Thank you for standing by. This is the Chorus Call conference operator. Welcome to the Kinross Gold Corporation Q4 and Full Year 2013 Financial Results Conference Call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. (Operator Instructions) At this time, I’d like to turn the conference over to Mr. Tom Elliott, Vice President, Investor Relations. Please go ahead, Mr. Elliott.

Thank you, and good morning. Welcome to Kinross Gold Corporation’s conference call to discuss fourth quarter and full year 2013 results. With us today, we have Paul Rollinson, Chief Executive Officer; Brant Hinze, President and Chief Operating Officer; Tony Giardini, Chief Financial Officer; and Glen Masterman, Senior Vice President, Exploration. Before we begin, I’d like to bring to your attention the fact that we will be making forward-looking statements during this presentation. For a complete discussion of the risks, uncertainties and assumptions, which may lead to actual financial results and performance being different from estimates contained in our forward-looking information, please refer to page two of this presentation, our news release dated February 12, 2014, Management’s Discussion and Analysis for the full year ended December 31, 2013 and our most recently filed AIF, all of which are available on our website. I’ll now turn the call over to Paul.

Thanks, Tom, and thank you all for joining us today. If there is one overarching message I want to leave you with as we close our 2013 it’s the following. Kinross had an excellent year operationally, with quarter-after-quarter of strong performance. There were many challenges and it was a difficult year for the gold industry as a whole given the volatility in the gold price, but despite those challenges, we have accomplished much of what we set out to do. When I took over as CEO in August 2012, we made a very conscious and deliberate decision to take the company in a new direction. Our new approach meant making some tough, difficult decisions, setting targets and doing the groundwork to meet those targets. More than that, it required a change in mindset from the mining pit to corporate headquarters. The mindset focused on four principles, operational excellence, quality over quantity, capital discipline and balance sheet strength. This kind of change does not happen overnight, but we are seeing the results of our efforts. Operational excellence is about meeting or exceeding our guidance. We beat our original guidance for 2013, producing a record 2.63 million ounces and we had some standout performers among our operations, including Fort Knox and Paracatu, which both had record production this year and Kupol, which continues to be an excellent asset. At the same time, we came in below guidance on our all in sustaining cost and at the low end of guidance on cost of sales. We also came in well below our forecast capital expenditures for the year. The principle of quality over quantity is about generating a meaningful return for shareholders by improving margins and generating free cash flow. To ensure we are focused on mining higher margin lower cost ounces, we…

Thank you, Paul. Overall, 2013 was a year of strong operating results for Kinross as we achieved record production with cost of sales at the low end of our guidance range. Despite the strong performance, lower gold prices had a significant impact on our financial results, reducing cash flow and earnings. Average realized gold price for the fourth quarter was down from the same quarter last year, a decline of $439 per ounce or 26%. Fourth quarter adjusted net loss was $25 million or $0.02 per share. In addition to lower realized gold prices adjusted earnings were impacted by higher cost of sales and depreciation. We completed our annual impairment testing and we recorded an after-tax non-cash impairment charge of $545 million. This consisted of $376 million of property, plant and equipment at Maricunga, which was a result of changes to our life of mine plan and a corresponding reduction in reserves. There was also an impairment of $169 million related to goodwill at Quebrada Seca, a non-operating asset in Chile. This resulted in a reported net loss for the fourth quarter of $740 million or $0.65 per share. While we cannot control the gold price, we have maintained a keen focus on areas of the business that we can control. In light of lower gold prices, we accelerated our efforts in reducing spending across the company. As a result, we achieved significant reductions in capital spending. Full year capital expenditures for 2013 were $1.26 billion. This represents a $340 million reduction from our original 2013 guidance, a $140 million reduction from our revised guidance of $1.4 billion and a $600 million reduction from 2012. We expect this trend of capital discipline to continue with further reductions in capital spending planned for 2014, which I’ll speak to in a moment.…

