sales of $1,025 per ounce.

Thank you Andrea.

In the second quarter, our safety programs continue to be focused on proactive identification of hazards people development and leadership training.

We have continued to rollout our new safety brand safe ground.

Into the coaches on site specific and culturally relevant communication plans are key.

<unk>.

Our operations continued the strong performance in the second quarter.

Delivering production of 513000 ounces with strong contributions across the portfolio.

Starting with product.

The mine had another steady quarter.

The strong production driving significant cash flow.

Production of 149000 ounces increased over the prior quarter due.

Due to the highest throughput and strong mill recoveries.

While cost of sales of $908 balance was in line with the previous quarter.

Thats two remains on track to meet its guidance.

<unk> 595000 ounces at a cost of sales of $1025 balance.

Claude Schimper: At Tasiast, we delivered budgeted production in the second quarter, producing 119,000 ounces at a cost of sales of $843 per ounce. Budgeted production was achieved through strong mill performance and recoveries. Restripping of the Fennix satellite pit to the north has also commenced in the second quarter. Tasiast remains on track to meet its production guidance of 500,000 ounces at a target cost of sales of $860 per ounce for the year. At La Coipa, we produced 54,000 ounces at a cost of sales of $1,397 per ounce in the second quarter. Tons mined were lower over the prior quarter due to higher than anticipated groundwater inflows into the pits, resulting in higher tons processed from lower-grade stockpiles and leading to higher costs in the second quarter. The team has gained a good understanding of the input water conditions and increased dewatering and made adjustments to the mine plan.

Claude Schimper: At Tasiast, we delivered budgeted production in Q2, producing 119,000 ounces at a cost of sales of $843 per ounce. Budgeted production was achieved through strong mill performance and recoveries. Pre-stripping of the Phenix satellite pit to the north has also commenced in Q2. Tasiast remains on track to meet its production guidance of 500,000 ounces at a target cost of sales of $860 per ounce for the year. At La Coipa, we produced 54,000 ounces at a cost of sales of $1,397 per ounce in Q2. Ores mined were lower over the prior quarter due to higher than anticipated groundwater inflows into the pits, resulting in higher tons processed from lower grade stockpiles and leading to higher costs in Q2. The team has gained a good understanding of the input water conditions and increased dewatering and made adjustments to the mine plan.

At Tasiast, we did.

Limit budgeted production in the second quarter.

<unk> 119000 ounces.

Cost of sales $843.

Budgeted production was achieved through strong multiple formats and recoveries.

Pre stripping of the Phoenix satellite pit to the North has also commenced in the second quarter.

<unk> remains on track to meet its production guidance of 500000 ounces at <unk>.

Target cost of sales $860 per ounce.

Yes.

At <unk>, we produced 54000 ounces at a cost of sales or $1397 pounds in the second quarter.

What tonnes mined were lower over the prior quarter due to higher than anticipated groundwater inflows into the pits.

Faulting and higher tons processed from lower grade stockpiles and leading to higher costs in the second quarter.

Team has gained a good understanding of the input water conditions and increased dewatering and made adjustments to the mine plan.

Claude Schimper: Production is expected to be stronger and costs lower in the second half of the year as mining transitions to the planned higher grades from phase seven on. La Coipa remains on track to meet its full-year production guidance of 230,000 ounces. Moving to our U.S. operations, production was higher quarter over quarter, benefiting from strong contributions from Fort Knox and Manh Choh in Alaska and stronger grades in Nevada. Collectively, the U.S. sites delivered production of 190,000 ounces at a cost of sales of $1,229 per ounce in the second quarter. Our U.S. operations remain on track to meet its guidance of 685,000 ounces at a cost of sales of $1,420 per ounce. At Fort Knox, second quarter production of 98,000 ounces was in line with our first quarter. Cost of sales of $1,247 per ounce was slightly higher over the prior quarter due to higher processing costs.

Claude Schimper: Production is expected to be stronger and costs lower in H2 of the year. Mining transitions to the planned higher grades from phase 7 ore. La Coipa remains on track to meet its full year production guidance of 230,000 ounces. Moving to our US operations, production was higher quarter-over-quarter, benefiting from strong contributions from Fort Knox and Manh Choh in Alaska, and stronger grades in Nevada. Collectively, the US sites delivered production of 190,000 ounces at a cost of sales of $1,229 per ounce in Q2. Our US operations remain on track to meet its guidance of 685,000 ounces at a cost of sales of $1,420 per ounce. At Fort Knox, Q2 production of 98,000 ounces was in line with our Q1. Cost of sales of $1,247 per ounce was slightly higher over the prior quarter due to higher processing costs.

Production is expected to be stronger and costs lower in the second half of the year.

Mining transitions to the planned higher grades from phase seven.

A quick one remains on track full year production guidance to 30.

As announced.

Moving to our U S operations production was higher quarter over quarter benefiting from strong contributions from Fort Knox mansion in Alaska and stronger grades in Nevada.

Collectively the U S sites delivered production of 190000 ounces at a cost of sales $1229 per ounce.

Second quarter.

Our U S operations remain on track to meet its guidance of 695000 ounces at a cost of sales $1420 a pound.

At Fort Knox second quarter production of 98000 ounces was in line with our first quarter.

Cost of sales of $1247 per ounce was slightly higher over the prior quarter due to higher processing costs.

Claude Schimper: At Bald Mountain, we produced 54,000 ounces at a cost of sales of $1,095 per ounce, improving over the prior quarter due to stronger grades as we were finishing mining the higher-grade LBM plates. Cost of sales of $1,095 per ounce was lower quarter over quarter due to the higher ounces sold and a higher proportion of capitalized costs as mining at Red Bird phase one continues to ramp up. At Round Mountain, production of 39,000 ounces increased over the prior quarter due to higher grades. Cost of sales of $1,376 per ounce decreased from the prior quarter. With that, I will now pass the call over to William Dunford to discuss our quarter.

Claude Schimper: At Bald Mountain, we produced 54,000 ounces at a cost of sales of $1,095 per ounce, improving over the prior quarter with stronger grades as we were finishing mining at a higher grade LOM plan. Cost of sales of $1,095 per ounce was lower quarter-over-quarter due to the high ounces sold and a higher proportion of capitalized costs as mining at Redbird Phase One continues to ramp up. At Round Mountain, production of 39,000 ounces increased over the prior quarter due to higher grades. Cost of sales of $1,376 per ounce decreased from the prior quarter. With that, I will now pass the call over to William to discuss our project.

