Good morning, ladies and gentlemen. My name is Catherine McLeod-Seltzer, and I am the Chair of your board of directors. It is my pleasure to welcome you to the 2024 annual meeting of the shareholders of Kinross Gold Corporation. Kinross has decided to hold this year's meeting virtually so that we may continue to provide flexibility and opportunity for shareholder participation irrespective of their geographic location and share ownership. Improvements in conferencing technology have also made it possible to hold virtual meetings, greater reliability, and cost efficiency. As a result, Kinross was determined that it is convenient to hold the meeting virtually via a live audio webcast. We thank you for attending our virtual meeting. I would like to note that Kinross is permitted to hold a virtual meeting of its shareholders, both under the Ontario Business Corporations Act and our bylaws.
Going on, items of business to be considered at the meeting have been opened 9:45 A.M., and polls will remain open until the formal business of the meeting is completed, at which time I will declare the polling closed and all items of business. I will also pause briefly for you to vote as we go through the items of business today. Shareholders who have voted in advance are not required to vote again during the meeting unless they wish to change their voting instructions. Shareholders may submit questions for the board of management through the question box on the virtual meeting page. Instructions on how to ask questions and the voting procedure will appear on your screens. The moderator will relay the questions, and they will be addressed after the CEO presentation.
Joining us electronically this morning are the other director nominees, Paul Rollinson, CEO of the company, members of the senior leadership team of Kinross, and the corporate secretary of Kinross. Also joining us is Mr. David Oldham, partner at KPMG, the company's auditors. Recording of this meeting will be available on Kinross's website and on this meeting portal after the meeting. Pursuant to the bylaws, I, as chair of the corporation, will chair the meeting, and I appoint Lucas Crosby, corporate secretary of the corporation, as secretary of the meeting. I further appoint Computershare Investor Services Inc. through its representative, Paul Allamby, to act as scrutineers. The notice calling this meeting of shareholders was mailed on April 3, 2024, to all the shareholders of record on March 13, 2024. The secretary will attach to the minutes of this meeting the declaration of Computershare Investor Services Inc.
Confirming the mailing of the notice of the meeting. The scrutineers have submitted their preliminary report on attendance, and it shows that holders of more than 862 million common shares, representing approximately 70.15% of the outstanding common shares, are represented at today's meeting. As a result, we have a quorum for the meeting. In order to expedite the formal part of the meeting, I have asked Samantha Sheffield and Cassandra Steffa, both shareholders of the corporation, to move and second each motion. Notice having been given in accordance to the bylaws and a quorum being present, I declare that this meeting is duly constituted for the transaction of business. The minutes of the previous annual meeting of Kinross held on May 10, 2023, may be requested by contacting the corporate secretariat.
Prior to commencing our items of business, I would like to report that the consolidated financial statements for the fiscal year ended December 31, 2023, including the balance sheet and accompanying statements together with the auditor's report, are all contained in the annual report previously made available to shareholders. Printed copies of the annual report may be requested by contacting the corporate secretary of the corporation. The first item of business is the election of 10 directors to hold office until the next annual meeting of shareholders or until their successors are elected or appointed. At this time, I would like to take the opportunity to name the other director nominees who are present on this call. We have Kerry Dyte, Glenn Ives, Ave Lethbridge, Michael Lewis, Elizabeth McGregor, Kelly Osborne, Paul Rollinson, David Scott, and George Paspalas joining us.
I will now request a nomination for the 10 nominees named in the management information circular for today's meeting.
I nominate the 10 nominees named in the management information circular for election to the board of directors of the corporation.
I second the director nomination.
If you have not already done so, you may now vote for the election of directors. As the number of nominees is equal to the number of directors required to be elected, I now declare Kerry Dyte, Glenn Ives, Ave Lethbridge, Michael Lewis, Elizabeth McGregor, Catherine McLeod-Seltzer, Kelly Osborne, Paul Rollinson, David Scott, and George Paspalas elected as directors of the corporation to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed. The next item of business is the appointment of KPMG LLP as the auditors of the corporation until the next annual meeting of shareholders, authorizing the directors to fix auditors' remuneration. I have a motion to approve and second this appointment.
