Kinross Gold Corporation Q1 FY2026 earnings call

Safety Culture: Focused on safe ground brand with practical leadership training on prevention of high potential incidents, visible leadership activities engaging workforce and strengthening safety excellence program.### Production Highlights: Q1 production 493,000 ounces; Baraka 2 production 161,000 ounces with record mill recoveries; Tazius production 130,000 ounces; COIPA production 54,000 ounces; U.S. operations production 148,000 ounces.### Projects Progress: Made strong progress in Q1 across mine life extensions and growth projects. In U.S., advanced three projects announced in January; at Great Bear, advanced exploration and main project with permitting milestones; at Lobo Marte in Chile, submitted environmental impact assessment; at Round Mountain, received major operational permits ahead of schedule; at Bald Mountain, mining of Redbird and processing infrastructure advancing; at Curlew, successful construction season, mill refurbishment work progressing; at La Coypa, submitted EIA for Pure N4 extension; at Lobo Marte, submitted EIA and expected to provide update in second half.

In Q1, production was 493,000 ounces. Baraka 2 produced 161,000 ounces with cost of sales $1,119 per ounce; Tazius produced 130,000 ounces with cost of sales $990 per ounce; COIPA produced 54,000 ounces with cost of sales $1,526 per ounce; U.S. operations had combined production of 148,000 ounces with cost of sales $1,982 per ounce. Revenue contributions: Tassius and Perica II accounted for more than half of production, driving significant free cash flow, Cherokee II had excellent quarter on record mill recoveries, TASIA saw strong output supported by higher grades and recoveries.

Production: On track to produce 2 million ounces, second quarter expected to be in line with first quarter, second half slightly higher than first half. ### Costs: On track with cost of sales $1,360 per ounce and all in sustaining costs $1,730 per ounce. ### Capital: On track with $1.5 billion capital guidance. ### Oil Price Sensitivity: Impact of higher oil prices on costs estimated, but grade enhancement strategy and hedge positions provide offsets. ### Return of Capital: Targeting to return approximately 40% of free cash flow to shareholders through dividends and share repurchases.

Oil Price Impact: Higher oil prices could impact costs, but hedge positions and grade enhancement strategy provide some mitigation. ### Permitting Delays: Delays in permitting for projects could impact timeline for production. ### Labor Market Tightness: Potential labor market tightness could affect operations, but major labor agreements signed for key sites. ### Supply Chain Disruptions: Potential disruptions in supply of key items like explosives, cyanide, but no issues currently seen.

Q: On a Great Bear project, with AEX permit in place, what is the pathway to start deeper exploration and timeframe?

A: Expect August or September to start blasting and getting underground, focus on infill and extensional drilling in main part of LP ore body initially, with hinge and limb exploration over next couple of years.

Q: On inflation, non-energy related items and capital updates for Lobo Marte and Great Bear?

A: Included 5% inflation factor in cost guidance, still on track; inflation will be a factor in capital updates for Lobo Marte and Great Bear as between 2024 PEA estimate and current, a macro effect.

Q: On TASIUS grades outlook for rest of year?

A: Grades tapered off from first quarter, expected to be slightly lower rest of year but constantly looking at opportunities to enhance.

Q: On Lobo Marte EIA submission and water usage strategy?

A: Base case is using existing permitted pumping water closer to Lobo, with initiatives underway for other potential water sources longer term.

Q: On second half guidance assets stronger?

A: U.S. expected to be higher in second half, some from Brown Mountain production.

Q: On oil hedges for 2027?

A: 42% hedged for U.S. and Cassius for 2027, about 30% company-wide, looking at opportunities to chip away at it.

Q: On cadence of sustaining capital and gross capital spend?

A: Q1 is lower CapEx quarter, still on track for full year with growth capital spending ramping up on U.S. projects.

Q: On supplies to mine sites and labor market?

A: No issues seen with suppliers currently; major labor agreements signed for key sites, in reasonable shape for labor supply and agreements.

Q: On Lobo Marte timelines and first production?

A: EIA process takes couple of years, then approvals and construction another couple of years, expected to be in early 30s behind Great Bear.

Q: On solar power at Tazius cost benefit and expansion?

A: Solar provides cost benefit with 22 - 24% of electricity supply to site; storage is bottleneck for expanding solar capacity, but looking at wind study too.

Q: On Fort Knox conveyor belt repairs and future costs?

A: Conveyor belt repairs were unexpected but didn't impact actual production, on track with commissioning and testing of new system, operation to continue normal