Thank you Tony. Let me begin by thanking Paul for his kind words earlier. Speaking personally, the last few years at Kinross have been a great way to end a long career in mining. It’s been especially gratifying to be part of the transformation that we have seen at Kinross. I would strongly echo Paul’s confidence in work, based on working with him very closely over the past few years. He has tremendous depth of experience and he knows what it takes to win in this business. He also has amazing perseverance, which he showed -- which showed in spades when his team built Dvoinoye ahead of schedule in some of the most extreme conditions anywhere on the globe. In short, I will be leaving our operations in very good hands when I retire in October. We had a solid quarter and excellent operational results and performance for the year. Our operating results reflect the strength and quality of our people and our ongoing commitment to managing costs in a difficult industry environment. We are looking to 2014 as another solid year with targeted production of 2.5 million to 2.7 million gold equivalent ounces at a cost of sales of $730 to close $780 per ounce. Our all-in sustaining cost is expected to be between $950 and $1050 per ounce. North America continue to produce strong results in the fourth quarter. The region had an excellent year, exceeding its regional production guidance, while cost came in below the guidance range. Fort Knox production in the fourth quarter was lower compared to quarter three due to the seasonal slowdown of heap leach. The mine has had an excellent year, achieving record annual production and strong cost performance. Production at Kettle River-Buckhorn decreased due to the lower mill throughput, and Round Mountain…

Thanks, Brant. 2013 was a strong year for exploration as we focused on priority targets near our operations. Our accomplishments include identifying a new zone of mineralization at Piment Central at Tasiast, identifying a new zone of oxide mineralization adjacent to La Coipa by seven, concerning the continuity of high grades and resource potential at the Moroshka target near the Kupol mine and identifying high-grade mineralization at a target nearby Dvoinoye. We included complete drill results and other highlights for certain targets from our 2013 program with our news release yesterday, which is available on our website. I will walk you through some of the highlights. Starting with Tasiast, drilling activities throughout the year focused on the mine corridor, with Tasiast Sud area south of west branch and the Aouèouat area north of the mine. At Piment Central, we have identified a new zone of mineralization 20 to 30 meters below the west sidewall of the pit. 13 coal holes were drilled in 2013 and intersected good grades over 1 kilometer of strike and always at the same geologic content identified below the pit wall. The discovery is important because it occurs within the existing footprint of the mine. Furthermore, this zone is a new style of mineralization that we have learned about and that we will explore along the mine corridor and throughout the district. We are planning further drilling in 2014 to extend the non-strike length and further define continuity with infill holes. Drilling continued on the Tasiast Sud licenses following our targets identified along the Tasiast Shear Zone, 10 to 15 kilometers south of West Branch. And in the Aouèouat area, a number of new targets were identified based on the results of the 2012 drilling program. Results continue to expand the non-mineralization and provide information on…

Thank you, Glen. Operator, I think we’re fine to open up the lines for questions. Thank you.

(Operator Instructions) First question is from Stephen Walker of RBC Capital Markets. Please go ahead.

Thank you very much Operator and good morning. I just wanted to ask Brant about Tasiast, first of all. We had a sharp increase in grades, 0.2 grams and the costs were sharply higher, I guess, than I would have expected given the higher grades. Can you -- some of it looks like it might be expensing some of the stripping. But, can you give us a sense of why the costs were higher, is it stripping only? And given the higher grades, why we didn’t see lower cost at Tasiast? And I guess, if it is an expense, stripping expense can we expect that to continue into 2014?

Yeah. So as far as the grade and the increase in reserve grade at Tasiast, one of the key contributing factors there was that we reclassified 1 million ounces from reserve to resource. So, that took a lot of the lower grade, more marginal grades out of the reserve picture. In addition to that, we had some low grade stockpiles that were originally leach grade and we weren’t putting on the leach pad because they were, like I indicated, pretty low grade and we didn’t want to take up leach pad space and we favored higher-grade leach material for the pads. And we put those on stockpile and we took some of those out as well too. So, that contributed to the overall higher grades. On the costs for Tasiast, and we said on many occasions here that Tasiast is all about the greenschist. And that our objective here is to get to the greenschist. That being said, if we look at 2014 guidance for West Africa relative to 2013 guidance for West Africa, we will see that our costs are down significantly. And there is a number of reasons for that which I can focus on. From a standpoint of Chirano, we have -- as we’ve indicated in some of our opening comments here, we spent an awful lot of effort on self-perform and we have completed the self-perform on open pit mining at Chirano and that has contributed significantly to reduce costs. And we are in the middle of a process right now of going self-perform underground. And then, at Tasiast, some of the opportunities that we see now to reduce cost at Tasiast are the completion of the Phase 1 deep power, which will contribute significantly to overall reducing energy costs. We have installed or we are in the process of installing a new crusher for the current process facility. And we want to self-perform maintenance and have moved into the new truck shop, which all of these things are going to contribute to lower costs at Tasiast. So, we are seeing, I would say, significantly lower cost and expect lower cost at Tasiast versus 2013.

