Q2 2026 Kinross Gold Corp Earnings Call

Operator: Thank you for standing by, welcome to the Kinross Gold Q2 2026 results conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad. Thank you. I'd now like to turn the call over to David Shaver, Executive Vice-President. You may begin.

Speaker #1: After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad.

Speaker #1: Thank you. I'd now like to turn the call over to David Shaver, Executive Vice President. You may begin.

Speaker #2: Thank you, and good morning. In the room with us today on the call, we have J. Rollinson, CEO, and from the Kinross senior leadership team: Andrea Freeborough, Claude Schimper, William Dunford, Geoffrey Gold, and Bernard Zessels, our incoming Chief Operating Officer.

David Shaver: Thank you, good morning. In the room with us today on the call, we have Paul Rollinson, CEO, from the Kinross senior leadership team, Andrea Freeborough, Claude Schimper, Will Dunford, Geoff Gold, and Bernard Wessels, our incoming Chief Operating Officer. For a complete discussion of the risks and uncertainties which may lead to actual results differing from estimates contained in our forward-looking information, please refer to page three of this presentation, our news release dated 29 July 2026, the MD&A for the period ending 30 June 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 #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 July 29, 2026, the MD&A for the period ending June 30, 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 second quarter results, provide high-level updates from across our portfolio, comment on sustainability achievements, and confirm our outlook.

Paul Rollinson: Thanks, David, thank you all for joining us. This morning, I will discuss our Q2 results, provide high-level updates from across our portfolio, comment on sustainability achievements, and confirm our outlook. I will hand the call back over to the team to provide further details. Before we begin discussing the quarter, I would like to highlight some changes to our senior leadership team. I'm pleased to announce the appointment of Bernard Wessels as Chief Operating Officer, succeeding Claude Schimper, who will be retiring later this year. Claude has been an integral part of Kinross for more than 16 years, including the past 5 years on our senior leadership team and 4 years as COO. During his tenure, he has led our operations with a steadfast commitment to safety, operational excellence, and continuous improvement, helping to deliver meaningful and lasting benefits across the business.

Speaker #3: I will then hand the call back over to the team to provide further details. Before we begin discussing the quarter, I would like to highlight some changes to our senior leadership team.

Speaker #3: I'm pleased to announce the appointment of Bernard Vessels, as Chief Operating Officer succeeding Claude Schimper, who will be retiring later this year. Claude has been an integral part of KINROSS for more than 16 years, including the past 5 years on our senior leadership team and 4 years as COO.

Speaker #3: During his tenure, he has led our operations with a steadfast commitment to safety, operational excellence, and continuous improvement, helping to deliver meaningful and lasting benefits across the business.

Speaker #3: To ensure a seamless transition, Claude will remain with the company for a period of time, working closely with Bernard. On behalf of the Board and the entire Kinross team, I would like to thank Claude for his outstanding leadership and many contributions to the company.

Paul Rollinson: To ensure a seamless transition, Claude will remain with the company for a period of time, working closely with Bernard. On behalf of the board and the entire Kinross team, I would like to thank Claude for his outstanding leadership and many contributions to the company, and wish him all the best in his retirement. Bernard brings more than 25 years of mining experience, having held increasing senior operational and leadership roles at Sibanye-Stillwater, Harmony Gold, Anglo American Platinum JV, and most recently Newmont. We are excited to welcome Bernard to Kinross and look forward to leveraging his extensive operational leadership. Turning now to our Q2 results. Following a strong Q1, we delivered a strong Q2, establishing an excellent H1 and positioning us well to achieve our full year guidance. We continued to hold the line on costs and delivered strong operating margins.

Speaker #3: And wish him all the best in his retirement. Bernard brings more than 25 years of mining experience, having held increasing senior operational and leadership roles at Sylvania Stillwater, Harmony Gold, Anglo-American Platinum JV, and most recently Newmont.

Speaker #3: We are excited to welcome Bernard to KINROSS and look forward to leveraging his extensive operational leadership. Turning now to our second quarter results. Following a strong Q1, we delivered a strong Q2, establishing an excellent first half, and positioning us well to achieve our full-year guidance.

Speaker #3: We continue to hold the line on costs, and delivered strong operating margins. As a result, we delivered free cash flow of over $725 million in Q2 and over $1.5 billion in the first half of this year.

Paul Rollinson: As a result, we delivered free cash flow of over $725 million in Q2 and over $1.5 billion in the H1 of this year. Our business is in excellent shape, and our pipeline of growth projects, including Great Bear and Lobo-Marte, continue to advance well. Our financial position and cash flow outlook remains excellent. In Q2, we continued to return additional capital to our shareholders through both buybacks and our quarterly dividend in keeping with our target to return 40% of our free cash flow. In terms of operations, Q2 was another strong quarter with production of 492,000 ounces. Both TauTias and Paracatu were key contributors, together accounting for more than half of our production, driving significant free cash flow. With regards to our projects, we continue to make strong progress across the portfolio.

Speaker #3: Our business is in excellent shape, and our pipeline of growth projects, including Great Bear, and Lobo Marte, continue to advance well. Our financial position and cash flow outlook remains excellent, and in Q2 we continue to return additional capital to our shareholders through both buybacks and our quarterly dividend, in keeping with our target to cash flow.

Speaker #3: In terms of operations, Q2 is another strong quarter with production of 492,000 ounces. Both Tasias and Pericateau were key contributors, 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 across the portfolio. In the U.S., the team continues to advance our three new high-quality projects at Phase X, Redbird, and Kurlu.

Paul Rollinson: In the US, the team continues to advance our three new high-quality projects at Phase X, Redbird, and Curlew. At Great Bear, both the advanced exploration and the main project are progressing well. In terms of AEX, with the remaining permits in place, we recently completed the first blast of the exploration decline. With respect to the main project, both detailed engineering and permitting are advancing well. We continue to work with the authorities as they progress their review of the Impact Statement. We also continue to engage with local stakeholders and indigenous partners through regular community meetings, ongoing collaboration, and transparent communication. Moving across to Chile, as a reminder, we submitted the Lobo-Marte environmental impact assessment in March, marking an all-important milestone and formally launching the permitting process. Subsequently, in May, we welcomed the newly elected President of Chile, President Kast, to our local offices in Copiapó.

Speaker #3: At Great Bear, both the advanced exploration and the main project are progressing well. In terms of AEX, with the remaining permits in place, we recently completed the first blast of the exploration decline.

Speaker #3: And with respect to the main project, both detailed engineering and permitting are advancing well. We continue to work with the authorities as they progress their review of the impact statement.

Speaker #3: We also continue to engage with local stakeholders and Indigenous partners to regular community meetings ongoing collaboration and transparent communication. Moving across to Chile, as a reminder, we submitted the Lobo Marte Environmental Impact Assessment in March.

Speaker #3: Marking an all-important milestone and formally launching the permitting process. Subsequently, in May, we welcomed the newly elected President of Chile, President Kast, to our local offices in Copiapó.

Speaker #3: During his visit, he acknowledged KINROSS' longstanding commitment to the Atacama region and declared his support for our development plans in the region, including our world-class project Lobo Marte.

Paul Rollinson: During his visit, he acknowledged Kinross's long-standing commitment to the Atacama region and declared his support for our development plans in the region, including our world-class project, Lobo-Marte. We appreciate President Kast's support for the responsible operation and the development of our assets in the region. Last night, we announced an update on Lobo-Marte, an excellent high-quality asset in our portfolio with a strong production profile, low cost structure, and excellent economics. Will is going to elaborate on this later in the call. Turning now to sustainability. We published our annual sustainability report in the Q2. This report provides a comprehensive update on our achievements and plans going forward. A key highlight for me was in Mauritania. In June, we delivered humanitarian support to remote farming communities facing food insecurity due to drought and rising transportation costs. Turning now to our outlook.

Speaker #3: We appreciate President Cast's support for the responsible operation and the development of our assets in the region. And last night, we announced an update on Lobo Marte, an excellent high-quality asset in our portfolio, with its strong production profile, low cost structure, and excellent economics.

Speaker #3: Will is going to elaborate on this later in the call. Turning now to sustainability, we published our annual sustainability report in the second quarter.

Speaker #3: This report provides a comprehensive update on our achievements and plans going forward. A key highlight for me was in Mauritania. In June, we delivered humanitarian support to remote farming communities facing food insecurity due to drought and rising transportation costs.

Speaker #3: Turning now to our outlook, following a strong first half, we remain on track to meet our full-year production cost and capital guidance. As we highlighted last quarter, we continue to benefit from an attractive relative cost position, supported by our disciplined approach to managing cost pressures through input cost hedging and productivity initiatives, and our great enhancement strategy.

Paul Rollinson: Following a strong H1, we remain on track to meet our full-year production, cost, and capital guidance. As we highlighted last quarter, we continue to benefit from an attractive relative cost position, supported by our disciplined approach to managing cost pressures through input cost hedging, productivity initiatives, and our grade enhancement strategy. Looking ahead, we remain focused on continued operational execution, cost management, and capital allocation, and continued advancement of our high-quality resource base. Our focus is to continue to generate strong margins, robust free cash flow, and long-term value for all our shareholders. With that, I will now turn the call over to Andrea.

Speaker #3: Looking ahead, we remain focused on continued operational execution, cost management and capital allocation, and continued advancement of our high-quality resource base. Our focus is to continue to generate strong margins and robust free cash flow and long-term value for all our shareholders.

Speaker #3: With that, I will now turn the call over to Andrea.

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

Andrea Freeborough: Thanks, Paul. This morning, I'll review our financial highlights from the Q2, provide an overview of our balance sheet and return of capital, and comment on our outlook. As Paul noted, Q2 was another strong quarter for us. We produced 492,000 gold equivalent ounces as planned. Q2 cost of sales of $1,336 per ounce and all-in sustaining costs of $1,821 per ounce were also on plan. Margins were robust at over $3,100 per ounce. Our adjusted earnings were $0.71 per share, and our adjusted operating cash flow was again over $1.1 billion. Attributable free cash flow was $727 million after $406 million in capital expenditures and $327 million in tax payments. Turning now to our balance sheet.

Speaker #2: As Paul noted, Q2 was another strong quarter for us. We produced 492,000 gold equivalent ounces, as planned. Q2 cost of sales of $1,336 per ounce and all-in sustaining costs of $1,821 per ounce were also on plan.

Speaker #2: Margins were robust at over 3,100 dollars per ounce. Our adjusted earnings were 71 cents per share, and our adjusted operating cash flow was again over 1.1 billion dollars.

Speaker #2: Attributable free cash flow was 727 million dollars, after 406 million dollars in capital expenditures and 327 million dollars in tax payments. Turning now to our balance sheet, in the second quarter we continued to strengthen our financial position.

Andrea Freeborough: In the Q2, we continued to strengthen our financial position, adding over $470 million in cash after returning $275 million to shareholders. We ended the quarter with new records of $2.7 billion in cash and $1.9 billion in net cash. With respect to our return of capital, as a reminder, we're targeting a 40% return of free cash flow through a combination of dividends and share buybacks. Our shares continue to remain a strong return on invested capital, considering our attractive valuation and free cash flow yield. In Q2, we repurchased a total of 7.9 million shares for $230 million and continued to pay our quarterly dividend of approximately $50 million.