The bold mountain you produced 54000 ounces at a cost of sales on $1095 per ounce improving.

Improving over the prior quarter stronger trades as we finish mining higher grade lithium.

Cost of sales on a $1095 balance was lower quarter over quarter due to the ions sold.

And a higher proportion of capitalized costs as mining at Redbird phase one continues to ramp.

And round mountain production of 39000 ounces increased over the prior quarter due to higher grades.

Cost of sales one.

$76 per ounce.

Decrease.

Good good.

With that I will now pass the call over to William to discuss.

William Dunford: Thanks, Claude. We continue to leverage our strong in-house technical team to advance optionality across our large resource base, consisting of 26 million ounces measured and indicated, and an additional 13 million ounces of inferred resource, calculated at $2,000 per ounce. Our technical team is focused on drilling, technical studies, and permitting to advance resources into our production profile, while also conducting exploration aimed at identifying new opportunities to augment our resource base. Here, you can see updates on a few areas of our resource base. Starting in Chile at La Coipa, study and permitting work is progressing well for the oxide extensions. In Q2, we submitted our Impact Assessment, initiating the agency review process for permits to continue mining the next layback at Puren, which sits in our resource.

William Dunford: Thanks, Claude. We continue to leverage our strong in-house technical team to advance optionality across our large resource base consisting of 26 million ounces of measured and indicated and an additional 13 million ounces of inferred resource calculated at $2,000 per ounce. Our technical team is focused on drilling, technical studies, and permitting to advance resources into our production profile. We are also conducting exploration aimed at identifying new opportunities to augment our resource base. Here, you can see updates on a few areas of our resource base. Starting in Chile at La Coipa, study and permitting work is progressing well for the oxide extensions. In Q2, we submitted our impact assessment, initiating the agency review process for permits to continue mining the next lay back at Puren, which sits in our resource.

Thanks, Claude we continue to leverage our strong in house technical team to advance optionality across our large resource base, consisting of 26 million ounces measured and indicated and an additional 13 million ounces of inferred resource calculated at $2000 per ounce.

Our technical team is focused on drilling technical studies and permitting to invest resources into our production profile.

We're also conducting exploration aimed at identifying new opportunities to augment our resource base.

Here you can see updates on a few areas of our resource base.

Starting in Chile at La Coipa study and permitting work is progressing well for the oxide extensions.

In Q2, we submitted our impact assessment initiating the agency review process for permits to continue mining the next layback that pure at which sits in our resource.

William Dunford: We are already mining an open pit at Puren today and pending permits we plan to extend mining through the end of the decade with this next lay back of the pit. At Lobo Marte, the project team continues to advance technical work as well as baseline studies to support our EIA. Project update will be provided with our year-end results. At Bald Mountain, technical studies, optimization work, and detailed engineering for the Red Bird phase two extensions are ongoing. Recall phase two would bring in an additional 680,000 ounces to the mine plan beyond phase one and extend production out to at least 2031. In addition, we are also progressing drilling, technical work, and studies across multiple smaller quick payback satellite pit opportunities at Bald that sit in our resource and could augment the Red Bird phase two production profile.

William Dunford: We are already mining an open pit at Puren today, and pending permits, we plan to extend mining through the end of the decade with this next layback of the pit. At Lobo-Marte, the project team continues to advance technical work as well as baseline studies to support our EIA. Project update will be provided with our year-end results. At Bald Mountain, technical studies, optimization work, and detailed engineering for the Redbird Phase 2 extensions are ongoing. Recall Phase 2 would bring in an additional 680,000 ounces to the mine plan beyond Phase 1 and extend production out to at least 2031. In addition, we are also progressing drilling, technical work, and studies across multiple smaller, quick payback satellite pit opportunities at Bald that sit in our resource and could augment the Redbird Phase 2 production profile.

We're already mining in open pit at Purion today, and pending permits we plan to extend mining through the end of the decade with this next layback.

Our global Mart take the product team continues to advance technical work as well as baseline studies to support R&D.

Project update will be provided with our year end results.

At Bald Mountain Technical studies optimization work and detailed engineering for the Redbird phase two extensions are ongoing.

Recall phase two would bring in an additional 680000 ounces to the mine plan beyond phase, one and extend production out to at least 2031.

In addition, we are also progressing drilling technical work and studies across multiple smaller quick payback satellite at opportunities that Paul that sit in our resource and coda augment the redbird phase II production profile.

William Dunford: The prolific land package at Bald with over 40 historic open pits on the property continues to provide strong targets for mine life extensions and is a focus for our exploration and technical teams. Moving to Curlew, drilling in Q2 continued to highlight strong grades and widths, further improving the quality of the project and showing potential for high-margin underground production. This drilling included intersections of approximately six meters true width at 14 grams per ton at Stel and approximately five meters true width at 12 grams per ton at K5. We have seen impressive growth of the resource size, quality, and grade over the last few years at Curlew, and with these exploration results, we continue to see potential for further high-value extensions.

William Dunford: Prolific land package at Bald with over 40 historic open pits on the property, continues to provide strong targets for mine life extensions and is a focus for our exploration and technical teams. Moving to Curlew, drilling in Q2 continued to highlight strong grades and widths, further improving the quality of the project and showing potential for high-margin underground production. This drilling included intersections of approximately 6m true width at 14 grams per ton at Stealth and approximately 5m true width at 12 grams per ton at K5. We've seen impressive growth of the resource size, quality, and grade over the last few years at Curlew. With these exploration results, we continue to see potential for further high-value extensions.

Prolific land package of ball over 40 historical on the property continues to provide strong targets for mine life extensions. There is a focus for our exploration and technical teams.

Moving to currently drilling in Q2 continued to highlight strong grades and words further improving the quality of the project and showing potential for high margin underground production.

This drilling included intersections of approximately six meters true width of 14 grams per tonne itself and approximately five meters true width, and 12 grams per tonne in Q five.

We've seen impressive growth of the resource size quality and grade over the last few years at Carlin and once these exploration results, we continue to see potential for further high value extensions.

