Q4 2022 Eldorado Gold Corp Earnings Call
Thank you for standing by this is the conference operator, welcome to the Eldorado Gold fourth quarter and year end 2022 financial and operational results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation, there will be an opportunity to us.
Questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing Star then zero.
I would now like to turn the conference over to Lisa Wilkinson, Vice President Investor Relations. Please go ahead.
Thank you operator, and good morning, everyone I'd like to welcome you to our fourth quarter and year end 2022 results conference call.
Before we begin I would like to remind you that we will be making forward looking statements and referring to non I O first measures during the call.
Please refer to the cautionary statements included in the presentation and the disclosure on non Ifr's measures in our management's discussion and analysis as well as the risk factors set out in our annual information form.
Joining me on the call today, we have George Burns, President and Chief Executive Officer, Phil Yee Executive Vice President and Chief Financial Officer, and Simon Healey Senior Vice President Technical services and operations.
Other members of the senior leadership team will also be available for the Q&A session.
Ah released yesterday detailing our fourth quarter and year end 2022 financial and operating results. This should be read in conjunction with our fourth quarter and year end financial statements and management's discussion and analysis both of which are on our website. They have also been filed on SEDAR and Edgar.
All dollar figures discussed today are U S dollars unless otherwise stated we will be speaking to the slides that accompany this webcast you can download a copy from our website.
After their prepared remarks, we will open the call for Q&A at this time, we would invite analysts to queue for questions I'll now turn the call over to George.
Thanks, Lisa and good morning, everyone.
Here's the outline for today's call.
I'll provide a brief overview of Q4 results and highlights before passing it to Phil to go through the financials and Simon to review our operational performance.
I'll open the call to questions from analysts.
In light of the devastating earthquakes that took place in Turkey, a in Syria at the beginning of February and earlier this week I on behalf of the Eldorado team, we'd like to extend our condolences to those impacted by the disaster.
In the immediate period following the initial earthquakes or mine rescue teams from FMC grew and because Saddam mobilize to the impacted area.
A number of these team members are highly trained in underground mine rescue a much needed skill for earthquake rescue and recovery efforts.
The teams were able to save several lives and recover victims. So there could be returned to their families to be grief for.
Additionally to break Eldorado's, Turkey subsidiary donated blankets rank coats and other essential supplies to support those and the earthquake affected regions.
Working with our colleagues in Turkey, a we will continue to provide aid in the systems to support the relief efforts as needed in the days weeks and months ahead.
Fortunately our operations are located at over 1000 kilometers away.
Not impacted by the earthquakes.
We will continue to assess the situation and our top priority as always is to ensure the continuing safety and wellbeing of our team members.
I would like to thank our entire team in Turkey, a for responding so quickly and compassionately to this strategy.
These this.
Birds have been an inspiration for all of us.
We faced operational challenges in early 'twenty, two 2022, however through diligence and resilience, we improved operational performance continuously over the year.
Fourth quarter production was strong across all assets, which resulted in second half production being 20% higher than first half.
Our full year production of almost 454000 ounces was 1% below the bottom end of our guidance range.
In conjunction with our financial release yesterday, we published our 2023 guidance and five year outlook.
We have introduced series into a longer term outlook with commercial production expected by the end of 2025.
We are forecasting gold production to be between 675.
735000 ounces by 2027, representing.
Representing a 55% increase over five years.
Simon will speak to the operations in our guidance in more detail later in the call.
Now touching on costs.
We continue to face inflationary pressures similar to the wider market.
Throughout 2022, we experienced price increases for commodities and consumables, including electricity in Turkey, and Greece, and fuel and reagents and kits at all.
As a result, our full year 2022 cash operating costs and total cash costs were above our consolidated guidance.
Our all in sustaining cost was within guidance driven by our disciplined management of sustaining capital.
Bill will touch on our cost in more detail later in the call.
Shifting to <unk> in December we announced the milestone news regarding the Greek bank financing and conditional board approval for the full restart of the project.
The project level financing covers 680 million euros or 80% of the expected funding required to complete the project at competitive interest rates.
