Q1 2026 Kinross Gold Corp Earnings Call

April 30, 2026

Speaker #1: The first quarter 2026 results conference call and webcast. I would now like to turn the call over to David Shaver, Executive Vice President.

Speaker #2: good morning. In the room with us today on the call, we have Paul Rollinson, CEO, and from the KINROSS Senior Leadership Team, Andrea Freeborough, Claude Schimper, Will Dunford, and Geoff Gold.

Speaker #1: I would now like to turn the call over to David Shaver, Executive Vice President. Thank you, and good morning. In the room with us today on the call, we have Paul Rollinson, CEO, and from the KINROSS Senior Leadership Team, Andrea Freeborough, Claude Schimper, Will Dunford, and Geoff Gold.

Operator: I would now like to turn the call over to David Shaver, Executive Vice President.

Speaker #2: 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 April 29, 2026, the MDNA for the period ended March 31, 2026, and our most recently filed AIF, all of which are available on our website.

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 29 April 2026, the MD&A for the period ended 31 March 2026, and our most recently filed AIF, all of which are available on our website. I will now turn the call over to Paul.

Speaker #1: 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 April 29th, 2026, the MDNA for the period ended March 31st, 2026, and our most recently filed AIF, all of which are available on our website.

Speaker #2: I will now turn the call over to Paul.

Speaker #3: Thanks, David, and thank you all for joining us. This morning, I will discuss our first quarter results, provide high-level updates from across our portfolio, comment on sustainability and confirm our outlook, and we'll then hand the call over to the team to provide further details.

Speaker #1: I will now turn the call over to Paul. Thanks, David, and thank you all for joining us. This morning, I will discuss our first quarter results, provide high-level updates from across our portfolio, comment on sustainability and confirm our outlook, I will then hand the call over to the team to provide further details.

Paul Rollinson: Thanks, David, and thank you all for joining us. This morning, I will discuss our Q1 results, provide high-level updates from across our portfolio, comment on sustainability, and confirm our outlook. I will then hand the call over to the team to provide further details. Following our outstanding performance in 2025, we continue to deliver strong results in the Q1. Our culture of technical excellence and financial discipline, combined with the recent gold prices, resulted in strong operating margins, which again outpaced the increase in the gold price. As a result, in Q1, we delivered our fourth consecutive quarter of record free cash flow of approximately $840 million. Our financial position and cash flow outlook remain excellent, and we continue to return meaningful capital to our shareholders through buybacks and our quarterly dividend.

Speaker #3: Following our outstanding performance in 2025, we continue to deliver strong results in the first quarter. Our culture of technical excellence and financial discipline combined with the recent gold prices resulted in strong operating margins which again outpaced the increase in the gold price.

Speaker #1: Following our outstanding performance in 2025, we continue to deliver strong results in the first quarter. Our culture of technical excellence and financial discipline combined with the recent gold prices resulted in strong operating margins which again outpaced the increase in the gold price.

Speaker #3: As a result, in Q1, we delivered our fourth consecutive quarter of record free cash flow of approximately $840 million. Our financial position and cash flow outlook remain excellent, and we continue to return meaningful capital to our shareholders through buybacks in our quarterly dividend.

Speaker #1: As a result, in Q1, we delivered our fourth consecutive quarter of record free cash flow of approximately $840 million. Our financial position and cash flow outlook remain excellent, and we continue to return meaningful capital to our shareholders through buybacks and our quarterly dividend.

Speaker #3: We are targeting to return approximately 40% of our free cash flow in 2026, and in Q1, we continued our buyback program. Turning now to operational highlights.

Speaker #3: Q1 was a great start to the year with production of 493,000 ounces. Our tastiest and pericutue had strong quarters and together accounted for more than half of our production driving significant free cash flow.

Speaker #1: We are targeting to return approximately 40% of our free cash flow in 2026, and in Q1, we continued our buyback program. Turning now to operational highlights.

Paul Rollinson: We are targeting to return approximately 40% of our free cash flow in 2026, and in Q1 we continued our buyback program. Turning now to operational highlights. Q1 was a great start to the year with production of 493,000 ounces. Both Tasiast and Paracatu had strong quarters and together accounted for more than half of our production, driving significant free cash flow. Paracatu delivered another excellent quarter on the back of record mill recoveries, and Tasiast saw strong output in Q1, supported by higher grades and strong recoveries. With regards to our projects, we continue to make strong progress in Q1 across our pipeline of mine life extensions and growth projects. In the US, the team continues to advance the three projects we announced in January.

Speaker #3: Pericutue delivered another excellent quarter on the back of record mill recoveries and tastiest saw strong output in Q1 supported by higher grades and strong recoveries.

Speaker #1: Q1 was a great start to the year with production of 493,000 ounces, both taxiest and paracute had strong quarters, and together accounted for more than half of our production driving significant free cash flow.

Speaker #3: With regards to our projects, we continue to make strong progress in Q1 across our pipeline of mine life extensions and growth projects. In the US, the team continues to advance the three projects we announced in January.

Speaker #1: Paracute delivered another excellent quarter on the back of record no recoveries, and taxiest saw strong output in Q1 supported by higher grades and strong recoveries.

Speaker #3: At Great Bear, both the advanced exploration program and the main project are progressing well with key permitting milestones achieved which Geoff will comment on later.

Speaker #1: With regards to our projects, we continue to make strong progress in Q1 across our pipeline of mine life extensions and growth projects. In the US, the team continues to advance the three projects we announced in January.

Speaker #3: At Lobo Marte in Chile, I'm pleased to report that we submitted the environmental impact assessment earlier this month. Marking a significant milestone as we formally initiate the permitting process.

Speaker #1: At Great Bear, both the advanced exploration program and the main project are progressing well with key permitting milestones achieved which Geoff will comment on later.

Paul Rollinson: At Great Bear, both the advanced exploration program and the main project are progressing well with key permitting milestones achieved, which Jeff will comment on later. At Lobo-Marte in Chile, I'm pleased to report that we submitted the environmental impact assessment earlier this month, marking a significant milestone as we formally initiate the permitting process. We look forward to providing a Lobo-Marte update in H2 of the year. Turning now to sustainability. Our annual sustainability report will be published later this quarter. This comprehensive report, which is in its 18th edition, provides an update on all the progress we've made in 2025 and what we aim to accomplish this year and beyond. Turning to our outlook. Following a strong Q1, we are on track to achieve our production, costs, and capital guidance again this year.

Speaker #3: And we look forward to providing a Lobo Marte update in the second half of the year. Turning now to sustainability. Our annual sustainability report will be published later this quarter.

Speaker #1: At Lobo Marte in Chile, I'm pleased to report that we submitted the environmental impact assessment earlier this month. Marking a significant milestone as we formally initiate the permitting process.

Speaker #3: This comprehensive report, which is in its 18th edition, provides an update on all the progress we made in 2025 and what we aim to accomplish this year and beyond.

Speaker #1: And we look forward to providing a Lobo Marte update in the second half of the year. Turning now to sustainability, our annual sustainability report will be published later this quarter.

Speaker #3: Turning to our outlook. Following a strong first quarter, we are on track to achieve our production cost and capital guidance again this year. More specifically on costs, given the recent geopolitical events, I would highlight that we continue to benefit from an attractive relative cost position which is supported by our long-standing approach to mitigating cost pressures.

Speaker #1: This comprehensive report, which is in its 18th edition, provides an update on all the progress we've made in 2025 and what we aim to accomplish this year and beyond.

Speaker #1: Turning to our outlook, following a strong first quarter, we are on track to achieve our production cost and capital guidance again this year. More specifically on costs, given the recent geopolitical events, I would highlight that we continue to benefit from an attractive relative cost position which is supported by our longstanding approach to mitigating cost pressures.

Speaker #3: This includes, among other things, our great enhancement in hedging strategies. Andrea will comment on our hedge book strategy later. With respect to great enhancement, we have phase X currently Great Bear and Lobo Marte all bringing higher grade ore into our future production profile.

Paul Rollinson: More specifically on costs, given the recent geopolitical events, I would highlight that we continue to benefit from an attractive relative cost position, which is supported by our long-standing approach to mitigating cost pressures. This includes, among other things, our grade enhancement and hedging strategies. Andrea will comment on our hedge book strategy later. With respect to grade enhancement, we have Phase Ten, Curlew, Great Bear, and Lobo-Marte all bringing higher-grade ore into our future production profile. Looking forward, we will continue to maintain our financial discipline and prioritize cost management to consistently deliver strong margins and free cash flow. With that, I'll now turn the call over to Andrea.

Speaker #1: This includes, among other things, our great enhancement in hedging strategies. Andrea will comment on our hedge book strategy later. With respect to great enhancement, we have phase X currently Great Bear and Lobo Marte all bringing higher grade ore into our future production profile.

Speaker #3: Looking forward, we will continue to maintain our financial discipline and prioritize cost management to consistently deliver strong margins and free cash flow. With that, I'll now turn the call over to Andrea.

Speaker #4: Thanks, Paul. This morning, I'll review our financial highlights from the first quarter. Provide an overview of our balance sheet and return on capital, and comment on our outlook.

Speaker #1: Looking forward, we will continue to maintain our financial discipline and prioritize cost management to consistently deliver strong margins and free cash flow. With that, I'll now turn the call over to Andrea.

Speaker #4: As Paul noted, Q1 was a strong start to the year for us. We produced 493,000 gold equivalent ounces as planned. Q1 cost of sales of $1,380 per ounce and all in sustaining costs of $1,732 per ounce were also on plan.

Speaker #2: Thanks, Paul. This morning, I'll review our financial highlights from the first quarter, provide an overview of our balance sheet, and return on capital, and comment on our outlook.

Andrea Freeborough: Thanks, Paul. This morning I'll review our financial highlights from Q1, provide an overview of our balance sheet and return on capital, and comment on our outlook. As Paul noted, Q1 was a strong start to the year for us. We produced 493,000 gold equivalent ounces as planned. Q1 cost of sales of $1,380 per ounce and all-in sustaining costs of $1,732 per ounce were also on plan. Margins were a record $3,476 per ounce and outpaced the increase in the gold price. Our adjusted earnings were $0.71 per share, and our adjusted operating cash flow was a record $1.1 billion.

Speaker #2: As Paul noted, Q1 was a strong start to the year for us. We produced 493,000 gold equivalent ounces as planned. Q1 cost of sales of $1,380 per ounce and all in sustaining costs of $1,732 per ounce were also on plan.

Speaker #4: Margins were a record $3,476 per ounce and outpaced the increase in the gold price. Our adjusted earnings were $71 per share. And our adjusted operating cash flow was a record $1.1 billion.

Speaker #4: Our earnings and adjusted earnings were impacted by the timing of a $65 million withholding tax expense. Recorded in Q1 but pertaining to tax payable and future quarters.

Speaker #2: Margins were a record $3,476 per ounce and outpaced the increase in the gold price. Our adjusted earnings were $71 per share. And our adjusted operating cash flow was a record $1.1 billion.

Speaker #4: This accounting requirement caused our earnings per share to be lower by 5 cents and skewed our effective tax rate higher in Q1. We expect our effective tax rate to be lower from Q2 to Q4 and our full year effective tax rate to be within our guidance range of 28 to 33 percent.