Speaker #2: Adding over $470 million in cash after returning $275 million to shareholders. We ended the quarter with new records of $2.7 billion in cash and $1.9 billion in net cash.

Speaker #2: With respect to our return of capital, as a reminder, we're targeting a 40 percent return of free cash flow through a combination of dividends and share buybacks.

Speaker #2: Our shares continue to remain a strong return on invested capital, considering our attractive valuation and free cash flow yield. In Q2, we repurchased a total of 7.9 million shares, for 230 million dollars, and continued to pay our quarterly dividend of approximately 50 million dollars.

Andrea Freeborough: Combined, our total return of capital in the H1 represented approximately 37% of our attributable free cash flow, and we remain on track to achieve our 2026 target of 40%. Subsequent to quarter end, we repurchased an additional $40 million of shares. I'm also pleased to report that since resuming our share buybacks in Q2 2025, we've repurchased over $1.1 billion in shares, representing approximately 4% of our outstanding share count. And including our quarterly dividends, we have returned approximately $615 million to date in 2026, and approximately $1.4 billion since the start of 2025. These results reflect the strength of our cash flow generation and our ongoing commitment to delivering meaningful returns to shareholders while further strengthening our balance sheet. Turning now to our guidance.

Speaker #2: Combined, our total return of capital in the first half represented approximately 37 percent of our attributable free cash flow, and we remain on track to achieve our 2026 target of 40 percent.

Speaker #2: Subsequent to quarter end, we repurchased an additional $40 million of shares. I'm also pleased to report that since resuming our share buybacks in Q2 2025, we've repurchased over $1.1 billion in shares, representing approximately 4 percent of our outstanding share count.

Speaker #2: And, including our quarterly dividends, we have returned approximately $615 million to date in 2026 and approximately $1.4 billion since the start of 2025.

Speaker #2: These results reflect the strength of our cash flow generation and our ongoing commitment to delivering meaningful returns to shareholders, while further strengthening our balance sheet.

Speaker #2: Turning now to our guidance, we've been following a strong first half, we remain solidly on track to deliver approximately 2 million ounces, and a cost of sales of $1,360 per ounce, and an all in sustaining cost of $1,730 per ounce, and we're also on track with our capital guidance in the range of 1.5 billion dollars.

Andrea Freeborough: Following a strong H1, we remain solidly on track to deliver approximately 2 million ounces at a cost of sales of $1,360 per ounce and an all-in sustaining cost of $1,730 per ounce. We're also on track with our capital guidance in the range of $1.5 billion. On production, we expect Q3 to be in line with the first two quarters as we continue to transition to Phase X at Round Mountain, and we expect Q4 to be higher. In terms of our operating costs, as we look to the H2 of the year, we expect costs to be modestly higher, reflecting a greater contribution from our US operations. For the full year, we expect to be in line with our cost guidance.

Speaker #2: On production, we expect the third quarter to be in line with the first two quarters as we continue to transition to phase S at Ram Mountain.

Speaker #2: And we expect the fourth quarter to be higher. In terms of our operating costs, as we look to the to be modestly higher, reflecting a greater contribution from our U.S.

Speaker #2: operations. For the full year, we expect to be in line with our cost guidance. As Paul noted earlier, through our disciplined cost management, we're starting from a competitive cost position relative to our peers.

Andrea Freeborough: As Paul noted earlier, through our disciplined cost management, we're starting from a competitive cost position relative to our peers. We remain focused on managing costs in order to maintain strong margins and free cash flow generation. In the near to medium term, our fuel hedging program continues to provide meaningful protection against higher oil prices, with significant hedges in place through both 2026 and 2027. I would also reiterate that the fuel cost sensitivities we outlined with our Q1 results remain unchanged, and the impact on our overall cost structure remains manageable and within our guidance ranges. As a reminder, our guidance is based on $70 oil.

Speaker #2: We remain focused on managing costs in order to maintain strong margins and free cash flow generation. In the near to medium term, our fuel hedging program continues to provide meaningful protection against higher oil prices, with significant hedges in place through both 2026 and 2027.

Speaker #2: I would also reiterate that the fuel cost sensitivities we outlined with our first quarter results remain unchanged, and the impact on our overall cost structure remains manageable and within our guidance ranges.

Speaker #2: As a reminder, our guidance was based on $70 oil. For every $10 per barrel change in oil price, we expect an impact of approximately $10 per ounce, with a potential additional $4 per ounce from secondary impacts such as freight and other consumables, as oil markets continue to be volatile.

Andrea Freeborough: For every $10 per barrel change in oil price, we expect an impact of approximately $10 per ounce, with a potential additional $4 per ounce from secondary impacts such as freight and other consumables as oil markets continue to be volatile. For added context, if the recent oil prices persist through the remainder of the year, the impact on all-in sustaining costs would be less than 2%. On the supply side, we continue to receive regular deliveries of fuel and other key consumables, and we've not experienced any supply disruptions across our operations. Looking forward, our grade enhancement strategy is expected to provide organic offsets to inflationary pressures and contribute a stronger cost profile over time. For example, both Phase X and Curlew are expected to begin contributing higher-grade ounces to our production profile starting in 2028.

Speaker #2: For added context, if the recent oil prices persist through the remainder of the year, the impact on all in sustaining costs would be less than 2 percent.

Speaker #2: On the supply side, we continue to receive regular deliveries of fuel and other key consumables, and we've not experienced any supply disruptions across our operations.

Speaker #2: Looking forward, our Great Enhancement Strategy is expected to provide organic offsets to inflationary pressures and contribute to a stronger cost profile over time. For example, both Phase X and Curlew are expected to begin contributing higher-grade ounces to our production profile starting in 2028.

Speaker #2: And our two world-class development projects, Great Bear and Lobo-Marte, are expected to contribute a total of approximately 850,000 ounces per year of high-grade, low-cost ounces to our future production profile.

Andrea Freeborough: Our two world-class development projects, Great Bear and Lobo-Marte, are expected to be contributing a total of approximately 850,000 ounces per year of high-grade, low-cost ounces to our future production profile. With that, I'll now turn the call over to Claude.

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

Speaker #3: Thank you, Andrea. I'd like to start with our safety culture. This quarter, we continue to invest in protecting our people through proactive training initiatives, which promote our safe ground brand.

Claude Schimper: Thank you, Andrea. I'd like to start with our safety culture. This quarter, we continue to invest in protecting our people through proactive training initiatives which promote our Safeground brand. Our critical risk management program continues to mature across our operations, with leaders engaging effectively with the workforce and verifying critical controls for high-risk tasks. Turning now to our operations. Starting with Paracatu, the mine had an outstanding quarter, with strong production driving significant free cash flow. Production of 158,000 ounces at a cost of sales of $1,108 per ounce were in line with the prior quarter. Paracatu remains on track to meet its guidance of 600,000 ounces at a target cost of sales of $1,240 per ounce. Lazios had another strong quarter.

Speaker #3: Our critical risk management program continues to mature across our operations, with leaders engaging effectively with the workforce and verifying critical controls for high-risk tasks.

Speaker #3: Turning now to our operations, starting with Paraga 2, the Manhattan outstanding quarter. With strong production driving significant free cash flow. Production of 158,000 ounces and a cost of sales of $1,108 per ounce, we're in line with the prior quarter.

Speaker #3: Compared to Q2, it remains on track to meet its guidance of 600,000 ounces, and the target cost of sales of $1,240 per ounce. Dasius had another strong quarter.

Speaker #3: Production of 133,000 ounces increased over the prior quarter due to higher throughput, with a cost of sales of $990 per ounce, in line with the prior quarter.

Claude Schimper: Production of 133,000 ounces increased over the prior quarter due to higher throughput with a cost of sales of $990 per ounce in line with the prior quarter. Thales remains on track to meet its guidance of 505,000 ounces at a target cost of sales of $1,050 per ounce. At La Coipa, we produced 59,000 ounces at a cost of sales of $1,395 per ounce. Production increased over the prior quarter due to planned higher grades and throughput. Cost of sales decreased over the prior quarter due to higher production. Before I move on, I'd like to acknowledge the recent severe winter storm in Northern Chile. Our thoughts are with the local communities and our employees who were affected by this event.

Speaker #3: Dasius remains on track to meet its guidance of 505,000 ounces and a target cost of sales of $1,050 per ounce. At Lakoipa, we produced 59,000 ounces at a cost of sales of $1,395 per ounce.

Speaker #3: Production increased over the prior quarter due to planned higher grades and throughput. Cost of sales decreased over the prior quarter due to higher production.

Speaker #3: Before I move on, I'd like to acknowledge the recent severe winter storm in Northern Tule. Our thoughts are with the local communities, and our employees who were affected by the event.

Speaker #3: While we experienced some impacts, Lakoipa remains on track to achieve its annual guidance of 210,000 ounces at a target cost of sales of $1,320 per ounce.

Claude Schimper: While we experienced some impact, La Coipa remains on track to achieve its annual guidance of 210,000 ounces at a target cost of sales of $1,320 per ounce. Moving to our US operations. Production was lower quarter-over-quarter as we ramp up ore mining at Round Mountain Phase S in the second half of the year. Combined, the US sites delivered production of 142,000 ounces at a cost of sales of $1,871 per ounce. At Fort Knox, production of 95,000 ounces was in line with the prior quarter. Cost of sales of $1,596 per ounce was lower compared to the prior quarter, due to the timing of ounces processed through the month.

Speaker #3: Moving to our U.S. operations, production was lower quarter over quarter as we ramp up all mining at Brown Mountain, phase S in the second half of the year.

Speaker #3: Combined, the U.S. cites delivered production of 142,000 ounces, the cost of sales of $1,871 per ounce. At Fort Knox, production of 95,000 ounces was in line with the prior quarter, cost of sales of $1,596 per ounce, was lower compared to the prior quarter due to the timing of ounces processed through the month.

Speaker #3: At Bald Mountain, production of 27,000 ounces was in line with the prior quarter. Cost of sales of $1,770 per ounce, was lower due to the ramp-up of capital stripping at Redbird in Q2, and higher ounces placed on the Hebrides pads.

Claude Schimper: At Bald Mountain, production of 27,000 ounces was in line with the prior quarter. Cost of sales of $1,770 per ounce was lower due to the ramp-up of capital stripping at Redbird in Q2 and higher ounces placed on the heap leach pads. At Round Mountain, we are currently in a stage of higher waste mining and lower grade, lower volume ore supply as we are stripping Phase S. Higher grade, higher recovery ore is expected from Phase S in the second half of the year. Turning to a spotlight on our overall performance. At Kinross, we have a strong culture of continuous improvement and innovation embedded throughout the business, with each site having a dedicated team in place to evaluate, implement, and sustain increased efficiencies and cost management practices.