William Dunford: The underground development has advanced over 800 meters as we extend our decline at depth towards our 2023 discovery at Roadrunner and along strike at Stel to target further extensions of high-grade mineralization. Technical studies and detailed engineering are also progressing well. A resource and project update for Curlew will be provided with our 2025 year-end results. At phase X, development of the underground exploration decline continues to advance with over 4,500 meters developed to date. Infill drilling is also progressing well with good coverage now extending across both the upper and lower target zones. The results are again showing good grades and widths in both areas, further increasing confidence in our initial exploration thesis of a bulk mining target at phase X. You can also see on the slide holes DX 162 and 163, which were extension holes drilled down depth of our primary exploration target.

William Dunford: The underground development has advanced over 800 meters as we extend our decline at depth towards our 2023 discovery at Roadrunner and along strike at Stealth to target further extensions of high-grade mineralization. Technical studies and detailed engineering are also progressing well. A resource and project update for Curlew will be provided with our 2025 year-end results. At Phase X, development of the underground exploration decline continues to advance with over 4,500 meters developed to date. Infill drilling is also progressing well, with good coverage now extending across both the upper and lower target zones. The results are again showing good grades and widths in both areas, further increasing confidence in our initial exploration thesis of a bulk mining target at Phase X. You can also see on the slide holes DX-162 and 163, which were extension holes drilled down dip of our primary exploration target.

The underground development has advanced over 800 meters as we extend our decline at depth sports our 2023 discovery at Roadrunner and along strike itself targeting further extensions of high grade mineralization.

Technical studies and detailed engineering are also progressing well.

Our resource and project update for <unk> will be provided with our 2025 year end results.

In phase <unk> development of the underground exploration decline continues to advance with over 4500 meters developed to date.

Infill drilling is also progressing well with good coverage now extending across both the upper and lower target zones.

The results are again, showing good grades and widths in both areas further increasing confidence in our initial exploration thesis of our bulk binding target of paybacks.

You can also see on the slide <unk>, Dx 162, and $1 63, which were extension holes drilled down dip of our primary exploration targets.

William Dunford: With widths in excess of 60 meters and grades of around three grams per ton, the results of these extension holes show continuation of mineralization outside of the original target area. Beyond the exciting exploration results, engineering work and technical studies to support project execution of a potential underground mine in the main target area are also advancing well, including development of the underground mine design and schedule, extensive geotechnical studies, and studies for a paste backfill facility. The completion of the ongoing drill program and technical work will support a planned initial underground resource estimate and a project update for phase X as part of our year-end results update. At Great Bear, work on the AEX program and main project is progressing well. We have made significant progress on construction with the AEX camp nearing completion and earthwork activities in the portal area well advanced.

William Dunford: With widths in excess of 60 meters and grades of around 3 grams per ton, the results of these extension holes show continuation of mineralization outside of the original target area. Beyond the exciting exploration results, engineering work and technical studies to support project execution of a potential underground mine in the main target area are also advancing well, including development of the underground mine design and schedule, extensive geotechnical studies, and studies for a paste backfill facility. The completion of the ongoing drill program and technical work will support a planned initial underground resource estimate and a project update for Phase X as part of our year-end results update. At Great Bear, work on the AEX program and main project is progressing well. We've made significant progress on construction with the AEX camp nearing completion and earthwork activities in the portal area well advanced.

With with an excess of 60 meters and grades of around three grams per tonne. The results of these extension holes show continuation of mineralization outside of the original target area.

Beyond the exciting exploration results engineering work and technical studies to support project execution of a potential underground mine and the main target area are also advancing well, including development of the underground mine design and schedule extensive geotechnical studies and studies for a paste backfill facility.

The completion of the ongoing drill program and technical work will support our planned initial underground resource estimate and a project update for paybacks as part of our year end results update.

A great bear work on the <unk> program and main project is progressing well.

We've made significant progress on construction.

<unk> camp nearing completion and earthwork activities in the portal area well advanced.

William Dunford: You can also see on the slide that the drop cut for the portal area has advanced well with a high wall for the underground exploration decline now exposed with ground support already in place. We are excited by the progress to date and remain on track to start the initial development of the exploration decline by year-end subject to permitting. For the main project, detailed engineering for all site infrastructure is continuing to advance, including key items such as the mill and tailings facility. Initial procurement activities for major process equipment have begun with awards planned to start later this year and manufacturing of a few long lead items expected to begin next year. I will now hand it over to Geoff Gold to provide a brief update on Great Bear permitting.

William Dunford: You can also see on the slide that the drop cut for the portal area has advanced well, with the high wall for the underground exploration decline now exposed with ground support already in place. We are excited by the progress to date and remain on track to start the initial development of the exploration decline by year-end, subject to permitting. For the main project, detailed engineering for all site infrastructure is continuing to advance, including key items such as the mill and tailings facility. Initial procurement activities for major process equipment have begun, with awards planned to start later this year, and manufacturing of a few long lead items expected to begin next year. I will now hand it over to Geoff to provide a brief update on Great Bear permitting.

Can also see on the slide that the drop cut for the portal area has the best well with the high wall for the underground exploration decline now exposed with ground support already in place.

We are excited by the progress to date and remain on track to start the initial development of the exploration decline by year end subject to permitting.

The main project detailed engineering for all state infrastructure is continuing to advance including key items, such as the mill tailings facility.

Mitchell procurement activities for major process equipment have begun with awards planned to start later this year and manufacturing of a few long lead items expected to begin next year.

I'll now hand, it over to Jeff by a brief update on grade bare permitting.

Geoff Gold: Thanks, Will. Permitting of the AEX program and main project continue to advance as we work with the provincial and federal authorities. For AEX, we have the permits we need for our current activities and expect to receive our 2 remaining water permits in the near term. In terms of the main project, we continue to work with the Impact Assessment Agency of Canada to advance the project impact statement. In order to advance the statement on a timely basis, we are coordinating with this federal agency on a staged filing process. We intend to file the majority of the technical chapters by year-end and the remaining chapters by the end of Q1 2026. This approach will underpin a robust impact statement filing with the necessary technical and Indigenous contributions and to help facilitate an efficient review process.