Speaker #2: Our earnings and adjusted earnings were impacted by the timing of a $65 million withholding tax expense. Recorded in Q1 but pertaining to tax payable and future quarters.

Andrea Freeborough: Our earnings and adjusted earnings were impacted by the timing of a $65 million withholding tax expense recorded in Q1, but pertaining to tax payable in future quarters. This accounting requirement caused our earnings per share to be lower by $0.05 and skewed our effective tax rate higher in Q1. We expect our effective tax rate to be lower from Q2 to Q4 and our full year effective tax rate to be within our guidance range of 28% to 33%. Our taxes paid are also expected to be in line with guidance, with approximately 70% of our payments expected in H1 of the year. Attributable free cash flow was a record $838 million, despite making significant tax payments of approximately $450 million in Q1, largely related to 2025 earnings. Turning now to our balance sheet.

Speaker #2: This accounting requirement caused our earnings per share to be lower by 5 cents, higher in Q1. We expect our effective tax rate to be lower from Q2 to Q4, and our full year effective tax rate to be within our guidance range of 28 to 33 percent.

Speaker #4: Our taxes paid are also expected to be in line with guidance with approximately 70% of our payments expected in the first half of the year.

Speaker #4: Attributable free cash flow was a record $838 million despite making significant tax payments of approximately $450 million in Q1, largely related to 2025 earnings.

Speaker #2: Our taxes paid are also expected to be in line with guidance, with approximately 70% of our payments expected in the first half of the year.

Speaker #4: Turning now to our balance sheet, our financial position continued to strengthen in Q1 as we added $440 million in cash after funding our planned CapEx and returning $300 million to shareholders.

Speaker #2: Attributable free cash flow was a record $838 million despite making significant tax payments of approximately $450 million in Q1, largely related to 2025 earnings.

Speaker #4: We ended the quarter with $2.2 billion in cash, $3.9 billion of total liquidity, and $1.4 billion in net cash. With respect to return of capital, we're targeting to return approximately 40% of our free cash flow back to shareholders through both dividends and share repurchases.

Speaker #2: Turning now to our balance sheet, our financial position continued to strengthen in Q1 as we added $440 million in cash after funding our planned CapEx and returning $300 million to shareholders.

Andrea Freeborough: Our financial position continued to strengthen in Q1 as we added $440 million in cash after funding our planned CapEx and returning $300 million to shareholders. We ended the quarter with $2.2 billion in cash, $3.9 billion of total liquidity, and $1.4 billion in net cash. With respect to return of capital, we're targeting to return approximately 40% of our free cash flow back to shareholders through both dividends and share repurchases. Our shares continue to remain a strong return on invested capital, considering our attractive valuation and free cash flow yield. In Q1, we repurchased a total of $250 million in shares, representing approximately 7.7 million shares or 0.6% of our shares outstanding. Subsequent to Q1, we repurchased an additional $50 million in shares.

Speaker #2: We ended the quarter with $2.2 billion in cash, $3.9 billion of total liquidity, and $1.4 billion in net cash. With respect to return of capital, we're targeting to return approximately 40% of our free cash flow back to shareholders through both dividends and share repurchases.

Speaker #4: Our shares continue to remain a strong return on invested capital, considering our attractive valuation and free cash flow yield. In Q1, we repurchased a total of $250 million in shares, representing approximately 7.7 million shares or 0.6% of our shares outstanding.

Speaker #2: Our shares continue to remain a strong return on invested capital, considering our attractive valuation and free cash flow yield. In Q1, we repurchased a total of $250 million in shares, representing approximately 7.7 million shares or 0.6% of our shares outstanding.

Speaker #4: Subsequent to Q1, we repurchased an additional $50 million in shares. I'm pleased to report that since we restarted our share repurchases one year ago, we've repurchased approximately $900 million in shares representing over 3% of our outstanding share count.

Speaker #2: Subsequent to Q1, we repurchased an additional $50 million in shares. I'm pleased to report that since we restarted our share repurchases one year ago, we've repurchased approximately $900 million in shares, representing over 3% of our outstanding share count.

Speaker #4: Including our quarterly dividends, we've returned approximately $350 million to date in 2026 and over $1 billion since the first quarter of 2025. Turning now to our guidance, following Q1, we remain solidly on track to produce 2 million ounces at a cost of sales of $1,360 per ounce and all in sustaining costs of $1,730 per ounce.

Andrea Freeborough: I'm pleased to report that since we restarted our share repurchases one year ago, we've repurchased approximately $900 million in shares, representing over 3% of our outstanding share count. Including our quarterly dividends, we've returned approximately $350 million to date in 2026 and over $1 billion since Q1 2025. Turning now to our guidance. Following Q1, we remain solidly on track to produce 2 million ounces at a cost of sales of $1,360 per ounce and all-in sustaining costs of $1,730 per ounce. We're also on track with our capital guidance of $1.5 billion. As a reminder, our cost guidance was based on a $4,500 gold price and a $70 per barrel oil price.

Speaker #2: Including our quarterly dividend, we've returned approximately $350 million to date in 2026. And over $1 billion since the first quarter of 2025. Turning now to our guidance, following Q1, we remain solidly on track to produce $2 million ounces at a cost of sales of $1,360 per ounce and all in sustaining costs of $1,730 per ounce.

Speaker #4: And we're also on track with our capital guidance of 1.5 billion. As a reminder, our cost guidance was based on a 4,500 gold price and a $70 per barrel oil price.

Speaker #4: In terms of production, the second quarter is expected to be in line with our first quarter. As a result, the second half is expected to be slightly higher than the first half to meet our full year production guidance.

Speaker #2: And we're also on track with our capital guidance of $1.5 billion. As a reminder, our cost guidance was based on a $4,500 gold price and a $70 per barrel oil price.

Speaker #4: In terms of operating costs, we expect costs to be relatively stable throughout the year. Given the current situation of elevated oil prices, we're providing additional information on our oil price sensitivity.

Speaker #2: In terms of production, the second quarter is expected to be in line with our first quarter. As a result, the second half is expected to be slightly higher than the first half to meet our full year production guidance.

Andrea Freeborough: In terms of production, Q2 is expected to be in line with our Q1. As a result, H2 is expected to be slightly higher than H1 to meet our full-year production guidance. In terms of operating costs, we expect costs to be relatively stable throughout the year. Given the current situation of elevated oil prices, we're providing additional information on our oil price sensitivity. To start, I will note that impacts of higher oil prices within Q1 were minimal. Fuel currently represents approximately 11% of our total cost, and as I noted earlier, our 2026 cost guidance was based on $70 oil. Our stated sensitivity is for every $10 per barrel change in price, we expect an impact of $3 per ounce on our cost of sales.

Speaker #4: To start, I will note that impacts of higher oil prices within the first quarter were minimal. Fuel currently represents approximately 11% of our total cost.

Speaker #2: In terms of operating costs, we expect costs to be relatively stable throughout the year. Given the current situation of elevated oil prices, we're providing additional information on our oil price sensitivity.

Speaker #4: And as I noted earlier, our 2026 cost guidance was based on $70 oil. Our stated sensitivity is for every $10 per barrel change in price, we expect an impact of $3 per ounce on our cost of sales.

Speaker #2: To start, I will note that impacts of higher oil prices within the first quarter were minimal. Fuel currently represents approximately 11% of our total costs.

Speaker #2: And as I noted earlier, our 2026 cost guidance was based on $70 oil. Our stated sensitivity is: for every $10 per barrel change in price, we expect an impact of $3 per ounce on our cost of sales.

Speaker #4: This captures the direct impact of crude oil prices on refined products that are used in our operation, primarily fuel, and including diesel. However, in the current volatile environment and contemplating other factors that impact the price of refined products, such as refining, distribution, and taxes, the sensitivity for 2026 is estimated to be $10 per ounce for every $10 per barrel change.

Speaker #2: This captures the direct impact of crude oil prices on refined products that are used in our operations, primarily fuel, including diesel. However, in the current volatile environment, and contemplating other factors that impact the price of refined products—such as refining, distribution, and taxes—the sensitivity for 2026 is estimated to be $10 per ounce for every $10 per barrel change.

Andrea Freeborough: This captures the direct impact of crude oil prices on refined products that are used in our operations, primarily fuel and including diesel. However, in the current volatile environment and contemplating other factors that impact the price of refined products such as refining, distribution, and taxes, the sensitivity for 2026 is estimated to be $10 per ounce for every $10 per barrel change. This impact is not overly significant. To put it in perspective, if the oil price stays at $100 for the remainder of the year, we would expect an impact of approximately $20 per ounce on our full year all-in sustaining cost, representing approximately 1%.

Speaker #4: This impact is not overly significant. Quoted in perspective, if the oil price stays at $100 for the remainder of the year, we would expect an impact of approximately $20 per ounce on our full year all in sustaining cost, representing approximately 1%.

Speaker #4: And if we go one step further and consider potential secondary cost inflation from a prolonged elevated oil price on other consumables and freight, we estimate a further $10 potential impact for a total $30 per ounce to our full year all in sustaining cost guidance, representing less than 2%.

Speaker #2: This impact is not overly significant. To put it in perspective, if the oil price stays at $100 for the remainder of the year, we would expect an impact of approximately $20 per ounce on our full year all in sustaining cost, representing approximately 1%.

Speaker #2: And if we go one step further and consider potential secondary cost inflation from a prolonged elevated oil price on other consumables and freight, we estimate a further $10 potential impact for a total $30 per ounce to our full year all in sustaining cost guidance, representing less than 2%.

Andrea Freeborough: If we go 1 step further and consider potential secondary cost inflation from a prolonged elevated oil price on other consumables and freight, we estimate a further $10 potential impact for a total $30 per ounce to our full-year all-in sustaining cost guidance, representing less than 2%. Overall, putting cost sensitivities into context, our grade enhancement strategy, which started in 2022, has already put us in an attractive relative cost position. In the short term, we're not expecting a significant impact on our costs because of higher oil prices. This is in part a result of our long-standing hedge strategy. We have favorable oil hedge positions in place under this program. For 2026, we've hedged 63% of the oil component of our fuel consumption at our US and Tasiast operations at an average price of $62 per barrel.

Speaker #4: Overall, putting cost sensitivities into context, our great enhancement strategy, which started in 2022, has already put us in an attractive relative cost position. And in the short term, we're not expecting a significant impact on our costs because of higher oil prices.

Speaker #2: Overall, putting cost sensitivities into context, our great enhancement strategy, which started in 2022, has already put us in an attractive relative cost position. And in the short term, we're not expecting a significant impact on our costs because of higher oil prices.

Speaker #4: This is in part a result of our longstanding hedge strategy. We have favorable oil hedge positions in place under this program. For 2026, we've hedged 63% of the oil component of our fuel consumption at our US and tastiest operations at an average price of $62 per barrel.

Speaker #2: This is in part a result of our longstanding hedge strategy. We have favorable oil hedge positions in place under this program. For 2026, we've hedged 63% of the oil component of our fuel consumption at our US and tastiest operations at an average price of $62 per barrel.