The next question is from Andrew Quail of Goldman Sachs. Please go ahead.

Good morning, guys. Thanks very much for taking my question, and congratulations on a strong operational 2013. My question is about CapEx and moving forward on sustaining CapEx. Look you guys have obviously split the 605 into 400 and 205. One, is that 400 something we can use sort of from 2015 onwards? Or -- and sort of, two, given the flat production or the sort of forecasted almost flat production in 2014, is that 205 sort of more sustaining CapEx and we can add back to the all-in sustaining cash cost per ounce?

Sure. I’ll maybe have Tony answer this one. But I would say Andrew that we just -- we only forecast our capital spend on a year by year basis, but Tony, maybe just to give a little bit of color on the breakdown.

Sure. I can do that. Thanks very much for your question, Andrew. I would point out to begin with that, our guidance in 2013 was 2.4 to 2.6 million ounces and we’ve increased our guidance for 2014 to 2.5 to 2.7. So we’re actually not forecasting flat production but increase production in the current year. I would also point out that our expected cash cost forecast to be lower in 2014 versus 2013. And finally, when you look at all-in sustaining costs we came in at the low end of the range and we’re forecasting lower cost of all-in sustaining cost for 2014. Getting back to your question, at the end of the day classification is really -- I would say a bit more art than science. And what we are looking at with respect to non-sustaining capital, particularly with respect to some of the expenditures we have at Tasiast is that we’re going to be actually accessing the greenschist high grade giving us the opportunity to have higher production at hopefully lower cost. And as a result, we’ve classified it at sustaining cost. At the end of the day, it is going to be a dollar that’ going to be spent. And if you feel it’s more appropriate to classify that sustaining costs in your models, then I would suggest to do that. We’re classifying it as non-sustaining cost because we believe that ultimately it’s going to allow us to grow our production profile regardless of the decision we make on expansion down the road. And with regards to the modeling question, as Paul pointed out, we provide guidance on a one-year basis and this is the guidance that we provided. You can use that as a base looking forward, but it will be really a function of the asset mix on a go-forward basis. So, hopefully that helps. But I think Tom can definitely give you some additional insight into how we are looking at capital on a longer-term basis.

Okay, thanks. I mean, I am just looking at 400 to the midpoint of sort of the $153 an ounce and more sort of look at that sort of I suppose from 2015 going forward then.

Yes, I mean, we can’t tell you how to build your model.

Okay, thank you.

The next question is from Anita Soni of Credit Suisse. Please go ahead.

Good morning, guys, and congratulation on the solid results and for using the fully loaded costs on your reserves. My question is with regards to the stripping ratio at Tasiast, now. Now that you’ve lost some of the -- or basically reclassified some of the lower grade material, but is that due to the overall strip ratio life of mine?

Well, what I will say is that, we are in the process of completing the feasibility study and we will have the results of all of that when that feasibility study is complete. And as well, too, I think, in March we will see a technical report, a technical study come out on Tasiast as well. And all of that information is there, but I wouldn’t have a solid number on that at this point right now until we finish and complete that feasibility study.

Great. Just one quick follow-up, on the dump leach, I think you did mention that you lost some of that or that you preferred the higher grade material there. Is it fair to say that going forward the dump leach will have less tons being placed on it than prior years?