The remaining 20% of the project funding will be fully funded by El Dorado.
The financing is subject to customary closing conditions, which are expected to be completed in the first quarter.
The Securities financing announced we have delivered on our multi year strategy in Greece, including.
The approval to avoid dry stack tailings.
The amended investment agreement.
Investment and early works construction and finally, a fully funded financing package that allows us to shift into project execution and achieve commercial production by the end of 2025.
On the sustainability front in the fourth quarter, we completed our first ever integrated Sims compliance audit ethical Mark.
As part of this global process.
Delegation of auditors', including colleagues from our operations in Greece, and Turkey, a reviewed remarks performance as set out in our internal standards referred to as sustainability integrated management system.
Pwc provided limited assurance against all of the mining Association of Canada's.
Towards sustainable mining protocols and site compliance against the World Gold Council responsible gold mining principles.
The completion of the audit is a major milestone for limbach and El Dorado as we journey towards full implementation of Sims and leading ESG performance against our peers.
I'll stop there and turn things over to Phil for a review of the financial results.
Thank you George good morning, everyone.
Slide six provides a summary of our fourth quarter and full year financial results.
Eldorado reported net earnings attributable to shareholders of 42 million or <unk> 23 per share in the fourth quarter.
And net loss of 49 million or a loss of 27 per share for the full year.
After adjusting for onetime nonrecurring items, including deferred tax expense related to foreign exchange translation and breakdown of assets. Adjusted net earnings was $26 million or <unk> 14 per share in the fourth quarter and $10 million or <unk> <unk> per share for the full year free.
Free cash flow in the quarter was $11 million, primarily due to higher sales.
Cash operating costs averaged $741 per ounce sold in the fourth quarter and.
$788 per ounce sold for the full year, which was 5% above the 2022 guidance range, mainly driven by price increases for commodities and consumables.
All in sustaining cost averaged $246 per ounce sold in the fourth quarter.
$476 per ounce sold for the full year, which was in line with the guidance range.
In 2023, our consolidated cash operating cost guidance is 760 to $860 per ounce sold and all in sustaining cost guidance is 190 to $290 per ounce sold which reflects ongoing inflationary pressures related to key consumables such as cyanide.
Electricity diesel explosives cement and labor.
In line with commitments under a collective bargaining agreement in Turkey, a Libre cross increased in January 2023 to support of our workforce with the rising cost of living related to high inflation rates.
Labor costs in Turkey are based in lira, which has remained stable in recent months as a result cost increases in local currency are not expected to be offset by currency movements.
In the past.
Capital expenditures on a cash basis were $81 million in the fourth quarter and $290 million for the full year, which included continued investment in growth projects at <unk> and early works that's curious.
Income tax recovery is $24 million in the fourth quarter and $61 million for the full year.
Current tax was lower in 2022 compared to 2021 due to lower sales volumes, partially offset by lower investment tax credits.
Turning to slide seven at quarter end, we had unrestricted cash cash equivalents and term deposits of $315 million up slightly from last quarter. We continue to focus on maintaining a solid financial position, which provides flexibility to unlock value across our business.
With that I'll now turn it over to Simon to go through the operational highlights.
Thanks, Phil and good morning.
I'd like to start with the health and safety highlight.
Recently, <unk>, Quebec exploration team received safe day every day go to wood.
The greatest number for the greatest number of work hours without a reportable injury.
Canadian exploration groups.
From the association for a minute.
Exploration and prospectors and developers Association of Canada.
I'm very proud of the team for this recognition.
As it demonstrates our strong safety culture.
Now moving to operating results, we produced 128453 ounces of gold in the fourth quarter.
With the cash operating cost of 741.
France sold.
Full year 2022 gold production.
453916 ounces, which was just below the bottom end of guidance range, driven by lower production at <unk> and Olympias.
Looking ahead to 2023.
Our consolidated gold production guidance is forecasted to be 475000 to 515.
15000 ounces.
Down slightly from our previously published 2023 guidance.
Which takes into account modifications to the production plan and highest IP 10, either expected at my Mac as well as and machines slower ramp up at <unk>.