Speaker #4: This accounts for approximately 75% of our company-wide fuel consumption. And in the medium and long term, we have our great enhancement strategy bringing higher-grade ore into our future production profile and providing organic offsets to inflationary pressure.

Speaker #4: Lastly, in terms of supply of fuel and other consumables, we're not currently experiencing any disruptions at our operations, and we continue to receive regular deliveries.

Speaker #2: This accounts for approximately 75% of our company-wide fuel consumption. And in the medium and long term, we have our great enhancement strategy bringing higher-grade ore into our future production profile and providing organic offsets to inflationary pressures.

Andrea Freeborough: This accounts for approximately 75% of our company-wide fuel consumption. In the medium and long term, we have our grade enhancement strategy, bringing higher-grade ore into our future production profile and providing organic offsets to inflationary pressure. Lastly, in terms of supply of fuel and other consumables, we are not currently experiencing any disruptions at our operations, and we continue to receive regular delivery. I will now turn the call over to Claude.

Speaker #4: I'll now turn the call over to Claude.

Speaker #5: Thank you, Andrea. I'd like to start with our safety culture. This quarter, we have continued to focus on our safe ground brand through practical leadership training with a focus on prevention of high-potential incidents.

Speaker #2: Lastly, in terms of supply of fuel and other consumables, we're not currently experiencing any disruptions at our operations, and we continue to receive regular deliveries.

Speaker #5: Visible leadership activities are engaging the workforce and strengthening our safety excellence program, which has resulted in strong leading indicators. Starting with Parachute 2, the mine heading outstanding quarter with strong production driving significant free cash flow.

Speaker #2: I'll now turn the call over to Claude.

Speaker #1: Thank you, Andrea. I'd like to start with our safety culture. This quarter, we have continued to focus on our safe ground brand through practical leadership training with a focus on prevention of high-potential incidents.

Claude Schimper: Thank you, Andrea. I'd like to start with our safety culture. This quarter, we have continued to focus on our Safe Ground brand through practical leadership training with a focus on prevention of high-potential incidents. Visible leadership activities are engaging the workforce and strengthening our safety excellence program, which is resulting in strong leading indicators. Starting with Paracatu, the mine had an outstanding quarter with strong production driving significant free cash flow. Production of 161,000 ounces increased over the prior quarter due to record mill recoveries driven by continuous improvement programs across the processing plant. Key initiatives included enhancements to the CIL circuit, improved operational controls and carbon management practices, as well as targeted improvements in the Acacia Reactor performance.

Speaker #5: Production of 161,000 ounces increased over the prior recoveries driven by continuous improvement programs across the processing plant. Key initiatives included enhancements to the CIL circuit, improved operational controls, and carbon management practices as well as targeted improvements in the acacia reactor performance.

Speaker #1: Visible leadership activities are engaging the workforce and strengthening our Safety Excellence program, which has resulted in strong leading indicators. Starting with FARICA 2, the mine had an outstanding quarter, with strong production driving significant free cash flow.

Speaker #1: Production of 161,000 ounces increased over the prior quarter due to record mole recoveries driven by continuous improvement programs across the processing plant. Key initiatives included enhancements to the CIL circuit, improved operational controls, and carbon management practices as well as targeted improvements in the acacia reactor performance.

Speaker #5: Cost of sales of $1,119 per ounce increased over the prior quarter and Parachute 2 remains on track to meet its guidance of $600,000 ounces at a target cost of sales of $1,240 per ounce.

Speaker #5: So as if at another strong quarter, production of 130,000 ounces increased over the prior quarter and cost of sales of $990 per ounce decreased over the prior quarter due to strong grades.

Speaker #1: Cost of sales of $1,119 per ounce increased over the prior quarter and FARICA 2 remains on track to meet its guidance of $600,000 ounces at a target cost of sales of $1,240 per ounce.

Claude Schimper: Cost of sales of $1,119 per ounce increased over the prior quarters. Paracatu remains on track to meet its guidance of 600,000 ounces at a target cost of sales of $1,240 per ounce. Tasiast had another strong quarter. Production of 130,000 ounces increased over the prior quarter, and cost of sales of $990 per ounce decreased over the prior quarter due to strong grades. Continuous improvement efforts at the Tasiast solar facility has led to 15.5 GW of power generation, accounting for 23% of the site power in Q1 and offsetting 3.5 million liters of hydrocarbons.

Speaker #5: Continuous improvement efforts at the tastiest solar facility have led to 15.5 gigawatts of power generation accounting for 23% of the site power in the first quarter.

Speaker #1: Tasias had another strong quarter. Production of 130,000 ounces increased over the prior quarter and cost of sales of $990 per ounce decreased over the prior quarter due to strong grades.

Speaker #5: And offsetting 3.5 million liters of hydrocarbons. Tastiest remains on track to meet its guidance of $505,000 ounces at a target cost of $1,050 per ounce.

Speaker #1: Continuous improvement efforts at the Tasias solar facility have led to 15.5 gigawatts of power generation accounting for 23% of the site power in the first quarter.

Speaker #5: At the quota, we produce 54,000 ounces at a cost of sales of $1,526 per ounce. Production decreased over the prior quarter due to a planned 16-day mill shutdown, which also included several opportunistic continuous improvement initiatives aimed at increasing reliability and uptime in the plant.

Speaker #1: And offsetting 3.5 million liters of hydrocarbons. Tasias remains on track to meet its guidance of $505,000 ounces at a target cost of $1,050 per ounce.

Claude Schimper: Tasiast remains on track to meet its guidance of 505,000 ounces at a target cost of $1,050 per ounce. At Sekouba, we produced 54,000 ounces at a cost of sales of $1,526 per ounce. Production decreased over the prior quarter due to a planned 16-day mill shutdown, which also included several opportunistic continuous improvement initiatives aimed at increasing reliability and uptime in the plant. Grades and production are expected to increase in Q2 and Q3 as we mine phase 7 ore. Sekouba remains on track to meet its guidance of 210,000 ounces at a target cost of sales of $1,320 per ounce. Now moving to our US operations.

Speaker #1: At the quota, we produce 54,000 ounces at a cost of sales of $1,526 per ounce. Production decreased over the prior quarter due to a planned 16-day mill shutdown, which also included several opportunistic continuous improvement initiatives aimed at increasing reliability and uptime in the plant.

Speaker #5: Grades and production are expected to increase in the second and third quarters as we mine phase seven off. The quota remains on track to meet its guidance of $210,000 ounces at a target cost of sales of $1,320 per ounce.

Speaker #5: Now moving to our US operations, production was higher quarter over quarter, benefiting from strong contributions from Fort Knox and Manchurian, Alaska. Combined, the US site delivered production of 148,000 ounces at a cost of sales of $1,982 per ounce.

Speaker #1: Grades and production are expected to increase in the second and third quarters as we mine phase seven off. The quota remains on track to meet its guidance of $210,000 ounces at a target cost of sales of $1,320 per ounce.

Speaker #1: Now moving to our US operations, production was higher quarter over quarter, benefiting from strong contributions from Fort Knox and Manchurian, Alaska. Combined, the US site's delivered production of 148,000 ounces at a cost of sales of $1,982 per ounce.

Speaker #5: At Fort Knox, first quarter production of 94,000 ounces and cost of sales of $1,761 per ounce was higher than the prior quarter due to timing of the ounces processed through the mill and the heat leach fans.

Claude Schimper: Production was higher quarter over quarter, benefiting from strong contributions from Fort Knox and Manh Choh in Alaska. Combined, the US sites delivered production of 148,000 ounces at a cost of sales of $1,982 per ounce. At Fort Knox, Q1 production of 94,000 ounces and cost of sales of $1,761 per ounce was higher than the prior quarter due to timing of the ounces processed through the mill and the heap leach pads. At Bald Mountain, production of 28,000 ounces was lower than the prior quarter due to the timing of ounces recovered from the heap leach pads. Cost of sales of $1,934 per ounce was higher due to the fewer ounces produced.

Speaker #5: At Bald Mountain, production of 28,000 ounces was lower than the prior quarter due to the timing of ounces recovered from the heat leach fans.

Speaker #1: At Fort Knox, first quarter production of 94,000 ounces and cost of sales of $1,761 per ounce was higher than the prior quarter due to timing of the ounces processed through the mill and the heat leach fans.

Speaker #5: Cost of sales of $1,934 per ounce was higher due to the fewer ounces produced. At Grand Mountain, production of 26,000 ounces was lower quarter over quarter due to the processing of lower-grade lower-recover stockpile feed as we continue to transition towards higher-grade higher-recovery ore from phase S in the second half of the year.

Speaker #1: At Bald Mountain, production of 28,000 ounces was lower than the prior quarter due to the timing of ounces recovered from the heat leach fans.

Speaker #1: Cost of sales of $1,934 per ounce was higher due to the fewer ounces produced. At Ground Mountain, production of 26,000 ounces was lower quarter over quarter due to the processing of lower-grade lower-recovered stockpile feed as we continue to transition towards higher-grade, higher-recovery, or from phase S in the second half of the year.

Speaker #5: Our cost of sales of $2,776 per ounce was higher due to the fewer ounces produced. With that, I will now force the call over to William.

Claude Schimper: At Round Mountain, production of 26,000 ounces was lower quarter over quarter due to the processing of lower grade, lower recovery stockpile feed as we continue to transition towards higher grade, higher recovery ore from Phase X in the H2 of the year. Our cost of sales of $2,776 per ounce was higher due to the fewer ounces produced. With that, I will now pass this call over to William.

Speaker #6: Thanks, Claude. We call our project pipeline is back by significant resource inventory with over 27 million ounces of MNI plus an additional 17 million ounces of inferred, all calculated at 2,500 per ounce.

Speaker #1: Our cost of sales of $2,776 per ounce was higher due to the fewer ounces produced. With that, I will now force the call over to William.

Speaker #6: This includes several projects across our portfolio that are in-house technical team is advancing while also leveraging ongoing exploration to support future production potential. We continue to see several value-creating investment opportunities emerging across our portfolio to leverage the strong gold price and enhance our production profile in the 2030s and beyond.

Speaker #2: Thanks, Claude. We call our project pipeline is backed by significant resource inventory with over 27 million ounces of MNI plus an additional 17 million ounces of infer, all calculated at 2,500 per ounce.

William Dunford: Thanks, Claude. Recall our project pipeline is backed by a significant resource inventory with over 27 million ounces of M&I, plus an additional 17 million ounces of Inferred, all calculated at $2,500 per ounce. This includes several projects across our portfolio that our in-house technical team is advancing, while also leveraging ongoing exploration to support future production potential. We continue to see several value-creating investment opportunities emerging across our portfolio to leverage the strong gold price and enhance our production profile in the 2030s and beyond. The 3 high-return projects in the US, which we announced earlier this year, are strong examples of the potential to progress ounces from that extensive resource inventory into our production profile, enhancing our asset value. Projects and operations teams are making excellent progress across all 3 of these projects.

Speaker #2: This includes several projects across our portfolio that are in-house technical team is advancing while also leveraging ongoing exploration to support future production potential. We continue to see several value-creating investment opportunities emerging across our portfolio to leverage the strong gold price and enhance our production profile in the 2030s and beyond.