Speaker #3: At Brown Mountain, we are currently in a stage of higher waste mining and lower grade lower volume oil supply as we are stripping phase S.

Speaker #3: Higher grade, higher recovery ore is expected from phase S in the second half of the year. Turning to a spotlight on our overall performance.

Speaker #3: At KINROSS, we have a strong culture of continuous improvement and innovation embedded throughout the business. With each site having a dedicated team in place to evaluate, implement, and sustain increased efficiencies and cost management practices.

Speaker #3: I would like to list a few highlights of these projects to demonstrate how they help offset inflationary and cost pressures. Starting with Paraga 2, the recovery improvement projects which have been in the works for the last couple of years are now delivering tangible results.

Claude Schimper: I would like to list a few highlights of these projects to demonstrate how they help offset inflationary and cost pressures. Starting with Paracatu, the recovery improvement projects which have been in the works for the last couple of years are now delivering tangible results. We have made enhancements to the CIL circuit, implemented new gravity concentrators, improved process controls and carbon management practices, as well as targeted improvements in the Acacia Reactor performance, all of which are contributing to higher recoveries and improved operating performance. At Tasiast, we are focused on mining and mill throughput improvements and our solar power. On the mining front, we are focused on loading productivities, targeted training, and commissioning of larger equipment. In parallel, we've improved the effective utilization of our hauling fleets through an improved roster balance, shift change management, and dispatch optimization.

Speaker #3: We have made enhancements to the CIL circuit, implemented new gravity concentrators, improved process controls and carbon management practices, as well as targeted improvements in the Acacia reactor performance.

Speaker #3: All of which are contributing to higher recoveries and improved operating performance. At Dasius, we have focused on mining and mill throughput improvements, and our solar power.

Speaker #3: On the mining front, we have focused on loading productivities, targeted training, and commissioning of larger equipment. In parallel, we've improved the effective utilization of our hoarding fleet through an improved roster balance, shift change management, and dispatch optimization.

Speaker #3: These increases together have contributed to a record month in May, with Dasius delivering the highest tons mined and moved in its history. At the mill, team's attention is focused on continued improvements, reliability, and some examples include implementing procedures which have reduced the time to change out a rip belt by 50%.

Claude Schimper: These increases together have contributed to a record month in May, with Tasiast delivering the highest tonnes mined and moved in its history. At the mill, team's attention is focused on continued improvements, reliability, and some examples include implementing procedures which have reduced the time to change out a rip belt by 50%, redesigning the SAG panels with lighter weight, and adding oxygenation to make recoveries more consistent. In terms of power, the solar facility continues to provide approximately 23% of site power requirements, resulting in lower energy consumption and reducing impacts of the recent elevated oil prices. At Bald Mountain, a shovel optimization program has delivered improvements in loading efficiency, outputting lower mining costs while improving equipment productivity. We have also introduced a relief operator program, which has contributed approximately 2.1 million productive tonnes during break coverage since the beginning of the year.

Speaker #3: Redesigning the SAG panels with lighter weight, and adding oxygenation to make recoveries more consistent. In terms of power, the solar facility continues to provide approximately 23% of site power requirements, resulting in lower energy consumption and reducing impacts of the recent elevated oil prices.

Speaker #3: At Bald Mountain, a shovel optimization program has delivered improvements in loading efficiency, outputting lower mining costs while improving equipment productivity. We have also introduced a relief operator program, which has contributed approximately 2.1 million productive tons during break coverage since the beginning of the year.

Speaker #3: At both Brown Mountain and Fort Knox, we have optimized all routes and truck dispatching practices, reducing unnecessary engine hours and fuel consumption. These efforts have resulted in fuel savings of approximately 6.4 million liters while reducing whole cycle times at Fort Knox by approximately 7 minutes.

Claude Schimper: At both Round Mountain and Fort Knox, we have optimized all routes and truck dispatching practices, reducing unnecessary engine hours and fuel consumption. These efforts have resulted in fuel savings of approximately 6.4 million liters while reducing haul cycle times at Fort Knox by approximately 7 minutes. At all of our sites, we are embracing the use of artificial intelligence and machine learning to improve our predictive maintenance, optimize schedules, and mine planning and fire response management. Overall, our continuous improvement and innovation initiatives continue to generate measurable benefits across the portfolio, supporting safety, productivity gains, enhancing efficiency, and helping offset inflationary cost pressures. Before I hand the call over to William, I'd like to say what an incredibly rewarding journey it has been with Kinross. It has been both a privilege and an honor to work alongside such a talented and dedicated team.

Speaker #3: At all of our sites, we are embracing the use of artificial intelligence and machine learning to improve our predictive maintenance, optimize schedules, and enhance mine planning and fire response management.

Speaker #3: Overall, our continuous improvement and innovation initiatives continue to generate measurable benefits across the portfolio. Supporting safety, productivity gains, enhancing efficiency, and helping offset inflationary cost pressures.

Speaker #3: Before I hand the call over to William, I'd like to say what an incredibly rewarding journey it has been with Kinross. It has been both a privilege and an honor to work alongside such a talented and dedicated team.

Speaker #3: As I transition my responsibilities over to Vinod, I do so with great confidence in his extensive operational experience combined with the strength of our team positions KINROSS well for continued success.

Claude Schimper: As I transition my responsibilities over to Bernard, I do so with great confidence in his extensive operational experience, combined with the strength of our team, positions Kinross well for continued success. Thank you to everyone with whom I've had the opportunity to work alongside over the years. Bernard, welcome to Kinross. With that, I will now pass the call over to William.

Speaker #3: Thank you to everyone with whom I've had the opportunity to work alongside over the years, and Vinod, welcome to Kinross. With that, I'll now pass the call over to William.

Speaker #2: Thanks, Claude. It has been a pleasure working alongside you. Vinod, welcome to KINROSS. I look forward to working closely together as we continue to advance our operating and growth initiatives across the portfolio.

Will Dunford: Thanks, Claude. It has been a pleasure working alongside you. Bernard, welcome to Kinross. I look forward to working closely together as we continue to advance our operating and growth initiatives across the portfolio. Turning to our resource base and project pipeline. Our portfolio remains underpinned by a substantial gold resource inventory of more than 27 million ounces of M&I and an additional 17 million ounces of inferred. In addition to our near-term growth projects, our technical services teams continue to advance a number of medium-term attractive mine life extension opportunities from across this resource base, including Phase 11 at Fort Knox, Top Pit at Bald Mountain, resource pit extensions at Paracatu, open pit and underground extensions at Tasiast, and the La Coipa oxide extensions in Chile.

Speaker #2: Turning to our resource base and project pipeline, our portfolio remains underpinned by a substantial gold resource inventory of more than 27 million ounces of M&I and an additional 17 million ounces of inferred.

Speaker #2: In addition to our near-term growth projects, our technical services teams continue to advance a number of medium-term, attractive mine life extension opportunities from across this resource base.

Speaker #2: Including Phase 11 at Fort Knox, the top pit at Bald Mountain, resource pit extensions at Paraga 2, open pit and underground extensions at Dasius, and the Lakoy bauxite extensions in Chile.

Speaker #2: These projects have the potential to further strengthen our production profile, extend mine lives, and create value for shareholders well into the next decade. The three high-quality projects in the U.S. that we announced earlier this year are excellent examples of how we are leveraging our extensive resource base to create long-term value.

Will Dunford: These projects have the potential to further strengthen our production profile, extend mine lives, and create value for shareholders well into the next decade. The three high-quality projects in the US that we announced earlier this year are excellent examples of how we are leveraging our extensive resource base to create long-term value. I'm pleased to report that our teams are making strong progress across all three projects and continue to advance them on plan. At Phase X at Round Mountain, underground development is progressing slightly ahead of schedule with over 8,400 meters completed to date, de-risking our path to first production in 2028. Engineering work for both surface and underground infrastructure is advancing well, including the start of detailed engineering for our paste backfill plant. Procurement is also advancing well with packages awarded for many critical items such as the mobile equipment, ventilation fans, and the CRF plant.

Speaker #2: I'm pleased to report that our teams are making strong progress across all three projects, and continue to advance them on plan. At phase X at Round Mountain, underground development is progressing slightly ahead of schedule with over 8,400 meters completed to date, de-risking our path to first production in 2028.

Speaker #2: Engineering work for both surface and underground infrastructure is advancing well, including the start of detailed engineering for our paste backfill plant. Procurement has also advanced well, with packages awarded for many critical items, such as the mobile equipment, ventilation fans, and the CRF plant.

Speaker #2: We've also had a strong focus on operations readiness, with 21 KINROSS miners gaining experience working underground with our contractor, and onboarding of a highly experienced underground mine manager.

Will Dunford: We've also had a strong focus on operations readiness with 21 Kinross miners gaining experience working underground with our contractor and onboarding of a highly experienced underground mine manager. At Bald Mountain, mining of Red Bird is advancing well, benefiting from the increases in efficiency, and we expect Red Bird production to continue ramping up through the rest of this year. Construction of heap leach pad extensions to support Red Bird advanced significantly over the H1, benefiting from a milder winter with earthworks for the first leach pad extension now complete and lining well underway. Engineering for the SART plant and other process infrastructure has also advanced, and long lead procurement is underway for some of the key infrastructure.

Speaker #2: At Bald Mountain, mining of redbird is advancing well, benefiting from the increases in efficiency, and we expect redbird production to continue ramping up through the rest of this year.

Speaker #2: Construction of heap leach pad extensions to support Redbird advanced significantly over the first half of the year, benefiting from a milder winter, with earthworks for the first leach pad extension now complete and lining well underway.

Speaker #2: Engineering for the SAR plant and other process infrastructure has also advanced, and long-lead procurement is underway for some of the key infrastructure. Turning to our Curlew project in Washington, we've made significant progress on the tailings dewatering plant in Q2, with building now complete and installation of mechanical equipment commencing.

Will Dunford: Turning to our Curlew project in Washington, we made significant progress on the tailings dewatering plant in Q2, with the building now complete and installation of mechanical equipment commencing. Mill refurbishment activities are starting to ramp up with the contractor onboarded and starting initial demolition. Underground mine development and infrastructure are also advancing well with the raise collar construction completed for the main ventilation and escape raises and underground development ahead of schedule. We are pleased with the progress across this portfolio of opportunities and will continue to provide updates as the projects advance towards production. Turning now to Lobo-Marte, our next high-margin cornerstone development project beyond Great Bear. We completed a high-level refresh of our feasibility study economics to account for inflation since 2021 and further enhancements of the execution strategy.

Speaker #2: Mill refurbishment activities are starting to ramp up, with the contractor onboarded and starting initial demolition. Underground mine development and infrastructure are also advancing well, with the raised-collared construction completed for the main ventilation and escape raises, and underground development ahead of schedule.

Speaker #2: We are pleased with the progress across this portfolio of opportunities, and will continue to provide updates as the projects advance toward production. Turning now to Lobo-Marte, our next high-margin, cornerstone development project beyond Great Bear.