We still move.
I second the motion.
The motion has been moved and seconded. If you have not already done so, you may now vote your shares for the election of auditors. The next item of business is a resolution approving the reconfirmation of the Shareholders' Rights Plan as more fully described in the management information circular. May I have a motion to approve such resolution?
We still move.
I second the motion.
The motion has been moved and seconded. If you have not already done so, you may now vote your shares for the reconfirmation of the shareholders' rights plan. The last item of business is an advisory resolution respecting Kinross's approach to executive compensation. Details of Kinross's approach to the compensation of its executives and the text of the proposed advisory resolution are included in the management information circular. May I have a motion to approve such resolution?
We still move.
I second the motion.
The motion has been moved and seconded. You have not already done so, you may now vote your shares on the advisory resolution with respect to executive compensation. I now declare the voting closed on all items of business. Scrutineers have completed their preliminary accounts of the votes cast, and I have received the results, and I declare that all motions have passed. Report on all matters voted on at this meeting will be filed on SEDAR+. This concludes the formal business of the meeting. Beforehand, we get over to Paul Rollinson for the CEO remarks. Kinross has had an excellent year in 2023. The board continues to be pleased with the company's performance, achieving the results that generate value for shareholders and ensure a sustainable future for the company.
Reliable and consistent performance is one of our defining characteristics, and I am pleased to see us carrying this momentum into this year. Half of the board, thank you for your continued support and engagement. To senior management on our global team, thank you for all your hard work towards safely delivering on our shared goals. I would now like to turn the meeting over to Paul, who will provide an overview of the company.
Thank you, Catherine. And thank you, everyone, for taking the time to join us for our annual general meeting this morning. Before I begin, let me call your attention to our cautionary statement on forward-looking information. As a reminder, shareholders may submit questions through the messaging icon on the screen, and we will address them at the end of my remarks. I'd like to begin by introducing members of our senior leadership team, all of whom are on the call. They are Geoff Gold, President; Andrea Freeborough, Executive Vice President and Chief Financial Officer; Claude Schimper, Executive Vice President and Chief Operating Officer; Kathleen Grandy, Senior Vice President, Human Resources; and William Dunford, Senior Vice President, Technical Services. Today, I will discuss our performance in 2023, our operations and development pipeline, highlights from our Q1 results, and our ongoing commitment to sustainability.
2023 was a great year for our business, underpinned by excellent operational and financial performance. We delivered at the favorable end of our production and cost guidance and met capital guidance. This, in turn, drove significant cash flow, which enabled us to continue to strengthen our investment-grade balance sheet. These accomplishments were achieved while operating at the highest safety standards and with a strong focus on mining responsibly. To sum up our performance in 2023, we delivered production of approximately 2.15 million ounces with robust margins of just over $1,000 per ounce. We generated more than $1.6 billion in operating cash flow and $560 million in attributable free cash flow, more than double the prior year.
We strengthened our investment-grade balance sheet by reducing net debt after fully repaying the Tasiast loan ahead of its maturity date and the balance on our revolving credit facility, and ending the year with a cash balance of approximately $350 million and total liquidity of $1.9 billion. We also returned approximately $150 million to shareholders through our competitive quarterly dividend, and all of this contributed to the significant share price outperformance. Overall, our portfolio produced good results in 2023, led by our three highest margin assets: Tasiast in Mauritania, which achieved a record full-year production. Paracatu in Brazil, which realized record recoveries. And La Coipa in Chile, which achieved record production in the Q4 . Collectively, these sites contributed nearly 70% of our total production and were strong contributors to our significant free cash flow.
In the U.S., we had a successful year with both production and costs across all operations performing well against our targets. With respect to key projects, the mill expansion and solar power plant at Tasiast and the restart of La Coipa were all completed in 2023. In addition, we continue to advance our pipeline of growth and development projects. In Alaska, the Manh Choh project advanced well in 2023 and is on schedule for initial production in early Q3. At Round Mountain in Nevada, the Life of Mine extension strategy that we announced last year is advancing on plan. We have made significant progress at both the Phase S open pit and the Phase X underground decline. At Great Bear, Ontario, we made excellent progress with our drilling campaign, driving a significant increase to the project resource.
