Q3 2025 Kinross Gold Corp Earnings Call

Speaker #4: Hello and thank you for standing by . My name is Mark and I will be your conference operator today . At this time , I would like to welcome everyone to the KINROSS GOLD CORP third quarter 2020 results conference call and webcast .

Operator 2: Hello, thank you for standing by. My name is Mark. I will be your conference operator today. At this time, I would like to welcome everyone to the Kinross Gold Q3 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 1 on your telephone keypad. To withdraw your question, press Star 1 again. Now, I would like to turn the call over to David Shaver, Senior Vice President, Investor Relations. Please go ahead.

Speaker #4: 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 .

Speaker #4: If you would like to ask a question during this time , simply press star , followed by the number one on your telephone keypad .

Speaker #4: And to withdraw your question , press star one again . Now I would like to turn the call over to David Shaver Senior Vice President , Investor Relations .

Speaker #4: Please go ahead .

Speaker #5: 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 .

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, William Dunford, and Geoff 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 4 November 2025, the MD&A for the period ended 30 September 2025, and our most recently filed AIF, all of which are available on our website. I will now turn the call over to Paul.

Speaker #5: Andrea Freeborough Claude Schimper William Dunford and Jeff Gould . 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 .

Speaker #5: Our news release , dated November 4th , 2025 . The mDNA for the period ended September 30th , 2025 and our most recently filed AIF , all of which are available on our website .

Speaker #5: I will now turn the call over to Paul . Thanks .

Paul Rollinson: Thanks, David, and thank you all for joining us. This morning, I will discuss our Q3 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 an excellent H1, our portfolio of mines continued to perform well in Q3. Production in the quarter was on plan, delivering 504,000 ounces at a cost of sales of $1,145 per ounce. The strength of our operating portfolio, combined with good cost management and favorable gold prices, resulted in another quarter of strong operating margins. As a result, in Q3, we delivered another quarter of record free cash flow of nearly $700 million and over $1.7 billion year-to-date.

Speaker #6: David , and thank you all for joining us this morning . I will discuss our third quarter results , provide high level updates across our portfolio , comment on sustainability , and confirm our outlook .

Speaker #6: I will then hand the call over to the team to provide more detail . Following an excellent first half , hour portfolio of mines continued to perform well in Q3 .

Speaker #6: Production in the quarter was on plan , delivering 504,000oz at a cost of sales of $1,145 per ounce . The strength of our operating portfolio , combined with good cost management and favorable gold prices , resulted in another quarter of strong operating margins .

Speaker #6: As a result , in Q3 , we delivered another quarter of record free cash flow of nearly $700 million and over $1.7 billion year to date .

Speaker #6: Our business is in excellent shape , underpinned by a very strong balance sheet , robust operational outlook and significant cash flow generation . In accordance with our disciplined capital allocation framework .

Paul Rollinson: Our business is in excellent shape, underpinned by a very strong balance sheet, robust operational outlook, and significant cash flow generation. In accordance with our disciplined capital allocation framework, we are committed to further strengthening our balance sheet through additional debt repayment and enhancing returns for shareholders. We have returned significant capital through our dividend and share repurchases. Given our strong position, we are now planning to increase our return of capital to shareholders beyond the minimum $650 million we committed for this year. Andrea will provide further details on our capital allocation plans later. Turning to our operational highlights. In Q3, Paracatu and Tasiast delivered substantial production at good costs, generating robust free cash flow. Paracatu was once again the highest producer in the portfolio and remains well on track to deliver close to 600,000 ounces.

Speaker #6: We are committed to further strengthening our balance sheet through additional debt repayment and enhancing returns for shareholders . We have returned significant capital through our dividend and share repurchases .

Speaker #6: Given our strong position , we are now planning to increase our return of capital to shareholders beyond the minimum $650 million we committed for this year .

Speaker #6: Andrea will provide further details on our capital allocation plans later . Turning to our operational highlights in Q3 . Erika and Cassius delivered substantial production at good costs , generating robust free cash flow .

Speaker #6: Caricature was once again the highest producer in the portfolio and remains well on track to deliver close to 600,000oz . At Tasiast . Both the mine and mill continued to perform well , with production in the third quarter , delivering as planned and operations remain on track to beat guidance .

Paul Rollinson: At Tasiast, both the mine and mill continued to perform well, with production in Q3 delivering as planned, and operations remain on track to beat guidance. At La Coipa, performance improved in Q3, and the site remains on track to meet its full-year production guidance. At our US assets, production and costs were on budget in Q3 and also remain well-positioned to meet guidance. In Alaska, we saw consistent production with strong contributions from both Fort Knox and Man Choh. In Nevada, production from Bald Mountain and Round Mountain were as planned. At Bald Mountain, mining of Redbird-one continued to ramp up, and study work for Redbird 2, along with numerous additional satellite opportunities, is ongoing. At Round Mountain, initial production from Phase S continued to ramp up following the completion of mining at Phase W.

Speaker #6: At performance improved in the third quarter and the site remains on track to meet its full year production guidance . At our US assets , production and costs were on budget in Q3 and also remained well positioned to meet guidance in Alaska .

Speaker #6: We saw consistent production with strong contributions from both Fort Knox and Mancho in Nevada , production from Bald Mountain and Round Mountain were , as planned at Bald Mountain .

Speaker #6: Mining of Redbird . One continued to ramp up and steady work for Redbird two , along with numerous additional satellite opportunities , is ongoing at Round Mountain .

Speaker #6: Initial production from phase S continued to ramp up following the completion of mining at phase W . At phase X , underground development is progressing well , with over five kilometres advanced to date and infill drilling continues to return .

Paul Rollinson: At Phase X, underground development is progressing well with over 5 km advanced to date, and infill drilling continues to return excellent grades and widths. With respect to our broader project pipeline, we continue to make steady progress at Curlew, Great Bear, and Lobo Marte in Q3. These projects, along with other organic opportunities, continue to be backed by an extensive resource base with excellent long-term optionality. Our strong in-house technical team continues to evaluate these value-generating investment opportunities that we may choose to invest in to continue to grow shareholder value. Turning now to a few remarks on sustainability. In Q3, we continued to provide meaningful impact in our host countries. For example, in Mauritania, we contributed to local educational infrastructure by developing new school facilities in the Inchiri region. In Brazil, Paracatu's tailing facilities recently received the top-level double A classification from the engineer of record.

Speaker #6: Excellent grades and widths. With respect to our broader project pipeline, we continue to make steady progress at Curlew, Great Bear, and Lobo-Marte.

Speaker #6: In the third quarter . These projects , along with other organic opportunities , continued to be backed by an extensive resource base with excellent long term optionality .

Speaker #6: Our strong in-house technical team continues to evaluate these value generating investment opportunities that we may choose to invest in to continue to grow shareholder value .

Speaker #6: Turning now to a few remarks on sustainability in Q3 , we continued to provide meaningful impact in our host countries . For example , in Mauritania , we contributed to local educational infrastructure by developing new school facilities in the interior region in Brazil .