Speaker #2: We completed a high-level refresh of our feasibility study economics to account for inflation since 2021, and further enhancements of the execution strategy. For context, the historically operated project is located in northern Chile, in the Atacama region, approximately 50 kilometers from both of our assets, Lakoypa and Mariconga.

Will Dunford: For context, the historically operated project is located in northern Chile in the Atacama Region, approximately 50 kilometers from both of our assets, La Coipa and Maricunga. Project's key attributes include its forecasted long mine life, high heap leach grade, and low strip ratio, positioning Lobo Marte at the lower end of the industry cost curve and reinforcing its potential to become a significant contributor to long-term shareholder value. In terms of production, based only on the initial mine plan and current reserve, Lobo Marte is expected to produce approximately 4.6 million ounces over an initial 15-year operating life. Annual production is expected to average approximately 350,000 ounces a year during steady state operations, providing a meaningful and long-duration source of low-cost production for our portfolio.

Speaker #2: The project’s key attributes include its forecasted long mine life, high heap leach grade, and low strip ratio, positioning Lobo-Marte at the lower end of the industry cost curve and reinforcing its potential to become a significant contributor to long-term shareholder value.

Speaker #2: In terms of production, based only on the initial mine plan and current reserve, Lobo-Marte is expected to produce approximately 4.6 million ounces over an initial 15-year operating life.

Speaker #2: Annual production is expected to average approximately 350,000 ounces per year during steady-state operations, providing a meaningful and long-duration source of low-cost production for our portfolio.

Speaker #2: These attributes and the substantial production scale deliver excellent returns on the 1.8 billion dollar initial capital, with an all-in sustaining cost of $1,000 per ounce and NPV of 4.3 billion, and IRR of 26%, and a payback period of approximately 2 years all set at a gold price of $4,100 per ounce.

Will Dunford: These attributes and the substantial production scale deliver excellent returns on the $1.8 billion initial capital with an AISC of $1,000 per ounce, an NPV of $4.3 billion, an IRR of 26%, and a payback period of approximately two years, all set at a gold price of $4,100 per ounce. The project remains resilient at lower gold prices. With a high grade, low strip ratio, and low-cost structure, Lobo Marte is expected to play an important role in our grade enhancement strategy alongside Great Bear, with potential to become a cornerstone asset, adding higher margin production and strong free cash flow in the 2030s and into the 2040s.

Speaker #2: And the project remains resilient at lower gold prices. With the high-grade, low strip ratio and low cost structure, Lobo-Marte is expected to play an important role in our grade enhancement strategy alongside Great Bear, with potential to become a cornerstone asset, adding higher-margin production and strong free cash flow in the 2030s and into the 2040s.

Speaker #2: The project is also an excellent strategic fit for KINROSS, extending our mine life in Chile where we have a 20-plus year history of production, and strong government support for responsible mine development through large-scale open pit mining and heat bleach processing.

Will Dunford: The project is also an excellent strategic fit for Kinross, extending our mine life in Chile, where we have a 20-plus year history of production and strong government support for responsible mine development through large-scale open pit mining and heap leach processing, areas where we have extensive experience both in Chile and in the US. The layout and scale of the two open pit mines at Lobo Marte is one key driver of that low-cost structure and high margin. The size of the pits and the broad mineralization allow for use of a large-scale fleet planned to deliver mining rates of up to 50 million tons per annum in the current mine plan. Forecasted mining cost over the life of mine of $3.25 per ton also benefits from the construction of conveyors to transport ore from the open pits to the crushing facilities, driving down material movement operating costs.

Speaker #2: Areas where we have extensive experience both in Chile and in the US. The layout and scale of the two open pit mines at Lobo Marte is one key driver of that low-cost structure and high margin.

Speaker #2: The size of the pits and the broad mineralization allow for the use of a large-scale fleet, with plans to deliver mining rates of up to 50 million tons per annum in the current mine plan.

Speaker #2: Forecasted mining costs over the life of mine of $3.25 per ton also benefit from the construction of conveyors to transport ore from the open pits to the crushing facilities, driving down material movement operating costs.

Speaker #2: Most importantly, on the mining side, the overall cost structure and all-in sustaining costs are expected to benefit significantly from the low strip ratio of 2:1, driven by the broad nature of the mineralization on these for-free deposits.

Will Dunford: Most importantly, on the mining side, the overall cost structure and all-in sustaining costs are expected to benefit significantly from the low strip ratio of two to one, driven by the broad nature of the mineralization on these porphyry deposits. Planned in the current economics from the 2021 FS contemplates the sequential development of the two open pits, beginning with Marte, which has been mined previously, reducing the strip ratio and initial CapEx. As we progress the project, we will continue to study the optionality around the sequencing of the two open pits. Moving to processing, the project is designed around a nominal throughput rate of approximately 35,000 tons per day, with ore processed through a conventional three-stage crushing circuit prior to heap leaching.

Speaker #2: Planned in the current economics from the 2021 FS contemplates the sequential development of the two open pits, beginning with Marte, which has been mined previously, reducing the strip ratio and initial capex.

Speaker #2: As we progress the optionality around sequencing of the two open pits. Moving to processing, the project is designed around a nominal throughput rate of approximately 35,000 tons per day.

Speaker #2: With ore processed through a conventional three-stage crushing circuit prior to heap leaching, the amenability of the ore to heap leaching, with a strong forecasted heap leach recovery of 69%, is also central to the strong margin and low expected cost of production at Lobo-Marte.

Will Dunford: The amenability of the ore to heap leaching, with a strong forecast of heap leach recovery of 69%, is also central to the strong margin and low expected cost of production at Lobo-Marte. As heap leach processing at an estimated $12.30 per ton would be significantly cheaper than a conventional mill and CIL circuit. The 1.3 gram per ton average grade of the reserve at Lobo is significantly higher than most heap leaches operating today, and is the largest contributor to the strong margins, economics, and returns of this project, with an estimated all-in sustaining cost of $1,000 net. It is this grade that enables Lobo to potentially produce 300,000 to 400,000 ounces per year from a relatively straightforward 35,000 ton per day, 3-stage crush and heap leach facility.

Speaker #2: As heat bleach processing and an estimated $12.30 per ton would be significantly cheaper than a conventional mill and CIL 1.3 gram per ton average grade of the reserve at Lobo is significantly higher than most heat bleaches operating today, and is the largest contributor to the strong margins, economics and returns of this project, with an estimated all-in sustaining cost of $1,000 nets.

Speaker #2: It is this grade that enables Lobo to potentially produce 3 to 400,000 ounces per year, from a relatively straightforward $35,000 ton per day three-stage crush and heat bleach facility.

Speaker #2: Moving to capital and site infrastructure, the refresh of the 2021 FS indicates initial project capital of approximately $1.8 billion. Largely driven by processing facilities and site infrastructure, including approximately $1.1 billion of direct capital, and $700 million for indirect sink contingency.

Will Dunford: Moving to capital and site infrastructure, the refresh of the 2021 FS indicates initial project capital of approximately $1.8 billion, largely driven by processing facilities and site infrastructure, including approximately $1.1 billion of direct capital and $700 million for indirect and contingency. Key infrastructure required to support the project beyond the processing facilities includes a 75km access road, 60km power line, and a 40km water pipeline, which is expected to bring water in from our existing operating wells that are currently supplying water to La Coipa. We also included significant investment in the capital estimate to ensure best-in-class environmental controls and initiatives, including options such as covering all of our conveyors to minimize dust and using regenerative braking on the conveyors to save energy.

Speaker #2: The key infrastructure required to support the project beyond the processing facilities includes a 75-kilometer access road, a 60-kilometer power line, and a 40-kilometer water pipeline, which is expected to bring water in from our existing operating wells that are currently supplying water to Lakoypa.

Speaker #2: We also included significant investment in the capital estimate to ensure best-in-class environmental controls and initiatives, including options such as covering all of our conveyors to minimize dust and using regenerative braking on the conveyors to save energy.

Speaker #2: This high-level refresh was provided to account for inflation since 2021 and to reflect the current execution strategy, which has advanced over the prior years to improve constructability and reduce development and execution risk.

Will Dunford: This high-level refresh was provided to account for inflation since 2021 and to reflect the current execution strategy, which has advanced over the prior years to improve constructability and reduce development and execution risk. We are progressing to detailed engineering and will provide a fulsome capital update once detailed engineering is substantially complete. Given the manageable estimated initial capital of $1.8 billion, planned funded from operating cash flow, in line with our disciplined capital allocation strategy. The combination of the low mining cost, low processing cost, high heap leach grade, and the resource size are what make this project a central focus in our grade enhancement strategy. Importantly, the impressive economics in this update reflect only a starting point for Lobo-Marte. The project has significant upside potential beyond the current mine plan and captures just a portion of the broader mineral endowment identified across the property.

Speaker #2: We are progressing to detailed engineering, and will provide a fulsome capital update once detailed engineering is substantially complete. Given the manageable estimated initial capital of $1.8 billion, planned funded from operating cash flow, in line with our disciplined capital allocation strategy.

Speaker #2: The combination of the low mining cost, low processing cost, high heat bleach grade, and the resource size are what make this project a central focus in our grade enhancement strategy.

Speaker #2: Importantly, the impressive economics in this update reflect only a starting point for Lobo Marte. The project has significant upside potential beyond the current mine plan, and captures just a portion of the broader mineral endowment identified across the property.

Speaker #2: The current open pit mine designs in this update remain unchanged from the 2021 feasibility study and include only the reserve from 2021, which was done at a $1,200 gold price.

Will Dunford: The current open pit mine designs in this update remain unchanged from the 2021 feasibility study and include only the reserve from 2021, which was done at a $1,200 gold price. The 2021 mine plan was maintained as a base case for the EIA submission, as baseline studies had advanced on this plan, helping to facilitate an earlier submission of the EIA, and the plan already provides production well into the 2040s. However, significant potential remains at higher prices to further unlock value at Lobo-Marte through mine life extensions from the 2.8 million ounces of indicated resource and approximately 700,000 ounces of inferred. As you can see on the slide, this inventory has potential to be captured through a further layback of each pit, which could meaningfully extend mine life.

Speaker #2: The 2021 mine plan was maintained as the base case for the EIA submission, as baseline studies had advanced on this plan. Helping to facilitate an earlier submission of the EIA, and a plan already provides production well into the 2040s.

Speaker #2: However, significant potential remains at higher prices to further unlock value at Lobo Marte through mine life extensions from the 2.8 million ounces of indicated resource and approximately $700,000 ounces of infer.

Speaker #2: As you can see on the slide, this inventory has potential to be captured through a further layback of each pit, which could meaningfully extend mine life.

Speaker #2: You can also see the mineralization remains open at depth, continuing beyond the resource pits and is ultimately limited only by a lack of drilling at depth.