With the commissioning of the final Oklahoma rising drum in the first half of the year.
Slide nine looks at our operations in more detail.
Starting in <unk>.
<unk> fourth quarter production was 40307 ounces.
And cash operating cost of $709 per ounce sold.
In the fourth quarter.
Led to high capacity conveyors were installed.
Which has improved material handling and Unbilled agglomeration.
As we mentioned last quarter in conjunction with the North heap Leach pad. We have also purchased an agglomeration drum, which will treat a final assembly.
The <unk> product to improve quality consistency and dependability on the pad.
We are confident.
That we will have the agglomeration drum commissioned in the first half of 2023 as the equipment is on site and construction is progressing well.
With this investment stacking is expected to continue.
On the existing Leach pad until mid 2023 at which time stacking is expected to commence on the new north heap Leach pad.
Looking ahead to 2023 keeps it at its production guidance is between 160000 to 170000 ounces of gold to.
To achieve this.
You said that was expected to mine in place on Leach approximately $12 five to 30 million tons of coal at an average grade of <unk> seven to <unk> 75 grams per tonne.
<unk> fourth quarter.
Gold production was 21362 answers.
Operating costs of $738 per ounce sold.
<unk> production throughput and average gold grades at <unk> were in line with the plan for the fourth quarter and the full year.
For the year ahead definitely two crews production guidance is forecasted to be 80000 to 90000 ounces of gold.
Decided he expected to process approximately 530 to 550000 ounces of gold at an average gold grade of five five to six grams per tonne.
And now maybe until amok.
Fourth quarter gold production was 51349 ounces.
A 20% increase over last quarter, driven by higher grade and increasing throughput.
Performance at the mill.
Cash operating costs was $541 per ounce sold.
Resource conversion drilling from the oil Mac exploration drift will continue in 2023 targeting the upper two thirds of the <unk> deposit.
Results of conversion drilling up to mid 2023 will be incorporated in our mineral resource and mineral reserve update at the end of the year.
In 2023 <unk> production guidance.
170 to 180000 ounces of gold.
And this is based on mining and processing 860 to 870000 tons of all at an average gold grade of six two.
Five to $6 75 grams per tonne.
Finally, moving to grief at Olympias fourth quarter results.
Was 15485 ounces.
And the cash operating cost was $825 per ounce sold.
Overall <unk>.
2022 production for Olympias was below plan due to lower than expected tons pricing.
And the availability of both states.
We continue to implement an.
Operating initiatives designed to improve productivity.
Next year Olympias production guidance is 60000 to 75000 ounces of gold.
And that site is expected to mine approximately 460 to 490000 tonnes of ore at an average grade of seven five to eight five grams per tonne.
I'll stop there and hand back to George for closing remarks.
Thanks team.
We have an exciting year ahead of US we were focused on delivering our operational guidance and transitioning.
Transitioning to project execution at <unk>.
Our priority is to continue to implement our growth strategy with production expected to reach between 675% and 735000 ounces of gold by 2027.
Which will position us well to maximize value for all stakeholders.
Thank you for your time I will now turn it over to the operator for questions from our analysts.
Thank you we will now begin the question and answer session.
Joining the question queue you May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request.
If you are using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two once again to join the question queue. Please press Star then one now.
Our first question comes from Kerry Smith of Haywood Securities. Please go ahead.
Thanks, operator.
Congratulations on a good quarter guys.
John .
First Gary My first question is you have $240 million to $260 million of Capex. This year.
And could you just maybe kind of give me a rough idea as to what the capex might be like for 2024, and 2025 to finish out that project.
<unk> spend.
Yes, thanks for the question Gary and congrats.
Yes.
Next year, we expect the capital cost to ramp up above that $250 million middle point of guidance.
And then dropped down in the final year.
We will obviously have some revenue coming in in the second half of 2025 is where he is the commissioning.
So if.
If I was to assume $300 million for next year.
And then.
I guess, if we assume 750 million U S. In total just have the difference in 2025 would that be reasonable then George.
