Kinross Gold Corp. Q3 FY2024 earnings call

Key Points

• Q3 was an excellent quarter with record quarterly free cash flow of $415 million, up 20% from prior quarter. First nine months free cash flow over $900 million. Repaid $650 million of $1 billion term loan.
• Operations: Tasiast and Paracatu performed well with increased production. La Coipa on track for production guidance. US operations had on-plan production with Manh Choh commencing.
• Projects: Made progress on Great Bear, Lobo-Marte, Round Mountain Phase X. Added senior executives with large-scale project experience for project development.

In the third quarter, Tasiast delivered production of 152,000 ounces at a cost of sales of $688 per ounce, being the lowest cost asset. Paracatu produced 146,000 ounces at a cost of sales of $1,006 per ounce, with higher production and cash flow compared to prior quarter. La Coipa produced 51,000 ounces at a cost of sales of $1,074 per ounce, on track to meet production guidance. US operations had production of 205,000 ounces, with Alaska production at 120,000 ounces (higher than prior quarter) due to Manh Choh production, Bald Mountain produced 43,000 ounces, and Round Mountain produced 42,000 ounces (lower than prior quarter but on track with planned sequences).

• Firmly on track for key metrics. Expect to continue repaying term loan balance by year end. 2025 CapEx expected not significantly above 2024's $1.05 billion, adjusted for inflation. Still in budget process, but likely not much higher than 2024's figure.

Factors leading to actual results differing from estimates, including those discussed in the presentation on Page 2, the November 5, 2024 news release, MD&A for period ended September 30, 2024, and most recently filed AIF, all available on the company website.

Q: On Manh Choh, visibility on sustainability of results, especially throughput?

A: Paul Rollinson said they reassess stable production from Manh Choh at a mill rate of 382,000 ounces per quarter, expecting consistency with current performance.

Q: On CapEx for future years?

A: Andrea Freeborough said they are in budget process, expect CapEx not significantly above 2024's $1.05 billion, adjusting for inflation.

Q: On capital allocation post debt repayment?

A: Claude Schimper said capital allocation will be gold price-dependent, balancing internal growth and returning capital.

Q: On US operations, Bald Mountain and Round Mountain production?

A: Paul Rollinson discussed stable production expectations for Bald Mountain, lower production at Round Mountain next year before ramping up with Phase S in 2026-2027.

Q: On Round Mountain underground development?

A: William Dunford said development is progressing, with infill drilling showing high-grade intercepts, expecting first production in 2027.

Q: On La Coipa optimization initiatives?

A: Claude Schimper and Geoff Gold discussed addressing bottlenecks in filtration and other areas to optimize operations.

Q: On Bald Mountain resource and cost impact?

A: Claude Schimper said Bald Mountain has a large resource but needs higher gold price confidence for satellite opportunities.

Q: On Great Bear permitting and winter activities?

A: Geoff Gold discussed ongoing permits and winter activities including portal excavation and ancillary facility work. Andrea Freeborough talked about budgeting factors impacting costs for 2025, including production mix, inflation, and gold price.