Kinross Gold (KGC) 10 Nov 222022 Q3 Earnings call transcript

Good morning, my name is Rob and I'll be your conference operator today. At this time, I would like to welcome everyone to the Kinross Gold Third Quarter 2022 Results Conference Call and Webcast. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. Investor may President your Vice Lichtenheldt, Relations, begin you conference. Chris

leadership us and and have Senior Claude good Gold. you and today, Ned from Andrew Jalil, Schimper, morning. Kinross CEO; Thank and With we Geoff Freeborough, President Paul the team, Rollinson,

period For information, risks ended uncertainties, please which presentation, page of November lead of XXth, refer the our Xth, which estimates for the filed contained the our of XXXX, our the differing and all this dated actual to website. results turn from discussion news recently Paul. in a may complete and to our release are forward-looking September most over now MD&A XXXX, on to call I AIF, will available two

you to for I'm quarter all Today, Great forward, third our thank update on our us. going expectations performance, going [indiscernible]. and joining Chris Thanks, you and

would First, Operating introduce Schimper Chief leaders. operational new I our like is to Claude Officer. our

globally and and Claude Ned Ned Kinross Services. in successful are a our first areas, has who Engineers on of and role, with For new he you COO oversight our Technical including business those led leading and boots management Both style. for very the significant President XX Operations. Mining XX Vice and been Kinross has successfully of deep years joined value African on Jalil ago our added Ned don't to previously on of several added took years Senior is the Russian Paracatu Claude, experience prior technical in optimization taking Brazil. ground then with know our he of

prior increase an year, we across in new production called significant up we our are quarter throughout With second US our in expected down the Tasiast. key again the to I our improvements Paracatu, our setting quarter. quarter, our La increased from, the the our to an of will the At Paracatu, operation third to Coipa, quarter to per second with areas X% discussed year. the for mine production the Last in in hear As operational as QX. and plan, this leadership as metrics the the which continue shortly, plan continued Similar we see second four operations production specifically is where make year for costs and heaps, increase it's compared stage to performance, respect And October years, XX% third have and portfolio. to plans progress strong key from start deliver expect this grades you quarter on come excellent exceptionally to to strong half the seeing. off

seasonality Second, is nearly playing increased from effect the in quarter. US production as third expected the XX% heaps out our and

operation have Coipa, to is improve. the we the continually La at where worked challenges Third, through expected

required the the ounces. given XXX,XXX in were we due resolve At to lower full Tasiast, than time recovery processing to However, now commissioning challenges throughput some planned approximately issues, expect be to year high-grade and mill ore. production

the expect we we will quarters. stronger the three the quarter be than describe fourth first have made in progress challenges. later, resolving As good Claude to And significantly

However, the levels year, full given expect Tasiast these challenges, to then, back around up forward. come to we XXX,XXX ounces and going in now for design

X the expect at approximately Given the for of Tasiast, ounces production slower million ramp-up La and we now consolidated Coipa XXXX.

positioned more resiliency. generation environment. in economic would XXXX relatively renewed discipline, combined and focus current with million business production XXXX of X like how to stable through the and we flow the than Going timeframe, cash on comment I production a year each ounces forward, our now capital broadly during expect on is

XX%. price the and past cumulative months year, inflation in is half is gold approximately compared first XX Given the the with that the down of

We are adapting our plans.

planning. As our always, in we business remain disciplined

where business, ensure major The the optionality strength our and in extensive our in margins, are this good mining. including transition pit highest we plans returns to in attractive across investments we review to in of focused positioned our pit have reinvesting where are is we prioritizing leaders portfolio. our in looking mine phases on news environment, order completed are our number and open a can of generating from operational at we the an technical areas, and portfolio underground have for are generate We new

shown at As have part and to underground of S completed for attractive we results. open defer positive pit on that decided Round Mountain process, have study also the more targets and Phase WX this have very optimization expansions focus to

ground, ounces improves. the phases, environment Ned plans are open phases optionality will these the maintain pit on course, and from to Of detail on more if the provide the the the we these still call. on later mine