That's reasonable theory.
Okay, Okay great.
And just on.
The $680 million debt packages that you that you've pretty much got finalized.
You hope to have it all signed up and done here by the end of the quarter, how will the dry dock schedule, where it can you maybe just remind me how that.
Schedule will work like how you have to spend equity as you stand with that or whether you can spend so much that before you have to fund any more equity just how it will work.
Okay.
Maybe I'll answer a high level and Phil can jump in so.
The way it works carriers, it's an 80 20 split between ourselves and the project financing.
We've pre funded the part of the capital required to reach.
Commercial production from the investments we did last year that were part of the feasibility study. So we're a bit ahead of the game.
And so the banks have to play catch up.
Sure.
For the <unk> ratio on the funds, we we completed last year.
So.
There was a 120 million euros of.
Thanks.
Pre funding.
30 million euros basically.
And so we don't expect to spend anything off our balance sheet. Once we do first drawdown in the first quarter until Q3 of this year.
Okay. Okay.
Q3 is when you think you'll start participating in terms of funding them.
Yes, I mean, we're still we're still funding we are ramping up the construction activities. In fact this week, we poured concrete for the first time on this restart.
So yes, we're continuing to fund in Q1 once first strijdom happens, we expect the funding to come from the from the banking syndicate until the third quarter of the year and then we'll be at a.
820 funding rate after that.
Got you okay. Okay, great. That's helpful and just on tissue bag with the drum Mcglaun Hager, what sort of recovery are you expecting.
<unk> medical operator is up and operational.
So Gary what's included in our guidance right now is still a 56% recovery that was justified as part of the capital investment for <unk>.
This year.
The first quarter was pretty challenging for us.
We had abnormally.
Cold winter, but we also found the need to add cement as a binder.
To get good permeability through that final or it came out of the <unk>.
And so those challenges is really why we didn't hit our guidance last year.
And as you saw each quarter, we ramped up the tonnage and began to deal with the reality of collaborating cement on the conveyor belt. So we're back I would say at the run rate we had.
On a tonnage basis prior to <unk>.
Cement agglomeration.
What the final drop does for us it makes it a better agglomerate product, we're gonna be elaborating the fines in the crushing circuit.
And that will be combined with the coarser material.
So the cement won't.
It won't be added on conveyor belts that will be added in the crushing facility.
We think thats going to give us some additional relief on.
The on the conveyance system itself.
Now in terms of what ultimately recovery.
Ends up.
We're pretty optimistic we're going to beat that 56%.
But we haven't.
Publicly put a number on it.
Bottom line is we know we get better permeability through the bad.
And that has a pretty positive effect on lead cycle time and.
And ultimately we think we can further optimize how fine the HP Jr. Crushes, the or with the better agglomerate and that could lead to better recoveries. So we're not putting a pin on what we think that upside is but were.
Believing this year, we'll be able to really sort that out with the final agglomeration commissioning being completed mid year, we'll have about six months to understand the benefits, we're getting out of that optimization between crushing finer maintaining good permeability through agglomeration. So.
Pretty optimistic.
We can beat the 56%, but we haven't included that upside in guidance and it's really too early to pin a number on it.
And what is the.
The size of the fraction coming out of the third.
Stage of crushing now like how fine that's fine.
And what percentage of the assignment.
Okay.
Go ahead, Gary sorry.
So I was just going to say on what percent of the total tonnes to Pat actually is going to go through the dry Mcglaun later from the fine circuit to be Agglomerated.
Yes, Hi, Kerry its Simon.
We're probably planning around 30% of the tonnage to go through the final or Oklahoma or ice you name it potentially has high capacity than that.
The plan at this moment is to take that that 30% feed right.
Two the size of the articles.
Answers.
Probably less than a one.
One meal.
On average that's what we set up classifying is fine.
Yeah.
Yes.
I can add a little color around that were really trying to get.
The fines to stick together and kind of balls to create that permeability and allow oxygen to get into the pad.
You want a little bit of course to get in there with it to give the core goals agglomerate balls to have something to build upon but.
