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 ask 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 our presentation and the disclosure on non ferrous measures in our management's discussion and analysis as well as the risk factors set out in our annual information.
Sure.
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 the 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.
Then we will 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.
On behalf of the Eldorado team would like to extend our condolences to those impacted by the disaster.
In the immediate period following the initial earthquakes or mine rescue teams from S. M. Two grew and kiss adopt mobilized 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.
Teams were able to save several lives and recover victims. So they could be returned to their families to be great for.
Additionally to pray Eldorado's, Turkey subsidiary donated blankets raincoats 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 were.
We'll 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 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 were forecasting gold production to be between 675, and 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, while our all in sustaining cost was within guidance driven by our disciplined management of sustaining capital.
Bill will touch on our costs in more detail later in the call.
Shifting to Scurries 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 scariest financing announced we have delivered on our multi year strategy in Greece, including the.
The approvals and avoid dry stack tailings the amended the 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, a 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.
WC 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 la Marc 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 write down of assets. Adjusted net earnings was $26 million or <unk> 14 per share in the fourth quarter and $10 million or five cents 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 1100 90, the 1200 $90 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 kitchen egg and early works that's curious.
Income tax recovery was 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 that health and safety highlight.
Recently, Eldorado's, 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 our operating results, we produced 128453 ounces of gold in the fourth quarter.
With a cash operating cost of $741 per ounce sold.
Full year 2022 gold production was 453916 ounces, which was just below the bottom end of guidance range driven by lower production at <unk> and Olympias.
Looking ahead to 2023.
Consolidated gold production guidance is forecasted to be 475000 to 550.
15000 ounces.
Down slightly from our previously published 20 twenty-three guidance.
Which takes into account modifications to the production plan and highest up 10, either expected at my Mac as well as and machines slower ramp up and keeps it up.
With the commissioning of the final or Oklahoma Ryzen drum in the first half of the year.
Slide nine looks at our operations in more detail.
Starting in Turkey, a kiss adapt fourth quarter production was 40307 ounces.
And cash operating costs of $709 per ounce sold.
In the fourth quarter I led to high capacity conveyors were installed.
Which has improved material handling and unbowed 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 asleep.
All of the H P jab product to improve quality consistency and send the ability 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 wood 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> 7.75 grams a tonne.
F N two crew fourth quarter.
Gold production was 21362 answers.
Operating costs of $738 per ounce sold.
So production throughput and average gold grade of Def in two crew are in line with the plan for the fourth quarter and the full year.
Yeah.
For the year ahead different two crews production guidance is forecasted to be 80000 to 90000 ounces of gold.
Besides the expected to process approximately 530 to 550000 ounces a bull 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 all Mac exploration drift will continue in 2020 three targeting the upper two thirds of the <unk> deposit.
Results of conversion drilling up to mid 2023 will be incorporated in that mineral resource and mineral reserve update at the end of the year.
In 2023, well IMAX production guidance.
170 to 180000 ounces of gold.
And this is based on mining and processing 862, 870000 tons of all at an average gold grade of 6.2.
Five to $6 75 grams per tonne.
Finally, moving to Greece at Olympias fourth quarter results.
Was 15435 ounces.
And the cash operating cost was $825 per ounce sold.
Overall.
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 the side is expected to mine approximately 460 to 490000 tonnes of ore at an average grade of seven five to $8 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 preserved transitioning to project execution at series.
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 to join the question queue. You May Press Star then one on your telephone keypad.
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Our first question comes from Kerry Smith of Haywood Securities. Please go ahead.
Thanks, operator.
Congratulations on a good quarter guys.
On four screens. My first question is you have 240 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.
Just the spend.
Yeah. Thanks for the question Gary and congrats.
Next year we.
We expect the capital cost to ramp up above that 250 million the 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 we do the commissioning.
So.
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.
Yeah.
That's a reasonable theory.
Okay, Okay great.
And just on <unk>.
Yeah, the 680 million euro debt packages that you that you've pretty much got finalized and you hope to have it all signed up and done here by the end of the quarter, how will the drawdown schedule work and you can feel maybe just remind me how that that schedule will work like how you have to spend equity as you stand with that or whether you can spend so.
[noise] much that before you have to fund any more equity just how it will work.
Yeah.
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 at a four.
Four to one ratio on the funds, we we completed last year.
So.
There's 120 million euros of.
Thanks.
It's a pretty funding 30 30 million euros basically.
