Kinross Gold Corporation Q4 FY2025 earnings call

2025 was strong year. Produced over 2,000,000 ounces, achieved cost guidance, margins increased. Free cash flow strengthened balance sheet, returned significant capital. Operations: Tasiast and Paracatu strong, La Coipa and U.S. assets good. Projects: Progressed organic growth projects, enhanced resource base, advanced Great Bear and Lobo Marte projects. Sustainability: Advanced priorities, Q2 to publish annual sustainability report, environment: energy efficiency program, social: medical supplies donation in Mauritania, governance: top-scoring in corporate governance ranking.

In 2025, Kinross produced just over 2,000,000 ounces, achieving cost guidance. Margins increased by 66% compared to a 43% increase in the gold price. Free cash flow was $769,000,000 in Q4 and $2,500,000,000 for the full year. Tasiast and Paracatu anchored the portfolio, accounting for over 1,100,000 ounces full year. Paracatu full-year production exceeded guidance midpoint, Tasiast also exceeded guidance midpoint and was highest-margin. La Coipa delivered on full-year production guidance. U.S. assets achieved full-year guidance. Fourth quarter production was 484,000 ounces. Cost of sales in Q4 was $12.89 per ounce, all-in sustaining cost $18.25 per ounce. Full-year cost of sales $11.35 per ounce, all-in sustaining cost $1,571 per ounce. Adjusted earnings were $0.67 per share in Q4 and $1.84 per share full year. Adjusted operating cash flow was record $1,100,000,000 in Q4 and $3,600,000,000 full year. Attributable free cash flow $769,000,000 in Q4 and $2,500,000,000 full year. Ended year with approx $1,000,000,000 net cash.

2026 production expected 2,000,000 ounces, relatively even across quarters (approx 490,000 - 510,000 ounces per quarter). Cost of sales guidance $13.60 per ounce, all-in sustaining cost $17.30 per ounce at $4,500 gold price. All-in sustaining cost increase 10% due to higher royalties, overall cost inflation and mine plan sequencing. 2026 capital expenditure guidance $1,500,000,000, approx $1,050,000,000 non-sustaining, $450,000,000 sustaining. 2027 production guidance 2,000,000 ounces, 2028 added 2,000,000 ounces production profile. 2027 and 2028 capital expenditure expected in line with 2026. 2026 target to return approx 40% of free cash flow to shareholders via dividends and share repurchases, dividend increased by $0.02 per share annually, 14%, start share buyback next week.

Discussed risks and uncertainties in reports, MD&A and AIF, including cost increase due to royalties and inflation, project推进 risks, market price fluctuation risks.

Q: On Great Bear's One Project One Process designation and federal permitting, A: Geoffrey P. Gold discussed Ontario's designation and federal process.

Q: On 2026 cost guidance breakdown of royalties, inflation and sequencing, A: Andrea Susan Freeborough explained.

Q: On capital allocation split between buybacks and special dividends and use of net cash, A: J. Paul Rollinson and Andrea Susan Freeborough answered.

Q: On inorganic options, A: J. Paul Rollinson said they look at opportunities but are hard markers.

Q: On labor contracts renewal and Great Bear update, A: Claude J. Schimper and J. Paul Rollinson answered.

Q: On Paracatu mine life extension, A: William D. Dunford answered