Basically we're trying to get the finer material with a bit of course into that drove them to make a good agglomerate and to take pressure off.
The transfer of points between the Grasshopper conveyors, which is where we're doing the mixing currently.
Right Okay. Okay.
Well it seems like maybe the whole would've been the way to go and we're getting pretty fine there now.
Yes, Kerry Hindsight's always 2020, if youll recall at the mill scenario is they have a $1 billion.
Capital upfront.
At a high metal price the mills are better and serve it based on.
Decisions, we had at the time, we made the right decision with heap leaching.
Right and just last question if I could just when would <unk> be incorporated into the mine plan when would we have.
Our reserve to everyone, while the drilling be to the level, where we can get a reserve as at the end of this year then George.
So we're we're doing the infill drilling as we speak we're making good progress on that.
<unk>.
And we need an adequate amount of conversion to be able to call. It a reserve.
I'd say, we're on track with getting that done.
End of the year early next year and.
We'll do a technical report when Thats all completed in terms of the timing for bringing on our bock.
I mean that we need a new trade off studies to say, what's the best solution here you can make arguments.
Right now on both sides. If you bring a mark in early you really have two mining fronts and as we get deeper and triangle that would be a positive.
Of course, if we do that we need to put some capital in upfront to put it in ventilation.
Set up first stope, so we'll be doing a tradeoff study as we complete the oil reserves to determine what the optimum life of mine scenario is for triangle and our Mark.
Right, Okay, and Thats and that tradeoff steady won't happen until you've got the in fill drilling down so that would be at 2024 event, then I guess to do the tradeoff studies correct that's correct.
Okay Gotcha. Okay. That's helpful. Thank you very much guys and congratulations.
Yeah.
Once again, if you have a question. Please press Star then one.
Our next question comes from Tanya Joseph Skolnik of Scotiabank. Please go ahead.
Great. Thanks, Good morning, everyone. Thank you so much Mike.
My question.
Thank you very much for that capital.
Can you amplify Carey with respect to scoring and how that's going to pan out over the next few years.
What I also wanted to ask how should we be thinking about the sustaining capital calling.
Andrew as we delegate that 700000 ounces.
Animal rate by 2027, if I do a quick calc right now it looks like youre paying about $250 an ounce on sustaining capital.
A bit low relative to some of the other companies that are coming in at 350 to 400, just wondering how I should see that going forward.
Yeah, well I mean, when you look at the existing portfolio.
On sustaining capital I think the run rate on sustaining is going to continue so if youre talking about over the five year guidance, it's really bringing in <unk>.
And for <unk>.
The copper byproduct revenue.
Is going to pay all the sustaining and operating costs. So.
We ended up with a.
<unk>.
Slightly negative <unk>.
In terms of the sustaining capital number I don't have that number all right.
On my fingertips.
Yeah.
But I think I can probably answer that.
Before this call is over if somebody to pull the number.
Okay.
Thank you and just also my other question has to do with just how do you see the year play out, but obviously, you've given some guidance.
Second half of going to be strong.
<unk>.
Cause blowback on having a stronger performance.
Bottleneck cause lomak last year with.
Higher grade in that first part of the ore and lower grades just wonder how long that plays out this year.
Yes, so for Limbach.
Again, this youre going to have a bit of a stronger second half than first half driven by grade.
That is not as significant as it was last year for sure.
And then.
The first part of the question.
Alright.
How is that panning out so if I think about.
Production profile during the year would it be like a 45 first half 55 second.
A reasonable assumption.
Back and forth with either <unk> or <unk>.
Can have.
Yes, that's a good assumption and just to follow up on <unk>. So that's really what's driving <unk>.
Sure.
We're doing a tie in to that <unk> were doing a rebuild on the HP Jr. For the first time, so we've tied that shutdown to get all that work done at one time, so we're going to be down for a number of days during that tie in and then.
We're expecting some better performance in the second half.
So that just from a grade recovery perspective.
Okay. That's helpful. Thank you and then my other question has to do really with Olympia.
And just the expansion permit.