And so we don't expect to spend anything off our balance sheet. Once we do first draw down in the first quarter until Q3 of this year.
Okay. Okay. So in Q3 is when you think you'll start participating in terms of funding them.
Yeah, 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 yeah, 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.
80, 20 funding rate after that.
Right Gotcha, Okay. Okay, great. That's helpful and just on a tissue dag with the drummer Guam rig or what sort of recovery are you expecting.
One set by the collaborator is up and operational.
So Terry what's included in our guidance right now is still a 56% recovery that was justified as part of the capital investment for H P. G. R.
This year.
The first quarter was pretty challenging for us.
We had abnormally.
Hold winter, but we also found the need to add cement as a binder to.
To get good permeability through that final or it came out of the H P. G R.
And so those challenges is really why we didn't hit our guidance last year and.
And as you saw each quarter, we ramped up the tonnage and began to deal with the reality of Agglomerated cement on the conveyor belt. So we're back I'd say at the run rate we had.
On a tonnage basis prior to cement agglomeration, what the fine ore drum does for us it makes it a better agglomerate product, where we're gonna be agglomerated the fines in the crushing circuit.
And that'll be combined with the coarser material and so the cement won't be added on conveyor belt. So it will be added in the crushing facility.
We think that's going to give us some additional relief on the on the conveyance system itself, though in terms of what ultimately.
Recovery.
Ends up.
We're pretty optimistic we're going to beat that 56%.
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 H P. Jr. Crushes, the or with a better agglomerate and that could lead to better recoveries. So we're not putting a pin on what we think that upside is but we're we're believing this year, we'll be able to really sort that out with a finer agglomeration.
Commissioning being completed mid year.
We'll have about six months to understand the benefits, we're getting out of that that optimization between crushing finer maintaining good permeability through agglomerations. So.
Pretty optimistic.
We can beat the 56%, but we haven't included that upside in guidance and it's really too early to the pin a number on it.
And what is the the size of the fraction comes out of the third the.
The third stage of crushing now like how fine that's fine.
And what percent Simon.
Okay.
Go ahead, Gary sorry.
I was just going to say what percent of the total tonnes to pad actually is going to go through the drummer guar major from the fine circuit can be agglomerated.
Yeah, 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% and feed right.
To the size of the particles are the answers.
Probably less than a one meal on average and that's what will you say reclassifying is fine.
Yeah.
Okay.
I can add a little color around it we're 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 but core goals agglomerate balls, they 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 them to take pressure off.
The transfer of points between the Grasshopper conveyors, which is where we're doing the mixing currently.
Right Okay. Okay.
Yeah, almost seems like maybe the whole would've been the way to go and you're getting pretty fine there now.
Yeah, Kerry Hindsight's always 2020, if you'll recall at the mill scenario was a half a billion.
Capital upfront.
You know at a high metal price the mills, a better answer but based on the decisions. We had at the time, we made the right decision with heap leaching.
Right and just last question if I could just when you would or Mac be incorporated into the mine plan when would we have a.
Our reserve everyone, while the drilling be to the level, where we can get a reserve is that the end of this year that George.
So we're we're doing the infill drilling as we speak we're making good progress on that.
And we need an adequate amount of conversion to be able to call. It a reserve.
They were on track with getting that done.
End of the year early next year.
And.
We will do a technical report when Thats all completed in terms of the timing for bringing on our bock.
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 in ventilation in <unk>.
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 that and that tradeoff study 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 trade off studies correct. That's correct.
Okay Gotcha. Okay. That's helpful. Thank you very much guys and congratulations.
Okay.
Once again, if you have a question. Please press Star then one.
Our next question comes from Tanya <unk> of Scotiabank. Please go ahead.
Great. Good morning, everyone. Thank you so much.
My question.
Thank you very much for that capital.
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 them through as we go look at that 700000 ounces per annum rate by 2027, if I do a quick calc right now it looks like you're 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.
[noise], yeah, well I mean, when you look at the existing portfolio on sustaining capital and you know I think the run rate on sustaining is going to continue so if you're talking about over the five year guidance, it's really bringing in <unk>.
And for Scurries with.
Copper byproduct revenue.
Is going to pay all the sustaining and operating costs. So.
We ended up with a.
Slightly negative a sick.
In terms of the sustaining capital number I don't have that number right.
On my fingertips.
But I think I can probably answer that.
Before this call is over if somebody to pull the number.
Okay that would be very helpful. Thank you.