Well, that was certainly our strategy in 2013. We are actually encountering a lot more low grade material and we preference the higher grade material to go on the leach pad and we would expect to continue doing. But, the thing is that I think is important to recognize is, we are stockpiling that stuff separately. And if we look at an example of where that has really paid off, we can just look at Fort Knox today. The material that we are leaching there was that 1 point sub-grade material. We’ve now got, I would say, a very successful leach operation there.

All right. Thank you.

(Operator Instructions) The next question is from David Haughton of BMO Capital Markets. Please go ahead.

Good morning, Paul, Brant, Tony and Glen. Thank you for the update. Interested to hear about the new reserve model that you’ve got and the potential at Paracatu to lift the grade, looking at the current reserve grade, it’s about 10% above where you finished 2013. Can you just give us some idea when you think you’d be approaching that 0.42 gram and a bit of an outlook as to the profile here?

Well, I guess, we haven’t really broken that out. We can maybe chat with you offline with Tom, David, but we’ve given you the global average. And those grades are going to vary depending upon where we are in the pit through the sequence of the mine over the next several years, and they’re going to fluctuate from quarter to quarter. So I don’t know that we have that specific number.

Well, perhaps, more generally, it’s a big shift to turnaround obviously. You’re moving -- approaching 60 million tons per annum. And just what your philosophy here is on how you’re going to be chasing that better grading in comparison to what we’ve seen in the recent past?

Yeah. I can respond to that as well too. As we indicated in the Americas, we do -- and I did indicate earlier that we’re seeing increased production performance both at Paracatu and at Maricunga, and part of the reason that we are seeing increased production performance in 2014 over 2013 at Paracatu will be certainly in part grade.

Okay. Because I also understand that you’ve got the blend of the B1 and the B2 or and different process is going through. So, having been there a number of times, it’s just sort of mind-boggling how this could play out given the scale?

Yes. And quite frankly, what the process has done and fully loading process, it has pretty much addressed issues, I would say, on fringes that are -- that require large -- larger strippings in the future, investments into buffer zones and moving highways and buying land and various things like that that have fallen out beyond 2030.

I think -- sorry, Paul?

I was going to say a significant component of the increased MPV is we are spending much less capital. We’ve shown the mine life, but over the life of the mine, not discounted, I think we will save a couple billion of capital spend as well.

Is that mainly on fleet replacement or is it just on the handling or where would we see most of those?

Yeah, it’s across the board everything. You know the types of things that we are talking about, whether it’d be land purchases or moving highways or stripping, tailings facilities across the board.

Okay. Thank you for the insights.

Thank you, David.

Your next question is from Tanya Jakusconek of Scotia Capital. Please go ahead.

Yes, good morning. Dave asked part of my question, but maybe coming back to Paracatu, appreciate the clarity on buying the land and so forth and the couple billion dollars of CapEx savings. But maybe -- and I know that there is going to be a technical report filed on this mine. But, can we just have an idea of what you kind of see this operation doing? Is it fair to assume that it’s something in the half million ounce range per annum with cost in the $800 per ounce range with $80 million to $100 million of sustaining capital? Would that be fair?

Yes. I mean, would that be fair? Yeah, I think that would be fair. I mean, that’s a reasonable way to sort of put a box around it. We obviously are going to keep pushing for improvements where we can. That’s a continuous process. As you know, we’ve made some pretty good headway this year. And this is a continuous effort for us to improve from where we are at the margin and the cash flow.

Yes. And that being said I think from some of the things you can draw your own conclusions on it. But some of the things that we have talked about here, from the standpoint of -- with the fully loaded model, we’ve improved the grade. As Paul said, we’ve significantly reduced life of mine capital. And I did indicate earlier as well too, that we do expect Paracatu’s production and performance to be better than 2013 and we produced over 500,000 ounces in 2013. So with all of that information, you can draw your own conclusion there.

Yeah. It’s just the cash cost in Q4 was quite high at Paracatu. So, I was just trying to get a more decent number because the cash costs have varied anywhere between $700 million and over $800 million as you know.

Yeah.

Yes.

Okay. Okay. Thank you.

We have a follow-up question from Stephen Walker of RBC Capital Markets. Please go ahead, sir

Great. Thank you, Operator. A follow-up question on Tasiast was the -- when are you going to be into the higher grade Greenschist Zone and where do you anticipate the grades are going to be when you are in that in 2014?