Speaker #6: Pericoptus Tailing facilities recently received the top level Double-A classification from the Engineer of record . This is a strong endorsement of the site's safety practices , reflecting industry leading standards in monitoring , maintenance and risk control , and in Arvada , Bald Mountain earned the Nevada Excellence in Mine Reclamation and Earthworks Award .

Paul Rollinson: This is a strong endorsement of the site's safety practices, reflecting industry-leading standards in monitoring, maintenance, and risk control. In Nevada, Bald Mountain earned the Nevada Excellence in Mine Reclamation Award. Turning now to our outlook. Through the first 9 months, we have produced over 1.5 million ounces at a cost of sales in line with our annual guidance. Operations remain on track in Q4, and we are firmly positioned to achieve our full-year targets. Looking forward, we will remain focused on rigorous operational and financial discipline to deliver strong margins and cash flow to support strong returns for our shareholders. With that, I will now turn the call over to Andrea.

Speaker #6: Turning now to our outlook . Through the first nine months , we have produced over 1.5 million ounces at a cost of sales , in line with our annual guidance .

Speaker #6: Operations remain on track in the fourth quarter , and we are firmly positioned to achieve our full year targets . Looking forward , we will remain focused on rigorous operational and financial discipline to deliver strong margins and cash flow to support strong returns for our shareholders .

Speaker #6: With that , I will now turn the call over to Andrea . Thanks , Paul .

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. In Q3, we produced and sold 504,000 gold equivalent ounces. Cost of sales was $1,145 per ounce, and with an average realized gold price of $3,458 per ounce, we delivered margins of over $2,300 per ounce. Cost of sales increased quarter-over-quarter due to planned mine sequencing and the impact of higher gold prices on royalties. All-in sustaining costs also increased as compared to Q2 for the same reasons, as well as timing of sustaining capital expenditures.

Speaker #7: This morning I will review our financial highlights from the quarter , provide an update on our balance sheet and return of capital programme , and comment on our guidance and outlook in Q3 , we produced and sold 504,000 gold equivalent ounces .

Speaker #7: Cost of sales was $1,145 per ounce , and with an average realized gold price of $3,458 per ounce , we delivered margins of over $2,300 per ounce .

Speaker #7: Cost of sales increased quarter over quarter due to planned mine sequencing , and the impact of higher gold prices on royalties , all in sustaining costs .

Speaker #7: Also increased as compared to Q2 for the same reasons , as well as timing of sustaining capital expenditures . In Q3 . Our adjusted earnings were $0.44 per share and adjusted operating cash flow was $845 million .

Andrea Freeborough: In Q3, our adjusted earnings were $0.44 per share, and adjusted operating cash flow was $845 million. Attributable CapEx was $308 million with slightly more sustaining capital versus growth. Attributable free cash flow was a record $687 million or $538 million, excluding changes in working capital. We received an additional $136 million of cash in Q3 from the prior divestiture of our Toronto mine. Turning to our balance sheet, our strong financial position continued to improve in Q3. We ended the quarter with approximately $1.7 billion in cash and approximately $3.4 billion of total liquidity, increasing by over $600 million over the prior quarter. As of Q3, our balance sheet is in a net cash position of almost $500 million.

Speaker #7: Attributable CapEx was $308 million , with slightly more sustaining capital versus growth attributable free cash flow was a record $687 million , or $538 million , excluding changes in working capital .

Speaker #7: And we received an additional $136 million of cash in Q3 from the divestiture of our Torano mine . Turning to our balance sheet , our strong financial position continued to improve in Q3 .

Andrea Freeborough: Our financial strength was recognized by S&P, who updated our credit outlook from stable to positive during the quarter. With respect to the Toronto proceeds, we received $136 million in Q3, and subsequent to the quarter, an additional $96 million, for a total of $232 million since the beginning of Q3. Since the closing of the Toronto transaction in 2022, we have realized approximately $314 million in cash proceeds compared with the original sale price of $225 million. As Paul noted, as part of our disciplined capital allocation strategy, we are further strengthening our balance sheet through additional debt repayments. Yesterday, we issued a notice to redeem our $500 million 2027 senior notes.

Andrea Freeborough: The notes will be redeemed prior to year-end, resulting in approximate interest savings of $35 million over 2026 and 2027. Following the redemption, we will have $750 million of senior notes outstanding, maturing in 2033 and 2041. With respect to ongoing return of capital to shareholders, in Q3, we continued to make regular share repurchases, canceling approximately $165 million in shares. Year to date, we have repurchased $405 million of our share. Including our quarterly dividend, we have returned more than $500 million to shareholders to date in 2025, marking strong progress against our initial commitment of $650 million. As Paul noted, given our robust financial position and strong free cash flow, we are increasing our return of capital in 2025.

Andrea Freeborough: We increased our long-standing dividend by 17%, and we intend to increase share repurchases by $100 million for a total of $600 million this year. In total, this represents more than $750 million in returns to shareholders. When considering the $700 million of debt repayment, we will have returned a total of almost $1.5 billion in capital in 2025. This is an increase of more than 50% compared to 2024 and a total of nearly $3 billion over the last three years. Turning to our guidance, full year production is on track to be slightly above the midpoint of our guidance, with Q4 production expected to be slightly lower than 500,000 ounces.

Andrea Freeborough: Operating costs and AISC remain on track to meet our full year guidance despite higher royalty costs from higher gold prices. All-in sustaining costs is expected to be within the upper range of our guidance as a result of a higher proportion of sustaining capital, with Q4 All-in sustaining costs expected to be above Q3. Total capital expenditures remain on track to meet guidance of $1.15 billion. With respect to our cash flow outlook next year, as typical for us, we will have seasonal tax payments due in H1. Given the higher gold price, we expect these payments to be higher as they relate largely to income realized in 2025. I'll now turn the call over to Claude to discuss our operations.

According to our guidance, fully your production is on track to be slightly above the midpoint of our Guidance with fourth quarter, production expected to be slightly lower than 500,000 Oz.

Operating costs and ASC remain on track to meet our full year guidance. Despite higher royalty costs from higher gold prices,

all in sustaining costs is expected to be within the upper range of our guidance, as a result of a higher proportion of sustaining Capital with Q4 all in sustaining costs expected to be above Q3

total Capital expenditures remain on track to meet guidance of 1.15 billion dollars.

With respect to our cash flow Outlook next year. As typical for us, we will have seasonal tax payments due in the first half.

Given the higher gold price. We expect these payments to be higher as they relate largely to income realized in 2025.

Claude Schimper: Thank you, Andrea. This quarter, we continue to expand our Safeground brand by completing additional critical risk management training. We have had an enthusiastic response from our workforce on this initiative, and we will continue to innovate in how we approach safety at each of our operations. Our focus remains on reinforcing a collective effort to manage costs and capture margin in this strong gold price environment. Going beyond our focus on operational performance, we have put emphasis on getting the best value out of our contracts, increasing labor efficiencies, improving maintenance, and right-sizing consumables as part of our broader cost management strategy. Moving to the summary of our operations. Starting with Paracatu, production of 150,000 ounces was in line with the prior quarter, while cost of sales of $933 per ounce decreased quarter-over-quarter.