Today, the resource stands at approximately 2.8 million ounces of high-grade M&I and an incremental 3.3 million of high-grade inferred ounces, representing substantial progress from just over two years ago when we acquired the project. Ongoing drilling continues to hit new high-grade intercepts, including at depths of more than 1 kilometer, supporting our acquisition thesis and showcasing the exciting potential that lies ahead at Great Bear. In addition to drilling success, other areas of the project, such as engagement with local communities, permitting, and engineering, all continue to progress well. We remain on track to release our initial project PEA in the second half of this year. Turning now to our Q1 results, which we announced yesterday. Our operations are continuing to perform very well following strong performance in 2023. Our Q1 performance was on plan with production of 527,000 ounces.
Q1 cash cost of sales of $982 per ounce and AISC of $1,310 per ounce resulted in strong margins and free cash flow. Our cash and liquidity position remained strong at the end of the quarter, with $407 million of cash and approximately $2 billion of total liquidity. Turning now to sustainability and ESG. I am very proud of the excellent results we achieved in 2023 from a sustainability perspective. In 2022, we set new ambitions and targets with an updated ESG strategy, and in 2023, we executed on that strategy. Our longstanding annual sustainability report, which is now in its 16th edition, will be published later this month. The report will provide a comprehensive update on the progress we made in 2023 and what we aim to accomplish this year and beyond. It's a great document, and I would encourage everyone to read it once it's released.
Some notable highlights from the report that we look forward to sharing include: on social, in 2023, we generated over $4 billion in economic benefits to host countries globally through taxes, wages, procurement, and community support. We sustained high levels of local employment with 99% of our workforce and 92% of management from within host countries. We also supported and aided local community development by making approximately $15 million of monetary and in-kind donations. Regarding governance, we were ranked among the top group of Canadian mining companies in the Globe and Mail's Annual Corporate Governance Review, and we were named as a constituent of the Dow Jones Sustainability World Index. Finally, on environment, we realized a 29,000-ton CO2 reduction in greenhouse gas emissions in 2023 through 15 different energy efficiency projects.
Overall, these energy efficiency projects helped offset approximately 2% of Kinross's greenhouse gas emissions, as well as provided nearly $8 million in cost savings during the year. Looking ahead, the recent completion of our 34-megawatt solar power plant at Tasiast is one of the projects that contributes to our goal of reducing emissions intensity by 30% by 2030. The solar project is expected to provide annual fuel savings of 17,000,000 liters of heavy fuel oil, which translates into an 18% reduction of Tasiast greenhouse gas emissions over the life of mine and has a 5-year payback. I'd like now to share a brief video outlining some of our carbon reduction initiatives across the portfolio.
At Kinross, we are focused on delivering value today and tomorrow. Innovation is key, and sustainability is vital. Respecting and working with our local communities is one of our core values. We believe that our environmental, social, and governance performance is the foundation of our future success. We pledge to be a net-zero greenhouse gas emissions company by 2050 and have set 30% reduction targets of Scope I and Scope II emissions intensity by 2030. How? By incorporating sustainability considerations into our strategic decisions, by thinking big and small. Power is one of our biggest expenditures and contributors of GHG emissions.
At Kinross, ESG is a central core part of our business in the way we plan for it, in the way we operate all of our sites. The Tasiast solar project makes sense from a myriad of perspectives. Most importantly, it fits into our overall ESG strategy.
At our Tasiast site in Mauritania, a 34-MW solar plant provides the mine with approximately 22% of its electricity.
The project involved the installation of 80,000 panels over an area of about 1 square kilometer. We have reduced our greenhouse gas emissions significantly, and we're also saving 17,000,000 liters of fuel a year.
The annualized fuel savings translate into an 18% reduction of greenhouse gas emissions from the power plant over the life of mine.