David Shaver: Thanks, Will. Permitting of the AEX program and main project continue to advance as we work with the provincial and federal authorities. For AEX, we have the permits we need for our current activities and expect to receive our two remaining water permits in the near term. In terms of the main project, we continue to work with the Impact Assessment Agency of Canada to advance the project impact statement. In order to advance this statement on a timely basis, we are coordinating with this federal agency on a staged filing process. We intend to file the majority of the technical chapters by year-end and the remaining chapters by the end of Q1 2026. This approach will underpin a robust impact statement filing with the necessary technical and indigenous contributions and to help facilitate an efficient review process.

Thanks, Wil permitting of the AE X program and main projects continue to advance as we work with the provincial and federal authorities.

For <unk>, we have the permits we need for our current activities and expect to receive our two remaining water permits in the near term.

In terms of the main project, we continue to work with the impact assessment agency of Canada.

<unk> impact statements.

In order to advance the statement on a timely basis, we are coordinating with this federal agency on a staged filing process.

We intend to file the majority of the technical chapters by year end and the remaining chapters by the end of Q1 2026.

This approach will underpin a robust impact statement filing with the necessary technical and indigenous contributions and to help facilitate efficient review process.

David Shaver: We also continue to advance our IBA negotiations with Laxuil and Wabaskang on whose traditional territory the project resides. Laxuil and Wabaskang are progressing their independent project impact assessment work, which will help facilitate federal and provincial permitting on the main project and the completion of the IBA. I will now turn it back to Paul for closing remarks.

Geoff Gold: We also continue to advance our IBA negotiations with Lax Kw'alaams and Wabauskang, on whose traditional territory the project resides. Lax Kw'alaams and Wabauskang are progressing their independent project impact assessment work, which will help facilitate federal and provincial permitting on the main project and the completion of the IBA. I will now turn it back to Paul for closing remarks.

We also continue to advance our IV a negotiations with lack sue <unk> on his traditional territory the project resides.

Actual in wireless gang are progressing they're independent.

<unk> impact assessment work, which will help facilitate federal and provincial permitting on the main project.

And the completion of the IV.

I will now turn it back to Paul for closing remarks.

Paul Rollinson: Thanks, Jeff. After another strong quarter and a great H1 of 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. We have an attractive return of capital through both the dividend and share buybacks. We have an exciting organic pipeline, and we are very proud of our commitment to responsible mining that continues to make us a leader in sustainability. With that, operator, I'd like to open up the line for questions.

Paul Rollinson: Thanks, Geoff. After another strong quarter and a great first half of 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. We have an attractive return of capital through both the dividend and share buybacks. We have an exciting organic pipeline, and we are very proud of our commitment to responsible gold mining that continues to make us a leader in sustainability. With that, operator, I'd like to open up the line for questions.

Thanks, Jeff.

After another strong quarter and a great first half of 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.

We have an attractive return of capital through both the dividend and share buybacks.

We have an exciting organic pipeline.

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

That continues to make us a leader in sustainability.

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

Operator: Thank you. At this time, I would like to remind everyone, to ask a question, press star one on your telephone keypad, and we will pause for just a moment to compile the Q&A roster. Our first question comes from Fahad Ghauri with Jefferies. Please go ahead.

Tina: Thank you. At this time, I would like to remind everyone to ask a question. Press star one on your telephone keypad, and we will pause for just a moment to compile the Q&A roster. Our first question comes from Bahad Garik with Jefferies. Please go ahead.

Thank you at this time I would like to remind everyone to ask a question press star one on your telephone keypad and we'll pause for just a moment to compile the Q&A roster.

Our first question comes from.

<unk> <unk> with Jefferies. Please go ahead.

Fahad Ghauri: Hi. Can you hear me?

Bahad Garik: Hi. Can you hear me?

Hi can you hear me.

Paul Rollinson: Yep. We can hear you.

Paul Rollinson: Yep, we can hear you.

Yes, we can hear you.

Bahad Garik: Okay, great. Thank you. I just wanted to ask about Bald Mountain. The grades were, of course, very high in Q2 due to the LBM pit. Maybe just remind us how to think about the second half at Bald Mountain.

Fahad Ghauri: Okay, great. Thank you. I just wanted to ask about Bald Mountain. The grades were, of course, very high in Q2 due to the LBM pit. Maybe just remind us how to think about the H2 at Bald Mountain.

Okay, great. Thank you I just wanted to ask about Bald mountain. The grids are of course very high in the second quarter due to the LPN pets, maybe just remind us how to think about the second half at Bald mountain.

Claude Schimper: Yeah, Fahad, it's Claude here. Morning. Yeah, we've had a very strong H1 of the year at Bald. The H2 will be slightly off the pace as we continue to push on Redbird startup, which is progressing very well. From a production point of view, we expect it to be slightly less than the Q1 because we don't have the same LBM grades since we've now finished that area.

Claude Schimper: Paul, at the close. Morning. We have had a very strong first half of the year in gold. The second half will be slightly off the plate as we continue to push on the Red Bird startup, which is progressing very well. From a production point of view, we expect it to be slightly less in the first quarter because we do not have the same LBM grades because we have now finished that area.

Yes part of the call.

Yes, good morning.

And we've had a very strong first half.

All the.

The second half movies.

The prices, we continue to push on the reboot.

Startup, which is progressing very well.

A production point of view.

We expect it to be slightly less than the first quarter, because we don't have the same albion grades now finished.

Yeah.

Bahad Garik: Okay. Then maybe just taking a step back, the U.S. operations as a whole, it seems like it could be trending above the midpoint of full-year guidance. Maybe just walk us through. Are there any offsets that we should be thinking about? It sounds like Bald Mountain and Round will be pretty strong in the second half as well.

Fahad Ghauri: Okay. Maybe just taking a step back, the US operations as a whole, it seems like it could be trending above the midpoint of full-year guidance. Maybe just walk us through, are there any offsets that we should be thinking about? It sounds like Bald Mountain and Round Mountain will be pretty strong in H2 as well.

Okay, and then maybe just taking a step back the U S operations as a whole.

It seems like it could be trending above.

The midpoint of full year guidance, maybe just walk us through are there any offsets that we should be thinking about it sounds like bald mountain and round will be pretty strong in the second half as well.