Towards the backend of this year, we’ll start to get into it. Brant?

Yeah. We’ll actually begin to hit the very top of the Greenschist this year. Obviously, we’ll open more of it up in 2015 and then we will see, I would say, a reasonable contribution to production then in 2016. The grades -- again, we don’t give that kind of detail and that kind of guidance on a mine site by mine site basis. But the Greenschist is the sweet spot and we’re heading for it. Grades will go up.

I will just say, give us a couple of weeks we’ll get that technical report out. And we’re going to finalize the feas and you’ll have full transparency on all of those, Stephen.

Thank you. Just if I may as well, Dvoinoye is going to be batched through the Kupol plant. And then it’s going to be very lumpy with respect to the grades in the quarter. Is it safe to assume one quarter or one month a quarter, or will there be some months where it’s two months, is it safe to assume six weeks? And what is that broad guidelines on what we can expect for batching the higher grade to Dvoinoye of that plant?

Well, batching Dvoinoye, and if you look at the fact that it’s a 4,500-ton a day mill and 1,000 on average, a 1,000 tons a day will be Dvoinoye. So, you’re going to -- and it’s all going to be a balance. I mean, there’s a number of factors that go in it. From a standpoint of the mining rate at Kupol, you can’t sustain a 4500-ton a day mining rate. So you have to move back and forth from Kupol to Dvoinoye. That being said, as well, too, we don’t like to do a batch run on something like a Dvoinoye or with less than a minimum amount and a minimum number of days. Because the switchover from Kupol to Dvoinoye and Dvoinoye back to Kupol is obviously not the most efficient time through the mill circuit, so it’s a balance. And I can’t say that you’re going to have X batches of Dvoinoye each quarter because it will vary.

Great. Thanks for taking the follow-up.

Your next question is from Greg Barnes of TD Securities. Please go ahead.

Yes. Thank you. Paul, I guess a bigger picture question, you’ve done a good job stabilizing Kinross now and obviously optimizing mine plans and a lot of that work is done now. When you look forward, where do you see Kinross going? If you do have X Crixas expansion, slowly declining production profile and I guess there’s some opportunities out there right now where you could add to that. Where is your head out on this?

Well, thanks, Greg. I mean, again, what we are trying to do here we’ve got a tight ship. We are running a tight ship. We have got six quarters in a row operationally. We’ve kept an eye on the balance sheet. We’ve got a very strong balance sheet. We are watching our spend very carefully. You’ve seen what we’ve done with capital. You’ve seen what we’ve done with other costs that we can control. We just put a mine into production. So there’s a lot of good things going on. We will be publishing the results of the final feas in April. And we’ve got some pretty exciting exploration results. It’s been a bit of an uncertain world out there with the gold price. And our strategy is to try to play from a position of strength with our balance sheet, with our operations, expertise. We will be in a position to look at opportunities and hopefully take advantage of them. So, for me, it’s making sure we have a very sound, well-run, physically prudent company that’s positioned to take advantage of opportunities. Glen touched on the exploration. I think we’ve got some very, very interesting things going on there and stay tuned on that front as well.

Are you prepared to go hostile on acquisitions if they be?

Greg, we don’t speculate on M&A in any regard. I appreciate you are trying to draw me out on that, but that’s not a place I’d like to go.

Okay. Fair enough. Thanks, Paul.

Your next question is from Steve Parsons of National Bank Financial. Please go ahead.

Yeah. Good morning. Thanks. I just want to follow-up a bit on some of the currency discussions. So, Kinross is exposed to certainly some of the jurisdictions that are seeing a substantial currency depreciation in Brazil and alike. To what extent, are you seeing this and the benefits on the operating -- in-country operating cost side starting to outpace inflation? And to what extent, have those numbers been baked into your 2014 guidance?

