Kinross Gold (KGC) Q3 FY25 earnings call: guidance and Q&A

Are Kinross working on cost reduction efforts similar to peers, and can examples of productivity improvements be provided?

Kinross is actively working on cost management initiatives globally, including optimizing contracts, improving labor efficiencies, enhancing maintenance, and rightsizing consumables. They are also conducting significant training across sites to standardize performance.

“No, as I said in my remarks, we have a number of different initiatives globally, different projects to focus on, different cost elements, significant focus on working with our contractors and turning them into true business partners where the relationship works for both of us.”

asked by Fahad Tariq · answered by Claude J. Schimper

Does the Redbird pit at Bald Mountain provide incremental tonnes and ounces, or does it displace feed from other pits?

Redbird provides incremental tonnes and ounces, supported by expanding heap leach facilities. The company frequently expands heap leach pads at Bald Mountain for Redbird and other satellite operations.

“No, it's incremental tonnes and ounces. It's a heap leach facility there. So we stack on top, and we're expanding our heap leaches as we speak to suit Redbird.”

asked by Fahad Tariq · answered by Unknown Executive

Given strong free cash flow and increased capital returns, what balance sheet position would Kinross want to reach before committing to returning all excess cash to shareholders, and what's the outlook for next year?

Kinross has a strong track record of returning capital and paying down debt. While they aim to continue healthy capital returns, the FY26 budget is still being finalized. Higher gold prices bring higher taxes and royalties, and there are opportunities to reinvest in the portfolio. An update will be provided in Q1 2026.

“As we look into next year, frankly speaking, we're right in the middle of our budget cycle. We do give our guidance, as you know, with the year-end in mid-February. That's typically when we give an update. Last year, when we gave our guidance, we were in a sort of a $2,500 gold price environment. To your point, we're in a different gold price environment today. But with that comes higher taxes, higher royalties. We do see opportunities to invest in our portfolio.”

asked by Daniel Major · answered by J. Rollinson

What is the expected working capital reversal for tax catch-up in Q1 FY26, assuming current gold prices persist?

Kinross expects over $300 million in tax payments related to Brazil in January FY26, and close to $400 million in total for Q1 FY26, related to income realized in FY25.

“So I mentioned in my opening remarks that we have significant tax payments in 2026 related to 2025. The first one that we typically talk about is Brazil. So we're expecting more than $300 million in January related to Brazil. And then for Q1 in total, it's close to $400 million.”

asked by Daniel Major · answered by Andrea Freeborough

How is Kinross balancing reserve/resource pricing ($1,600/$2,000) with life of mine plans, cutoff grades, and inflation, especially considering current spot gold prices?

Kinross expects an industry-wide increase in reserve/resource pricing, but still well below spot. They are not planning changes to cutoff grades as mills are full, focusing on margin and cash flow. For planning, they consider a 3-year rolling average for reserve pricing.

“But I think we'll all probably still be well below spot, which is the right side of the line to be on, of course. As it relates to our planning, as we've said, our mills are full. We're not planning to do anything with our cutoff grades. We're really goal seeking margin and cash flow.”

asked by Tanya Jakusconek · answered by J. Rollinson

Can Curlew and Bald Mountain satellites add 100,000 to 200,000 ounces incrementally in the 2027-2030 timeframe, and how does Round Mountain Phase X contribute?

Between Curlew, Redbird 2/satellites, and Phase X, they have the potential to add more than 200,000 ounces once all are running. Curlew and Phase X are each targeting over 100,000 ounces per annum. These projects are crucial for maintaining the 2 million ounce production profile through the end of the decade, not supplemental to it.

“I mean, Curlew itself, ultimately, we'll provide more guidance early next year, but it might get up to the 100,000 ounce per year as we ramp it up or close to that number. Redbird itself, Redbird 2 and the satellites, depending on the year, will be in that range of 100,000, maybe a little bit higher in some years as you mine through different zones. And then Phase X, we're also targeting to try and get over the 100,000 ounce per annum target...”

asked by Tanya Jakusconek · answered by William Dunford

What is the capital allocation formula for next year, considering debt repayment, shareholder returns, and reinvestment, and what is the minimum cash balance needed?

Kinross is in its budget cycle; directionally, they aim for healthy capital returns, primarily buybacks, as they believe it's the right use of free cash flow. There's no fixed formula, as moving parts include higher taxes/royalties and organic reinvestment opportunities. The minimum cash balance needed is typically around $500 million.

“We don't typically think about it on a formula basis. We do believe the majority of our shareholders prefer buybacks. That's where we're really focused. And on our internal metrics, when we look at our valuation, we still believe that, that's the right thing to do with our free cash flow.”

asked by Anita Soni · answered by J. Rollinson