Just wanted to try and understand what's going on there in your five year guidance, what have you assumed for that because.
Continue to wait for the permit I think with 120 to 2023.
How do we deal with are so I just kind of wondering what you have in your forecast and where are we on.
The thinking there and the permit.
Good question. So a couple of components to that question first I would say permitting itself. So this is.
Modification to the EIA that we're seeking.
And that process requires public consultation after the public consultation in Greece. There are a lot of departments within government that then review the consultation and look at all the environmental.
Issues that need to be addressed.
We're pretty well through we're done with the consultation we're pretty well through the comment period from the various departments.
And we're in the stages now of finalizing the the document itself that will be the control document for.
For our Cassandra operations now.
Significant change here.
Is the ability to increase capacity in the mill and to be able to move more tons out of the underground. So obviously.
Noise.
Vibration.
<unk> quality air quality are all things that are modeled and monitored.
Okay.
I would tell you that process has taken longer than we would've liked but confident we'll get that permit this year.
It's not a it's not on the critical path for the ramp up of Olympias.
On your question the five year guidance that we have this year than we had last year assumes we get the EIA assumes we make some minor capital investments to allow higher throughput through.
Through the plant.
There is a bit of capital on this Tony part included in the <unk>.
Bit of capital on the underground to support the ramp up the critical path on making all this happen is really getting the tons out of the underground and last year we.
We made good progress in the fourth quarter, we had our highest tons out of the underground.
Now when you look at our performance at Olympias from a cost perspective, it wasn't a good quarter.
And the challenge we have is that we're we're in a process, we got to reduce the cost and drive that denominator up at the same time on the cost front one.
One of the major drivers as the number of people we have.
We shut down Mr. Tony <unk> Petrus operations last year was our non core base metal mine.
Lack of reserves.
Old equipment.
We came to the conclusion that.
It wasn't going to be profitable in this current environment and we shut it down we did not lay off.
Workforce, we've had reductions last year.
But we're carrying a larger workforce than we need to run olympias and so on.
Our costs haven't come down, even though we are making progress on productivity and efficiencies.
This year is the.
The year is going to change and it's because as we ramp up the <unk> operation, we're going to be creating significant jobs during the construction phase and as we move into.
And the production will be adding jobs.
From an operating perspective and so we've.
We've made the decision to cushion the blow on the workforce and allow them.
All of these new jobs to be created allow people to move out of the redundant jobs in the construction jobs and ultimately into new operating jobs. So we're carrying a higher burden on labor.
We are improving the productivity and efficiencies in this year as you see from the guidance, we're expecting higher production in.
And we're expecting those costs to come down materially from what they were last year.
Once we ramp up production.
<unk>.
Post the permit and posts delivering.
Delivering on productivity and efficiencies to support this.
This nominal capital investment.
Youll see another kick up in both production as indicated in the five year plan, but more importantly, driving those unit costs down and creating margins and profitability.
Okay. If I remember correctly, I think remind me if I'm wrong, but I thought like the expansion itself.
Was that a cost and so I don't like the $16 million range or thereabouts.
Is that still a number that I should be using.
Yes, 650 is still the number.
And from a current perspective.
100, and let's talk about the Capex.
Oh, sorry, I thought you were talking production.
Could you repeat the question was just on the expansion. When you said there is some money that have to.
To do all of that the size of the underground, which I'll leave that everything else on the infrastructure I think getting to that 50.
<unk>.
Like that was the net cost of about $60 million six thereof.
Yes.
That number has come down a bit.
We're in the range of $35 million to $40 million.
And the reason for the drop we've had success in Debottlenecking the plant this year.
Without substantial capital so in looking at that success, we've taken down that expansion number to between 35 to 40 million.
Okay and then just in your five year plan is to finish up when you guys seem to get the EIA. This year and then when are you going to the expanded rate.
In 2025, we're assuming we're at the expanded rate.
Okay, and given where having some.
Some movement of people conduct Tony and final NPS going to scoring what are the what would be the holding cost. We should think about through the income statement first for Tony to here.
Phil scrubbing that number.
And then I'll leave I Tanya if I can.