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

Thank you, Andrea.

Management training.

And we have had an enthusiastic response from our Workforce on this initiative.

And we will continue to innovate in our we approach, safety at each of our operations.

Our Focus remains on reinforcing, a collective effort to manage costs and capture margin in the strong gold price environment.

Going beyond our focus on operational performance, we have put emphasis on getting the best value of our of our contracts.

Increasing Labour efficiencies.

Improving maintenance and right sizing consumables, as part of our broader cost management strategy.

Going to the summary of our operations.

Starting with parakeet, 2 production of 150,000 Oz was in line with the prior quarter.

Claude Schimper: Paracatu saw strong mining rates, mill recoveries, and higher grades in Q3. Paracatu remains firmly on track to meet its guidance range. At Tasiast, we delivered budgeted production of 121,000 ounces at a cost of sales of $889 per ounce, with production in line over the prior quarter. Production was supported by strong mill performance, including high recoveries following the recent mill optimization initiatives. Capital development of the Phoenix satellite pit also ramped up in Q3 and remains on plan. 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.

Our cost of sales of 933 per ounce, decreased quarter over quarter.

Back to do so strong mining rates more recoveries and higher grades in the third quarter.

And paracatu remains firmly on track to meet its guidance storage.

At Tas we delivered budgeted production of 121,000 ounces and a cost of sales of 889 per ounce.

With production in line over the prior quarter.

Production was supported by strong milk performance, including High, recoveries, following the recent em optimization initiatives.

Capital development of the FedEx satellite pit. Also ramped up in a third quarter and remains on plan.

Claude Schimper: At La Coipa, we produced 58,000 ounces at a cost of sales of $1,199 per ounce, which improved over the prior quarter as planned. Production and cost improved as mining transitioned into the higher grade ore from phase 7. The production is expected to be stronger in Q4 as mining continues through this higher grade ore. La Coipa remains on track to meet its full-year guidance of 230,000 ounces. Collectively, the US sites delivered production of 175,000 ounces at a cost of sales of $1,469 per ounce in Q3. Production in the US operations was as planned and collectively remain on track to meet full-year guidance of 685,000 ounces at a cost of sales of $1,420.

As is remains on track to meet these production guidance of 500,000 Oz at a Target cost of sales of 860 per ounce for the year.

At the equation, we produce 58,000 Oz at a cost of sales of 1,199 pounds which improved over the prior quarter as planned.

Production and cost improved as mining transitioned into the higher grade or from phase 7.

The production is expected to be stronger in the final quarter as mining continues through this higher grade off.

The corpora remains on track to meet its full year guidance.

Of 230,000 Oz.

Collectively the US, sites, delivered production of 175,000 ounces and it cost a sales of 1,469 per ounce in the third quarter.

Production in the U.S. operations was as planned and collectively remains on track to fully meet your guidance of 685,000 oz at a cost of sales of $1,420 per.

Claude Schimper: In Alaska, Q3 production from Fort Knox of 96,000 ounces was in line with the prior quarter. Cost of sales of $1,372 per ounce was higher over the prior quarter due to more operating waste tons Phase 10. At Bald Mountain, we produced 42,000 ounces at a cost of sales of $1,148 per ounce. Production decreased over the prior quarter due to the lower grades as planned, resulting in a higher cost of sales. At Round Mountain, production of 37,000 ounces was in line with the prior quarter. The cost of sales of $2,095 per ounce were increased compared to the prior quarter, primarily to more operating waste tons as Phase S transitions from capital waste into operating waste.

In Alaska, third quarter production from Fort Knox of 96,000 Oz was in line with the prior quarter.

Across the sales of 1,372 per ounce was higher over the prior quarter due to more operating waste tons. They said,

At 4 Mountain, we produced 42,000 ounces at a cost of sales of $1,148 per ounce.

Production decreased over the pride quarter due to the lower grades as planned, resulting in a higher cost of sales.

At Round Mountain Production of 37,000 Oz was in line with the prior quarter.

Claude Schimper: With that, I'll now pass the call over to William to discuss our projects.

The cost of sales of 2,095 per ounce for increased compared to the prior quarter, primarily to a more operating waste stuns as phase s transitions from Capital waste into operating waste.

William Dunford: Thanks, Claude. As Paul noted, our project pipeline is backed by a significant resource base of 26 million ounces of M&I and an additional 13 million ounces of infer, calculated at $2,000 per ounce. Our in-house technical team continues to focus on advancing these opportunities into our near and longer-term production profile, while also leveraging ongoing exploration to augment our broader resource base and support future production. With the significant current resource base, strong exploration results, and the long-term optionality enhanced by current gold prices, we see a number of value-creating investment opportunities merging across the portfolio to leverage the strong gold price and enhance our production profile in the 2030s and beyond. We continue to focus on extensive technical study, disciplined investment, and competition for capital to ensure the projects we approve have significant margin, return, and resilience.

With that, I'll now pass the call over to William to discuss our projects.

Thanks. Claude as Paul noted. Our project pipeline is backed by a significant resource base of 26 million, oz of M&I, and an additional 13 million oz of infer, calculated at $2,000 per ounce.

Our in-house technical team continues to focus on advancing these opportunities into our near- and longer-term production profile. We'll also leverage ongoing exploration to augment our broader resource base and support future production.

With the significant current resource base, strong exploration results, and the long-term optionality enhanced by current gold prices, we see a number of value-creating investment opportunities merging across the portfolio to leverage the strong gold price and enhance our production profile in the 2030s and beyond.

William Dunford: We will provide further information on these investment opportunities and decisions in Q1 2026. Regarding the nearer term project pipeline, you can see we are already well-advanced and making significant progress with our projects in the US and Canada. At Bald Mountain, recent exploration and technical work has been progressing well to support an investment decision for Redbird Two, and has also confirmed opportunity to augment the production profile through concurrent satellite pit mining, leveraging economies of scale and shared infrastructure at the site. At Round Mountain, Phase X underground project is well advanced with underground development, engineering, technical study work, and permitting progressing to support a project decision in 2026. It's a similar story at Curlew, where engineering and technical studies on the high-grade resource that has been developed over the last few years are on track to support a project decision in 2026.

We continue to focus on extensive technical study disciplined investment and competition for Capital to ensure the projects. We approve have significant margin return and resilience

We will provide further information on these investment opportunities and decisions in q1 2026.

Address with our projects in the US and Canada.

At Bald Mountain, recent exploration and Technical, work has been progressing well to support and investment decision for Redbird 2 and has also confirmed opportunity to augment the production profile through concurrent satellite hip mining leveraging economies of scale and shared infrastructure at the site.