Speaker #6: The three high-return projects in the US, which we announced earlier this year, are strong examples of the potential to progress ounces from that extent of resource inventory into our production profile.

Speaker #6: Enhancing our asset value. Projects and operations teams are making excellent progress across all three of these projects. At phase X at Round Mountain, we are pleased to announce that we have received all major operational permits ahead of schedule including the federal permit to increase our underground mining rate above 3,000 tons per day.

Speaker #2: The three high-return projects in the US, which we announced earlier this year, are strong examples of the potential to progress ounces from that extensive resource inventory into our production profile.

Speaker #2: Enhancing our asset value. Projects and operations teams are making excellent progress across all three of these projects. At phase X, at Round Mountain, we are pleased to announce that we have received all major operational permits ahead of schedule including the federal permit to increase our underground mining rate above 3,000 tons per day.

Speaker #6: In terms of the project, underground development is well advanced with 7.2 kilometers completed to date. We've already exceeded the planned development rate of 12 meters per day for 2026 and are slightly ahead of schedule.

William Dunford: At Phase Ten at Round Mountain, we are pleased to announce that we have received all major operational permits ahead of schedule, including the federal permit to increase our underground mining rate above 3,000 tons per day. In terms of the project, underground development is well advanced, with 7.2 km completed to date. We've already exceeded the planned development rate of 12 m per day for 2026 and are slightly ahead of schedule, which significantly de-risks our path to first production in 2028. Engineering work for both surface and underground infrastructure is advancing well. The procurement of long lead items such as the mining equipment is underway. At Bald Mountain, mining of Roadrunner is advancing well, fully realizing the anticipated efficiency benefits of mining closer to key site infrastructure with improved equipment utilization.

Speaker #6: Which significantly de risks our path to first production in 2028. Engineering work for both surface and underground infrastructure is lead items such as the mining equipment is underway.

Speaker #2: In terms of the project, underground development is well advanced with 7.2 kilometers completed to date. We've already exceeded the planned development rate of 12 meters per day for 2026 and are slightly ahead of schedule.

Speaker #6: At Bald Mountain, mining of redbird is advancing well fully realizing the anticipated efficiency benefits of mining closer to key site infrastructure with improved equipment utilization.

Speaker #2: Which significantly de-risks our path to first production in 2028. Engineering work for both surface and underground infrastructure is advancing well and procurement of long lead items such as the mining equipment is underway.

Speaker #6: Construction of processing infrastructure for redbird extensions and detailed engineering of the startup plant is also progressing well. Turning to our curly project in Washington, with a mild winter, we had a successful construction season allowing us to make good progress on project infrastructure.

Speaker #2: At Bald Mountain, mining of red bird is advancing well fully realizing the anticipated efficiency benefits of mining closer to key site infrastructure with improved equipment utilization.

Speaker #6: Detailed engineering for the mill refurbishment is largely complete and procurement is well underway. We have selected a contractor for the mill refurbishment, mobilization activities commencing in Q2.

Speaker #2: Construction of processing infrastructure for red bird extensions and detailed engineering of the SART plant is also progressing well. Turning to our mild winter, we had a successful construction season allowing us to make good progress on project infrastructure.

William Dunford: Construction of processing infrastructure for Redbird extensions and detailed engineering of the SAR plant is also progressing well. Turning to our Curlew project in Washington. With a mild winter, we had a successful construction season, allowing us to make good progress on project infrastructure. Detailed engineering for the mill refurbishment is largely complete and procurement is well underway. We have selected a contractor for the mill refurbishment. Mobilization activity is commencing in Q2. We also pulled forward some underground mine development into Q1 to de-risk our mine plan and first production. In parallel, we continue to progress exploration at Curlew. Strong results both at North Stealth and at the Roadrunner Stealth, which provides potential to enhance and extend the mine plan.

Speaker #6: We also pulled forward some underground mine development into Q1 to de-risk our mine plan and first production. In parallel, we continue to progress exploration at Curlew, strong results both at north-south and at the roadrunner zone.

Speaker #2: Detailed engineering for the mill refurbishment is largely complete and procurement is well underway. We have selected a contractor for the mill refurbishment, mobilization activities commencing in Q2.

Speaker #6: Which provides potential to enhance and extend the mine plan. As you can see on the slide, at north-south, we intersected 12 and a half meters at 7 grams per ton 4 and a half meters at 8 and a half grams per ton.

Speaker #2: We also pulled forward some underground mine development into Q1 to de-risk our mine plan and first production. In parallel, we continue to progress exploration at Curlew, strong results both at north-south and at the roadrunner zone.

Speaker #6: And at roadrunner, we intersected 2.4 meters at 9 grams per ton. With the US projects advancing well and expected to come online in 2028, our team is also focused on advancing studies on opportunities across our resource base that are value accretive to our production profile in the 2030s.

Speaker #2: Which provides potential to enhance and extend the mine plan. As you can see on the slide, at north-south, we intersected 12.5 meters at 7 grams per ton and 4.5 meters at 8.5 grams per ton.

William Dunford: As you can see on the slide, at North Stealth, we intersected 12.5 meters at 7 grams per tonne, 4.5 meters at 8.5 grams per tonne. At Roadrunner, we intersected 2.4 meters at 9 grams per tonne. The US project's advancing well and expected to come online in 2028. Our team is also focused on advancing studies on opportunities across our resource base that are value accretive to our production profile in the 2030s. Here you can see updates on a few of those opportunities. At Bald Mountain, technical studies are underway for the next layback, the Top open pit, which has potential to extend production in the 2030s. The Top pit would be sequenced after Red Bird and is the next potential anchor pit with a current indicated resource of approximately 1 million ounces.

Speaker #6: Here you can see updates on a few of those opportunities. At Bald Mountain, technical studies are underway for the next layback. The top open pit which has potential to extend production in the 2030s.

Speaker #2: And at Roadrunner, we intersected 2.4 meters at 9 grams per ton. With the U.S. projects advancing well and expected to come online in 2028, our team is also focused on advancing studies on opportunities across our resource base that are value-accretive to our production profile in the 2030s.

Speaker #6: The top pit would be sequenced after redbird and is the next potential anchor pit. With the current indicated resource of approximately 1 million ounces.

Speaker #2: Here you can see updates on a few of those opportunities. At Bald Mountain, technical studies are underway for the next layback. The top open pit which has potential to extend production in the 2030s.

Speaker #6: Similar to redbird, the top open pit is a layback of an existing pit and we will be exploring and studying additional satellite pit optionality to bring in alongside this anchor pit.

Speaker #2: The top pit would be sequenced after red bird and is the next potential anchor pit. With the current indicated resource of approximately 1 million ounces.

Speaker #6: At Fort Knox, we are progressing technical studies focused on advancing phase 11 which is the next layback of the current open pit mine following the same well-understood ore body at depth.

Speaker #2: Similar to red bird, the top open pit is a layback of an existing pit and we will be exploring and studying additional satellite pit optionality to bring in alongside this anchor pit.

William Dunford: Similar to Red Bird, the Top open pit is a layback of an existing pit, and we will be exploring and studying additional satellite pit optionality to bring in alongside this anchor pit. At Fort Knox, we are progressing technical studies focused on advancing Phase 11, which is the next layback of the current open pit mine following the same well understood ore body at depth. Phase 11 resource contains approximately 2 million ounces and has potential to start producing in the early 2030s, meaningfully extending mine life at Fort Knox. Additionally, we are studying optionality to mine the Gill satellite deposit alongside the current Phase 10 and future Phase 11 to augment our overall production profile in Alaska. Moving across to Chile at La Coipa, last year we submitted an environmental impact assessment for the Puren 4 extension, and we remain on track with our permitting timeline.

Speaker #6: Phase 11 resource contains approximately 2 million ounces and has potential to start producing in the early 2030s. Meaningfully extending mine life at Fort Knox.

Speaker #2: At Fort Knox, we are progressing technical studies focused on advancing phase 11 which is the next layback of the current open pit mine following the same well-understood ore body at depth.

Speaker #6: Additionally, we are studying optionality to mine the GIL satellite deposit alongside the current phase 10 and future phase 11 to augment our overall production profile in Alaska.

Speaker #2: Phase 11 resource contains approximately 2 million ounces and has potential to start producing in the early 2030s. Meaningfully extending mine life at Fort Knox.

Speaker #6: Moving across to Chile, at La Coypa, last year we submitted an environmental impact assessment for the Pure N4 extension. And we remain on track with our permitting timeline.

Speaker #2: Additionally, we are studying optionality to mine the GIL L satellite deposit alongside the current phase 10 and future phase 11 to augment our overall production profile in Alaska.

Speaker #6: Pure N4 is also a layback of a prior pit which we expect to extend production into the early 30s. At which point we plan to transition to Lobo Marte.

Speaker #2: Moving across to Chile, at La Coypa, last year we submitted an environmental impact assessment for the Pure N4 extension. And we remain on track with our permitting timeline.

Speaker #6: Lastly, at Lobo Marte, we submitted our EIA earlier this month. Commencing our regulatory review process. Lobo Marte is expected to be a long-life, low-strip, low-cost, heap-leach operation with potential to produce 4.7 million ounces over a 16-year mine life.

Speaker #2: Pure N4 is also a layback of a prior pit, which we expect to extend production into the early '30s. At that point, we plan to transition to Lobo-Marte.

William Dunford: Puren 4 is also a layback of a prior pit, which we expect to extend production into the early 2030s, at which point we plan to transition to Lobo Marte. Lastly, at Lobo Marte, we submitted our EIA earlier this month, commencing our regulatory review process. Lobo Marte is expected to be a long life, low strip, low cost heap leach operation with potential to produce 4.7 million ounces over a 16-year mine life. The strong heap leach grade of 1.3 gram per ton and significant production potential of 300,000 to 400,000 ounces per year makes this an anchor tenant in our grade enhancement strategy alongside Great Bear in the 2030s, providing significant free cash flow with a low expected AISC.

Speaker #6: The strong heap-leach grade of 1.3 gram per ton and significant production potential of 3 to 400,000 ounces per year makes this an anchor tenant in our great enhancement strategy alongside Great Bear in the 2030s.

Speaker #2: Lastly, at Lobo Marte, we submitted our EIA earlier this month. Commencing our regulatory review process. Lobo Marte is expected to be a long-life, low-strip, low-cost, heap-leach operation with potential to produce 4.7 million ounces over a 16-year mine life.

Speaker #6: Providing significant free cash flow with a low expected ASIC. We are in the process of updating and reviewing a 2021 FS for Lobo while progressing our permitting.

Speaker #2: The strong heap-leach grade of 1.3 gram per ton and significant production potential of 3 to 400,000 ounces per year makes this an anchor tenant in our grade enhancement strategy alongside Great Bear in the 2030s.

Speaker #6: And we'll provide a more fulsome project update in the second half of the year. I will now hand it over to Jeff for an update on permitting at Great Bear.

Speaker #2: Providing significant free cash flow with a low expected ASEC. We are in the process of updating and reviewing the 2021 FS for Lobo while progressing our permitting.

Speaker #5: Thanks, Will. In terms of our advanced exploration, I am pleased to announce permits from the Ontario Ministry of Environment, Conservation, and Parks. This is a testament to the team at KINROSS and the Ministry of Environment, Conservation, and Parks under the leadership of Minister McCarthy to continue to advance the permitting process forward.