And just also my other question has to do with just how do you see the year play out and you've got obviously, you've given some guidance.
Second half is going to be strong as well.
Hum.
Cause blowback on having a stronger performance.
What about la Mac cause Lomak last year with you know had higher weight in that first part of the ore and lower grades just wonder how long that plays out this year.
Yeah. So for Limbach is again this youre going to have a bit of a stronger second half than first half driven by grade.
Probably not is not as significant as it was last year for sure.
And then.
The first part of the question.
Oh It was just it was how that's panning out so if I think about you know your production profile during the year would it be like a 45 first half 55 second patheon.
We have our assumption around my neck and cause my father or second half.
Yeah, that's a good assumption and just to follow up on kids. So that's really what's driving kiss of the.
We're doing a tie in to that HP, Jr. We're 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 gonna 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.
Then my 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 and in your five year guidance. What have you assumed for that because you know we continue to wait for the permit I think with plenty of 'twenty to 'twenty two 'twenty three.
How do we deal with what they are so I just kind of wondering what you have in your forecast and where are we on on on your thinking there and the permit.
Yeah. Good question. So a couple of components to that questions first I would say permitting itself. So this is a 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 or 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.
A 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.
So 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.
So on your question the five year guidance that we have this year than we had last year as soon as we get the EIA assumes we make some minor capital investments to allow higher throughput through through.
Through the plant.
There's a bit of capital on this or Tony Port included and a 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.
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 drives the denominator up at the same time on the cost front one.
One of the major drivers as the number of people we have in.
You know, 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.
The 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 year is going to change and it's because as.
As we ramp up the series operation, we're gonna 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.
A lot of these new jobs to be created allow people to move out of the redundant jobs into 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.
And we're expecting those costs to come down materially from what they were last year.
Once we ramp up production.
Post the permit and posts delivering.
Delivering on productivity and efficiencies to support this.
This nominal capital investment.
Then you'll see another tick 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 fashion itself within our cost and sort of like the 16 million range or thereabouts.
Is that still a number that I should be using.
Yes, 650 is still the number.
And then from a current perspective.
400, let's talk about the Capex.
Oh, sorry, I thought you were talking production.
Could you repeat the question Yeah. It was just on the expansion. When you said, there's some monies that have to get that could do to do all of that the size of the underground, which I'll leave but everything else on the infrastructure I think getting to that 50 mm at times like that was the net cost of $60 million.
Zero.
Yeah.
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 million to $40 million.
And then just in your five year plan just to finish off when you would seem to get the EIA. This year and then when are you going to the expanded rate.
In 2025.
Assuming we're at the expanded rate.
And given where having all of them some movement of people from state County, and final home kids going to school I mean, what are the what would be the holding cost. We should think about kind of the income statement furnished or Tony that here.
Phil scrubbing that number.
And then I'll leave it I don't know if I could get the holding cost and less sustaining capital that that would be awesome.
Yeah, 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're anticipating.
Care and maintenance costs for <unk>.
Petra for Tony to be in the range of two and a half to $3 $5 million a year.
Okay.
And so anything on the sustaining you can help me with that can or should I use that to 50.
Uh huh.
Okay.
<unk> hundred $50 million per year.
On the sustaining capex.
So they.
The sustaining capex I think for the 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> and I'm about to start to decrease.
No that's fair enough Okay. No I appreciate all of your insights.
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.
Hey, guys just a follow up question on Olympias.
You report your tonnes milled for the operation are you.
Building, a stockpile because I'm just noticing like.
<unk> Mills in 2022 versus 2021, where it was fairly flat, but your comments are.
You're 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.
Across our portfolio, we were hit by Covid for the first time, we had.
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 and fourth quarter production of olympias relative to prior quarters, a significant uptick.
Okay. So you could.
Fair to assume what's milled is what's mined.
Yes, there's just very little capacity to stockpile material to olympias underground or on the surfaces.
Okay and the so.
Any kind of tick up in.
Production year over year is largely grade base until we will get this expansion on line in 2025 or the or you're expecting some.
<unk> improvement year over year as well.
Yeah, 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 gonna 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 will ensue.
Suitable for the expansion that's underway, but will lower our unit cost for electricity just.
Just because we're right at the top end of that old equipment capacity.
We're waiting for turnover and tie ins 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.
Well go into 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 that's going to drive productivity and efficiencies in drilling and blasting and the whole 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.
Than we would've liked and you know 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 you know.
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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