Finally, the across our plants portfolio. other economics this extensive has of operations review the served to also our of confirm robust

are Finally, I'd and the seeing. like we to excited comment Great about I results on how am Bear

high-grade Our that of with mineralization extends and to large, particular, remaining directions. our deposit in to continues the thesis surface our deposit drilling confirm to confirm debt. thesis to a drilling open In continues all coming our

the fact, the XX In drilling program Shoot. XXX intercepted slide, as you grams our recently approximately a meters, per meters of XX tonne on can depth Yuma current at at over see

we our geology initial a are technical alongside release early very we seeing study with focused While metallurgy. in resource we and our are year pleased next are to and early report expect still what process, on

million expect multi-decade X a ounces, We this are resource many could deposit to initial but of times support this robust million at amount which X produces ultimately mine, targeting an margins.

Lake mining in We Canada, excellent Red are an is have to jurisdiction. asset excited an and

Our projects of opportunity Having the excellent lines will that will that, now that, possible. the we process. time I team going for said time call over to take as to Andrea. with have same turn With soon is other process, the production every the an achieving with projected first as through expedite consistent line goal

and and of overview and balance outlook. quarter, allocation Thanks, an Paul. highlights sheet guidance financial discuss our provide capital This morning, our on I'll the from comment

quarter over XXX,XXX up across XX% of our quarter-to-quarter was ounces Paul continuing third production As show to QX, improvement our operations. noted,

the down QX increase. second quarter, per as $X,XXX the was from sustaining cost ounce, QX primarily in further decrease was Our production. All-in cost to in a is previous the sales of by continues production ounce driven quarter, expected a third in increase which with per reduction quarter, $XXX the in

cost the come in yesterday, As all-in of expect be to we news we indicated year our our $XXX sales $X,XXX per slightly release per and ounce full our ounce. sustaining above approximately cost to in for

in was negative of as timing production offset cash which costs to the related capital and adjusted outflow, quarter a flow Our as third higher some $XXX second lower quarter the working quarter, was million, sales. result slightly lower prices. operating Free flow the cash from of up of gold

$XX prices. free La $XXX was Excluding in at capitalized well in defer cash full to million We Phase million Nevada to spend these and flow. CapEx as S closer to the on this expansion Round to WX QX, the expect primarily higher capital our the quarter, million at stripping due now expect we flow and for production spending, we pit capital Coipa. lower substantially QX over lower year higher With of below working cash on as the changes, spot year significant decision in $XXX Phase Mountain. based fourth open for still pace but of generated than free planned

balance to sheet. the Turning

to the environment. and financial remain strong strong, and liquidity. position we ended cash We challenging with of billion $XXX it despite expect Our approximately the of macro quarter $X total is million

end net to trailing current Our during next of relatively debt gold the we before prices, ratio the was X.X EBITDA times. XX-month expect similar net year-end be At debt-to-EBITDA stable at quarter by year. at declining to

Our to refinance have of XXXX. notes is be the looking environment, to maturity $XXX these net sometime in coming when during expect XXXX In debt we due. senior we price gold current million notes

Turning now return capital to program. our

our or Our total $XX call the acquisition be I during dividends. issued this to-date X% capital at Great in the million of of in shares now million current of approximately of repurchased than turn We've form our and million the $XXX expected over shares both to is market repurchased buybacks will QX this cap to Bear. We Claude. more now year. return of $XXX year

operational about three excellence our Thank like on the and But months role time at La found and teams, detail considerable on been on you, and little related in discipline plans performance context the our focused more provide morning, Coipa regarding our Officer. have plans. of as been operational and Chief Andrea. operational the our I'd been for the reviewing a safety. spending around Tasiast. have opportunities enhance additional our we with role sites taking Working since provide practices I'll some I've This first, the I've well on delivering to what ramp-ups as at Operating to to closely