William Dunford: We are in the process of updating and reviewing a 2021 FS for Lobo while progressing our permitting. We'll provide a more fulsome project update in H2 of the year. I will now hand it over to Jeff for an update on permitting at Great Bear.

Speaker #2: And we'll provide a more fulsome project update in the second half of the year. I will now hand it over to Jeff for an update on permitting at Great Bear.

Speaker #1: Thanks, Will. In terms of our advanced exploration, I am pleased to announce that we have now received the remaining permits from the Ontario Ministry of Environment, Conservation, and Parks.

Geoffrey P. Gold: Thanks, Will. In terms of our advanced exploration, I am pleased to announce that we have now received the remaining permits from the Ministry of the Environment, Conservation and Parks. This is a testament to the team at Kinross and the Ministry of the Environment, Conservation and Parks under the leadership of Minister McCarthy to continue to advance the permitting process forward. Turning to the main project, we continue to advance permitting with both federal and provincial authorities. Federally, and as planned, we submitted the third and final phase of the impact statement to the Impact Assessment Agency of Canada in Q1, and we will continue to work with them as they progress their review and obtain public and indigenous input.

Geoff Gold: Thanks, Will. In terms of our advanced exploration, I am pleased to announce that we have now received the remaining permits from the Ministry of the Environment, Conservation and Parks. This is a testament to the team at Kinross and the Ministry of the Environment, Conservation and Parks under the leadership of Minister McCarthy to continue to advance the permitting process forward. Turning to the main project, we continue to advance permitting with both federal and provincial authorities. Federally, and as planned, we submitted the third and final phase of the impact statement to the Impact Assessment Agency of Canada in Q1, and we will continue to work with them as they progress their review and obtain public and indigenous input.

Speaker #5: Turning to the main project, we continue to advance permitting with both federal and provincial authorities. Federally, and as planned, we submitted the third and final phase of the impact statement to the Impact Assessment Agency of Canada in Q1.

Speaker #1: This is a testament to the team at KINROSS and the Ministry of Environment, Conservation, and Parks under the leadership of Minister McCarthy to continue to advance the permitting process forward.

Speaker #5: And we will continue to work with them as they progress their review and obtain public and indigenous input. As a reminder, receiving the final impact assessment report is the critical first step to obtaining other federal and provincial permits we require to construct and operate the Great Bear mine.

Speaker #1: Turning to the main project, we continue to advance permitting with both federal and provincial authorities. Federally, and as planned, we submitted the third and final phase of the impact statement to the Impact Assessment Agency of Canada in Q1.

Speaker #1: And we will continue to work with them as they progress their review and obtain public and indigenous input. As a reminder, receiving the final impact assessment report is the critical first step to obtaining other federal and provincial permits we require to construct and operate the Great Bear mine.

Speaker #5: We would require this final report and certain provincial early works and construction permits in the spring of 2027 to allow us to take advantage of the summer construction season in order to maintain targeted first production in late 2029.

Geoffrey P. Gold: As a reminder, receiving the final impact assessment report is the critical first step to obtaining other federal and provincial permits we require to construct and operate the Great Bear mine. We would require this final report and certain provincial early works and construction permits in the spring of 2027 to allow us to take advantage of the summer construction season in order to maintain targeted first production in late 2029. Provincially, we continue to work with the Ontario authorities to advance the permitting process for the main project under the One Project, One Process, which is overseen by the Ministry of Energy and Mines. One Project, One Process is a multi-phase process.

Geoff Gold: As a reminder, receiving the final impact assessment report is the critical first step to obtaining other federal and provincial permits we require to construct and operate the Great Bear mine. We would require this final report and certain provincial early works and construction permits in the spring of 2027 to allow us to take advantage of the summer construction season in order to maintain targeted first production in late 2029. Provincially, we continue to work with the Ontario authorities to advance the permitting process for the main project under the One Project, One Process, which is overseen by the Ministry of Energy and Mines. One Project, One Process is a multi-phase process.

Speaker #5: Provincially, we continue to work with the Ontario authorities to advance the permitting process for the main project under the One Project, One Process. Which is overseen by the Ministry of Energy and Mines.

Speaker #1: We would require this final report and certain provincial early works and construction permits in the spring of 2027 to allow us to take advantage of the summer construction season, in order to maintain targeted first production in late 2029.

Speaker #5: One Project, One Process is a multi-phase process. We have submitted our final project description and are awaiting final approval from the Ministry of Mines and Energy so that we can proceed to the next phase.

Speaker #1: Provincially, we continue to work with the Ontario authorities to advance the permitting process for the main project under the 'One Project, One Process', which is overseen by the Ministry of Energy and Mines.

Speaker #5: Which is the integrated authorization and permitting plan. Submission of individual Ontario permits will proceed in accordance with this plan once approved by the Ministry of Mines and Energy.

Speaker #1: One Project, One Process is a multi-phase process. We have submitted our final project description and are awaiting final approval from the Ministry of Mines and Energy so that we can proceed to the next phase.

Geoffrey P. Gold: We have submitted our final project description and are awaiting final approval from the Ministry of Energy, Northern Development and Mines so that we can proceed to the next phase, which is the integrated authorization and permitting plan. Submission of individual Ontario permits will proceed in accordance with this plan once approved by the Ministry of Energy, Northern Development and Mines. On the indigenous community front, we continue to progress the negotiation of benefits agreements. We are pleased to report that in relation to Lac Seul and Wabaseemoong Independent Nations, on whose traditional territory the main project resides, negotiations on the impact and benefits agreement continue to advance based on a recently signed and confidential memorandum of understanding that captures the key economic, compensatory, and procurement elements. With that, I will now turn it back to Will for a technical project update on Great Bear.

Geoff Gold: We have submitted our final project description and are awaiting final approval from the Ministry of Energy, Northern Development and Mines so that we can proceed to the next phase, which is the integrated authorization and permitting plan. Submission of individual Ontario permits will proceed in accordance with this plan once approved by the Ministry of Energy, Northern Development and Mines. On the indigenous community front, we continue to progress the negotiation of benefits agreements. We are pleased to report that in relation to Lac Seul and Wabaseemoong Independent Nations, on whose traditional territory the main project resides, negotiations on the impact and benefits agreement continue to advance based on a recently signed and confidential memorandum of understanding that captures the key economic, compensatory, and procurement elements. With that, I will now turn it back to Will for a technical project update on Great Bear.

Speaker #5: On the indigenous community front, we continue to progress the negotiation of benefits agreements. We are pleased to report that in relation to Laksul and Wabasgang First Nations, on whose traditional territory the main project resides, negotiations on the impact and benefits agreement continue to advance based on a recently signed and confidential memorandum of understanding that captures the key economic compensatory and procurement elements.

Speaker #1: Which is the integrated authorization and permitting plan. Submission of individual Ontario permits will proceed in accordance with this plan once approved by the Ministry of Mines and Energy.

Speaker #1: On the indigenous community front, we continue to progress the negotiation of benefits agreements. We are pleased to report that in relation to Laksul and Wabasking First Nations, on whose traditional territory the main project resides, negotiations on the impact and benefits agreement continue to advance based on a recently signed and confidential memorandum of understanding that captures the key economic compensatory and procurement elements.

Speaker #5: With that, I will now turn it back to Will for a technical project update on Great Bear.

Speaker #1: Thanks, Jeff. At Great Bear, work on the ADX program and the main project is progressing well. With final ADX permits in place, we expect to commence construction of the ADX decline this summer.

Speaker #1: With that, I will now turn it back to Will for a technical project update on Great Bear.

Speaker #1: The ADX decline will provide drilling access for exploration and extension of the underground resource as well as delineation work. In terms of the main project, with the impact assessment now submitted, we have already started to make meaningful progress on procurement with early packages awarded and requests for proposal issued across several work streams, including key mill equipment.

Speaker #2: Thanks, Jeff. At Great Bear, work on the AEX program and the main project is progressing well. With the final AEX permits in place, we expect to commence construction of the AEX decline this summer.

William Dunford: Thanks, Jeff. At Great Bear, work on the AEX program and the Manh Choh project is progressing well. With final AEX permits in place, we expect to commence construction of the AEX decline this summer. The AEX decline will provide drilling access for exploration and extension of the underground resource as well as delineation work. In terms of the Manh Choh project, with the impact assessment now submitted, we have already started to make meaningful progress on procurement with early packages awarded and request for proposal issued across several work streams, including key mill equipment. Detailed engineering is also advancing well and is approximately 45% complete. On completion of detailed engineering in early 2027, we will provide an update on the initial capital.

Speaker #2: The AEX decline will provide drilling access for exploration and extension of the underground resource as well as delineation work. In terms of the main project, with the impact assessment now submitted, we have already started to make meaningful progress on procurement with early packages awarded and requests for proposal issued across several work streams, including key mill equipment.

Speaker #1: Detailed engineering is also advancing well and is approximately 45% complete. Upon completion of detailed engineering, in early 2027, we will provide an update on the initial capital.

Speaker #1: This update will include both the impact from inflation since the 2024 PEA estimate and the impacts of any scope changes and enhancements we make as we move through detailed engineering.

Speaker #2: Detailed engineering is also advancing well and is approximately 45% complete. Upon completion of detailed engineering, in early 2027, we will provide an update on the initial capital.

Speaker #1: As an example, we've been progressing detailed engineering alongside permitting and through that work, we have chosen to enhance the scope and select areas, including water management.

Speaker #2: This update will include both the impact from inflation since the 2024 PEA estimate and the impacts of any scope changes and enhancements we make as we move through detailed engineering.

William Dunford: This update will include both the impact from inflation since the 2024 PEA estimate and the impacts of any scope changes and enhancements we make as we move through detailed engineering. As an example, we've been progressing detailed engineering alongside permitting, and through that work, we have chosen to enhance the scope in select areas, including water management. These enhancements go beyond standard practices and reflect a proactive approach to environmental protection given the long expected mine life of the asset. Through detailed engineering, we are working to ensure we are building a robust, reliable world-class operation given the multi-decade potential high margin production we see at this asset. Turning now to exploration, we continue to see positive results that are validating that view of potential for multi-decade high-grade operation at Great Bear.

Speaker #1: These enhancements go beyond standard practices and reflect a proactive approach to environmental protection given the long expected mine life of the asset. Through detailed engineering, we are working to ensure we are building a robust, reliable, world-class operation given the multi-decade potential, high margin production, we see at this asset.

Speaker #2: As an example, we have been progressing detailed engineering alongside permitting, and through that work, we have chosen to enhance the scope and select areas, including water management.

Speaker #2: These enhancements go beyond standard practices and reflect a proactive approach to environmental protection given the long expected mine life of the asset. Through detailed engineering, we are working to ensure we are building a robust, reliable, world-class operation given the multi-decade potential, high-margin production we see at this asset.

Speaker #1: Turning now to exploration, we continue to see positive results that are validating that view of potential for multi-decade, high-grade operation at Great Bear. 2026 exploration is focused on our 18-kilometer, LP structural corridor.