Claude Schimper: Yeah, we expect to continue the good performance from the US operations. Obviously, our H2 will be slightly lower at Fort Knox as we cycle out the different production from Manh Choh and Fort Knox. I think as we've said across the board, we've had a very strong H1 of the year from all the sites and good contributions. We do expect the H2 in the US to be slightly lower. As Andrea said, that's impacting the cost as well.

Claude Schimper: Yeah, we expect to continue the good performance from the U.S. operations. Obviously, our second half will be slightly lower at Fort Knox as we cycle out the different production from Manh Choh and Fort Knox. I think, as we've said across the board, we've had a very strong first half of the year from all the sites and good contributions. We do expect the second half in the U.S. to be slightly lower. As Andrea Freeborough said, that's impacting the cost as well.

Yeah, we expect to continue the good performance from the from the U S operations.

Obviously, our second half will be slightly lower.

Fort Knox as Reece.

We cycle out the different production from Minto and.

And Fort Knox.

So I think we do.

As we've said across the board we've had a very strong.

First half of the year from all the signs are good contributions.

Do you expect to see.

In the U S to be slightly lower.

As Andrea said thats impacting the cost as well.

Yes.

Bahad Garik: Okay. Thank you.

Fahad Ghauri: Okay. Thank you.

Okay. Thank you.

Operator: Again, to ask a question, press star one. Your next question comes from the line of Carey MacRury with Canaccord Genuity. Please go ahead.

Tina: Again, to ask a question, press star one. Your next question comes from the line of Carey MacRury with Canaccord Genuity. Please go ahead.

I want to ask a question press star one.

Your next question comes from the line of Kerry Macquarie with Canaccord Genuity. Please go ahead.

Carey MacRury: Good morning, everyone, and congrats on the good quarter. Maybe first on the Puran for laid back. Just wondering if you can give us a bit more color on what that looks like from a tons of ore perspective and grade and maybe strip ratio if you can.

Carey MacRury: Hi, good morning, everyone, and congrats on the good quarter. Maybe first on the Puren for layback. Just wondering if you can give us a bit more color on what that looks like from a tons of ore perspective and grade and maybe strip ratio, if you can.

Hey, good morning, everyone and congrats on the good quarter maybe.

Maybe first on the Purion is four laid back just wondering if you can just give us a bit more color on what that looks like from a tons of ore perspective grade maybe strip ratio will begin.

William Dunford: Yeah, we can give you a sense of it. We've got about a little over half a million ounces of resource there. I think the average grade there is similar to what we've seen in the past around that 2 gram per ton mark, potentially a little bit lower as we continue to optimize the pit there. We see the potential to continue with similar.

William Dunford: Yeah, we can give you a sense of it. We are looking at, we have got about a little over half a million ounces of resource there. I think the average grade there is similar to what we have seen in the past around that two gram per ton mark, potentially a little bit lower as we continue to optimize the pit there. So we see the potential to continue with similar gold mining at Puran 4 to what we have seen in Puran 2.

Yes, we can give you a sense of it.

We're looking at we've got about a little over half a million ounces of resource there.

And I think the average grade there is similar to what we've seen in the past around that two gram per tonne, mark potentially a little bit lower as we continue to optimize the pit there.

So we see the potential to continue with similar mining.

William Dunford: mining at Puren 4 to what we've seen in Puren 2.

And Florida, what we've seen in <unk>.

Carey MacRury: Any high-level thoughts on strip ratio?

Bahad Garik: And any high-level thoughts on strip ratio?

And any high level thoughts on strip ratio.

William Dunford: We might have to get back to you on that. I'm not sure off the top of my head the exact strip ratio of the extensions. I think it's relatively similar to what we've been doing. You can see in the image that we've stripped the majority of the deposit already.

William Dunford: Yeah, we might have to get back to you on that. I am not sure off the top of my head the exact strip ratio of the extensions. I think it is relatively similar to what we have been doing. You can see in the image that we have stripped the majority of the deposit already.

Yes, we might have to get back to you on that.

I'm not sure off the top of my head the exact strip ratio of the extension.

Relatively similar to what we've been doing you can see on the image that we stripped the majority of the deposit already.

Carey MacRury: Okay, fair enough. Maybe for Andrea. You're focused on paying down the $500 million debt due, I think, in 2026 or 2027. Beyond that, is there any plans to buy back any debt earlier, or are you comfortable to hold that debt? It is pretty long-term and pretty attractive rates.

Carey MacRury: Okay, fair enough. Then maybe for Andrea, you know you are focused on paying down the $500 million debt due, I think, in 2026 or 2027. But beyond that, are there any plans to buy back any debt earlier, or are you comfortable to hold that debt at pretty long-term and pretty attractive rates?

Okay Fair enough and then maybe for Andrea.

Your focus on paying down the $500 million debt due I think in 2006 to seven but beyond that is there any plans to buyback any debt earlier or are you comfortable that it is pretty long term in pretty pretty attractive rates.

Andrea Freeborough: Yeah. There's obviously a cost associated with retiring debt early. First up is the 2027, as you said. We expect to repay those either at or potentially before maturity. Taking a step back, we're just expecting to get to net cash in Q3. We've talked previously about sort of a minimum cash balance around $500 million. We're now at the end of Q2 at $1 billion, which is the minimum cash of 500 plus 500 that we could use to repay the 2027. That's sort of where we sit today, but we're certainly comfortable continuing to grow the cash balance.

Andrea Freeborough: Yeah, there is obviously a cost, always a cost associated with retiring debt early. First up is the 2027 WSEF, so we expect to repay those either at or potentially before maturity. Taking a step back, we are just expecting to get to net cash in the third quarter. We have talked previously about a minimum cash balance around $500 million. We are now at the end of Q2 at a billion, which is the minimum cash of $500 million plus $500 million that we could use to repay the 2027. So that is where we sit today, but we are certainly comfortable continuing to grow the cash balance.

Yeah, I mean, there's obviously a cost.

The costs associated with retiring debt early.

First up is the 2027 at G. Fast so we expect to repay those either.

Or potentially perform maturity, taking a step back I mean, we're just expecting to get to net cash in the third quarter. So and we've talked previously about sort of a minimum cash balance around $500 million.