Sure. Steve, this is Tony Giardini. I’ll take a cut at it. You’re absolutely right. We operate in a number of jurisdictions where we have seen some currency volatility. Maybe, we’ll talk about Brazil as a starting point. So we have some of our exposure in Brazil hedged, about 70% for 2014. And right now, I think we’re looking at about a negative $29 million mark-to-market cumulatively on that heading out into 2014 with a nominal amount of 20% hedged. So we’ll get some of the benefit through operating cost, obviously. But some of it will also be sort of pulled back, as we incur opportunity costs associated with the hedges in Brazil. As far as Russia goes, basically, we’re flat in terms of any of the hedges that we have in place. So we should fully benefit from the operating cost reductions as a result of weaker currency. And then, in Tasiast, obviously, it’s more of a U.S. dollar-based environment and not really a function of currency depreciation. Similarly, same case in Ghana more or less. So where we have the opportunity to benefit is largely going to be in Brazil on a go-forward basis, as we see a bit more volatility there and likely in Russia. And we provided as part of our outlook, the assumptions that we are using for currencies. And you can refer to that in terms of modeling and looking what those benefits are. And we would certainly be happy to sit down with you in more detail and walk through what the hedge positions and what the hedge strategy is. I would point out that we have actually pulled back on our hedging of exposures over the past year. Previously, we were running about a 36-month horizon in terms of hedging. We pull that back to about 18 months midway through last year when we started to see pressure on the gold price, just given the correlation. So those hedges are slowly running off and we probably will keep that hedge book at a much shorter duration just given the correlation between movements in the gold processing currencies.

Okay. That’s very good. Thank you.

Thank you.

The next question is from John Bridges of J.P. Morgan. Please go ahead.

Hi. Good morning everybody. I was just wondering, you mentioned the exploration having some interesting hits in Russia and in Tasiast. Historically, in difficult times, accessing a bit of higher grade has been very, very helpful. I’m sure that’s what you’re trying to figure out. But I was just wondering in today’s world, how long would you be looking at getting permits and that sort of thing in order to access anything really good that you found in those regions?

Sure. I mean, Russia is a great example of what we can do with permitting, John. You recall, Dvoinoye was actually an M&A trade. That asset was bought in 2010. And since 2010, we’ve fully drilled it, fully permitted it and putting it into production on time and on budget. It does vary by region. But certainly -- and Glen, I don’t know if you want to add. I expect he will be pretty straightforward if we continue to grow resources adjacent to the Kupol mine.

Yeah. Absolutely, Paul. And one of the advantages in these higher grade types of deposits, John, is that they are typically small footprint and so therefore, less headaches from a permitting point of view. We step back a number of years ago and we geared our strategy to not only continue to invest and emphasize exploration around our mine sites, but also focusing on higher grade targets within close proximity to our plants. So we are in a position to take advantage of those. And particularly in the current gold price environment, these types of targets will give us a little bit more operational flexibility. So we’re continuing to invest very heavily in high-grade narrow mines.

So, the Russian example is on your property. Would you have to get specific permits to go after it, or can you just move the equipment over there and start digging?

I’m assuming the latter. But we may have to check on that. It is 4 kilometers away, underground. At a high level, I am assuming it will be very straightforward.

And Tasiast?

Tasiast, as well, we’ve had an extremely supportive regime when it comes to anything related to permitting. We have all of our permits in place. We’ve managed to get our permits that we require on a timely basis and we found it to be extremely straightforward.

And, John, I’ll draw your attention to the discovery we announced last night at Piment Central, which is a higher grade style of vein mineralization, 20 to 30 meters below the sidewall of the pit. And the important thing about that discovery is that it occurs within the footprint of the existing mine. So we don’t anticipate permitting issues in connection with that.

Okay. So that’s a real good one. I was just actually asking earlier on that one. And would you simply extend the pit to go after that or would you punch into the sidewall to go after it at a higher grade?

I think, John, I might just answer that, first. And that is, we’ve got 13 holes into this vein structure at the moment, a kilometer of strike lengths delineated, but we have a lot more work to do. So there is a fair bit of infill drilling that we need to complete first to confirm continuity. And also, we are looking to step out and hopefully extend it down deep and along strike. And until we have that information, it’s difficult to say how we would approach it from a mine point of view.

Yeah. Okay. Cool. Best of luck, guys.

Thank you.

Thank you.

There are no more questions at this time. This concludes today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Thank you, everyone.