plans examined our to on focus mine our renewed strong some and have a We changes made and objectives. I've are also operating on achieve capital. we driving robust gens generating returns our ensure

production we mentioned, be changes have to and to these Paul more in face. risks the As we realistic our adjusted reflect expectations

operations. to Moving our

gravity production expectations, very Tasiast, and a Third the than and time new lower in and challenges mill planned commissioning resulted the At initial to strong and made while in progress were set expected significantly second quarter. the to tanks circuit, recovery availability quarter. quarter La than stronger leaching temporary Coipa, behind leach than Tasiast lower circuit. and were with mill due have the are fourth retention throughput which

La and XX,XXX day encouraged has to tanks, capacity extensive which Coipa, add retention and the We on time resolve day, a reliability design pre-oxidation has continues to produce on to the mill. stage. we now have commissioned drive commissioning XX,XXX a focus ramp-up and hitting improve multiple at These to our steadily the allowed XXX,XXX now longer high ounces taken leach ensure averaged and see sustained We planned, team helped a to X,XXX In increasing mill QX action recoveries Tasiast produced of have October, through plan we recoveries throughput. expect improve and issues than around tonnes At year. to us ounces availability with throughput this three adjustments the days. increased of we originally XX%, tonnes and production as back new while an

all gets also are since well in ore. a us. have adjustments Coipa The seen highest La with X.X facility now stride Coipa to grade grams infrastructure Ned. La higher is and plant tonne in The is over and the We operating shop an the restarting design now order, I'll excellent to mine in grade the is into grade other levels. going mill are at tailings of forward. the hand October the and mechanic hits positioned mine average its behind as our shape,

our three also team, services Round technical Mountain I've is including focus future you, company. Claude, Bear, approximately spent other Thank excited good the process. projects. been time about and and expanded strategic new projects plan on our our morning. in role I'm planning and and our growth optimization our the reviewing of My months. I've for considerable leading Great mine the projects

Round Mountain. Turning to

which the higher-margin underground at have at and which highlighted Gold We opportunities looked primary for Gold gold X for Phase the price resources, work, work underground significant WX, Phase four to are That optimization potential X the current exploit Phase completed underground. and better X, and Hill, environment. has Hill operations Phase our suited inflationary

mining WX continuing we open on underground X and pit at WX focus Phase progress will exploration pushbacks and while Gold infrastructure of Hill. Phase and development We

operation Phase recent see more to Round X X parallel and could excited Mountain of opportunity on on to X Hill Gold open well shows Gold through of ounce. or grams remain mining Phase at with a the Based the per defer price are We S X WX an Hill, grams improves. exploited economic at We and higher-grade Phase and $X,XXX work drilling-to-date, and the mining pit capital approximately Phase starting both be at same X year. woods ASIC potential optimization produce to in future resilient, Phase ounces a lower $X,XXX X the That together average per the approximately and could S per XXX,XXX tonne. for be be at see underground Gold and and underground operation of lines Hill WX to that to our gold gold ASIC led discipline drift has per and eventually a operation prices early a to while potential to X to expansions. grade drive cost build the combined bulk underground tonne, operation helps Phase to ensure of current when narrower, work Phase at decision potential X a profitable two year next the results the and

on explore the down more we Moving in deposit to have we're which meters we genic substantial that time excited Hemlo, now very Great to expansions Great we and more at are our of to ounces. million do excited ore over the work XXX We more produced this today Bear, analogous thesis the Bear, acquisition. confident even are than The drilling were is months. coming about depth than XX [ph] to continuing more the

that we slide, highlighted, to Paul can have and goods with strong numerous from you holes the hole addition In the see grades.