Speaker #1: As you can see on the slide. Drilling identified a new zone of mineralization 2.4 kilometers on strike from the southeast edge of the LP resource called the Strider Zone.

Speaker #2: Turning now to exploration, we continue to see positive results that are validating that view of potential for multi-decade, high-grade operation at Great Bear. 2026 exploration is focused on our 18-kilometer, LP structural corridor.

Speaker #1: We're drilling intercepted encouraging widths around 2 meters at double-digit grades. Drilling is continuing in this area following the structure on strike and down dip to define the extent of mineralization.

William Dunford: 2026 exploration is focused on our 18-kilometer LP structural corridor, as you can see on the slide. Drilling identified a new zone of mineralization 2.4 km on strike from the south-southeast edge of the LP resource, called the Strider Zone, where drilling intercepted encouraging widths around 2m at double-digit grades. Drilling is continuing in this area, following the structure on strike and down dip to define the extent of mineralization. With that, I will now turn it back to Paul for closing remarks.

Speaker #2: As you can see on the slide. Drilling identified a new zone of mineralization 2.4 kilometers on strike from the southeast edge of the LP resource.

Speaker #1: With that, I will now turn it back to Paul for closing remarks.

Speaker #2: Called the Strider Zone. Where drilling intercepted encouraging wets around 2 meters at double-digit grades. Drilling is continuing in this area following the structure on strike and down dip to define the extent of mineralization.

Speaker #6: Thanks, Will. After a strong start to the year, we are well 2026. And we have a strong set of upcoming milestones this year, which include ongoing return of capital to our dividend and share repurchases, continued strengthening of our balance sheet supported by strong operational performance and cash flow generation, advancing our project's pipeline, including the US projects we discussed in January, as well as Great Bear and Logo Marte and continued exploration and studies of our resource inventory to bring in new projects to extend mine lives.

Speaker #2: With that, I will now turn it back to Paul for closing remarks.

Paul Rollinson: Thanks. Well, after a strong start to the year, we are well-positioned to meet our targets in 2026, and we have a strong set of upcoming milestones this year, which include ongoing return of capital through our dividend and share repurchases, continued strengthening of our balance sheet supported by strong operational performance and cash flow generation, advancing our projects pipeline, including the US projects we discussed in January, as well as Great Bear and Lobo Marte, and continued exploration and studies of our resource inventory to bring in new projects to extend mine lives. Looking forward, we are excited about our future. We have a strong production profile. We have an attractive relative cost position. We are generating significant free cash flow. We have an excellent balance sheet. We have an attractive return of capital. We have an exciting pipeline of both exploration and development opportunities.

Speaker #1: Thanks, Will. After a strong start to the year, we are well positioned to meet our targets in 2026. And we have a strong set of upcoming milestones this year, which include ongoing return of capital through our dividend and share repurchases.

Speaker #1: Continued strengthening of our balance sheet supported by strong operational performance and cash flow generation. Advancing our project's pipeline, including the US projects we discussed in January.

Speaker #6: Looking forward, we are excited about our future. We have a strong production profile we have an attractive relative cost position. We are generating significant free cash flow.

Speaker #1: As well as Great Bear and Logo Marte and continued exploration and studies of our resource inventory to bring in new projects to extend mine lives.

Speaker #6: We have an excellent balance sheet. We have an attractive return of capital. We have an exciting pipeline of both exploration and development opportunities. We are growing our net asset value and our per-share metrics and we are very proud of our commitment to responsible mining that continues to make us a leader in sustainability.

Speaker #1: Looking forward, we are excited about our future. We have a strong production profile we have an attractive relative cost position. We are generating significant free cash flow.

Speaker #1: We have an excellent balance sheet. We have an attractive return of capital. We have an exciting pipeline of both exploration and development opportunities. We are growing our net asset value and our per-share metrics and we are very proud of our commitment to responsible mining that continues to make us a leader in sustainability.

Speaker #6: In closing, we believe that our shares offer attractive relative value across a number of metrics. And with that, Operator, I'd like to open up the line for questions.

Paul Rollinson: We are growing our net asset value and our per share metrics, and we are very proud of our commitment to responsible mining that continues to make us a leader in sustainability. In closing, we believe that our shares offer attractive relative value across a number of metrics. With that, operator, I'd like to open up the lines for questions.

Speaker #3: To ask a question, simply press star one on your telephone keypad. Again, that is star one to ask a question. And your first question comes from the line of John Wilson with RBC Capital Markets.

Speaker #1: In closing, we believe that our shares offer attractive relative value across a number of metrics. And with that, operator, I'd like to open up the line for questions.

Speaker #3: Please go ahead.

Speaker #4: Hi, thank you very much. First question is on Great Bear. With the AEX permit now in place, what is the pathway to be able to start some of that deeper exploration?

Operator: To ask a question, simply press star one on your telephone keypad. Again, that is star one to ask a question. Your first question comes from the line of Josh Wolfson with RBC Capital Markets. Please go ahead.

Speaker #4: Basically, what timeframe would you be at the levels that you'd need to be at to start some of that deeper exploration?

Speaker #3: Please go ahead.

Speaker #4: Hi, thank you very much. First question is on Great Bear. With the AEX permit now in place, what is the pathway to be able to start some of that deeper exploration?

Josh Wolfson: Hi. Thank you very much. First question is on Great Bear. With the AEX permit now in place, you know, what is the pathway to be able to start some of that deeper exploration? You know, basically, what time frame would you be at the levels that you'd need to be at to start some of that deeper exploration?

Speaker #1: I mean, the timeframe now, the key path, there's some more work we just need to do over the summer once we saw on water management to get ready for underground decline.

Speaker #1: So we expect August or September to actually be blasting and getting underground. And following that, obviously, it's we're going to focus in a few different areas at the beginning.

Speaker #4: Basically, what timeframe would you be at the levels that you'd need to be at to start some of that deeper exploration?

Speaker #2: I mean, the timeframe now, the key path, there's some more work we just need to do over the summer once we saw. On water management to get ready for underground decline.

William Dunford: I mean, the time frame now, the key path, there's some more work we just need to do over the summer once we thaw on water management to get ready for underground decline. We expect August or September to actually be blasting and getting underground. Following that, obviously, it's, you know, we're gonna focus in a few different areas at the beginning. We'll do infill and extensional drilling in the main part of the LP ore body. There's also Hinge and Limb, which wasn't in our PEA, which we'll hopefully explore over the next couple of years. I think it's progressive really. It's, you know, we won't be deep at the very bottom of the ore body for a number of years. We'll kind of follow ahead of the mining.

Speaker #1: We'll do infill and extensional drilling in the main part of the LP ore body. There's also hinge and limb, which wasn't in our PEA, which we'll hopefully explore over the next couple of years.

Speaker #2: So we expect August or September to actually be blasting and getting underground. And following that, obviously, we're going to focus in a few different areas at the beginning.

Speaker #1: So I think it's progressive, really. It's we won't be deep at the very bottom of the ore body for a number of years. We'll kind of follow ahead of the mining.

Speaker #2: We'll do infill and extensional ional drilling in the main part of the LP ore body. There's also hinge and limb, which wasn't in our PEA, which we'll hopefully explore over the next couple of years.

Speaker #4: Great. Thank you. And then back to sort of the conversation on inflation the company has some very good protections in place with the hedges.

Speaker #2: So I think it's progressive, really. It's we won't be deep at the very bottom of the ore body for a number of years. We'll kind of follow ahead of the mining.

Speaker #4: I guess sort of two parts of this question. One is when you're looking at the non-energy-related items reagents, labor, and so forth, I'm curious to know where is inflation tracking into next year.

Speaker #4: Great. Thank you. And then back to sort of the conversation on inflation the company has some very good protections in place with the hedges.

Josh Wolfson: Great. Thank you. Then back to sort of the conversation on inflation, you know, the company has some very good protections in place with the hedges. I guess sort of two parts to this question. One is, when you're looking at the non-energy related items, you know, reagents, labor, and so forth, I'm curious to know, you know, where is inflation tracking into next year. Then also, you know, when you're thinking about these capital updates for Lobo Marte as well as Great Bear, you know, what's the sort of thought process there in terms of CapEx inflation trends? Thank you.

Speaker #4: And then also when you're thinking about these capital updates for Lobo o Marte as well as Great Bear, what's the sort of thought process there in terms of CapEx inflation trends?

Speaker #4: I guess sort of two parts of this question. One is when you're looking at the non-energy related items reagents, labor, and so forth, I'm curious to know where is inflation tracking into next year?

Speaker #4: Thank you.

Speaker #3: Hi, Josh. It's Andrea. On inflation more broadly, I'd say we included a 5% inflation factor in our cost guidance back in February. So we're still on track for that.

Speaker #4: And then also when you're thinking about these capital updates, for Lobo Marte, as well as Great Bear, what's the sort of thought process there in terms of CapEx inflation trends?

Speaker #3: It's early in the year, and we'll see where things go with oil price and fuel costs and energy-related costs we've given the sensitivities. But as we sit here today, we're still feeling good about the 5% overall inflation factor.

Speaker #4: Thank you.

Speaker #3: Hi, Josh. It's Andrea. On inflation more broadly, I'd say we included a 5% inflation factor in our cost guidance back in February. So we're still on track for that.

Andrea Freeborough: Hi, Josh. It's Andrea. On inflation more broadly, I'd say, you know, we included a 5% inflation factor in our cost guidance, back in February, so we're still on track for that. It's early in the year, and we'll see where things go with oil price and fuel costs and energy-related costs we've given the sensitivities. As we sit here today, we're still feeling good about the 5% overall inflation factor.

Speaker #6: And then maybe just to jump in there as well, as it relates to capital for both Lobo Marte and Great Bear, look, I think, yeah, it's there.

Speaker #3: It's early in the year and we'll see where things go with oil price and fuel costs and energy-related costs we've given the sensitivities. But as we sit here today, we're still feeling good about the 5% overall inflation factor.

Speaker #6: I don't think inflation is going away. Our PEA, which we put out in '24, at some point in the future here, we're expecting to update.

Speaker #6: But there will definitely be an inflation component as between where we started with the numbers in '24 and where we're likely to end up.

Speaker #1: And then maybe just to jump in there as well, as it relates to capital for both Lobo Marte and Great Bear, look, I think yeah, it's there.

Paul Rollinson: Maybe just to jump in there as well, as it relates to capital for both Lobo Marte and Great Bear, look, I think, yeah, it's there. I don't think inflation's going away. Our PEA, which we put out in 2024, at some point in the future here, we're expecting to update, but there will definitely be an inflation component as between where we started with the numbers in 2024 and where we're likely to end up. I think you'll see that on both projects. Really just a macro effect, really, you know, something we're gonna be price receivers on. We'll continue to look to sharpen our pencils where we can, but we're working in that overall macro inflation environment.

Speaker #1: I don't think inflation is going away. Our PEA, which we put out in '24, at some point in the future here, we're expecting to update.

Speaker #6: I think you'll see that on both projects. Really just a macro effect, really, something we're going to be price receivers on. We'll continue to sharpen our pencils where we can, but we're working in that overall macro inflation environment.

Speaker #1: But there will definitely be an inflation component as between where we started with the numbers in '24 and where we're likely to end up.