We're now at the end of Q2 1 billion, which is the minimum cash of 500 500 that we could use to repay the 2020.

I'm, sorry, where we sit today, but we're certainly comfortable continuing to grow the cash crop.

Carey MacRury: That's it for me. Thanks.

Carey MacRury: Right. That's it for me. Thanks.

That's it for me thanks.

Operator: Our final question comes from the line of Tanya Jakusconek with Scotiabank. Please go ahead.

Tina: Our final question comes from the line of Tanya Jakusconek with Scotiabank. Please go ahead.

And our final question comes from the line of.

Hi, Tanya <unk> with Scotiabank. Please go ahead.

Tanya Jakusconek: Oh, great. Good morning. Thank you for taking my questions. Congrats on a good quarter. The first one is just, Andrea, if I can continue your line of thought on your free cash flow. We're going to be net cash positive in Q3. You've got that $1 billion in cash on the balance sheet. You're going to pay down the $500 million notes in 2027. Should I be thinking if I keep the cash in that $500 million range, anything above and beyond would go to your share buyback?

Tanya Jakusconek: Great. Good morning. Thank you for taking my questions. Congrats on a good quarter. The first one is just, Andrea Freeborough, if I can continue your line of thought on your free cash flow. We are going to be net cash positive in Q3. You have got that billion dollars in cash on the balance sheet. You are going to pay down the $500 million notes in 2027. Should I be thinking then if I keep the cash in that $500 million range, anything above and beyond would go to your share buyback?

Oh, great. Good morning, Thank you for taking my question.

Congrats on a good quarter.

First one is just Andrew if I can continue your line of thought on your free cash flow. So we're going to be net cash positive in Q3, you've got that billion dollars on Mac and cash on the balance sheet, you're going to pay down the 500 million note in 2027 should I be thinking that if I keep the cash.

In that $500 million range anything above and beyond would go to your share buyback.

Paul Rollinson: Yeah. Maybe I'll jump in on that one, Tanya. Thanks for the question. Yeah, look, I guess I would just say, number 1, what's important here is we're going to do what we say we will. We did commit to $500 million in buybacks. Again, context, we're all very happy with where the gold price is. For context, we just reactivated the buyback in Q2, and now we're reporting Q2. So far, so good. We're definitely committed to the $500 and the $150, so $650 of returning capital. As we look through the windshield later into the year, it's all kind of gold price dependent. We've always said, we also want to continue to build cash on the balance sheet. I guess it feels early days to sort of make a prediction on what we might do with excess cash.

Yeah, maybe I'll jump in on that one.

Paul Rollinson: Maybe I will jump in on that one, Tanya. Thanks for the question. Look, I guess I would just say, number one, what is important here is we are going to do what we say we will. We did commit to $500 million in buybacks. Again, context, we are all very happy with where the gold price is, but for context, we just reactivated the buyback in Q2. Now we are reporting Q2. So far, so good. We are definitely committed to the $500 million and the $150 million, so $650 million in return of capital. As we look through the windshield later into the year, it is all kind of gold price dependent. We have always said we also want to continue to build cash on the balance sheet.

And yet.

Thanks for the question.

Yeah look I guess I would just say <unk>.

Number one what's important here is we're going to do what we say we will.

And we did commit to $500 million in buybacks.

Again context, we're all very happy with where gold prices, but for for.

For context.

We just reactivated the buyback.

In Q2.

Now we're reporting Q2.

And so far so good so we're definitely committed to the 500 and the 150650 of returning capital.

As we look through the windshield later into the year.

It's all kind of gold price dependent and.

We've always said.

We also want to continue to build cash on the balance sheet. So.

Paul Rollinson: I guess it feels early days to sort of make a prediction on what we might do with excess cash at this point. It is kind of hypothetical. I think what is important is it is clear that we have been buying and will continue to buy. If all of this positive gold price continues, our expectation is we will keep going with the buyback next year and perhaps the year after, depending upon share price and gold price.

I guess it feels early days.

To make a prediction on what we might do with excess cash at this point, it's kind of hypothetical.

Paul Rollinson: At this point, it's kind of hypothetical. I think what's important is, it's clear that we have been buying and will continue to buy. If all of this positive gold price continues, our expectation is we'll keep going with the buyback next year and perhaps the year after, depending upon share price and gold price.

But I think what's important is it's clear that we.

We have been buying and we'll continue to buy and if all of this.

Positive gold price continues.

Our expectation is we will keep going with the buyback next year in <unk>.

The year after.

Depending upon share price.

Coal price.

Tanya Jakusconek: Okay. Yeah, thank you for that. If I could ask a second question, I am trying to understand how you are getting through your budgeting phase as you look forward to 2026. How are you thinking about your life of mine plans and your gold reserves and gold resources base? It is quite different from, you know, lower gold price assumptions versus where the gold price is today. So I am trying to understand how you are approaching your life of mine plans and your gold reserves and gold resources given the discrepancy in pricing.

Tanya Jakusconek: Okay. Yeah. Thank you for that. If I could ask a second question, I'm trying to understand how you're getting through your budgeting phase as you look forward to 2026. How are you thinking about your life of mine plans and your reserve and resource base? It's quite different from lower gold price assumptions versus where the gold price is today. I'm trying to understand how you're approaching your life of mine plans and your reserves and resources, given the discrepancy in pricing.

Okay. Yeah. Thank you for that and if I could ask a second question.

I'm trying to understand how.

You're getting through your budgeting phase as you look for full year 2026.

Are you thinking about your life of mine plans.

There are and resource base I mean, it's quite different from.

Lower gold price assumption is flat.

<unk> prices today, so I'm, just trying to understand how youre approaching you.

Your life of mine plan and dealer.

Or is it everything is given back in sand pricing.

Paul Rollinson: Yeah, maybe I will take that one as well. Yeah, I mean, it is interesting times. I am looking at SLOT and I am looking at, for example, long-term consensus commodity prices that you guys are using, and there has never been as big a lag. I think we are all kind of absorbing, digesting, where is this gold price going? Where is it going to last? I think if the gold prices hang in around current levels or higher, you will probably expect the industry will move up their reserve resource pricing again. But those are decisions that happen towards the end of the year. Key point for us, though, is we do not need those higher prices. We have said many times we are not in a high-price environment dropping our cutoff grades. We are absolutely focused on, you know, margin cash flow value creation.