we have tonne tonne and at shoot open meters grams per XX direction. Arrow at grams at at in example, [ph] X per the shoot. every For XX deposit Arrow And the importantly, remains intercepted meters XX the

similar on additional Looking mainly, to zones. Fault zones prospective we on zones highly our parallel ahead, as more package, Red to as our we are the exploring LP for traditional potential for mineralization Limb and land have exceptional Lake upside well further Hinge zone style focused possible

to early million track is release expect million having year. February to continue ounces, and on accomplishment, year since to resource initial of Great our a for which this owned next the a project X Bear are X significant We

a this portion approach of believe ultimately that deposit only therefore, drilling we resource, the early proven. demonstrate of can small and it's As we the important what remain initial be stages in will to we remember

years, of to at in allow will expect exploration efficient couple our exploration next By we drilling more full mid-XXXX, will depth. our and which the decline, continue we Over at drilling begin drilling depth.

explore we and of sizes, planning, terms In mill still mine range continue options development early, of time it's lines. and to underground sequence a

production of XXX,XXX a turn the permitting back call per in start early day, Having per year. the XX,XXX performing a thinking to over at on focus is we that, high-grade study on per in X range open annual next I the grams to sufficient Our clock and will mill tonnes is pit ounces current Paul. point of said range an year. the will narrow our size internal work tonne of this now

have our close I'll Claude. significant strength made in in forward. the that progress Thanks, saying by positioning quarter, for third going we business

a La Tasiast and have renewed We strong stable focus our capital program production mostly a return dynamic excellence, outlook. operational Coipa us, behind ramp-ups and a and on

operator. the well-positioned fourth to looking Thank questions. We strong are and quarter next you, We move year. up forward for now to into a line can are open

[Operator Soni comes And from the Instructions] CIBC line first Anita Markets. your of from question World

is line Your open.

Thanks my question. for taking morning. Hi. Good

into -- reductions deferrals at the million. and we of $XXX that looking some So year, would to come mentioned or next to some firstly, in those through still XXXX -- on capital as next sorry, year, you about we look we of in capital $XXX capital, million of expect capital year, to like this the for be that so deferred are Is XXXX? that

I that. mostly Andrea. take $XXX Hi. was Anita. start, came XXXX of the It's guess off can to that stripping. million I

to Phase Some round. was related of S that WX and

Earlier that adding noted additional So we million. we was about haven't about talked for that, that next and guidance about before $XXX the doesn't year. at come I guess, yet. looking was projects. million year that $XX back provided XXXX, decrease year before additional this of inflation That two any And next half of when then

neighborhood So in since should approved million then, XXXX. our $XXX main that we've be of portion and show, in for the

So we're thinking a considered of expecting things bit inflation. all about

Some $X the CapEx coming of back I'd related in expect neighborhood not next be that billion. Mountain stripping Round year's to the next of part year. to

of, good around at kind because other look guided but Laquiba one bit thinking that. play? thank may guidance, sitting pretty more and you and per know is year, any increase outlook -- But as the a coming that's those costs don't I at be to the we I if there to production had or this year-over-year. if year from that But to than ounce, now around Laquiba maybe production so in? Should next you're there a getting had you an quite slight guidance that there, you're, provided remember [ph], that per little costs, you can't to Like contribution moving we is sort for ounce or better of outlook then factors And I Okay. offsets had. the $XXX I cost other other think provided you

-- give normal hand our -- middle I just That's we the as the to I'll mean, start process We're of off situation. Andrea. cycle. I'll our We're we in and our Yes. maybe right. in guidance Anita, budgeting speak. you're February. all studying still yes, inflation

and going puts takes softening, don't Some there, we but some it see away.