At rail. Mountain phase X underground project is well Advanced with underground development engineering, technical study work and permanent progressing to support a project decision in 2026

William Dunford: We will provide a separate update for Great Bear, where AEX and main project engineering are progressing rapidly. These are the projects alongside continuation of our existing operations that support our potential to remain at 2 million ounces through the end of the decade. Turning to our longer-term project pipeline for the 2030s, our resource base has significant optionality, both for new projects with large resources such as Lobo Marte and Maricunga come online, and for further extensions of mine life at our existing operating assets. We will be progressing a number of technical studies and permitting efforts across the high-quality portfolio over the next couple of years to advance the significant production potential for the 2030s we see at these assets. Provide some more detail on exploration at Curlew in Washington. This year we have been focused on infill drilling to support the early years of the mine plan.

It's a similar story at Kuru, where engineering and technical studies on the high-grade resource that has been developed over the last few years are on track to support a project decision in 2026.

We will provide a separate update for Great Bear, where aex and Main project, engineering are progressing rapidly.

These are the projects alongside the continuation of our existing operations that support our potential to remain at 2 million oz through the end of the decade.

Returning to our longer-term project pipeline for the 30s. Our resource base has significant optionality both for new projects with large resources, such as Loom, Marte, and Americana, and for further extensions of mine life at our existing operating assets.

We will be progressing a number of technical studies and permitting efforts across the high-quality portfolio over the next couple years. To advance the significant production potential for the 2030s we see at these assets.

William Dunford: The results of that work have been positive, confirming the strong widths and grades that we expected to see, which are supportive of high-margin underground mining potential. A few notable intersections from this last quarter included 2m true width at 22 g/t at the EVP zone, and multiple intercepts of approximately 6m width and 8 g/t in the K-five zone. We also completed the initial development of the Roadrunner decline and further extensions of the North Stealth development. This will provide drill positions to explore for extensions of the high-grade resource at North South and to follow up on high-grade intercepts at Roadrunner, which is not currently in the resource or mine plan. We will be focused on this resource extension drilling in Q4 2025 and 2026.

Provide some more detail on exploration, at Kuru in Washington. This year, we have been focused on infill drilling to support the early years of the mine plan.

The results of that work have been positive, confirming the strong wits and grades that we expected to see which are supportive of high margin underground. Mining potential.

A few notable intersections from this last quarter included, 2 meters true width at 22 grams per tonne at the EVP Zone, and multiple intercepts of approximately 6, metres width, and 8 grams per tonne in the K5 Zone.

We also completed the initial development of the Roadrunner Decline and further extensions of the north stealth development, this quarter.

This will provide drill positions to explore for extensions of the high-grade resource at north south and to follow up on high-grade intercepts at Roadrunner, which is not currently in the resource for mine plan.

We will be focused on this resource extension, Drilling in Q4, 2025 and 2026.

William Dunford: Turning to Round Mountain Phase S exploration, you can see in Q3, we focused on further infill of the lower zone, with results continuing to intersect strong grades and widths, proving out our exploration thesis of a bulk tonnage underground mining opportunity. The extensive infill drilling is now sufficient to support an initial underground resource estimate. Overall, our infill drilling results have been positive at Phase S, supporting potential for a larger initial resource than we anticipated when we made the decision in 2023 to advance this target. We expect to release the initial resource estimate alongside the project and economics update in Q1 2026. At Great Bear, both the AEX program and the main project are progressing well. The main project remains on schedule for first production in 2029, subject to permitting.

Turning to round Mountain phase X exploration, you can see in Q3 we focused on further, infill of the lower Zone with results, continuing to intersect strong grades and widths, proving out our exploration, thesis of a bulk tonnage underground lining opportunity.

The extensive infill drilling is now sufficient to support an initial underground resource estimate.

Overall, our infill drilling results have been positive at Phase X supporting potential for a larger initial resource than we anticipated. When we made the decision in 2022 to advance this target.

We expect to release the initial resource estimate, alongside the project and economics update in q1 2026.

William Dunford: Starting with updates on AEX, earthworks activities are well advanced as can be seen on this slide. The natural gas pipeline is now complete and commissioned. The AEX camp is now operational. The water treatment plant building is enclosed, with equipment installation currently ongoing. The initial development of the portal box cut is progressing well, with the initiation of the exploration decline now forecast to commence in the summer of 2026, pending receipt of provincial permits. Geoff will comment further on permitting shortly. As a reminder, AEX is not on the critical path for first production in 2029, but rather is focused on providing underground drill access for infill drilling of the underground resource and exploration drilling to further delineate extensions of mineralization at depth.

At Great Bear, both the AXE program and the main project are progressing well, and the main project remains on schedule for first production in 2029.

Starting with updates on aex Earthworks, activities are well, Advanced as can be seen on this slide.

The natural gas pipeline is now complete and commissioned and the axe Camp is now operational.

Water Treatment Plant building is enclosed with equipment. Installation currently ongoing.

The initial development of the portal box Cut is progressing. Well with the initiation of the exploration decline. Now forecast, commenced in the summer of 2026, pending receipt of provincial permits Jeff will comment further on permitting shortly.

William Dunford: With respect to the main project, which remains on track, detailed engineering for key items such as the mill, tailings management facility, and other site infrastructure continues to progress well. With the 30% design review for the mill completed in Q3. Initial procurement activities for major process and water treatment equipment have commenced, with contract awards planned to start prior to year-end. Manufacturing of selected long lead items is expected to begin next year. I will now hand it over to Geoff to provide a brief update on Great Bear permitting and timelines.

As a reminder aex is not on the critical path for first production in 2029 but rather is focused on providing underground drill access for infill drilling of the underground resource and exploration drilling to further delineate extensions of mineralization at depth.

With respect to the main project which remains on track detailed engineering for key items such as the male Sales Management, Facility and other site. Infrastructure continues to progress. Well, with the 30% design review for the mill completed in Q3

Initial procurement activities for major process of water. Treatment equipment, have commenced with contract Awards plan to start prior to year end.

Manufacturing of long lead items is expected to begin next year.

Geoff Gold: Thanks, Will. Permitting of the AEX program and the Manh Choh project continue to advance as we work with the provincial and federal authorities. For AEX, we have 3 of the 5 permits required, including our closure, forestry, and wildlife permits, which has enabled us to carry on significant AEX activity. We continue to work with the Ontario Ministry of Environment, Conservation and Parks, MECP, to finalize the 2 remaining AEX water permits that are required to manage contact water for exploration purposes, in the interim, permitted activities continue as planned. For those who are not familiar, contact water is primarily rainwater that comes into contact with our site and naturally occurring underground water. Our First Nation partners, Lac Seul and Wabauskang, on whose traditional lands the project resides, continue to support the project and permitting.

I will now hand it over to Jeff to provide a brief update on Great Bear permitting and timelines.

Thanks will permitting of the aex program and the main project continued to advance as we work with the provincial and federal authorities,

We have 3 of the 5 permits required, including our closure forestry and Wildlife permits, which has enabled us to carry on significant acts activity.

We continue to work with the Ontario Ministry of environment, conservation, and Parks.

Mecp to finalize. The 2 remaining aex water permits that are required to manage contact water for exploration purposes, and in the interim,

Permitted activities continue as planned.