Will Dunford: You can also see the mineralization remains open at depth, continuing beyond the resource pits, and is ultimately limited only by a lack of drilling at depth. Beyond this optionality at the Lobo and Marte pits, we also see potential on our broader land package to identify additional open pit deposits through exploration, which could further enhance the mine life and production profile. This is a highly prospective land package which sits on the prolific Maricunga belt, with two porphyry deposits and a substantial resource inventory already identified. We know these types of deposits occur in clusters along structural corridors, we will focus exploration on finding additional deposits once we bring Lobo-Marte into operation. To conclude on the Lobo-Marte economic update, we are excited by the quality of this project and the potential to bring it online to further our grade enhancement strategy in the early 2030s.

Speaker #2: And beyond this optionality at the Lobo and Marte pits, we also see potential on our broader land package to identify additional open pit deposits through exploration, which could further enhance the mine life and production profile.

Speaker #2: This is a highly prospective land package which sits on the prolific Mariconga trend, with two for-free deposits and a substantial resource inventory already identified.

Speaker #2: You know these types of deposits occur in clusters along structural corridors, and we will focus exploration on finding additional deposits once we bring Lobo-Marte into operation.

Speaker #2: To conclude on the Lobo Marte economic update, we are excited by the quality of this project and the potential to bring it online to further our grade enhancement strategy in the early '30s.

Speaker #2: Driving high grade low-cost heat bleach production in Chile well into the 2040s, with significant value creation potential for our shareholders. With that, I will now hand it over to Jeff for an update on permitting at Lobo Marte and Great Barrier.

Will Dunford: Driving high-grade, low-cost heap leach production in Chile well into the 2040s with significant value creation potential for our shareholders. With that, I will now hand it over to Geoff for an update on permitting at Lobo-Marte and Great Bear.

Speaker #1: Thanks, Will. In terms of permitting at Lobo Marte, the project's environmental impact assessment was accepted by Chile's Environmental Assessment Service in April 2026, marking an important milestone for Lobo Marte and the team.

Geoff Gold: Thanks, Will. In terms of permitting at Lobo-Marte, the project's environmental impact assessment was accepted by Chile's Environmental Assessment Service in April 2026, marking an important milestone for Lobo-Marte and the team. Permitting remains a critical path, we have taken a rigorous approach to integrating environmental and community considerations into the project design and capital estimate from the outset. This includes leveraging the best available technologies and measures intended to protect water resources, reduce dust generation, and optimize infrastructure placement to reduce the project footprint. We continue to work closely with the Chilean regulatory authorities to advance the permitting process with a view to targeting first gold production in the early 2030s. Turning now to advanced exploration at Great Bear. As previously noted, we received all remaining AEX permits and construction is progressing well, which William will speak to later.

Speaker #1: Permitting remains a critical path, and we have taken a rigorous approach to integrating environmental and community considerations into the project design and capital estimate from the outset.

Speaker #1: This includes leveraging the best available technologies and measures intended to protect water resources, reduce dust generation, and optimize infrastructure placement to reduce the project footprint.

Speaker #1: We continue to work closely with the Chilean Regulatory Authorities to advance the permitting process with a view to targeting the first gold production in the early 2030s.

Speaker #1: Turning now to advanced exploration at Great Barrier, as previously noted, we received all remaining AAX permits, and construction is progressing well, which William will speak to later.

Speaker #1: Turning to the main project, we continue to advance permitting with both federal and provincial authorities. Federally, and following the submission of the third and final phase of the impact statement to the impact assessment agency of Canada, who we call IAC, in April, we moved into the information request phase of the impact assessment process.

Geoff Gold: Turning to the main project, we continue to advance permitting with both federal and provincial authorities. Federally, following the submission of the third and final phase of the impact statement to the Impact Assessment Agency of Canada, who we call IAAC, in April, we moved into the information request phase of the impact assessment process. IAAC is in the process of collecting and consolidating all third-party input comments on our impact statement, which we will respond to on a timely basis. We will continue to work with IAAC to advance the impact assessment process so that the final impact statement report issued by IAAC aligns with our targeted main project timeline.

Speaker #1: IAC is in the process of collecting and consolidating all third-party input comments on our impact statement, which we will respond to on a timely basis.

Speaker #1: We will continue to work with IAC to advance the impact assessment process so that the final impact statement report issued by IAC aligns with our targeted main project timeline.

Speaker #1: As a reminder, receiving the final impact assessment report from IAC then is ultimately approved by the federal minister of environment and climate change is the critical first step to obtaining the additional federal and provincial permits we require to construct and operate at Great Barrier Mines.

Geoff Gold: As a reminder, receiving the final impact assessment report from IAAC that is ultimately approved by the Federal Minister of Environment and Climate Change, is the critical first step to obtaining the additional federal and provincial permits we require to construct and operate the Great Bear mine. As previously disclosed, we require this final impact assessment approval and certain provincial early works and construction permits in the spring of 2027 will allow us to take advantage of the summer construction season to maintain targeted first gold 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, what is called One P, One P, which is overseen by the Ministry of Energy and Mines.

Speaker #1: As previously disclosed, we require this final impact assessment approval and certain provincial early works and construction permits in the spring of 2027 to allow us to take advantage of the summer construction season to maintain targeted first gold production in late 2029.

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, what is called One P1P, which is overseen by the Ministry of Energy and Mines, we are pleased that the ministry deemed the final One P1P project definition complete in early May, and subsequently issued the integrated authorization and permitting plan for the main project.

Geoff Gold: We are pleased that the ministry deemed the final One P, One P project definition complete in early May and subsequently issued the integrated authorization and permitting plan for the main project. Submission of individual Ontario permit applications have proceeded in accordance with this plan. Next steps include finalizing the integrated Indigenous consultation plan also submitted under One P, One P. Briefly turning to the Indigenous community front, we continue to progress the negotiation of impact benefits agreements. We are pleased to report that we recently signed a community benefits agreement with the Northwestern Ontario Métis Community that captures the key economic elements, including financial accommodations. In relation to Lac Seul and Wabaseemoong First Nations, onto whose traditional territory the project resides, negotiations on the impact and benefits agreement continue to advance off the back of the memorandum of understanding we signed at the end of last year.

Speaker #1: Submission of individual Ontario permit applications have proceeded in accordance with this plan. Next steps include finalizing the integrated indigenous consultation plan, also submitted under One P1P.

Speaker #1: Briefly turning to the indigenous community front, we continue to progress the negotiation of impact benefits agreements. We are pleased to report that we recently signed a community benefits agreement with the Northwestern Ontario Métis community.

Speaker #1: That captures the key economic elements, including financial accommodations. In relation to Lac Sol and Wabiscang First Nations, Ontario's traditional territory the project resides, negotiations on the impact and benefits agreement continue to advance off the back of the memorandum of understanding we signed at the end of last year.

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

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

Speaker #3: Thanks, Jeff. At Great Barrier work on the AAX program and the main project is progressing well. Following the receipt of the final AAX permits in April, AAX surface construction is 93% complete, and we recently completed the first blast of the exploration declutter.

Will Dunford: Thanks, Jeff. At Great Bear, work on the AEX program and the main project is progressing well. Following the receipt of the final AEX permits in April, AEX surface construction is 93% complete, and we recently completed the first blast of the exploration decline. As a reminder, the decline will provide drilling access for exploration and extension of the underground resource, as well as delineation work. In terms of the main project, we continue to make meaningful progress on procurement, contracts awarded, request for proposal issued, and selection of open pit mining fleet nearing completion. In terms of detailed engineering, we are well advanced with approximately 50% complete.

Speaker #3: As a reminder, the decline will provide drilling access for exploration and extension of the underground resource, as well as delineation work. In terms of the main project, we continue to make meaningful progress on procurement: contracts awarded, requests for proposal issued, and selection of the open pit mining fleet nearing completion.

Speaker #3: And in terms of detailed engineering, we are well advanced with approximately 50% complete. Upon completion of detailed engineering, we will provide an update on the initial capital and the first half of 2027.

Will Dunford: Upon completion of detailed engineering, we will provide an update on the initial capital in H1 2027, which will include impacts from inflation since the 2024 PEA and the impacts of any scope changes and enhancements we make as we move through detailed engineering. As we progress detailed engineering, we are working to ensure we are building a robust, reliable world-class operation given the multi-decade high margin production potential we see at this asset. Turning now to exploration, we are continuing with our 2026 55-kilometer planned drill program. In Q2, drilling continued at the Strider Zone, a recently identified zone of mineralization 2.4 kilometers along strike from the southeast edge of the LP resource. We will provide further drill results later this year. With that, I will now turn it back to Paul for closing remarks.

Speaker #3: This will include impacts from inflation since the 2024 PEA, as well as the impacts of any scope changes and enhancements we make as we move through detailed engineering.

Speaker #3: As we progress detailed engineering, we are working to ensure we are building a robust, reliable, world-class operation given the multi-decade high margin production potential we see at this asset.

Speaker #3: Turning now to exploration, we are continuing with our 2026 55-kilometer planned drill program. In Q2, drilling continued at the Strider Zone, a recently identified zone of mineralization 2.4 kilometers along Strike from the southeast edge of the LP resource.

Speaker #3: We will provide further drill results later this year. With that, I will now turn it back to Paul for closing remarks.

Speaker #1: Thanks, Will. After a strong first half, we are well positioned to meet our targets in 2026. We have a strong set of upcoming milestones this year, which include continued strong operational performance, cash flow generation, ongoing return of capital through our dividend and share repurchases, further strengthening of our balance sheet, advancing our project's pipeline and continued exploration and studies of our resource inventory intended to bring in new projects to extend mine lives.

Paul Rollinson: Thanks, Will. After a strong H1, we are well-positioned to meet our targets in 2026. We have a strong set of upcoming milestones this year, which include continued strong operational performance and cash flow generation, ongoing return of capital to our dividend and share repurchases, further strengthening of our balance sheet, advancing our projects pipeline, and continued exploration and studies of our resource inventory intended 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 holding the line on costs. 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: Looking forward, we are excited about our future. We have a strong production profile, we have an attractive relative cost position, and we are holding the line on costs.

Speaker #1: 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: 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.

Geoff Gold: We are growing our net asset value and our per share metrics, we are very proud of our commitment to responsible mining that continues to make us a leader in sustainability.

Paul Rollinson: 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 line for questions.

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 #4: Thank you. We will now begin the question and answer session. If you'd like to ask a question, please press star 1 in your telephone keypad.

Operator: Thank you. We will now begin the question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. If you'd like to withdraw your question, simply press star one again. Your first question comes from the line of Fahad Tariq from Jefferies. Your line is open.

Speaker #4: If you'd like to withdraw your question, simply press star 1 again. Your first question comes from a lineup Fahad Tariq from Jefferies. Your line is open.

Speaker #5: Hi, thanks for taking my questions. On local Marte, can you just talk about maybe next steps and how we should be thinking about a potential pit redesign at prevailing gold prices when the capex spend would come in, how it would compare to the timing of Great Barrier?

Fahad Tariq: Hi, thanks for taking my questions. On Lobo-Marte, can you just talk about maybe next steps and how we should be thinking about a potential pit redesign at prevailing gold prices, when the CapEx spend would come in, how it would compare to the timing of Great Bear? Just trying to think through next steps over the next few years. Thanks.

