Kinross(US:KGC)2023-11-09 16:17Financial Data and Key Metrics Changes - The company generated nearly $1.2 billion of operating cash flow in the first nine months of 2023, with over $400 million of free cash flow after reinvestment [5][10] - In Q3 2023, the company produced 585,000 ounces of gold, with an average realized gold price of $1,929 per ounce, and cost of sales at $911 per ounce [11][12] - Adjusted earnings per share for Q3 was $0.12, and adjusted operating cash flow per share was $0.38 [13][14] Business Line Data and Key Metrics Changes - Tasiast produced a record 171,000 ounces in Q3, with a cost of sales of $666 per ounce, while Paracatu produced 172,000 ounces at a cost of $845 per ounce [16][17] - La Coipa produced 66,000 ounces at a cost of sales of $629 per ounce, making it the lowest cost operation [16][17] - US operations saw improved production across all sites, with Fort Knox producing approximately 72,000 ounces and Round Mountain producing approximately 64,000 ounces [17][18] Market Data and Key Metrics Changes - The company expects to finish 2023 in the lower half of its cost guidance range, below $970 per ounce [12][13] - The average realized gold price in Q3 was in line with the average spot gold price, indicating stable market conditions [11] Company Strategy and Development Direction - The company is focused on delivering strong cash flow and maintaining a competitive dividend while advancing projects that will contribute to future growth [10][25] - The approval of Phase S at Round Mountain is expected to secure meaningful production scale through the end of the decade, with a focus on optimizing design and reducing capital expenditures [19][20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year guidance, with strong year-to-date performance and a robust production profile [10][25] - The company is committed to responsible mining and has made significant progress in ESG initiatives, including a solar facility at Tasiast to reduce carbon emissions [9][10] Other Important Information - The company ended Q3 with $465 million in cash and approximately $2 billion in total liquidity, with a net debt to EBITDA ratio of 1.1 times [14] - The construction of the solar power plant at Tasiast is nearly complete, expected to reduce carbon emissions by over half a million tons [9] Q&A Session Summary Question: Can you elaborate on the pit design at Round Mountain? - Management confirmed that optimization work has reduced the strip ratio from 2.3 to 2.1, improving overall project economics [27][29] Question: What are the grades and tons for Phase S and Phase W? - Phase S is estimated to contain around 800,000 ounces with grades close to 0.8 grams per ton, while Phase W has about 150,000 ounces remaining [34][41] Question: How are the ramp-ups at Tasiast and La Coipa going into Q4? - Management indicated that Tasiast is on track for production in the 21,000 to 22,000 ounce range for Q4, with La Coipa also showing steady improvements [52][53] Question: What is the expected CapEx for Phase S? - The company plans to spend approximately $125 million on Phase S in 2024 and $60 million in 2025 [46][60] Question: What are the expectations for the Great Bear project? - Management anticipates a resource increase at Great Bear, with a target of around one million ounces by year-end 2023 [73][74]