general, this that's coming. we point, be will provided but But So cost haven't guidance in at why directionally... it

mean, an Yes. not a I Directionally, we're increase, expecting also decrease. we're expecting but significant not

process. we're said, our Paul As budgeting in

it but made can quite yet that stops. call haven't We we on inflation year, next assume a

about So year. for to think what for costs the as next year just our now, flat will up I end year's cost would this

then some at reduction X.X revision may Could were question, I And comments, just going to Okay. operations. the as major also review saw have down look but Tasiast we before you La it where that was ounces. last the So the XXXX, my reductions I so areas in and go there? for guidance across of could but the your pass it would you assume -- over mentioned you off, a million said the you you Coipa,

breakdown for in So reduction. just of was hoping that XXX,XXX bit I a a ounce

chime it it's -- and it's coming Yes. primarily is point one, from out. Claude slide It in. out just I'll not and Tasiast. start Coipa number maybe sliding is And deferred. lost, La mostly can the We're

we've some we'll behind of the they're ramp. top we commissioning but said, us, -- feel encountered, of we we got those As we're challenges on to continue

And there's as there we've some we our place excellent quarter get guidance good really official I decimal think guiding, set get second we the guided the for in mid-February. into an into but system that up tighten fourth don't smoothed will flex up X.X. quarter. out We XXXX. we as in as XXXX, go into But So said, we guidance through third

half up as -- you next of kind impacting I we grades Okay. of previously looking what really XX,XXX much look rates that -- then for Tasiast, try think sustainably -- Because anticipated me second get XXXX. to might little you of then. decimal And can't year, you that bit have just we I that that had are grades than the the second that but reach lower until let The day, the at? without tonne throughput number pick probably with we reduction would What year. not Tasiast a on be place I a said indicated with my per

it's So that one. Anita, Claude. take I'll

So one towards two necessarily terms of the certainly, in is, the it's the not things; end of XX,XXX, year.

We year XX,XXX year expect we those. for quarter year. moving We've up into to the expect then And that to to The there grams tonnes set with at at a be intention. year had is rate in the X.X that's some the strong to turn as noted, But, The next tie-ins. do And, get of plant that moving should meet you for and fourth order you're this that the days to mid-year. and them really thing therefore, to on getting very by a need day year. sustainable. good back And advance through your now. overall, all challenge those in affects average there, that, to we're down some running parts consistently. be tonne, for that year the of we average doing Paul stretch is the a other the grade reconciliation the And towards half

the levels not yet. of I the can I concept it's sustained those you. you've Thank reached intermittent, XX,XXX see but from understood the on sustainability. Okay.

XX,XXX. it But same So there. was the thank assuming the I leave I you. for

Thanks.

from Securities. of question next TD from the Barnes Your Instructions] line [Operator comes Greg

Your is open. line

us ounces XXX,XXX forward evolve? Mountain we're look a Yeah, a to our a going this the that can at to is now. short-term ounces of does year? Is XXX,XXX to We've then Paul this sense going in whoever, underground? and or XXX,XXX Round production going with year for looking got model how right what How the down to like give switch thanks. you

take maybe Ned. right. essentially I'll But off and you're to Yeah. lead hand then think the I

mining years phases the don't and ounces We're of then two As XX any really the context, we different. as taken this as we've those pit. And look we're for to -- in continue out next currently -- of is pit. million this open said, we going again,

can down. is our really Over profitably go attractive will the it's grade on gone the just the very then Ned, scrub to X-gram it's from and We we we a maybe from to pit we're new team think higher our the to here mine we've depth. with for we underground. we a mineralization we maybe And as got thinking And be the through feeder we've life, underground looked There transition scenario know what as coming open at know as it, elaborate go west. that production.

your in I you think script. covered it

Paul. Thanks, Yeah.

XXXX, go program of Gold on ounces And X the of potential exploration on XXXX to that the this leach both this in grow the get benefits drive spot years. of up to pit based what said, next deferrals, we That beyond. X we you the next Hill, Hill pit open not the with We're for then into targeting the again, that puts cover of beyond Phase Phase Phase benefit, and and production XXXX. has Gold us the like to that for X. ramping to XXX,XXX next the still that So you in decade then around gets do two although targeting see year And ounces ounces Phase see now. at approximately would exploration us and and X what drill inventory, we approximately the good we're unchanged years. production, we XXX,XXX a And production -- ounces XXX,XXX mining at through is to through million then from take the for least top plan point potentially at XX,XXX ounces two coming open XXX,XXX get start then drift in X in XXXX we layering approximately That ounces the tails. as that we to