Speaker #5: Just trying to think through next steps over the next few years. Thanks.

Speaker #3: Yeah, I think as we mentioned, we've just submitted the EIA, so that's the key critical path and the key next step. So we're focused on that, and that's 2 to 3 years, roughly, for that process.

Will Dunford: I think as we mentioned, we've just submitted the EIA, that's the key critical path and the key next step. We're focused on that, and that's 2 to 3 years roughly for that process. Then after that, we go into construction. Construction's really end of the decade. The peak in spend there will kind of be behind the peak in spend at Great Bear. In terms of the redesign, as you can see in what we've released, there is significant potential, not only in M&I, but also cut off grades, that type of thing. It's really something, given that we already have a 15-year mine life established that's quite high quality, that we're going to focus on once we get into operations.

Speaker #3: And then after that, we go into construction. So construction's really end of the decade. So the peak in spend there will kind of be behind the peak in spend at Great Barrier.

Speaker #3: And in terms of the redesign, as you can see in what we've released, there is significant potential, not only in M&I, but also cut-off grades that type of thing.

Speaker #3: But it's really something, given that we already have a 15-year mine life established, that's quite high quality. That we're going to focus on once we get into operations.

Speaker #5: Okay, great. And then maybe just switching gears to the overall cost environment—Kinross is obviously doing a really good job containing costs. Are there any areas where you are seeing cost pressures?

Fahad Tariq: Okay, great. Then maybe just switching gears to overall just cost environment. Kinross has obviously done a really good job containing costs. Just are there any areas where you are seeing cost pressures? It doesn't sound like diesel is necessarily a big impact so far, but are you seeing anything on the consumable side or even any upcoming labor negotiations we should be aware of that could result in some inflation? Thanks.

Speaker #5: It doesn't sound like diesel is necessarily a big impact so far, but are you seeing it anything on the consumable side or even any upcoming labor negotiations we should be aware of that could result in some inflation?

Speaker #5: Thanks.

Speaker #2: Sure, Deandre. I'll take that. I guess just as a reminder, we did include a 5% inflation factor in our guidance for the year. So we're still feeling pretty good about that.

Andrea Freeborough: Sure, it's Andrea. I'll take that. I guess just as a reminder, we did include a 5% inflation factor in our guidance for the year. We're still feeling pretty good about that. That was prior to higher oil prices. As you noted, the impact of those has been relatively muted, and we expect it to continue to not have a significant impact. It's sort of below 2% is the all-in expected impact if we continue with higher fuel prices. In terms of other areas of inflation, as I said, this is all within what we contemplated in our guidance. Just to give you some specific examples, we're seeing higher power costs in Alaska. On the labor side, Nevada's always kind of a tight labor market, not really more significant than we've seen recently, just sort of ongoing labor in Nevada.

Speaker #2: That was prior to higher oil prices. But as you noted, the impact of those has been relatively muted, and we expect that to continue to not have a significant impact.

Speaker #2: It's sort of below 2% is the all-in expected impact. If we continue with higher fuel prices, in terms of other all within what we contemplated in our guidance, but just to give you some specific examples, we're seeing higher power costs in Alaska, and then on the labor side, Nevada is always kind of a tight labor market, not really more significant than we've seen recently, just sort of ongoing labor in Nevada.

Speaker #2: That's really the focus, and sort of where we've been—what we've been seeing, sort of on the ground. But again, we're expecting to be well within our guidance, right near the midpoint for the year as we sit here today.

Andrea Freeborough: That's really the focus and sort of what we've been seeing on the ground. Again, we're expecting to be well within our guidance right near the midpoint for the year as we sit here today.

Speaker #5: Great. Thank you so much.

Fahad Tariq: Great. Thank you so much.

Speaker #4: Your next question comes from a lineup Josh Wolfson from RBC Capital Markets. Your line is open.

Operator: Your next question comes from the line of Josh Wolfson from RBC Capital Markets. Your line is open.

Speaker #3: Yeah, thank you very much. Just back to local Marte, I understand obviously it's an inflationary environment there, but is there any additional insights, maybe what drove inflation beyond just kind of industry trends?

Josh Wolfson: Yeah, thank you very much. Just back to Lobo-Marte. I understand obviously it's an inflationary environment there, is there any additional insights maybe what drove inflation beyond just kind of industry trends? Thank you.

Speaker #3: Thank you. Yeah, I think obviously the change from the 2020, 21 FS was primarily inflation, so that really we were around 1.1 in 2021.

Will Dunford: Yeah, I think obviously the change from the 2021 FS was primarily inflation. That really, we were around $1.1 in 2021. That took us to over $1.5, with the extra kind of $250 beyond inflation. Part of it is in 2021, obviously different gold price environment. We were planning to reuse some equipment from Maricunga. Now with the gold price environment, we want to make sure we keep that around for Maricunga. We thought it made sense given the mine life to buy new equipment. That's around $100 million of the additional increase beyond that, just to make it a higher quality life of mine plan. There was also some advancement of the execution strategy as the team's really gotten into the details and gotten into the planning stage. The indirect costs are the other component that take us up to the $1.8.

Speaker #3: So that took us to over 1.5. The extra kind of 250 beyond inflation part of it is in 2021, obviously different gold price environment.

Speaker #3: We were planning to reuse some equipment from Mariconga, now with the gold price environment, we want to make sure we keep that around for Mariconga, and we thought it makes sense, given the mine life to buy new equipment.

Speaker #3: So that's around 100 million of the additional increase beyond that, just to make it a higher quality life of mine plan. And then there was also some advancement of the execution strategy as the teams really gotten into the details and gotten into the planning stage.

Speaker #3: The indirect costs are the other component that take us up to the 1.8. We've also moved the contingency from about 14% up to 19%, just given we're quite far away from when we had the detailed estimates in 2021.

Will Dunford: We've also moved the contingency from about 14% up to 19%, just given we're quite far away from when we had the detailed estimates in 2021.

Josh Wolfson: Got it. Thank you. Just on Great Bear and some of the AEX disclosures. When you think about the main permit, is there any way to minimize some of the uncertainty there, just what sort of maybe what the risk profile could be? Thank you.

Speaker #3: Got it. Thank you. And then just on Great Bear and some of the AEX disclosures, when you think about the main permit, is there any way to minimize some of the uncertainty there, and what sort of risk profile could that have?

Speaker #3: Thank you.

Speaker #1: Yeah, I mean, we're looking at I'll let Jeff speak to it, but the question was around minimizing uncertainty around the main project. Our position, Josh, is we've got these two parallel tracks.

Paul Rollinson: I mean, we're looking at, I'll let Geoff speak to it. The question was around minimizing uncertainty around the main project. Our position, Josh, is we've got these two parallel tracks. AEX obviously to get us underground to make for more efficient, cost-effective drilling extensions at depth, and then the main project. I'll let Geoff speak to it. The main project is really launched, if you will, under this One P1P. I have to say things are going really well from the government side of things under the One P1P. They're certainly hitting deadlines and moving things through the system.

Speaker #1: AEX obviously to get us underground to make for more efficient cost-effective drilling, extensions at depth. And then the main project. I'll let Jeff speak to it, but the main project is really launched, if you will, under this 1P1P, and I have to say things are going really well from the government side of things under the 1P1P.

Speaker #1: There's certainly hidden deadlines and moving things through the system. So pretty straightforward, Jeff, on the main project.

Paul Rollinson: Pretty straightforward, Geoff, on the main project.

Geoff Gold: Josh, I think you're already aware of this. Again, we've never characterized AEX as being sort of critical path. They are, as Paul has alluded to, they're two different processes. AEX is strictly a provincial process, whereas the main project is both federal and provincial. We're making excellent progress on both the federal and provincial fronts. Yeah, in terms of efficiencies, we're already seeing the benefits of One P1P provincially. We're a long way down the path with the federal agency that kind of looks after the key permit that we require in the late spring of 2029, which is the Final Impact Statement approval report. We've been working closely with both the federal and provincial authorities. They're well aware of our timelines.

Speaker #3: Yeah, I guess, and Josh, I think you're already aware of this, but again, we've never characterized AEXs as being sort of critical path. And they are as Paul has alluded to, they're two different processes.

Speaker #3: AEX is strictly a provincial process. Whereas the main project is both federal and provincial. And we're making excellent progress on both the federal and provincial fronts.

Speaker #3: And yeah, in terms of efficiencies, we're already seeing the benefits of 1P1P provincially. And we're a long way down the path with the federal agency that kind of looks after the key permit that we require in the late spring of 2029, which is the final impact which is the final impact statement approval report.

Speaker #3: And we've been working closely with both the federal and provincial authorities. They're well aware of our timelines, and at this juncture, and again, I'll remind you, we're targeting first production at the end of 2029.

Geoff Gold: At this juncture, again, I'll remind you, we're targeting first production at the end of 2029. Certainly, at this juncture, what we're seeing with some of the stuff on the AEX side of the fence is not interfering with that timeline.

Speaker #3: And certainly at this juncture, what we're seeing with some of the stuff on the AEX side of the fence is not interfering with that timeline.

Speaker #3: Great. Thank you.

Josh Wolfson: Great. Thank you.

Speaker #4: Your next question comes from a lineup Anita Sony from CIBC World Markets. Your line is open.

Operator: Your next question comes from the line of Anita Soni from CIBC World Markets. Your line is open.

Anita Soni: Hi. Good morning, firstly, congratulations, Claude, on your retirement. Your tenure was certainly exemplary in terms of operating track record. Best of luck in your retirement. I think that my questions on Lobo-Marte were mostly asked just on the timing. I just wanted to get an idea about, on Round Mountain, how we could see the H2 of the year evolve. I think we look back to when there was an update, I think, a couple of years ago about the Phase X, and I thought production was going to be somewhat in the 150,000 to 200,000 ounces per year range this year, and it's kind of tracking a little bit behind. Are we looking for really strong grades in the H2 of the year, or was that kind of production profile shifted, understandably, from like two years ago from that chart?

Speaker #6: Hi, good morning. And firstly, congratulations, Claude, on your retirement. You're tenure was certainly exemplary in terms of operating track record. Best of luck in your retirement.

Speaker #6: And then I think that my question is on local Marte, we're mostly asked just on the timing. I just wanted to get an idea about on round mountain, how we could see the back half of the year evolve.

Speaker #6: I think we look back to some when you were there was an update, I think a couple of years ago about the phase X and I thought production was going to be somewhat in the 150 to 200,000 ounces per year range this year.

Speaker #6: And it's kind of tracking a little bit behind. So are we looking for really strong grades in the back half of the year, or was that kind of production profile shifted from understandably from like two years ago from that chart?

Speaker #3: Good morning, Anita. Thank you. Yeah, I think for round mountain, the 150 forward has always been the target. You're obviously ramping up to that as we now are stripping into phase S and getting into the ore in the second half of this year.