Paul Rollinson: Yeah, maybe I'll take that one as well. It's interesting times. I'm looking at spot and I'm looking at, for example, long-term consensus commodity prices that you guys are using, and there's never been this big a lag. I think we're all kind of absorbing, digesting, where is this gold price going? Where is it going to last? If the gold prices hang in around current levels or higher, you'll probably expect the industry will move up their reserve resource pricing again. Those are decisions that happen towards the end of the year. Key point for us, though, is we don't need those higher prices. We've said many times we're not in a high-price environment dropping our cut-off grades. We're absolutely focused on margin cash flow value creation. You're right.

Yes, maybe I'll, maybe I'll take that one as well.

Yes.

It's interesting times.

I'm looking at spot and I'm looking at for example, long term consensus.

Commodity prices that you guys are using and there has never been as big a lag.

So I think we're all kind of.

Absorbing digesting.

Or is this gold price going where is it going to last.

If the coal prices hang in around current levels or higher.

Youll, probably expect the industry well.

Move up their reserve resource pricing again, but those are decisions that happened.

Towards the end of the year key point for US, though is we don't need those higher prices.

<unk> said many times, we're not in a high price.

<unk> dropping our cutoff grades we're absolutely focused on.

<unk> margin.

Margin cash flow value creation.

Paul Rollinson: But you are right, as William Dunford alluded to, we have a lot of optionality in our portfolio. We are getting really good results in exploration. So we are advancing more studies. I think the way I would think about those studies and the optionality is really about, you know, more production in the 30s. So, as it relates to the gold price, as you can expect, we are going to look at a range of prices, just like we look at payback, Bangford Buck, IRR. But it is a good place to be. We have got a significant amount of optionality. The gold price certainly, and combined with the exploration results, gives us lots to think about. But right now, we are not using any higher gold prices than what we have got currently in our reserve resource.

But you're right.

Paul Rollinson: As Will alluded to, we have a lot of optionality in our portfolio, we're getting really good results in exploration. We're advancing more studies. I think the way I would think about those studies and the optionality is really about more production in the 30s. As it relates to the gold price. As you can expect, we're going to look at a range of prices, just like we look at payback, bang for buck, IRR. It's a good place to be. We've got a significant amount of optionality. The gold price, certainly, combined with the exploration results, gives us lots to think about. Right now, we're not using any higher gold prices than what we've got currently in our reserve resource.

<unk> will alluded to.

We have a lot of optionality in our portfolio.

And we're getting really good results in exploration.

And so we're advancing more studies.

And I think the way I would think about those studies and the Optionality is is really about.

More production in the thirties.

And so.

And as it relates to the gold price.

And as you can expect we're going to look at a range of prices just like we look at payback and for.

For back IRR, but it's a good place to be we've got a significant amount of optionality.

The gold price.

Certainly.

Combined with the exploration results it gives us lots to think about.

Right now, we're not using any higher gold prices than what we're we've got currently in our reserve resource.

Tanya Jakusconek: No, yeah, I appreciate that. It's an interesting time for the industry. Never had this discrepancy before and a Hollywood problem, I guess.

Tanya Jakusconek: Yeah, I appreciate that. It's an interesting time for the industry. Never had this discrepancy before. Hollywood problem, I guess. My final question, if I could, despite the gold price, can we just talk about some of your properties where you are seeing exploration results that you are going to be able to replace gold reserves regardless of the gold price? What properties?

No I appreciate that it's.

An interesting time for the industry never had this discrepancy before and Hollywood problem I guess.

Paul Rollinson: Yeah.

Tanya Jakusconek: Maybe my final question, if I could. Despite the gold price, can we just talk about some of your properties where you are seeing these exploration results that you're going to be able to replace reserves, regardless of the gold price? What properties are these?

And maybe my question if I could.

<unk>.

Despite the gold price can we just talk about some of your properties, where you are seeing you know these exploration results that you are going to be able to replace reserves.

Regardless of the gold price.

What properties are key.

Paul Rollinson: I think the key areas where I think we're really excited is at Curlew, which Will alluded to, and Phase X, where these are brownfield development. I think we're guiding softly that these could be contributors in around 2028. Two things are happening there. They're growing in size, and we're getting good grades on width. They're moving in the right direction. I would highlight those two in particular.

Paul Rollinson: I think the key.

Tanya Jakusconek: Well.

Paul Rollinson: Yeah, I mean, the key areas where I think we are really excited is that Curlew, which Will alluded to in phase X, where, you know, these are brownfield development. I think we are, you know, we are kind of guiding softly that these could be contributors in around 2028. Two things are happening there. We are getting, they are growing in size, and we are getting good grades and widths. So they are moving in the right direction. I would highlight those two in particular.

Yes, I mean, the key areas, where I think we're really excited us is that currently.

Which will alluded to in <unk>.

These are brownfield development.

I think we are.

We're we're kind of guiding softly that these can be contributors.

2028.

Two things are happening there we're getting.

They are growing in size and we're getting good grades and wet so they're moving in the right direction.

I would highlight those two in particular.

Tanya Jakusconek: Okay. Thank you very much for taking my questions.

Tanya Jakusconek: Okay. Thank you very much for taking my question.

Okay. Thank you very much for taking my question.

Paul Rollinson: Thanks, Tanya.

Paul Rollinson: Thanks, Tanya.

Thanks.

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

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

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

Anita Soni: Hi. Good morning, guys. Thanks for taking my question. Most of them have been asked and answered already in terms of capital allocation and gold prices, and the reserve replacement. Could you just give a little color on Lobo-Marte and how you see that fitting into the fold, and the work you're doing there?

Anita Soni: Hi. Good morning, guys. Thanks for taking my question. Most of them have been asked and answered already in terms of capital allocation, gold prices, and the reserve replacement. Could you just give a little color on Lobo Marte and how you see that fitting into the fold and the work you are doing there?

Hi, Good morning, guys. Thanks for taking my question. So most of them asked and answered already in terms of capital allocation in gold prices and the reserve replacement, but could you just give a little color on on logo, Marty and how you see that fitting into the fold and the work Youre doing there.