Yeah.

it, but production. got go we're is, to the as production, opposed yes, So Greg, at flow seeking I cash lower look we've way

capital, So for life. longer lower get mine and much grade, a potentially greater higher higher we margin, flexibility

looking sense the Any on what as into pit open the scenarios? at for capital progress versus looking you're what underground you at we're

Well, size pit any in keep to you the -- pit millions the layback of deeper with of underground. getting know, as a versus it's dollars in is a around hundreds just of

We haven't to those put numbers we I them got Gold that in Hill round. completely firm share to the and in going are want both decline but today,

the for So is access ounces, down kind would engineer this -- we the get I to then the we're reverse as were why with the would can I what think see if to those X.X, with say million to continuing kind able pit. neighborhood of in you of mineralization. the you of going to said, Ned continue direction XX double I extend We'll as XXX and should the -- is opposed as do there the in the of push Ned to size then we're says, And it. into as decline, has drilling, to be

Thank very That’s you. great. That's Okay. helpful.

To as the know you Paul, add S WX, are still ounces underground. and Greg, in Phase

backs now, this in we're the open underground path, event are on event macro us those top as in pit that So available changes, the the targeting future. for of environment the push

won't. So declines impact They won't WX. the Phases

Not all. at

easier okay. It's ability – to

notes of at here. we're at just Look looking our again, And the kind optionality.

an to two of Phase front probably in I you think each, has it. a those versus are a transition – probably underground in the XXX the layback from is capital thought if S&W, XXX circa about

Thank great. That's you. Okay.

of the from comes Jakusconek Scotiabank. question next Tanya line from Your

Your open. line is

Good morning, everyone.

me. to it's that's I'm Yeah, I assume think me. going

questions. I've few So a got

if Just wanted to follow it. make just Round on just could, sure I Mountain, up I to understood

we to And we're ounce XXX,XXX be in XXX,XXX and going it for correct? XXXX. into decline to to that then looks ounces XXXX. like XXXX this range Is So production going are

Yeah.

– So on good morning, Tanya.

during approximately the So we what looking benefit and we're transition somewhere which in years, at approximately XX,XXX between ounces And looking transition said, XXXX, And ounces, the to we're the up XXX,XXX and like at have production XXX,XXX ounces. production at Then then ounces period, XXX,XXX the do then you XXX,XXX XXXX to XXXX, XXX And and XXXX. underground. ounces targeted. beyond in between for from and is up towards would go the open tail XXXX and ramping a of XXXX that. yes, you leach we XXX,XXX sustain two for next production between pit

Okay.

we're I'd going just is point to mining. be out

circa two higher grams grams We our those X and seeking blend we sources, at We Hill. margin Gold expect – higher X goal and cash at at obviously round flow.

Yes. No, to I from an I profile. was that. trying production understand overall understand just

So and then move moved we let's a underground. with that $XXX, correct for, $XXX, ounces XXXX-ish, we up XX-ish XXXX, kind of thought? XXX,XXX down to Is XX,XXX, that back residual say, slowly that to XXXX, XXX the

is the That correct thought, yes.

XX that's – for right. the All And decline. million and the

over decline XX sorry, the year XXXX. for million this and – XXXX

adjust profile and of looking I ask just within All production that out right. wanted again, are that Got it. thing other just in a some La should technical and there very old. a at as think to Paracatu Coipa some bump -- I Thank a you Paracatu similar It's of just bit so I XXXX? wondered expecting much for and in the little studies the XXXX, XXXX production Tasiast, be them Are we I to information. and were when I XXXX? And just have old only flattish the of to

Yes. Yes.

the Claude. very answer this has Paracatu simple workforce of and to year. really similar portfolio become the next is it’s production year's Tanya, stable yes. The is

All right.

something So the in XXX-ish.