Claude Schimper: Good morning, Anita. Thank you. I think for Round Mountain, the 150,000 forward has always been the target. We are obviously ramping up to that as we now are stripping into Phase S and getting into the ore in the H2 of this year. When we add Phase X later, it will contribute as well and take it up to closer to the 200,000 range. The 150,000 was always an average with a ramp-up period. We do see increased production in the H2 of this year as we now enter the Phase S ore, and also getting into higher grade ore feeds. During the first part of this year, we were doing a lot of production came from heaps and historical mining. Now we are moving to the ore in the H2 of this year.

Speaker #3: When we add phase X later, it will contribute as well. And. Take it up to closer to the 200 range. So the 150 was always an average.

Speaker #3: With the ramp-up period. So we do see increased production in the back end of this year as we now enter the phase S ore.

Speaker #3: And also getting into a higher grade ore field. So during the first part of this year, we were doing a lot of production came from heaps and historical mining.

Speaker #3: So now we move into the ore in the back half of this year. So I do think we're targeting the 120, 130 range for round for this year, and then it will build up into next year and years following.

Claude Schimper: I do think we're targeting maybe 120, 130 range for Round for this year, and then it will build up into next year and years following.

Speaker #6: Okay. And then and sorry, just in terms of the types of grades that we could see from phase S, is that kind of in the mid 1 grams?

Anita Soni: Okay. Sorry, just in terms of the types of grades that we could see from phase S, is that kind of in the mid 1 gram? Is that what we should be seeing?

Speaker #6: Is that what we should be seeing?

Speaker #3: Yeah, I think the average grade, I think we released it a couple of years ago, it was a little lower than 1 gram on average.

Claude Schimper: Yeah, I think the average grade, I think we released it a couple of years ago, was a little lower than 1 gram on average, I believe. I think we have quite a bit of, we're getting into 0.7, and later in the phase, deeper down, we get into the 1 gram stuff.

Speaker #3: I believe, but I think we have quite a bit of we're getting into 0.7 later in the phase, deeper down, we get into the 1 gram stuff.

Speaker #6: Okay. Yeah, sorry, I was just talking specifically about the deeper stuff rather than the stuff that goes to the heap leech, which is consistently sort of.

Anita Soni: Okay. Yeah. Sorry, I was just talking specifically about the deeper stuff rather than the stuff that goes to the heap leach, which is consistently sort of.

Speaker #3: Yeah, we will.

Claude Schimper: Yeah, we're looking at the 1 gram material.

Speaker #6: 0.2, 0.3. Okay. All right. Thank you very much.

Anita Soni: 0.2, 0.3. Okay. All right. Thank you very much.

Speaker #4: Your next question comes from a lineup Daniel Major from UBS. Your line is open.

Operator: Your next question comes from a line of Daniel Major from UBS. Your line is open.

Daniel Major: Hi. Thanks for the questions and congratulations. Good quarter. Yeah. I guess the first one, just on the balance sheet, the capital returns, encouraging to see it as sustainably returning cash to shareholders. You're at $2 billion of net cash now, and if you stick to your 40% payout ratio, that cash balance obviously continues to build. Is there a maximum level of cash you're comfortable with before you commit to a higher rate of return? First part of the question. The second part of the question, how is the M&A component of the capital allocation framework looking at the moment? Asset values have come back. Is there any opportunities out there you're working on? That's the first part of my question.

Speaker #5: Hi, thanks for the questions and congratulations on a good quarter. Yeah, I guess the first one just on the balance sheet, the capital returns, encouraging to see it as sustainably returning cash to shareholders.

Speaker #5: But you're at 2 billion dollars of net cash now. And if you stick to your 40% payout ratio, that cash balance obviously continues to build.

Speaker #5: Is there a maximum level of cash you're comfortable with before you commit to a higher rate of return? First part of the question. And then the second part of the question, how's the M&A component of the capital allocation framework looking at the moment?

Speaker #5: Asset values have come back. Are there any opportunities out there you're working on? That's the first part of my question.

Speaker #2: Sure. I'll start on the cash balance. You're right with we're at net cash of just under 2 billion, and we do expect that to continue to grow as we go through the year here.

Andrea Freeborough: Sure. I'll start on the cash balance. You're right. We're at net cash of just under $2 billion, and we do expect that to continue to grow as we go through the year here. We started the year with the 40% of free cash flow commitment coming back to shareholders. We're going to progress with that, and we'll see how the year finishes out. We're certainly comfortable with the cash balance. We're comfortable with it continuing to grow. Just strong balance sheet is

Speaker #2: We started the year with the 40% of free cash flow commitment coming back to shareholders, so we're going to progress with that, and we'll see how the year finishes out.

Speaker #2: We're certainly comfortable with the cash balance. We're comfortable with it continuing to grow. Just strong balance sheet is helpful as we continue to progress our pipeline of projects and additional opportunities through that pipeline.

Andrea Freeborough: is helpful as we continue to progress our pipeline of projects, and additional opportunities through that pipeline. We're also paying a lot higher taxes, so we've paid a lot of tax this year, and those liabilities will continue to going forward. We do expect to grow the cash balance while also continuing to invest in the business and returning capital. We're sticking with the 40% for now, but it's something that we'll continue to assess as we progress through the year here and into early next year.

Speaker #2: We're also paying a lot higher taxes so we've paid a lot of taxes this year, and that'll those liabilities will continue to going forward.

Speaker #2: But we do expect to grow the cash balance while also continuing to invest in the business and returning capital. So we're sticking with the 40% for now, but it's something that we'll continue to assess as we progress through the year here and into early next year.

Speaker #1: Yeah, I'll jump in on the M&A point. Again, I would just say our position remains where it always has been. We're in a really good spot where as Will alluded to, we've got a significant inventory of resource behind our two key reserve.

Paul Rollinson: Yeah. I'll jump in on the M&A point. Again, I would just say our position remains where it always has been. We're in a really good spot where, as Will alluded to, we've got a significant inventory of resource behind our 2P reserve. As you saw earlier this year, where we converted the US projects out of that resource category and moved them into development. We've got lots of things to keep looking at in our own organic portfolio. That, for us, is the main thing. That's what we understand the most, and work continues with our team to do more drilling, to better understand numbers, and continue to move things along from the right-hand side of the column resource over to development decisions. Stay tuned on that. On the external environment, as always, we keep an eye on what's out there, what might be up for sale.

Speaker #1: As you saw earlier this year, where we converted the US projects out of that resource category and moved them into development, we've got lots of things to keep looking at in our own organic portfolios.

Speaker #1: So that for us is the main thing. That's what we understand the most. And we're continues with our team to do more drilling, to better understand numbers, and continue to move things along from the right-hand side of the column resource over to development decisions.

Speaker #1: So stay tuned on that. On the external environment, as always, we keep an eye on what’s out there and what might be up for sale.

Speaker #1: But again, we're playing from a position of strength where we don't feel a need I think our M&A track record, if you look in the rearview mirror, speaks for itself.

Paul Rollinson: Again, we're playing from a position of strength where we don't feel a need. I think our M&A track record, if you look in the rearview mirror, speaks for itself. We've only done a couple of deals, a few deals over the last 10 years. We're very discriminating. We think we can add value at different ends of the scale, whether it's development or improving operations. We can bring a lot of resources to bear. Number one, it's all about value creation for our shareholders, and is there something transactable? We keep an eye, and we will remain disciplined as we continue to move forward.

Speaker #1: We've only done a couple of deals a few deals over the last 10 years. We're very discriminating. We think we can add value at different ends of the scale, whether it's development or improving operations we can bring a lot of resources to bear, but number one, it's all about value creation for our shareholders and is there something transactable and we keep an eye and we will remain disciplined as we continue to move forward.

Speaker #5: Okay, thank you. Maybe if I could share a couple of follow-ups. Just one on labor Marte. What is the life of mine sustaining capex embedded in the $1,000 AISC?

Daniel Major: Okay. Thank you. Maybe if I could just ask a couple of follow-ups. Just one on Lobo-Marte. What is the life of mine sustaining CapEx embedded in the $1,000 AISC?

Speaker #3: Yeah, I'll have to get back to you on that. We can check in on how much of that specifically is sustaining.

Will Dunford: Yeah. I'll have to get back to you on that. If we can check in on how much of that specifically is sustaining.

Speaker #5: Okay. And then just one more, if I could, given that higher price environment, what is the timeline around another pushback at Tassiest? When might you be thinking about that and a decision to extend the profile?

Daniel Major: Okay. Then just one more if I could. Given the higher price environment, what is the timeline around another pushback at Tasiast? When might you be thinking about that and a decision to extend the profile?

Will Dunford: Well, I guess you guys have an updated technical report. You can see it's really the early 2030s where our production starts to ramp down again after we get through the heart of West Branch 5. The focus is on making sure we're well-prepared in advance of that. Obviously, we're progressing studies now, to be able to get to a point where we're comfortable making a decision that continues mining in the 2030s and then continues higher grade production.

Speaker #3: Well, we've got a I guess you guys have an updated technical report, so you can see it's really the early 30s where our production starts to ramp down again after we get through the hard of West Branch 5.

Speaker #3: So the focus is on making sure we're well prepared in advance of that. So obviously, we're progressing studies now to be able to get to a point where we're comfortable making a decision to continue mining in the 30s and then continue to hire great production.

Daniel Major: All right. Thanks a lot.

Will Dunford: Yeah. Just a follow up. The guys have gotten back to us on it. We've got about $1.5 billion of sustaining CapEx life of mine. About half of that is stripping for Lobo.

Speaker #3: Yeah, and just a follow-up. Follow-up, the guys have gone back to us on we've got about 1.5 billion of sustaining capex life of mine.

Speaker #3: About half of that is stripping for Lobo.

Speaker #5: Thank you.

Daniel Major: Thank you.

Speaker #1: I think, I mean, piling on a bit, but it's all about in a layback, as you can appreciate, Dan, we're just looking at the economies of scale and what we can do with perhaps bigger trucks, bigger shovels, truck optimization.

Paul Rollinson: I think, I may be piling on a bit, it's all about in a layback, as you can appreciate, Dan, we're just looking at the economies of scale and what we can do with perhaps bigger trucks, bigger shovels, truck optimization. What can we do to bring things forward in terms of waste removal? That's where a lot of the analysis is right now. In terms of what can we do to compress schedule on the amount of time it takes to do the layback, that's where we're focused.

Speaker #1: What can we do to bring things forward in terms of waste removal? That's where a lot of the analysis is right now. And in terms of what can we do to compress schedule on the amount of time it takes to do the layback, that's where we're focused.

Speaker #5: Yeah, our next question comes from Alina, Tanya Jacobsonic from Scotiabank. Your line is open.

Operator: Your next question comes from the line of Tanya Jakusconek from Scotiabank. Your line is open.

Tanya Jakusconek: Oh, great. Good morning, everybody. Thank you so much for taking my questions. Claude, congratulations on your next adventure. Claude, maybe just starting with you, if I could. Just wanted to come back to the cost side, because I'm quite impressed with the cost control that you're having there, given your open pit, low grade miner, low grade relative, obviously. I'm just trying to understand. You've got these productivities that you've mentioned. Andrea also mentioned that work with labor and I think power and fuel. You're not really seeing anything else that's inflating your cost. I'm just trying to understand whether your productivity improvements can offset inflation. Do you think you can get 4% and 5% from these productivity improvements to offset inflationary pressures in your costs?

