Kinross Gold Corporation (NYSE:KGC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:00 am ET

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Kinross Gold Corporation (NYSE:KGC) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Yes, sir. [Operator Instructions] And your first question comes from the line of Ralph Profiti with Eight Capital.

Analyst
Ralph Profiti

Good morning. Thanks everyone for taking my questions. Firstly, Paul, on Tasiast 24k. Can you maybe disclose how much of a workforce is needed, say at a minimum, to stay on schedule, when it comes to construction, and maybe sort of where are you now, and how does that workforce need to build up over time?

Executive
Paul B. Tomory

There's many aspects to it. So within the project, there are different scope elements. So one very large element of scope is a power plant and that probably requires the single largest number of people. We've delayed that project deliberately. It's not critical path. It's not required to get us to 21,000. And so we've pushed that out a couple months primarily to save space in the camp.

In general, we're not particularly worried about being able to ramp up the number of people there. They're relatively small scopes of work. The bigger use of space in the camp is in the mining fleet. And that's where we've seen the delay in the stripping as a result of having fewer people in the mine. I'll remind you that the 24k project is a series of pretty small scopes of work, thickener, ILR, water upgrades. So we were able to manage those sequentially.

Analyst
Ralph Profiti

Okay. If maybe I can switch gears and maybe asking a question on the Chulbatkan section that you provided, it does show sort of this higher grade near surface. And I'm just wondering when it comes to drilling along strike as a strategy and -- are you finding continuity in that higher-grade, near-surface elements of how this ore body is coming together?

Executive
Paul B. Tomory

So, we remain very happy with what's going on at Chulbatkan. The first half of the year was focused on just continue -- the continued program. As I said, we did about 35,000 meters. The focus to date has been just that infill program and establishing better confidence in our initial hypothesis. The high-grade portions, we are excited by that whole, but we haven't spent a lot of time in the first half doing testing on that. That will be part of our program the second half. So I don't want to comment too much right now on further high grades until we are able to get into our second half program.

Executive
J. Paul Rollinson

Yes.

Executive
Paul B. Tomory

Yes, exactly. We've really been focused on infilling and getting a better set of data for the resource model that is being built right now. We are excited by the high grades, but we're going to be getting into that in the second quarter to see if there's continuity and more of it.

Executive
Andrea S. Freeborough

And the reason that's in the third quarter is we wanted to get the structural geology part.

Executive
Paul B. Tomory

Correct.

Executive
Andrea S. Freeborough

So it could have the best chance of success and efficient spending in dollars.

Analyst
Ralph Profiti

Yes, understood. Thanks for the clarity.

Operator
Operator

And your next question comes from the line of