It's an NPV-positive business proposition, which means it'll pay for itself within five years. It'll be operated by an all-Mauritanian crew going forward.
Our energy strategies vary depending on our locations. For our Paracatu mine in Brazil, we own two hydroelectric power plants to generate clean, sustainable, and low-cost energy. This acquisition represented a strategic investment in a core asset to further strengthen and enhance operations at Paracatu. In 2023, 98% of the electricity consumed at Paracatu was renewable. At our La Coipa mine in Chile, we purchased 100% renewable power from local sources. These efforts mean lower GHG emissions and lower production costs. Our commitment to reducing emissions isn't limited to major projects. Continuous improvement is embedded in our culture. At Fort Knox in Alaska, major mill improvements since 2020 to reduce emissions intensity include autogenous grinding, new sensors to enable operators to make adjustments to increase efficiency, and two new conveyor belts to be more selective in how material is processed, which have reduced power intensity by approximately 39%.
At our Tasiast site in Mauritania, we recently incorporated 9 electric buses into our fleet of 22 buses used primarily to transport employees around site. We equipped 8 haul trucks with higher-capacity truck trays, increasing their load capacity by 6%-8%, resulting in less cycles for the same tons moved and improving efficiency. At Paracatu, we've converted over 100 mobile tower lights used for operational and remote areas, from diesel to solar-powered. At Round Mountain, we completed an energy efficiency assessment related to the use of pumps and implemented several changes, including regulating their use based on demand, decommissioning higher-intensity pumps, and refurbishing existing pumps with more efficient components. At all our sites, we regularly evaluate haulage routes and cut down cycle lengths to save on diesel fuel and reduce emissions.
Our focus on energy efficiency and opportunities to reduce our carbon footprint across the portfolio has been ongoing for several years and generally results in incremental energy savings of 1%-2% per year. We are proud to be on track to achieve our 2030 GHG emission targets, a reflection of our dedication to continuous improvement and meeting these important goals. At Kinross, we are committed to the health and well-being of our host communities. In Chile, we've installed 26 solar panels in six local Colla indigenous communities to help them reduce energy costs and dependence on fuel generators.
En tiempo de pandemia, las familias que estaban acá, los niños también estudiaban virtual con la luz de los paneles solares, así que ha sido muy beneficioso. [Foreign Language]
At Paracatu, we've supported the construction of 20 nurseries to help restore disturbed land. These nurseries produce 10,000 seedlings every year and offset approximately 2,100 tons of carbon per year. At Tasiast, we work with the local Banc d'Arguin National Park to install solar units to help restart three desalinization plants. The plants deliver 45,000 liters of fresh drinking water daily, reaching 1,200 villagers, and supporting their ability to carry on their traditional way of life in the park. At all of our sites, we are looking at new technologies as a means of emissions reductions and believe that the best way to reduce emissions is by incorporating energy efficiency into the initial design of a facility. This is reflected in our Great Bear project in northern Ontario, Canada. In line with our goal of being net-zero by 2050, we are reviewing options to tie into Ontario's low-carbon energy grid.
We are exploring tethered electric loading and drilling equipment for open-pit mining and battery electric equipment for underground mining. We are incorporating advanced digital systems to ensure energy-efficient operations. At Kinross, we are planning and building for the future.
Where are you looking ahead to the next renewable project for Tasiast? It may be Tasiast solar 2.0, or it may be some wind. From a Kinross perspective, we think there's a bright future ahead for renewable energy in Mauritania.
We believe in tomorrow. We believe that an environmentally responsible mining company committed to being a strong community partner is the best way to deliver value long into the future.
After a successful 2023 and Q1 of 2024, we are well-positioned for another solid year. Our business is in great shape and now is an excellent time to own our shares as we expect to continue to deliver strong shareholder value this year through our commitment to operational excellence, strong cash flow outlook, continued strengthening of our investment-grade balance sheet, our attractive dividend and compelling free cash flow yield, and our leadership in ESG metrics. We believe delivering on our commitments, coupled with our attractive valuation, will continue to support our share price performance. We'll now open it up for questions from shareholders.