Speaker #6: Oh, great. Good morning, everybody. Thank you so much for taking my questions. Claude, congratulations on your next adventure. Claude, maybe just starting with you, if I could, just wanted to come back to the cost side because I'm quite impressed with the cost control that you're having there, given your open pit low-grade miner low-grade relative, obviously.

Speaker #6: I'm just trying to understand you've got these productivities that you've mentioned. Andrea also mentioned that we're surprised labor and I think power. And fuel, you're not really seeing anything else that's inflating your costs.

Speaker #6: So I'm just trying to understand whether your productivity improvements can offset inflation. Do you think you can get 4, 5% from these productivity improvements to offset inflationary pressures in your costs?

Speaker #3: As I said, Tanya, thank you very much. But as I said, as we do these productivity improvements, we've always felt that our continuous improvement processes on our sites it'll eventually get away from us.

Claude Schimper: Tanya, thank you very much. As I said, as we do these productivity improvements, we've always felt that without continuous improvement processes on our sites, it'll eventually get away from us. We're very focused on having these different initiatives at sites.

Speaker #3: So we're very focused on having these different initiatives at sites the key element being as well is when we are successful at one site with an initiative, we transfer that to the other six sites.

Claude Schimper: The key element being as well is when we are successful at one site with an initiative, we transfer that to the other six sites, to make sure that they also adopt those. There's a huge complex strategy, everything from tire management. We've gone from being sort of the bottom of the pile in that area to being leading edge in those things. Those are big dollars that drive your costs down. The other part is just always grade optimization strategy and how we pick the right spots of moving the production. That helps. Inflation, again, we're in a global environment. We're in different jurisdictions. It's at a different level. As you're monitoring FX and inflation, do I personally think that you can always outpace inflation? Well, that's the tough challenge. That's what we lay down for the teams.

Speaker #3: To make sure that they also adopt those. But there's a huge complex strategy. Everything from tire management, we've gone from being sort of the bottom of the pile in that area to being leading edge in those things.

Speaker #3: And those are big dollars that drive your costs down. The other part is just always great optimization strategy and how we pick the right spots of moving the production.

Speaker #3: That helps. Inflation again, we're in a global environment. We're in different jurisdictions. It's at a different level. And as you're monitoring FX and inflation, do I personally think that you can always outpace inflation?

Speaker #3: Well, that's the tough challenge. That's what we lay down for the teams. And as you've seen, we have had a lot of success with managing to keep our cost structure in line with our expectations.

Claude Schimper: As you've seen, we have had a lot of success with managing to keep our cost structure in line with our expectations. You can't do that without a lot of continuous improvement and a culture of innovation within the organization.

Speaker #3: But you can't do that without a lot of continuous improvement and a culture of innovation within the organization.

Tanya Jakusconek: I can grab one on the cost side. Maybe I can move on to Great Bear. I just got some questions on to some of the items to look forward to. The first one I just wanted to ask on the bulk sample. When should we be thinking about this bulk sample for metallurgical testing? When should I be thinking this is coming?

Speaker #6: I can grab on the cost side. Maybe I can move on to Great Bear. I just got some questions on just some of the items that to look forward to.

Speaker #6: So, the first one—I just wanted to ask about the bulk sample. When should we be thinking about this bulk sample for metallurgical testing?

Speaker #6: When should I be thinking this is coming?

Speaker #3: Yeah, that's still a little ways out. I don't have the exact date, but it's we got to get down to the level where we want to take bulk samples.

Will Dunford: Yeah, that's still a little ways out. I don't have the exact date, but we've got to get down to the level where we want to take bulk sample. We're obviously progressing the twin declines, and we're going to start putting in some exploration headings towards the end of this year or early next year. That's kind of the first focus is start to drill. I think, the bulk sample will probably be late next year or the following year sometime. We can get back to you with more specific schedule of it.

Speaker #3: We're obviously progressing to twin decline and we're going to start putting in some exploration headings towards the end of this year, early next year.

Speaker #3: So that's kind of the first focus is start to drill. So I think the bulk sample will probably be late next year or the following year, sometime.

Speaker #3: But we can get back to you with more specific schedule of it.

Speaker #6: Okay. And then just some.

Tanya Jakusconek: Okay.

Will Dunford: Once you've opened up a lot of good levels.

Speaker #3: Once you've opened up on the mid-levels.

Tanya Jakusconek: Okay. I think we've talked a lot about the permitting and hopefully get all the permits in place for spring of next year to start construction thereafter. Maybe someone, you've done 50% engineering to date, I think it was mentioned that you're going to update the capital for us next year once you have a better idea, and potentially some scoping changes. Can I ask whether you are seeing some here? What are they at this point?

Speaker #6: Okay. And I think we've talked a lot about the permitting and hopefully get all the permits in place for spring of next year to start construction thereafter.

Speaker #6: But maybe someone you've done 50% engineering to date, and I think it was mentioned that you're going to update the capital for us next year once you have a better idea and potentially some scoping changes.

Speaker #6: Can I ask whether you are seeing some here that could, and what are they at this point?

Speaker #1: Yeah, look, I think that's right. I mean, there's always going to be an inflation component, Tanya. As you know, I think other areas where when we look at capital in the waterfall, it's a combination of inflation and discretion and is there anywhere where we may have missed it or come up late?

Paul Rollinson: Yeah, look, I think that's right. There's always going to be an inflation component, Tanya, as you know. I think other areas where when we look at capital in the waterfall, it's a combination of inflation and discretion, is there anywhere where we may have missed it or come up light? I don't think in the latter instance there's anything that gives us concern that we haven't anticipated. This is pretty straightforward as a 10,000 ton per day mill right off the highway outside of town. We always look at optimizations or enhancement that might be more favorable to environmental regulations, that sort of stuff. Yeah, there will be an update. I don't view this as a project that's particularly at all capital sensitive. Just stay tuned for that. It'll be sort of normal course adjustment mostly due to inflation.

Speaker #1: I don't think in the latter instance, there's anything that gives us concern that we haven't anticipated. This is pretty straightforward as a 10,000-ton-per-day mill right off the highway.

Speaker #1: Outside of town, but we always look at optimizations or enhancement that might be more favorable to environmental regulations, that sort of stuff. So yeah, there will be an update.

Speaker #1: I don't view this as a project that's particularly at all capital sensitive. And just stay tuned for that. It'll be sort of normal course adjustment, mostly due to inflation.

Speaker #6: Yeah, that's what I was getting at, Paul. I was just trying to understand if it was just inflation plus and then it's a scope change and then we'd have to adjust for that.

Tanya Jakusconek: Yeah, that's what I was getting at, Paul. I was just trying to understand, if it was just inflation plus and then it's a scope change, and then we'd have to adjust for that. It seems as though it's just inflation.

Speaker #6: But it seems as though it's just inflation.

Speaker #1: It'll be it'll be a combination, but typically if I'm of the opinion an increase in capital isn't necessarily always a bad thing. An increase in capital means hopefully we're gaining something.

Paul Rollinson: It'll be a combination, but typically, I'm of the opinion an increase in capital isn't necessarily always a bad thing. An increase in capital means hopefully we're gaining something as well. It's a trade-off decision, whether it's a return or an efficiency or a better standard. We'll walk you through that when we get it more finalized.

Speaker #1: As well, it's a trade-off decision, whether it's a return or an efficiency or a better standard. So, we'll walk you through that when we get it more finalized.

Speaker #6: Okay, great. Thank you.

Tanya Jakusconek: Okay, great. Thank you.

Speaker #2: Your next question comes from Alina, Matthew Murphy from BMO. Your line is open.

Operator: Your next question comes from the line of Matthew Murphy from BMO. Your line is open.

Speaker #7: Hello, just a clarification question on Lobo Marte. So the $1,200 an ounce reserve pit is sort of your base case. On this submission, and is it your intention that that eventually sooner rather than later, that gets adjusted to an updated gold price?

Matthew Murphy: Hello. Just a clarification question on Lobo-Marte. The $1,200 an ounce reserve pit is sort of your base case on this submission. Is it your intention that eventually, sooner rather than later, that gets adjusted to an updated gold price? If so, how should we think about that $1,000 an ounce AISC? Does that belong with the $1,200, or is that where you're aiming to have this thing into production at?

Speaker #7: And if so, how should we think about that $1,000 an ounce AISC? Does that belong with the 1,200 or is that what you're where you're aiming to have this thing into production at?

Speaker #3: Yeah, that's what I mean, that's what we're aiming to have this thing in production at. Any optimization that we provide, first off, you can see that most of that additional resource sits lower.

Will Dunford: Yeah, that's what we're aiming to have this thing in production at. Any optimization that we provide, first off, you can see that most of that additional resource sits lower, so it'll tend to come towards the end of the mine life. The types of things we're going to want to play with as we get into value engineering is the production rate, those types of things. We're designing around a 35,000 ton per day facility because that's what we've done all our baseline work around. Obviously, we'll look if there's opportunity to enhance that. The cutoff grade will go down, and it'll be a question of when ideally you put more of those tons onto the pad without diluting that AISC. Going to a higher production rate is a good way to do that.

Speaker #3: So it'll tend to come towards the end of the mine life. The types of things we're going to want to play with as we get into value engineering is the production rate, those types of things.

Speaker #3: We're designing around a 35,000-ton-per-day facility because that's what we've done all our baseline work around. But obviously, we'll look to see if there's opportunity to enhance that.

Speaker #3: The cutoff grade will the cutoff grade will go down and it'll be a question of when you ideally you put more of those tons onto the pad.

Speaker #3: Without diluting that ASIC, so going to a higher production rate is a good way to do that. So it's those types of things that we're going to look at and the pit sequencing as well.

Will Dunford: It's those types of things that we're going to look at, and the pit sequencing as well. Right now we've got Marte sequenced first. We're going to also look at the options of moving Lobo around and potentially producing from two pits at the same time. All of those optimizations will be focused around not only extending mine life, but keeping that AISC low and increasing the scale of the asset.

Speaker #3: Right now, we've got Marte sequence first. We're going to also look at the options of moving Lobo around and potentially producing from two pits at the same time.

Speaker #3: So all of those optimizations will be focused around not only extending mine life, but keeping that ASIC low and increasing the scale of the asset.

Speaker #7: Got it. Okay. Thanks for the clarification.

Matthew Murphy: Got it. Okay. Thanks for the clarification.

Speaker #2: And there are no further questions at this time. I will now turn the call back over to Mr. Paul Rollinson for some final closing comments.

Operator: There are no further questions at this time. I will now turn the call back over to Mr. Paul Rollinson for some final closing comments.

Speaker #1: All right. Thank you, operator. Thanks, everyone, for joining us this morning. We look forward to catching up with you all in person in the coming weeks and months.

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

Speaker #1: Thank you for dialing in. Thanks.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.