For those who are not familiar. Contact water is primarily rain water that comes into contact with our site and naturally occurring underground water.

Geoff Gold: These two outstanding permits are taking more time than anticipated as MECP consults with other First Nations. As Will noted, AEX is not on the critical path for the main project timeline. Construction activities at the AEX site will continue uninterrupted throughout the winter months as current activities and conditions do not require the use of water-related permits. In terms of the main project, which remains on schedule, we continue to work with the Impact Assessment Agency of Canada to advance the project impact statement. The first of three phased submissions for the project's impact statement was filed in September, with the second submission on track for filing in December. The final phase is targeted to be submitted at the end of Q1 of next year. We also continue to advance our IBA negotiations with Lac Seul and Wabauskang First Nations, and the Northwestern Métis Community.

Our first nation, Partners black Sul and wabaskang on Whose traditional lands the project resides continue to support the project and permitting.

These 2 outstanding permits are taking more time than anticipated as mecp consults with other First Nations.

As we'll noted axe, is not on the critical path for the main project timeline. Construction activities at the axe site will continue uninterrupted throughout the winter months as current activities and conditions do not require the use of water related permits.

In terms of the main project which remains on schedule, we continue to work with the impact assessment, agency of Canada to advance the project impact statement.

The first of 3 phase submissions for the Project's impact statement was filed in September with the second submission on track for filing in December.

The Final Phase is targeted to be submitted at the end of q1 of next year.

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

We also continue to advance our Iva negotiations with black soul and whisking First Nations and the Northwest matey community.

Paul Rollinson: Thanks, Geoff. After another strong quarter, we are well-positioned to meet our market commitments again this year. 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 a dividend and share buybacks. We have an exciting organic pipeline. 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.

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

Thanks Joe.

After another strong quarter, we are well positioned to meet our market commitments again this year.

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.

Operator 2: We will now begin the question and answer session. If you would like to ask a question at this time, simply press star followed by the number 1 on your telephone keypad. Your first question comes from the line of Fahad Tariq with Jefferies. Fahad, please go ahead.

We will now begin the question and answer session. If you would like to ask a question at this time, simply press star followed by the number 1 on your telephone keypad.

Fahad Tariq: Hi, thanks for taking my question. On the cost side, some of your peers, Agnico Eagle and Newmont in particular, are focusing a lot on cost reduction efforts. Is that something you're working on? If so, can you provide some examples of maybe productivity improvements across the portfolio? Thanks.

And your first question comes from the line of Fahad Tariq with Jeffrey's Fahad, please go ahead.

Hi, thanks for taking my question. Um, on the cost side, some of your peers at Nico Eco and new Mountain particular are focusing a lot on cost reduction efforts is that something um, you're working on and and if so can you provide some examples of maybe productivity improvements across the portfolio? Thanks.

Claude Schimper: Yeah, thanks for the question, Fahad. It's Claudio.

Andrea Freeborough: No, as I said in my remarks, we have a number of different initiatives globally, different projects to focus on different cost elements. A significant focus on working with our contractors and turning them into true business partners where the relationship works for both of us. At the same time, labor improvements and productivity improvements around that. We're doing a significant amount of training across all sites to sort of standardize some of our performance. Also a big focus on maintenance spares and parts and things that have been traditionally pressed by inflation.

Thanks for the question for you. Um,

No, as I said in my, uh, my remarks, we have a number of different initiatives globally, uh, different projects to focus on different cost, elements.

Uh, significant focus on working with our contractors and turning them into true business partners. We're the relationship works for both of us.

Um at the same time labor improvements and productivity improvements around that we're doing a significant amount of training across all Sites.

Uh, to sort of standardize some of our performance. And then also a big focus on maintenance spares and parts and things that have been traditionally pressed by, uh, inflation.

Fahad Tariq: Okay. Maybe just switching gears to Bald Mountain. Can you just remind us, does the Red Bird pit displace feed from other pits, or is it incremental tons and ounces?

Claude Schimper: No, it's incremental tons and ounces. It's a heap leach facility there. We stack on top, and we're expanding our heap leaches as we speak, to suit Red Bird.

Okay and then and then maybe just Switching gears to Bald Mountain. Um, can you just remind us does the red bird? Uh pit displace feed from other pits or is it incremental uh tons and ounces?

Fahad Tariq: Okay. Just lastly, just on the expansion of the heap leach, I know Red Bird too is still. We're waiting for the study update. Would it make sense to do the heap leach expansion even if there aren't new satellite pits identified? In other words, is the Red Bird pit sufficient to justify the larger heap leach operation?

No, no, it's incremental tons analysis. It's a it's a heatwave facility there. Um, so so we stack on top and we're expanding our heat reaches as as we speak to suit red bird.

Claude Schimper: Yeah, absolutely. Like, we do heap leach expansions at Bald fairly frequently, so it's, we'll continue to do so for Red Bird. Some of the satellites are in different areas of the operation. We have a variety of heap leach pads throughout the operation, and we expand those as needed to suit the satellites or the anchor pits such as Red Bird.

Yeah, absolutely. Like we we do people each expansions at at bulbs fairly frequently so it's uh we'll continue to do so for Redbird. Uh some of the satellites are in different areas of the operation. We have a variety of heat reach pads throughout the operation and we expand those as needed to suit the satellites or the anchor pits such as Redbird.

Fahad Tariq: Okay, great. Thank you.

Okay, great. Thank you.

Operator 2: Your next question comes from the line of Daniel Major with UBS. Daniel, please go ahead.

And your next question comes from Daniel Major with UBS. Daniel, please go ahead.

Daniel Major: Hi, can you hear me okay?

Hi, can you hear me, okay?

David Shaver: Yes, we can hear you.

Daniel Major: Great. Thanks. Yeah, a few questions. The first one, just on the capital returns and the balance sheet, I think it's very encouraging you pushed up the dividend and committing to an accelerating buyback in Q4. If we look at the current gold price, you know, consensus or estimates have you generating maybe $2 billion of free cash flow at spot commodity prices, and you've got a run rate of about $750 million of capital returns. When we think about what you'd be committing to next year, can you give us any indication on a balance sheet position that you'd want to get to, before you would kind of commit to returning all of your excess cash to shareholders?

Yes, we can hear you.

Great thanks. Yeah, a few questions. Um, so the first 1, um, just on the

Capital returns and the balance sheet. Um, I think it's very encouraging the

You pushed up the the dividend and committing to an accelerating buyback in the fourth quarter. Um, if we look at the current gold price, um, consensus or estimates have you generated maybe 2 billion of free cash flow at spot commodity prices and you've got a run rate of about 750 million of capital returns, but when we think about what you'd be committing to next year, can you give us any indication on a balance sheet position that you'd want to get to, um, before you would kind of commit to returning all of your excess cash to shareholders.

Paul Rollinson: Yeah, sure. I'll maybe take a lead on that one, Daniel. It's a good question. Look, I think number one, we've done what we said we would. We guided last year that it would be our intention to turn back on our share buyback. We actually did that ahead of schedule. I would like to say in the same theme, as the year has progressed, we've had more cash than we were budgeting, so as a result, as we're coming into the Q4, we've done more. So from my perspective, I think we've demonstrated that, you know, we want to do the right thing as it relates to return on capital, as well as, you know, paying down debt and improving our balance sheet.