Speaker #1: I think you'll see that on both projects. Really just a macro effect, really, something we're going to be price receivers on. We'll continue to look to sharpen our pencils where we can, but we're working in that overall macro inflation environment.

Speaker #4: Great. Thank you.

Speaker #3: And your next question comes from the line of Fahad Tariq with Jeffries. Please go ahead.

Speaker #7: Hi. Thanks for taking my question. Maybe first on Tazia's grades, they were really high. I think the highest since the third quarter of 2024.

Speaker #7: Just the outlook for grades through the rest of this year, that would be really helpful.

Speaker #4: Great. Thank you.

Josh Wolfson: Great. Thank you.

Speaker #3: And your next question comes from the line of Fahad Tariq with Jeffries. Please go ahead.

Operator: Your next question comes from the line of Fahad Tariq with Jefferies. Please go ahead.

Speaker #1: Yeah, Fahad, thanks for the question. Yeah, Tazia's, we're working through different areas. We're finishing off on waste branch four, and that's why the grades were higher.

Speaker #5: Hi. Thanks for taking my question. Maybe first on Tazia's grades, they were really high. I think the highest since the third quarter of 2024.

Fahad Tariq: Hi. Thanks for taking my question. Maybe first on Tasiast grades, they were really high, I think the highest since the Q3 2024. Just the outlook for grades through the rest of this year, that would be really helpful.

Speaker #5: Just the outlook for grades through the rest of this year, that would be really helpful.

Speaker #1: We still had some of that stockpile inventory, and we pushed that through in the first quarter. We expected to taper off for the rest of the year.

Speaker #1: Slightly lower. But we are constantly looking at opportunities to obviously enhance what we're putting out from Tazia's.

Speaker #2: Yeah, Fahad, thanks for the question. Yeah, Tazia's, we're working through different areas. We're finishing off on waste branch four, and that's why the grades were higher.

Claude Schimper: Yeah, Fahad, thanks for the question. You know, Tasiast, we're working through different areas. We're finishing off on West Branch Four, that's why the grades were higher. We still had some of that stockpile inventory, we pushed that through Q1. We expect it to taper off for the rest of the year, slightly lower. We are constantly looking at opportunities to obviously enhance what we're putting out from Tasiast.

Speaker #2: We still had some of that stockpile inventory, and we pushed that through in the first quarter. We expected to taper off for the rest of the year, slightly lower.

Speaker #7: Okay. And then maybe just staying in more Tanya, can you just remind us so diesel prices are regulated, I believe, by the government. So that probably factors into the sensitivity you provided if you could confirm that.

Speaker #2: But opportunities to obviously enhance what we're putting out from Tazia's.

Speaker #7: And then also, anything you've heard in terms of security of supply specifically in Mauritania? Thanks.

Speaker #5: Okay. And then maybe just staying in more Tanya, can you just remind us so diesel prices are regulated, I believe, by the government. So that probably factors into the sensitivity you provided if you could confirm that.

Fahad Tariq: Okay. Maybe just staying in Mauritania, can you just remind us, diesel prices are regulated, I believe, by the government, so that probably factors into the sensitivity you provided, if you could confirm that. Also anything you've heard in terms of security of supply specifically in Mauritania. Thanks.

Speaker #1: So I'll hit a bit so first of all, the diesel prices are regulated by the government. For the country, but not necessarily for us.

Speaker #1: We have long-term contracts with the suppliers coming to our system. So both for HF and fuel. And then the second part of it from a supply point of view, it's very similar to Brazil and these other countries.

Speaker #5: And then also, anything you've heard in terms of security of supply specifically in more Tanya? Thanks.

Claude Schimper: I'll hit a bit. First of all, the diesel prices are regulated by the government for the country, but not necessarily for us. We have long-term contracts with the suppliers that come into our system, both for HF and LF fuel. The second part of it from a supply point of view, it's very similar to Brazil and these other countries. We don't get our product from the Middle East. It comes from the other side of the track. We don't have an issue with supply. The impact will be on the unhedged fuel that from a cost point of view, but we don't have an issue with supply.

Speaker #2: So I'll hit a bit so first of all, the diesel prices are regulated by the government. All the country, but not necessarily for us.

Speaker #2: We have suppliers coming to our system. So both for HF and fuel. And then the second part of it from a supply point of view, it's very similar to Brazil and these other countries.

Speaker #1: We don't get our product from the Middle East. It comes from the other side of the track. So we don't have an issue with supply.

Speaker #1: The impact will be on the unhedged fuel that from a cost point of view. But we don't have an issue with supply.

Speaker #7: Okay. That's super clear. Thank you.

Speaker #2: We don't get our product from the Middle East. It comes from the other side of the track. So we don't have impact will be on the unhedged fuel that from a cost point of view.

Speaker #3: Your next question comes from the line of Ralph Profiti with Staple Financial. Please go ahead.

Speaker #7: Thanks very much. The Lobo Marte EIA submission would have had to, as a baseline, include some type of water usage strategy. Just wondering what that baseline is and what can you tell us about the strategy around that?

Speaker #2: But we don't have an issue with supply.

Speaker #5: Okay. That's super clear. Thank you.

Fahad Tariq: Okay. That's super clear. Thank you.

Speaker #3: Your next question comes from the line of Ralph Profidi with Staple Financial. Please go ahead.

Operator: Your next question comes from the line of Ralph Profiti with Stifel Financial. Please go ahead.

Ralph Profiti: Thanks very much. The Lobo Marte EIA submission would have had to, as a baseline include, you know, some type of a water usage strategy. Just wondering what that baseline is and what can you tell us about the strategy around that?

Speaker #6: Sure. Maybe I'll start and we'll jump in. I mean, it's a good question, Ralph. I mean, our whole tillage strategy is really around what is our water strategy.

Speaker #5: Thanks very much. The Lobo Marte EIA submission would have had to, as a baseline, include some type of water usage strategy. Just wondering what that baseline is and what can you tell us about the strategy around that?

Speaker #6: And as you may recall, whilst we have many thousands of liters of water rights, what really matters is permitted pumping capability and we have permitted pumping wells that have been running for many years.

Speaker #1: Sure. Maybe I'll start and we'll jump in. I mean, it's a good question, Ralph. I mean, our whole tillage strategy is really around what is our water strategy.

Paul Rollinson: Sure. Maybe I'll start and Will can jump in. I mean, it's a good question, Ralph. I mean, our whole Chile strategy is really around what is our water strategy. As you may recall, you know, whilst we have many thousands of liters of water rights, what really matters is permitted pumping capability. We have permitted pumping wells that have been running for many years. And that's a good thing because with pumping comes monitoring. As we've been pumping, we have monitoring wells, and we've got a very strong sort of history of monitoring that there's absolutely no detrimental impact to our draw. Our strategy, really, we call it our base case because there are upsides, but the base case is that we, the water wells that we're currently using, supply La Coipa.

Speaker #1: And as you may recall, whilst we have many thousands of liters of water rights, what really matters is permitted pumping capability and we have permitted pumping wells that have been running for many years.

Speaker #6: And that's a good thing because with pumping comes monitoring. So as we've been pumping, we have monitoring wells, and we've got a very strong history of monitoring that there's absolutely no detrimental impact to our draw.

Speaker #6: So our strategy really we call it our base case. Because there are upsides, but the base case is that we the water wells that we're currently using supply Laquipa.

Speaker #1: And that's a good thing because with pumping comes monitoring. So as we've been pumping, we have monitoring wells, and we've got a very strong sort of history of monitoring that there's absolutely no detrimental impact to our draw.

Speaker #6: They're actually physically closer to Lobo Marte. And we've spoken with the regulators. There's no guarantee with regulators, but the concept is we take that existing permitted pumping water and we just move it in a different direction closer to Lobo.

Speaker #1: So our strategy really, we call it our base case. Because there are upsides, but the base case is that the water wells that we're currently using supply La Cueva.

Speaker #1: They're actually physically closer to Lobo Marte. And we've spoken with the regulators. There's no guarantee with regulators, but the concept is we take that existing permitted pumping water and we just move it in a different direction closer to Lobo.

Paul Rollinson: They're actually physically closer to Lobo Marte. We've spoken with the regulators. There's no guarantee with regulators, but the concept is, you know, we take that existing permitted pumping, water, and we just move it in a different direction closer to Lobo. That would be our base case. Using the water we already have, we've got many years of history and monitoring. The upsides from there really, relate to if we could get more water, and we've got a few initiatives underway, we could actually do more. As it relates to Lobo, the linear factor is that, permitted pumping capability. Sorry, Will, did you wanna add?

Speaker #6: That would be our base case. Using the water we already have where we've got many years of history and monitoring. The upsides from there really relate to if we could get more water, and we've got a few initiatives underway, we could actually do more.

Speaker #1: That would be our base case. Using the water, we already have we've got many years of history and monitoring. The upsides from there really relate to if we could get more water, and we've got a few initiatives underway, we could actually do more.

Speaker #6: But as it relates to Lobo, the linear factor is that permitted pumping capability. Sorry, Will, did you want to add, Jeff?

Speaker #1: No. I mean, I think that's exactly right. That's what we submitted in the EIA. Lobo is the exact same water consumption. That we have at Laquipa.

Speaker #1: So it's been designed that way for the EIA so that because you said we just continue to use the same water with well-proven history.

Speaker #1: But as it relates to Lobo, the linear factor is that permitted pumping capability sorry, Will, did you want to add, Jeff?

Speaker #1: So all of that water modeling and data has already gone into the EIA submission providing that strong base case. And then we're working on all of that other you mentioned the water rights.

William Dunford: No. I mean, I think that's exactly right. That's what we submitted in the EIA. Lobo is the exact same, you know, water consumption that we have at La Coipa, so it's been designed that way for the EIA so that because you said we just continue to use the same water with well-proven history. All of that water modeling and data has already gone into the EIA submission providing that strong base case. We're working on all that other, you know, you mentioned the water rights. We're working on all of those water rights to identify other potential water sources for quite the longer term for other optionality in Chile.

Speaker #2: No, I mean, I think that's exactly right. That's what we submitted in the EIA. Lobo is the exact same water consumption. That we have at La Cueva.

Speaker #1: We're working on all of those water rights to identify other water potential water sources for Laquipa longer term. There are other optionality in Chile.

Speaker #2: So, it's been designed that way for the EIA, so that—because, you said, we just continue to use the same water with a well-proven history.

Speaker #2: So all of that water modeling and data has already gone into the EIA submission providing that strong base case. And then we're working on all that other you mentioned the water rights.

Speaker #7: Okay. Great. Yeah. That's very helpful. Just as a sort of a minor follow-up, I'm looking at the round mountain recoveries for the quarter. And just wondering, is that sort of the normal gray and recovery relationship there?

Speaker #2: We're working on all of those water rights to identify other water potential water sources for La Cueva longer term. There are other optionality in Chile.

Speaker #7: Was that expected? And is there any change in the metallurgical assumptions around sort of that phase X underground transition when I think about those recoveries?

Speaker #5: Okay. Great. Yeah, that's very helpful. Just as a sort of a minor follow-up, I'm looking at the round mountain recoveries for the quarter and just wondering is that sort of the normal grade and recovery relationship there?