Could get the holding cost and sustaining.
Sustaining capital that that would be awesome.
Yes, I think as George has outlined we do expect to see the holding costs.
On a steady until screws restarts construction so in the long term we are anticipating.
Maintenance costs for Abbas Abbas Petra for Tony to be in the range of two five to $3 $5 million a year.
Okay.
And Phil anything on the sustaining you can help me with the can or should I use that to 50.
Wow.
<unk>.
$150 million per year.
On the sustaining capex.
So.
The sustaining capex I think for <unk>.
Current operations.
Probably pretty consistent with what we've seen in 2022, and then you add ons curious.
Sustaining capex was curious would be in line with the feasibility study.
But over time as we go through the five year plan Youre going to see sustaining capex at Casa de <unk> to start to decrease yes, no fair enough. Okay. No I appreciate all of the insight.
I'll pass it I'll, let someone else ask questions. Thank you.
Thanks Tanya.
Our next question comes from Mike Parkin of National Bank. Please go ahead.
Hi, guys just a follow up question on Olympias.
You report your tonnes milled for the operation.
Building, a stockpile because im just noticing.
Milled in 2022 versus 2021 was fairly flat, but your comments are.
Getting better performance out of the mine.
No. We don't have much of a stockpile really what you looked at as a tough Q1 at olympias due to.
So across our portfolio, we were hit by Covid for the first time.
Hi, absenteeism in every one of our sites were impacted so lumpy is got hit with that.
In Q1, and the better performance was really in the second half at Olympias ramping up that tonnage. So overall year over year, you didn't see much improvement, but if you look at the second half.
Fourth quarter production at Olympias relative to prior quarters, a significant uptick.
Okay. So you could.
It's fair to assume what's milled is what's mined.
Yes, there's just very little capacity to stockpile material to olympias.
Ground or on the surfaces.
Okay.
So.
Any kind of pickup in.
Production year over year.
So a great base and so we will get the expansion online in 2025 or the or you're expecting some.
<unk> improvement year over year as well.
Yes, we're expecting tonnage improvement this year over last year so forth.
The fourth quarter again, we had good tons, but we didnt in the first half so.
We're expecting to get better tonnage out of olympias and more consistency this year than last.
And again in 2024, you would expect tonnage to be up again.
Well it's.
Really permit dependent so we're going to be pushing that production out of the underground as hard and fast as we can.
When we hit the bottleneck at the plant.
It'll it'll be that expansion capital required to debottleneck it.
I don't know maybe it's helpful to just add a few comments on catalysts for Olympias. This year. There are a number of projects underway that will be completed this year theyre going to support better economics. So.
One we've been running with the transformer that is.
At its full capacity.
We've completed construction on an upgraded transformer that wil is suitable for the expansion that's underway, but will lower our unit cost for electricity.
Just because we're right at the top end of that old equipment capacity.
We're waiting for turnover and tie in from the National grid and expect that to happen in the first half.
A number of other projects that we've talked about in the past.
We're willing to emulsion blasting that enables us to have longer blasts.
Better productivity in the mining cycle.
Got the permits for it.
A piece of gear being manufactured in Europe .
This is expected to be deployed.
In Q2.
And thats going to drive productivity and efficiencies in drilling and blasting in a hole mining cycle.
There are a number of catalysts just beyond the labor that I mentioned earlier that are going to drive better performance out of Olympias and <unk>.
Just note that.
This has gone slower.
Then we would have liked.
And I know this is an opportunity for us to gain a bunch of credibility to.
To get olympias into a profit profitable.
Criteria.
Maybe one last comment and it is a pretty significant bottleneck right now is the ventilation.
We are in the middle of constructing some new ventilation fans on surface it'll make a material change in air flow allow us to be mining more faces underground open up in.
In parallel areas to be mining so.
There are a number of projects underway that are going to help our team in country to to improve their performance and then.
Getting the full time equivalent workforce consistent with olympias being profitable we expect that.
To happen as well in the first half of this year.
Okay. That's great that's really good color thanks very much.
Thank you.
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