Okay.

And lastly, back just very on circle the So just to then sheet. that. inflation. then you for balance wanted to just Thank so that's And much helpful.

you what we Just now on to XXXX. the EBITDA the ending net balance have and very Andrea, close debt then mentioned sheet, declining to the year end of in

notes, should of how higher Is they're refinanced just refinancing about obviously, that's environment $XXX it? million should the out that think that those the that with rates wondering at Just we're at. just we because interest we assume

we've I been said, a mean, or strong. prices expect recently, do Yes. it refinance got gold notes. we we're as have that strong we those and -- expect balance we'll are remain sheet, where I given to We're

investment US grade, do options, ample but We We accessing somewhere notes high it the though. liquidity X% if today, have in to have those push out. be would you at the range looked

options. that We've you that undrawn backstop, So look we've public would revolver but a gives as got sort generally like. of an got $X.X debt is billion of our what normally the US idea

on are. about where a we those lots are where spread is or today Which X%

Yes.

conference helpful. Paul, That's like And Okay. you. companies calls. been I've asking Thank on maybe just all then,

I'm As mention next structure, out, not cost going just are we labor. sort costs you're trying be seeing I did -- you're relief your seeing consumables, we and don't if that, the the if year. structure, But in input down there. And of maybe some seeing have where heard besides relief Andrew seeing may in of just something anything sort obviously, look in you within some know relief, costs to in diesel understand any, cost

to trying signs you're any see Just of seeing if easing.

question. point go locations. the underwriting just to Ned I'll Sure. all that is see we point, I But in inflation don't the guess same my

maybe a well. else resiliency that, little cash what in seen we Mountain. we've most. And place And you in said only -- we we've inflation could felt have of a and as of holds the our the in the of part we've we we the seen everything it Round tunnel. a people we've actually in more bit other Nevada, done as very we're result but Nevada on more rigorous than said, our parts. spare where at bit light adapted costs, fact, seen In kind little There's the a costs, Ned, a flow felt And But a maybe is probably as it costs. the That's just on scrub. inflation end plan still elaborate of it where call, have significant everywhere, in energy asset

Yes, Paul. thanks,

So started have are impacted next mill and actually as by peak ago. their gas example, the processing as months an so working diesel both media, And leach, peak. up finally, at to and by like been are for off and we that bulk increase the suppliers what levels the mill the the grinding natural the to coming we're year and natural through been addition mentioned, power the in to Paul order start same hard budgeting go consumables, that process. best cost for at -- come has the Nevada, we higher with seeing Unfortunately, in to still still have in Again, we and our with back impacted taper several down. cyanide explosives estimates

I costs. in seeing And QX that -- the QX? had in in say call, we range Okay. would inflation your mentioned Paul know the XX% we similar XX% in to that were you

Yes.

but actually are holding X%, exactly to not our guidance inflation XX% we at as to starting And think the beginning said year. we We it's talk of a through said all year guided, equal. update us But X% for for what midyear. we at so of in say, be not the we We quarter, we were on was about I second top the continue what on last in X% February. going the -- out year. as it it's sites journey put year. 'XX, And it's seems that We I on we'd XX%. a said back to cumulative the And X%. said, XX% the

bit more but use average some of weighted 'XX. less, little bit for number a pressure, as would got little we've I a XX% a is kind a some And the

I on could just, if And Noted. labor. ask

to your You call anywhere? in relief think Any the fall turnover. in late had labor you said increase seen X%, I US, in high previous X% in with

Claude?

that I is would still again, pressure Tanya, labor. on say the

we particular. -- pressure Brazil Nevada but We seen are US -- sides. a little our and at have three the in in finalized both contracts strategy have round labor. years Chile And off bit flexible, order for remains not we in come on in is The retention more

bit In skilled market, the a in especially positions. a it's of competitive lower again, more US, the fact, in

to it Okay. much. you. Thank you so someone leave Thank I’ll else it there. I'll leave ask questions.