Ralph Profiti: Okay, great. Yeah. That's very helpful. Just as a sort of a minor follow-up. I'm looking at the Round Mountain recoveries for the quarter and just wondering, is that sort of the normal, you know, grade and recovery relationship there? Was that expected? You know, is there any change in the metallurgical assumptions around sort of that Phase X underground transition when I think about those recoveries?

Speaker #1: Yeah. Multiple thoughts to that. So first of all, when we feed from the stockpiles, relative to where we are in the pit, at the time, and this was the first quarter was really a lot of stockpile material, that gray is significantly lower.

Speaker #5: Was that expected? And is there any change in the metallurgical assumptions around sort of that phase X underground transition when I think about those recoveries?

Speaker #1: And then the gray recovery curve, as you know, changes. So we anticipated that sort of recovery. We're doing a whole bunch of things to continue to optimize that.

Claude Schimper: There are multiple parts to that. First of all, when we feed from those stockpiles, relative to where we are in the pit at the time, and this was the first.

Speaker #2: Yeah, multiple parts to that. So first of all, when we feed from the stockpiles, relative to where we are in the pit at the time and this was the first.

Claude Schimper: There are multiple parts to that. First of all, when we feed from those stockpiles, relative to where we are in the pit at the time, and this was the first.

Speaker #1: And then phase X is a different gray than the 50 different piece. Very similar to what we had in phase W or higher up in phase W.

Speaker #1: So we do see that recovery changing as we put different types of material through for the our focus point.

Speaker #7: Okay. Great. Yeah. I appreciate that clarity. Thank you.

Speaker #3: Your next question comes from the line of Carey McCurry with Mechanical Ingenuity. Please go ahead.

Speaker #8: Hi. Good morning and congrats on the strong start. Just following up on the second-half guidance being slightly higher than the first half. Just wondering what assets in particular we should be thinking about as stronger in the second half?

Speaker #2: Sure. I'll start and someone else may want to jump in. I think the US, in particular, we pointed to as expecting to be higher in the second half.

Speaker #2: Some of that is round mountain as we expect higher production there as we get into the heart of phase S.

Speaker #6: So we continue to be on plan is the point.

Speaker #8: Okay. And then just follow up on the oil hedges. I think, Andrea, you mentioned your 75% hedged for 2026. Was that the number? In terms of exposure?

Speaker #2: So we're 63% hedged for the exposures in the US and at Cassias. That on the total portfolio is somewhere around 50%. We don't hedge in Brazil because there is price controls in Brazil.

Speaker #2: So we the prices don't move necessarily directly with spot in Brazil. For example, so far since early March, we've seen prices increase everywhere else except they've been pretty flat in Brazil.

Speaker #8: Okay. And then for 2027, we can kind of just.

Speaker #2: I think the 75% comment was the US and Cassias make up 75% of our fuel usage.

Speaker #8: Okay. Got it. And then for 2027, I guess we could just prorate based on the numbers on slide 11 there?

Speaker #2: Yeah. Sorry. 42%. We're 42% hedged for those for US and Cassias for 2027. That's about 30% company-wide.

Speaker #6: Which one? We'll look at opportunities to chip away at.

Speaker #2: Yes.

Speaker #8: Yeah. Okay. That's great. Thank you. Thank you.

Speaker #3: And your next question comes from the line of Anita Soni with CIBC World Markets. Please go ahead.

Speaker #5: Hi, guys. Good morning and congrats on the strong start. I just wanted to ask, a lot of the questions I wanted to ask have been asked already about Cassias grays and phase X grays.

Speaker #5: But just could you give us a little bit more guidance? Or is it the same as it was at the beginning of the year on the cadence of sustaining capital and gross capital spend over the next few quarters?

Speaker #2: Sure. I mean, we were slower to start, which is typical for us. Q1 is always a bit of a lower CapEx quarter. So we're still on track for the full year with, in particular, the gross capital spending kind of ramping up on the US projects as we go through the year.

Speaker #5: Okay. Thanks. That's it for my questions.

Speaker #3: Great. And your next question comes from the line of Tanya Jackusconek with Scotiabank. Please go ahead.

Speaker #2: Oh, great. Good morning, everybody. Thank you for taking my question. Andrea, can I just come back and you mentioned that you're seeing no issues in terms of getting supplies to mine sites etc.?

Speaker #2: Is there anything with your suppliers that you talk to that they are monitoring? Just things are moving now, but is there anything tight that they're watching?

Speaker #1: Yeah. Tanya, it's Claude. I'll take that. From a supply point of view globally, as our teams work and these things change because it's quite dynamic, we do follow up with the suppliers on a consistent basis.

Speaker #1: Obviously, for us, it's about what's the high priority items: explosives, cyanide, these kinds of things. And we haven't seen any tension from any of them yet.

Speaker #1: You'll recall that a couple of years ago with the issue in Ukraine, we shifted a lot of where our supply comes from. Along with our suppliers, of explosives, cyanide, all those types of things live.

Speaker #1: So we feel like we're in pretty good shape relative to the current situation. As well.

Speaker #2: Okay. So they're not seeing anything. So that would imply, Andrea, I shouldn't see any increase in working capital inventories at mine sites? You're not going to you're not accumulating anything there?

Speaker #5: We are targeting more fuel in-country for Cassias. So there was already a little bit of a buildup of supplies inventory starting in March, but nothing overly significant.

Speaker #2: They're not going back. Part of the COVID period.

Speaker #1: No.

Speaker #2: No. Okay. And my second question is still on the costing side. We talked about fuel a lot and thank you for that information. That's very helpful.

Speaker #2: But I wanted to come back and focus on labor as well. I mean, you mentioned number one, I want to understand whether you are seeing any tightness in the labor market and any contracts that you are seeing that are renewed for this year.

Speaker #2: You have to renew. And that's in line with your 5% inflation estimate.

Speaker #1: No, Tanya, as we mentioned in the previous quarter, we have now signed the major sites that have collective labor agreements. Cassias Brazil and Chile, we have signed all of those agreements.

Speaker #1: With the teams for the longer term, Chile is a two-year. Cassias is a five-year, and Brazil is a three-year. So we're in pretty good shape this year when it comes to that.

Speaker #1: From a labor supply point of view, there's always tension in the system, but we're seeing a lot less turnover in Nevada than we're used to.

Speaker #1: So we're in reasonable shape. So from a supply point of view, it's fine. And then from an agreement point of view, it's relative to the other than the inflation, as Andrea mentioned, we don't see any pressures at this point.

Speaker #2: Okay. Because on your costing side, as you mentioned that you have a strategy for your hedging, so your fuel, your currencies, and then your grade optimization, as we get better grades.

Speaker #2: I'm just wondering if your productivity and your turnover is where you want it to be as well.

Speaker #1: Yeah. Like I said, certainly, with the big three labor groups, we continue to focus on being the employer of choice. And certainly, those areas we believe would be quite successful, but it doesn't take us off the focal point.

Speaker #1: And then just from a point of view of cost, as I said, there's no pressure.

Speaker #2: Okay. Thank you.

Speaker #3: And our final question is from the line of Lawson Winder with Bank of America Securities. Please go ahead.

Speaker #6: Thank you, Operator. Good morning, Paul and team. Thank you for today's update. You submitted the Lobo Marte Environmental Impact Assessment in April. So that formally starts the permitting process.

Speaker #6: And you are expecting to provide an additional update in the second half. What are you anticipating in terms of timelines at this point? And what I'm ultimately getting at is, when do we expect a full funds decision?

Speaker #6: And then when should we be thinking about penciling in first production just conceptually, even if we're not going to put it in our models yet?

Speaker #6: Thanks.

Speaker #1: Yeah. Maybe I'll start and then turn it over to others. But with the EIA, you're sort of looking at a couple of years to kind of complete that process.

Speaker #4: Yeah. And then again, so again, Cadence, following that couple of standard, I would say, pretty standard couple of years of work to finalize the impact statement, then you're into sort of the approvals, the early works, and the construction, which would at a minimum be another couple of years.

Speaker #4: I think when you take all of that and we've always anticipated Lobo to come in behind Great Bear in the early '30s. So that's kind of what we've got in our timeline.

Speaker #4: We always look at opportunities for schedule compression. But I think we're comfortable saying early '30s in behind Great Bear.

Speaker #6: Okay. Thank you for that. And then if I could ask on the solar power at Cassias, I mean, it appears that there's been a clear cost benefit to that.

Speaker #6: Are you able to quantify the cost benefit from the solar? So for example, I mean, if there were no solar in Q1 versus full exposure to self-generate, with heavy fuel or diesel, I mean, do you have a sense of what that benefit would be?

Speaker #6: And then taking that to the next conclusion, to what extent could you expand solar capacity at Cassias particularly considering the stability of the overall electrical supply?

Speaker #1: Yeah. So I mean, the calculation is pretty simple. It's about 14 million liters of fuel that is additionally transported and then used at the fuel cost.

Speaker #1: So for us, right now, it's representing 22 to 24 percent of our electricity supply to the whole site. So it is significant. To your point on expansion, the challenge is the system 25% is a quarter of the day.

Speaker #1: So it works through daylight hours. The real issue is battery capacity. And so there's no adding additional solar panels will not influence it in any way because we reached the peak supply of power for the site.

Speaker #1: So you're just going to create power that you don't won't be able to use.

Speaker #4: Storage is the bottleneck.

Speaker #1: So storage is the bottleneck for those very large capacity plants.

Speaker #4: But I think, Claude, I mean, the solar plant was really kind of the first beachhead we got the direct savings on fuel. But now we're established with the beachhead.

Speaker #4: We've got buses. Light vehicles. More and more, use of battery-powered light vehicles at site. And I could see that trend continuing.

Speaker #1: Yeah. So and as we look at the larger mining fleet as well, we're starting to look at how do we capitalize on using that solar piece.

Speaker #1: And then the other part now is looking at the opportunity for wind and we're currently doing a wind study as well in the area.

Speaker #1: So looking at a lot of different alternatives. To heavy fuel.

Speaker #6: Okay. That's very helpful. Thank you both. And if I could just ask just one quick clarification, question on Fort Knox. The conveyor belt repairs during the quarter, I guess they were unexpected.

Speaker #6: And that's why they were backed out of earnings for adjusted earnings. But just any additional costs or shutdowns expected with that for the balance of the year?

Speaker #1: No. And the incident didn't have any impact on our actual production and process. It's given us the opportunity to refurbish a 50-year-old installation. And we're right on track.

Speaker #1: And ironically, right at this point, we're busy doing commissioning and testing of the new system. And we've replaced nearly a kilometer of belt. And so we're on track.

Speaker #1: And we expect the operation to just continue as normal.

Speaker #6: Fantastic. Thank you very much.

Speaker #3: I'm with no further questions. And Q, I will now hand the call back over to KINROSS GOLD for closing remarks.

Speaker #4: Great. Thank you, Operator. And thanks, everyone, for joining us this morning. We look forward to catching up with you in person in the coming weeks.

Speaker #4: Thanks. Thanks for joining us.

Q1 2026 Kinross Gold Corp Earnings Call

Request DemoDemo

Kinross Gold

Earnings