Yeah, sure. Um, I'll maybe take a lead on that 1.

We've done what we said. We would we guided last year, that it would be Our intention.

The turn back on our, our share buyback.

Uh, we actually did that ahead of schedule. Um I I would like to say in the same theme

as the year has progressed, we've had more cash than we were budgeting and

So as a result, as we've as we're coming into the fourth quarter, we've we've done more. So from my perspective, I I think we've demonstrated that

Paul Rollinson: I think the track record speaks for itself. As we look into next year, frankly speaking, we're right in the middle of our budget cycle. We do give our guidance, as you know, with the year-end in mid-February. That's typically when we'd give an update. Last year when we gave our guidance, we were in a sort of a $2,500 gold price environment. To your point, we're in a different gold price environment today. With that comes higher taxes, higher royalties. We do see opportunities to invest in our portfolio. I think directionally, we wanna keep going, but, you know, let us just get through year-end budget cycle and we'll, you know, we'll come out with an update in the new year.

You know, we want to do the right thing as it relates to return of capital as well, as you know, paying down debt, and uh, improving our balance sheet. So,

I think that the track record speaks for itself as we look into next year.

Frankly, Speaking we're right in the middle of our budget cycle.

we do give our guidance as you know, uh, with the year end in mid-February, that's typically when we've given update

Uh, last year, when we gave our guidance, we were in a sort of a 200 dollar gold price environment.

To your point. Uh, we're in a different.

Gold price environment today.

but with that comes higher taxes, higher royalties, um,

We do see opportunities to invest in our portfolio. So, look, I think directionally, uh, we want to keep going, but, you know, let us just get to year end budget cycle. And, uh, we'll we'll, you know, we'll come out with an update in the new year.

Daniel Major: Okay, thanks. Yeah, look forward to that. The second question is sort of a specific one on the tax payable accrual. If we look at current prices persisting through to the end of the year, for example, what would the working capital reversal be for the tax catch-up in Q1 of next year?

Okay, thanks, yeah, look forward to that. Um, the second question is for a specific 1 on the um, tax payable approval. Uh, if we look at, uh,

Current prices persisting. Through the end of the year, for example, what would the working capital reversal be for the tax catch up in q1 of next year?

Andrea Freeborough: I mentioned in my opening remarks that, you know, we have significant tax payments in 2026 related to 2025. The first one that we typically talk about is Brazil. We're expecting, you know, more than $300 million in January related to Brazil. For Q1 in total, it's close to $400 million, and that's just the tax payments that we're accruing throughout this year. There will be installments on top of that for the 2026 year.

In total so I mentioned in my opening remarks that you know we have significant tax payments.

In 2026 related to 2025 the first 1 that we typically talk about is Brazil. So we're expecting, you know, more than 300 million.

in, uh, January related to Brazil and then

For q1 in total. Um, it's close to 400 million.

and that's just,

Daniel Major: Great. Thanks. It's clear it's about $400 million in Q1. Okay, that's good. Thanks. Then, a last question just on the permitting timeline at Great Bear. You mentioned there's no impact on the project, the fact that the final two permits at AEX taking a bit longer. At what stage would those two specific permits start to impact the timeline of the overall project?

The tax payments that were acru throughout uh throughout this year, then there would be installments on top of that for the 2026 year.

Okay, that's good. Thanks. And then um,

A last question, just on the permitting. Um, timeline at Great Bear, you mentioned, there's no impact on the project. Um, the fact that the, the final 2 permits acts taking a bit longer at what? Stage would those 2 specific permits start to impact the timeline of the overall project?

William Dunford: Yeah. Look, the main project itself is building a mill and open pit mines, and an underground, which is what AEX is focused on is the early drilling for that underground. The whole purpose of AEX is to get ahead and do the definition drilling and do the expansion drilling for the underground. The main project itself and first production is really all about getting the mills built. If you look at our PEA, we've got significant ore coming out of the open pits at the beginning of the mine to support that mill. That's why it's not really critical path right now in terms of those permits.

The, the main project itself is building a male and open pit mines, uh, and an underground which is what aex is focused on, is the early drilling for that underground. So the whole purpose of a access to get ahead and do the definition Drilling and do the expansion drilling for the underground.

Geoff Gold: I would also just add to Will's comments that there's really no direct link between the AEX permits and the main project permits. At this time, we don't believe we will experience, you know, a similar delay for the main project.

The main project itself. And first production is really all about getting the mills built. And if you look at our PA, we've got significant or coming out of the open pits at the beginning of the month support that male. Um, so that's why it's not really critical path right now in terms of those permits.

I would, I would also just add to Will's comments. That there's, there's really no direct link between the aex permits and the main project permits,

Um, and uh, at this time, we don't believe we will experience, uh, you know, a similar delay for the main project.

Daniel Major: Great. Thank you.

Great. Thank you.

Operator 2: Your next question comes from the line of Tanya Jakusconek with Scotiabank. Tanya, please go ahead.

Tanya Jakusconek: Oh, good. Thank you. Good morning, everyone. Thank you for taking my three questions. Maybe over to Paul. I'm just thinking about, you know, you're in your budgeting phase, and you're thinking about your life mine plans and your reserve and your resource base. We've had some companies put out some initial targets for what they're running their pits at gold prices on reserves and resources. I'm just wondering how you're approaching that. I know you have your reserve pricing. I think it was $1,600 and resources at $2,000. How are you balancing that with your life of mine plans and your cut-off grades and inflation?

And your next question comes from the line of Tanya your question with Scotia Bank Tanya. Please go ahead.

Oh good, thank you. Good morning everyone. Thank you for taking my 3 questions. Um, maybe over to Paul. I'm just thinking about um, you know, you're in your budgeting phase and you're thinking about your life mind plans and your reserve and your resource base. We've had some companies that put out, uh, some initial up targets for what they're running, their heads at gold prices on reserves and resources. I'm just

Wondering how you're approaching that. Um, I know you have your reserved pricing, I think it was uh, 1,600 and resources at 2,000. How are you balancing that with your life of mine plans and your cut off grades and and inflation?

Paul Rollinson: Sure. Well, I think I would expect, I mean, everyone's kind of thinking about what the new reserve resource price will be going forward. I think we're all, you know, in a, in a good way, lagging, you know, where we are in spot. I do think, I expect, there'll be generally an increase in the industry, in our peer group, in both reserve and resource pricing. I think we'll all probably still be well below spot, which is the, you know, the right side of the line to be on, of course. As it relates to our planning, as we've said, our mills are full. We're not planning to do anything with our cut-off grades. We're really goal seeking, margin and cash flow.

sure, well, I think I would expect uh,

I mean everyone's kind of thinking about what the new Reserve resource price will be uh going forward.

I think we're all.

