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

Jul 30, 2020 • 08:00 am ET


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


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Good morning. My name is Adam, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Kinross Gold Corporation Second Quarter 2020 Results Conference Call and Webcast. All participants are in a listen-only mode to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

[Operator Instructions] Thank you. At this time, I would like to turn the call over to Mr. Tom Elliott, Senior Vice President, Investor Relations and Corporate Development. Mr. Elliott. You may begin your conference.

Tom Elliott

Thank you, and good morning. With us today, we have Paul Rollinson, President and CEO from the Kinross senior leadership team; Andrea Freeborough; Paul Tomory; and Geoff Gold.

Before we begin, I'd like to bring to your attention the fact that we will be mentioning. For a complete discussion, which may lead to actual results and performance being different from estimates contained in our forward-looking information, please refer to Page 2 of this presentation, our news release dated July 29, 2020, the M&A for the period ended June 30, 2020, and our most recently filed AIF, all of which are available on our website.

I will now turn the call over to Paul.

J. Paul Rollinson

Thanks, Tom, and thank you all for joining us today. First and foremost, I would like to acknowledge and thank all of our hard working employees who have helped us deliver strong results while managing through their own unique challenges during this pandemic. The safety of our employees and their families in the communities that we operate continues to be our first priority. I also want to say that our thoughts are with all of those who've been affected by the pandemic.

Kinross delivered strong results in Q2. And we are pleased with the significant growth in margins, earnings and free cash flow. This morning, you will hear how our Company is technically strong with an excellent operational track record, is managing the impacts from COVID, is delivering very strong free cash flow with peer-leading yield, and has numerous projects to continue adding mine life and a number of exciting exploration opportunities.

Before that, I will comment briefly on the quarter and a few key developments. Andrea will provide a financial review, and Paul Tomory will summarize our operating performance. We will also give an update on how we are managing through the pandemic.

All the Company's operations performed well during the quarter. Once again, though, our three largest mines Paracatu, Kupol and Tasiast accounted for over 60% of total production and delivered the lowest costs in the portfolio.

More than 50% of our production currently comes from the Americas, the U.S. and Brazil, with the balance from Russia and West Africa. Over 80% of our production comes from five key assets in five separate regions. With our recent acquisition in Russia, and taking into account our track record of exploration success, we expect that these assets and regions will have mine lives of at least 10