William Dunford: Sure. Yeah. As you know, we released an FS on Lobo-Marte a few years ago. We're really in the permitting process right now, so we're making sure we're doing the robust technical work to support that permit submission. We see that as a really strong AISC high margin mine, really just on the back of the grade. It's 1.3 gram per ton going onto a heap leach. It's a really strong economics.

William Dunford: Sure. Yeah. We, as you know, we released an FS on Lobo Marte a few years ago. We are really in the permitting process right now. So we are making sure we are doing the robust technical work to support that permit submission. We see that as a really, really strong ASIC high-margin mine, really just on the back of the grade. It is 1.3 gram per ton going onto a heat leach. It is a really strong economics.

Sure Yes.

As you know, we released MFS on lower Mark to a few years ago.

And we're really in the permitting process right now so we're making sure we're doing the robust technical work to support that permit submission.

We see that is it really really strong ASIC high margin.

Mine really just on the back of the great. It's one three gram per tonne going onto a heap leach so really strong economics.

Paul Rollinson: Low strip.

Paul Rollinson: Most strip.

William Dunford: Low strip ratio, yeah, two to one strip. So it is going to be a really good contributor in the 30s. We are just going through the process of getting ready for the permitting efforts right now. We will, you know, it is kind of on that escalator to get it into the production profile, doing all the right upfront work.

William Dunford: Low strip ratio. Yeah, 2 to 1 strip. It's going to be a really good contributor in the 30s. We're just going through the process of getting ready for the permitting efforts right now. It's on that escalator to get it into the production profile, doing all the right upfront work.

Low strip ratio two to one strip.

<unk> going to be a really good contributor in the thirties, we're just going through the process of getting ready for the permitting efforts right now.

Well, it's kind of on that on that escalator to get it into the production profile.

All the right upfront work.

Anita Soni: All right. Thanks for taking my question, and congrats on a great quarter.

Anita Soni: All right. Thanks for taking my question. Congrats on a great quarter.

Alright, Thanks for taking my question congrats on a great quarter.

William Dunford: Thanks.

Thanks.

Operator: Your next question comes from the line of Carey MacRury with Canaccord Genuity.

Tina: Your next question comes from the line of Carey MacRury with Canaccord Genuity.

Your next question comes from the line of Terry Macquarie.

Macquarie with Canaccord.

Genuity.

Carey MacRury: Hi. Wanted to follow up on the higher costs expected in H2. Andrea, you mentioned that that's going to occur at a number of operations. Wondering if you can just highlight which of those operations we should be looking at.

Carey MacRury: Hi. I just wanted to follow up on the higher costs expected in the second half. Andrea, you mentioned that that's going to occur at a number of operations. Just wondering if you can just highlight which of those operations we may be looking at.

I just wanted to follow up on the higher cost expected in the second half Andrew you mentioned, that's going to occur at a number of operations. Just wondering if you can just highlight which of those operations we should be looking at.

Andrea Freeborough: Sure. I mentioned previously, I think even back last quarter, there's a couple of operations where we're moving from stripping being characterized as capital to operating waste. That's Fort Knox Phase 10, Round Mountain Phase S, and then at Tasiast, we also have more operating waste in the H2 and planned lower grades. Those are sort of the 3 operations where we're seeing the change in stripping cost characterization. There's some other impacts as well. At Paracatu, we expect higher power costs in the H2. That's just typical seasonality. Potentially higher power costs in Alaska. All of that is just reflected in our guidance. We're still on guidance for our annual guidance for the year, and this is just explaining why the H2 is higher than the H1 to go to those guidance numbers.

Andrea Freeborough: Sure. So I mentioned previously, I think even back last quarter, there is a couple of operations where we are moving from stripping being characterized as capital to operating waste. So that is Fort Knox, Fayette County, Round Mountain, state best. Then at Tasius, we also have more operating waste in the second half and planned lower grade. So those are sort of the three operations where we are seeing the change in stripping cost characterization. There are some other impacts as well. So at Percatu, we expect higher power costs in the second half. That is just typical seasonality. Also potentially higher power costs in Alaska. All of that is just reflected in our guidance. So we are still on guidance for our annual guidance for the year. This is just explaining why the second half is higher than the first half to get us to those guidance numbers.

Sure. So I've mentioned previously I think you've been back last quarter.

There's a couple of operations, where we're moving from stripping being characterized as capital to operating at waste. So.

Fort Knox phase can round match in phase II.

And then at Tasiast, we also have more operating waste in the second half and planned lower grades.

Although that story of that tree.

Operations, where we're seeing the.

The change in that.

Stripping cost characterization.

There's some other some other impacts as well sell at Cherokee sale, we expect higher power cost in the second half that's the typical seasonality.

And also potentially higher power costs in Alaska all of that is just price.

Factored in our guidance that we're still on guidance for our annual guidance for the year and just explaining.

Explaining why the second half is higher than the first half.

That guidance number.

Carey MacRury: Okay, great. That's helpful. Thanks, Andrea.

Carey MacRury: Great. That's helpful. Thanks, Andrea.

Okay, Great that's helpful. Thanks Sandra.

Operator: With no further questions in the queue, I will turn the call back over to Paul Rollinson for closing remarks.

Tina: With no further questions in the queue, I will turn the call back over to Paul Rollinson for closing remarks.

And with no further questions in the queue I will turn the call back over to Paul Rawlings for closing remarks.

Paul Rollinson: Great. Thank you, operator. Thanks, everyone, for joining us this morning. We look forward to catching up with you in person in the coming weeks. Thank you.

Paul Rollinson: Thank you, operator. Thanks, everyone, for joining us this morning. We look forward to catching up with you in person in the coming weeks. Thank you.

Alright. Thank you operator, thanks, everyone for joining us this morning.

Catching up with you in person in the coming weeks. Thank you.

Operator: Thank you again for joining us today. This does conclude today's presentation. You may now disconnect.

Tina: Thank you again for joining us today. This does conclude today's presentation. You may now disconnect.

Thank you again for joining US today. This does conclude today's presentation you may now disconnect.

Tanya Jakusconek: Please wait. The conference will begin shortly.

Andrea Freeborough: Please wait. The conference will begin shortly.

Please wait the conference will begin shortly.

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Okay.