You know, in a, in a good way, uh, lagging. You know where we are in spot? So I do think I expect, uh, there'll be generally

An increase, uh, in the industry in our peer group.

Uh, in both preserve and resource pricing. But I think we'll all probably still be well below spot which is the you know the right side of the line to be on of course as it relates to our planning.

as we've said,

our Mills are full.

Um, we're not planning to do anything with our cutoff grades.

Uh, for really goal-seeking.

Geoff Gold: To the extent we're thinking about cut-off grades, it's, you know, it's low-grade stockpiles, end of mine life, you know, where we might put different material for end of mine life. As it relates to the near-term production, we're holding the line and goal seeking margin and cash flow.

Uh, margin and cash flow to the extent, we're thinking about cutoff grades. It's it's it's you know, it's low-grade. Stock piles end of my life.

You know, where we might put different material?

For end of mine life, but as it relates to the the near-term, production it we're we're holding the line and still seeking margin and cash flow.

Tanya Jakusconek: Should I be then, Paul, thinking that as I look at 2026, should I be thinking that, you know, if inflation is running and, you know, some companies will go anywhere between 5% and 10%, should I be thinking that if I kind of think about your reserve pricing and think about inflation and cost in that sort of level, that would be something that would be reasonable to adjust our gold price to for reserve calculations?

Um should I be then? Paul thinking that as I look at 2026 um should I be thinking that you know, if inflation is running? And you know, some companies will go anywhere between 5 10 percents and that sort of level, that would be something that would be reasonable to adjust our goal. Price too, for for Reserve calculations,

Paul Rollinson: Yeah. I think to be frank, Tanya, I mean, it's a bit of art versus science. I think we generally look at it like we do with many things, from a number of different perspectives. I think, you know, it's not a rule of thumb, and I wouldn't say we do this exactly, we also take into account sort of a 3-year rolling average as well. That'd be a safe place to be if you were thinking about what we were gonna do.

yeah, I think I think to be frank Tanya, I mean

Versus science. Um,

But I I think we generally we look at it, like we do with many things uh from a different from a number of different.

Uh, perspectives.

but I I think, you know,

It's not a rule of thumb and I wouldn't say we do this. Exactly. But we also take into account sort of the 3-year rolling average as well.

Tanya Jakusconek: Okay. All right. Thank you for that. I look forward to seeing your approach in the new year. Maybe just on the some of the optionality that you have and you talked about. Hello?

And um that would be a safe place to be if you were thinking about what we were going to do.

Okay, all right. Thank you for that. I look forward to.

um your approach and in the new year um maybe just um on the

sum of the optionality, um, that you have and you talked about some of the

Paul Rollinson: I'm not sure what that noise is.

Tanya Jakusconek: Yeah, I don't know either.

Paul Rollinson: Okay.

Paul Rollinson: Not on our end.

I'm not sure what's that noises. Yeah, I don't know either.

Tanya Jakusconek: Yeah, I don't have anything happening on my end either. Okay. Well, hopefully we can get through, just the last two I have. Maybe just on the optionality in the short term on the projects that come in in that 2027 to 2030 timeframe, specifically Curlew and some of the satellites at Bald. Would it be fair to say that they could add incrementally 100,000 to 200,000 ounces in that timeframe?

Okay.

Um, specifically Kuru, and some of the, the, the satellites that bald would it be fair to say that they could add incrementally 100 to 200,000 Oz. Um, in that time frame,

William Dunford: Yeah. You mean between the three of them? I mean, I think between the three of them, there's potential that they can add more than that.

Tanya Jakusconek: I was just thinking.

William Dunford: It depends what year you look at.

Tanya Jakusconek: Yeah. I'm just kinda thinking between.

You mean between the 3 of them? Um, I mean, I think between between the 3 of them, there's this potential that they can add more than that. Um, I was just thinking of what year you

William Dunford: Oh, go ahead.

Tanya Jakusconek: The 28 onwards, right? Which we have. I was just thinking the Bald and also just Curlew. Would that be, like, fair in the $100 to 200? Then if we round Round Mountain, that's a bit different.

yeah, I'm just kind of thinking between

28 onwards, right? We have, I was just thinking the um, bald and also just for Loop would that be like fair and the 1002 and then then if we round round Mountain, that's a bit different.

William Dunford: I mean, Curlew itself, ultimately, it will provide more guidance early next year, but it might get up to the 100,000 ounce per year as we ramp it up or close to that number. Red Bird itself, Red Bird 2 and the satellites, depending on the year, will be in that range of 100, maybe a little bit higher, in some years as you mine through different zones. Phase X, we're also targeting to try and get over the 100,000 ounce per annum target, and we'll still be processing remaining stockpiles from Phase S, you know, particularly with these gold prices, in combination with the underground at Phase X.

William Dunford: I think our disclosure in Q1 will help you build a profile better, but certainly between the 3 of them, you know, they can add a few, you know, more than 200,000 ounces once they're all up and running. That's, you know, coming on as other things move in the portfolio. All of that is to try and maintain that 2 million ounces, which we believe we can with those projects.

Yeah, I mean, curly itself. Ultimately, it will provide more guidance early next year, but it might get up to the 100,000 miles per year as we ramp it up or close to that number. Um, Redbird itself, the Red Bird 2 and the satellites, uh, depending on the year will be in that range of of 100. Maybe a little bit higher in some years as as you mine through different zones and then phase acts for also targeting to try and get over the 100,000 Oz per atom Target. And we'll still be processing. Remaining stock piles from phase ass, you know, particularly with these gold prices um, in combination with the underground of phase X,

I think our disclosure q1 will help you build a profile better, but, but certainly between the 3 of them,

Tanya Jakusconek: Okay. That could be supplemental to the $200,000.

You know, they can add a few, you know more than 200,000 Oz once they're all up and running that's you know coming on as as other things move in the portfolio, all of that is trying to maintain that 2 million ounces which we believe we can with those projects.

okay, so that could be supplemental to the 2 to the

William Dunford: Sorry, it's not supplemental to the 2 million ounce base. These are the projects that keep us at 2.

Tanya Jakusconek: They'll keep you at two. All right. Okay, got it.

Sorry, it's not supplemental to the 2 million ounce base. These are the projects that keep us at 2.

William Dunford: Yeah.

It's they'll keep you up to, all right.

Tanya Jakusconek: My final question for Andrea. Can you know, you're looking at buying back the $500 million in Q4 of the notes, and you've got the 2033s and the 2041 notes. Should I be thinking that one on the $500, that for 2026, either one of those would be something you'd be targeting as well?

I got it. And then my final question for Andrea. Can you, um, you know, you you you're looking at buying back, the 500 million in Q4 of of, of the notes and you've got the 20333 and the 2041 notes. Um, should I be thinking that that that's uh, 1 of these 500 that for 2026? Um, either 1 of those would be something you'd be targeting as well.

Andrea Freeborough: Look, I mean, we're happy to continue to grow our net cash, and that's sort of how we're looking at it. Those longer-dated notes, you know, they're just not economic to take out ahead of time, but we'll continue to watch that. If it did become accretive, then, you know, we would think about that.