Your of next question comes from the from Canaccord. Carey line MacRury

Your line is open.

good Hi morning.

me. lower one for a quick were a production Just number of across than sales sites. Gold

anything should there's ounces behind if wondering, specific sold and that get assume second, those Just in we QX?

and production certain sales we sites. Andrea. have at differences mean it's I Carey, Hi typically between some

So, It bit four across, for quarter, a third more was reason it was not in there's kind of it. I sites. but think, pronounced one just the

So of the QX. were start of all ounces those at sold

the have denominator of been have some Maybe, just sold, cost what lower, If [indiscernible] ounces would cost? those just in the were effect. do sense that. unit a a of on cash terms follow-up Because you

to Yes, sorry, We'll We on offline back you that. to on we'll have that. you back do get get that, Carey.

you. Okay, great. Thank

Thanks.

the And Bank America your of line from next of question comes from Winder Lawson Securities.

open. line Your is

your And CapEx outlook. Thank you the today. I wanted Hello. to the Good comments for morning. question. thanks for taking about and ask Paracatu

for raises guidance. beyond that? Paracatu any there kind raises timing there? what So about Would that the tailing in major included next billion CapEx tailings for Thank And be is XXXX, for Andrew, for of out looking $X mentioned you of you year.

So it's this. tailings of spread. just work take Claude is stripping over Paracatu's I'll capital couple sort next continues that here. are the and for continued outlook the of there years really Listen,

has it capital in a for least very so, of the flat terms expenditure be. next where profile four at years the And would

do expansion, pit, XXXX, next really the would Beyond phases that, seek we from onwards. the in we XXXX as then

or So lumpy course. of nothing expect sort normal

year the have into of gotten it's where the now to moving just and built. now raising amount We've And forward. every keep of base been Yes. dams phase the those capital same really, big

guys Okay. That's standards? us in that work the -- can -- association dam that have of what And order then, you sort there dam And to very with used is any compliance was what method remind that is helpful. to do tailings Canadian construction there? bring into you

line Canadian and construction. construction Hi. Association, we been Good have construction Canadian are morning, method, is Dam Lawson. in a Ned. This Paracatu for regulations with and method is compliance always in central dam The

to the wanted ask Tasiast year-end. agreement expiring also I about Perfect. labor Okay. at

areas Thank issues to sort this you of of, us guess, you. hot And button I So, first can any is you with those that would I could there share? or share negotiations upcoming say, need when in addressed that be agreement of sort that start? did all,

Yes. Maybe I'll number I labor take This if agreement. is three-year that, one, you're a collective jump want. right. you and Claude, in guess,

We're underway. it. It result a The been it. much And process. say So are is about through that, many middle we as times. this of of have in to the discussions a I don't want really

as elsewhere terms think recognize time in in like times We work through appropriate me it certainly But But I be we'll call we inflation this a there that be and have just of there discussion. on to there part our behind wouldn't negotiation expects, is it many in year-end. into -- we us get again, for the -- the past, it. it of through the is is will by do world, expect, the Mauritania, and like get we'll work labor I this. it's the

was of start those when earnest, did recently? And exactly fairly that sort in negotiations

Yeah.

We've sort those exploration, on negotiations it. just sensitive really moving with typically, through some as delegates. that, just prior discussions and we're opening agreements December And them. to week pieces of So so first into it it's Paul expires November with on the we passed the the XXst, entered mentioned, of around

Thanks Okay. All very right. all. That's all for much me.

you. Thank

no questions final Rollinson, turn you And this closing are further time. some for there Paul I'll to call at back the over comments. Mr.

us. you in to third joining Thank coming joining weeks. XXXX. Again, thank Thanks, and catching for and outstanding, an for launch the everyone, setting into you, Operator. quarter in And look fourth us. person for good ourselves you. quarter up Strong Thank forward really up we a

you Thank participation. conference today's This call. your for concludes

disconnect. may now You