Um, look, I mean, we we we're happy to continue to grow our net cash and that sort of how we're looking at. It goes longer dated notes. You know, they're just not economic to take out. Um,

Had a time, but we'll continue to watch that.

Tanya Jakusconek: Okay. I should be thinking that maybe the pause on the debt reduction after the Q4 and then maybe the cash flow, as Paul mentioned, would be looking on a positive bias for capital returns. Maybe just to ask, what's the minimum cash that you would need to run your business, I should think about keeping on the balance sheet?

And if it did become a creative then you know, we would think about that.

Okay. And, and so I should be thinking that maybe the pause on, on, on the debt, uh, reduction after the Q4. And and then maybe the cash flow of Paul mentioned, would be looking on a positive bias for Capital returns? Um, maybe just to ask uh what's the minimum cash that you would need to run your business?

Andrea Freeborough: Sure. We typically say, you know, the minimum is about $500 million, and then, you know, it fluctuates a little bit above that. You know, we just got to net cash as we reported this quarter, so we're certainly happy with that, and we're happy to continue to grow that net cash. I think it'll be a balance between CapEx continuing to grow cash on the balance sheet and returning capital to shareholders.

I should think about keeping on the balance sheet.

sure, we typically say, you know the minimum is about 500 million and then

You know.

It's uh, fluctuates a little bit above that. You know, we just got to net cash as we reported this quarter. So we're certain happy with that. And we're, we're happy to continue to grow that net cash. So I think it'll be a balance between

Tax.

Tanya Jakusconek: Yeah. Barring any changes in those 2033s and 2041 notes.

Continuing to grow cash on the balance sheet and returning Capital to shareholders.

Andrea Freeborough: Right.

Yeah. Bearing any changes in those 2033 and 2041 notes?

Tanya Jakusconek: Okay. Thank you.

Right. Okay. Thank you.

Operator 2: Again, if you would like to ask a question, simply press star followed by 1 on your telephone keypad. Your next question comes from the line of Anita Soni with CIBC World Markets. Anita, please go ahead.

again, if you would like to ask a question, since the press star, followed by the number 1 on your telephone keypad,

Anita Soni: Thanks for taking my questions. Tanya Jakusconek has asked a few of them. I just wanted to circle back on, I guess, capital allocation, just in broad strokes, as you think about it going into next year. Is there kind of a formula that you're using in terms of, you know, how you're gonna allocate, you know, the free cash flow? Like, obviously the debt repayment's kind of on pause, but capital return to shareholders is a certain percentage, reinvestment in the business is a certain percentage, and, you know, anything else is a certain percentage. Could you know, give me an idea of that?

And your next question comes from the line of Anita Sony with CIBC World Markets Anita, please go ahead.

Uh, thanks for taking my questions. Um, Tanya's asked a few of them, I just wanted to Circle back on. Um,

Anita Soni: I And really what I'm trying to figure out is, you know, obviously there's inflation, but that you were talking about in the order of, I think it was 5% to 10%. What should we be thinking about in terms of capital for next year?

Paul Rollinson: Yeah. A couple questions in there, Anita. I'll start, and Andrea chime in if you like. Again, number one, we're right in the budget cycle. Again, I'll say what I said a little bit earlier. Directionally, all things being equal, we wanna continue with a healthy return of capital. We don't typically think about it on a formula basis. We do believe the majority of our shareholders prefer buybacks. That's where we're really focused. On our internal metrics, when we look at our valuation, we still believe that that's the right thing to do with our free cash flow. I would say, though, as I go back to the budget, there's moving parts. We do expect, as Andrea said, higher taxes, higher royalties. Inflation is always there.

Yeah, a couple questions in there and need I'll I'll start an area chime in if you like again number 1.

Where right in the budget cycle. So again, I'll say what I said a little bit earlier, uh, directionally all things being equal. We, we want to continue with a, with a healthy return of capital,

we don't typically think about it on a formula basis.

uh, we do believe uh,

The majority of our shareholders prefer a buyback.

That's where we're really focused.

And on our internal metrics. Uh, when we look at our valuation, we still believe that that's the right thing to do, with our

With our free cash flow.

um, I would say though as I go back to the budget, there's moving parts, we do expect, as Andrea said, higher taxes, higher royalties,

William Dunford: As we've alluded to, we do see a lot of optionality to reinvest in our business for the future. Things are getting better. Phase S is looking better. Curlew is looking better. That might drive decisions to increase capital spending for longer term mine lives. I think, yeah, don't really wanna get pinned down on a specific. I think, as we go into the new year, we're in a good place where, as you say, we've paid down the debt, we've got lots of free cash flow, lots of organic opportunities, and I think we can do all of the above.

Uh, inflation is always there and as, uh, as we've alluded to, we do see a lot of optionality to reinvest in our business, uh, for the future.

Things are getting better. Phase X is looking better.

Curly was looking better, um, that might drive decisions to increase Capital spending.

Uh, for longer term. Mine lives.

So I think, you know, don't really want to get pinned down on a, on a specific.

I think, uh, as we go into the new year,

It's we're in a good place. Where as you said we've we've paid down the debt, we've got lots of free, cash flow, lots of organic opportunities and I think we can do all of the above.

Anita Soni: Okay. Then, where would inorganic opportunities fit in all that, the M&A pipeline?

Okay. Uh and then where would I where would inorganic opportunities fit in all that?

Paul Rollinson: Look again, we, as I've said many times, we're in a fortunate position that given the strength of the organic portfolio, we don't feel under any pressure. We've got a great team here. Technically, we do look at external opportunities, but as I know you're aware, we've probably only done three deals externally in the last 10 years. We're very careful. We do look at opportunities. If we saw another Great Bear, we'd do it again in a heartbeat. We're very careful, and we are not under pressure, and we'll continue to look.

The m&a pipeline.

yeah, look again, uh, we

As I said many times uh, we're in a fortunate position that given the strength of the organic portfolio. We don't feel under any pressure.

Um,

we've got a great.

Team here technically we do look at external opportunities but as um as I know you're aware we probably only done 3 deals externally in the last 10 years. So we're very careful. We do look at opportunities.

Uh, if we saw another Great Bear, we we'd do it again in a heartbeat. But

um,

we're very careful.

And we are not under pressure and we'll continue to look.

Anita Soni: Okay. Thanks for that. Congratulations on a very solid quarter.

Okay, uh, thanks for that. And congratulations on very small reporter.

Operator 2: There's no further questions at this time. I will now turn the call back over to Paul for closing remarks. Paul?

There is no further questions at this time. I will now turn the call back over to Paul for closing remarks. Paul.

Paul Rollinson: Thank you, operator, and thanks everyone for dialing in today. We look forward to catching up with you in person in the coming weeks. Thanks for joining.

Thank you uh operator and uh thanks everyone for dialing in today. Uh we look forward to catching up with you in person.

Operator 2: This concludes today's call. You may now disconnect.

In the, in the coming weeks, thank, thanks for joining.

Dave, concludes today's call. You may now disconnect