Q3 2023 Eldorado Gold Corp Earnings Call
Speaker 1: transcript
Speaker 1: Thank you for standing by. This is the conference operator. Welcome to the Eldorado Gold third quarter 2023 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.
Thank you for standing by this is the conference operator, welcome to the Eldorado Gold's third quarter 2023 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'll 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.
Speaker 1: transcript
Speaker 1: To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. I would now like to turn the conference over to Lynette Gould, Vice President Investor Relations. Please go ahead Ms. Gould.
I would now like to turn the conference over to Lynette Gould Vice President Investor Relations. Please go ahead Miss Gould.
Speaker 2: transcript
Speaker 2: Thank you, operator, and good morning, everyone. I'd like to welcome you to our third quarter 2023 results conference call. Before we begin, I would like to remind you that we will be making forward-looking statements and referring to non-IFRS measures during the call. Please refer to the cautionary statements included in the presentation and the disclosure on non-IFRS measures in our management's discussion and analysis, as well as the risk factors set out in our annual information form.
Thank you operator, and good morning, everyone I'd like to welcome you to our third quarter 'twenty to 'twenty three results conference call.
Before we begin I would like to remind you that we will be making forward looking statements and referring to non ifr S measures during the call.
Please refer to the cautionary statements included in the presentation and the disclosure of non I O. R. S measures in our management's discussion and analysis as well as the risk factors set out in our annual information form.
Speaker 2: transcript
Speaker 2: Joining me on the call today we have George Burns, President and Chief Executive Officer, Phil Yee, Executive Vice President and Chief Financial Officer, Joe <expletive> , Executive Vice President and Chief Operating Officer, and Simon Hilly, Senior Vice President, Technical Services and Operations.
Joining me on the call today, we have George Burns, President and Chief Executive Officer Bill <unk>.
<unk> Executive Vice President and Chief Financial Officer.
Joe <expletive> Executive Vice President and Chief operating Officer, and Simon Hilli Senior Vice President Technical services and operations.
Speaker 2: transcript
Speaker 2: Our release yesterday details our third quarter 2023 financial and operating results. This should be read in conjunction with our third quarter financial statements and management's discussion and analysis, both of which are available on our website. They have also both been filed on CDAR Plus and EDGAR.
Our release yesterday details our third quarter 'twenty, two 'twenty three financial and operating results. This should be read in conjunction with our third quarter financial statements and management's discussion and analysis both of which are available on our website. They are also both been filed on SEDAR and Edgar.
Speaker 2: transcript
Speaker 2: All dollar figures discussed today are US dollars unless otherwise stated. We will be speaking to the slides that accompany this webcast and you can download a copy of these slides from our website.
Speaker 2: transcript
Speaker 2: After the prepared remarks, we will open the call for Q&A. At this time, we will invite analysts to queue for questions. I will now turn the call.
After the prepared remarks, we will open the call for Q&A at this time, we will invite analysts to queue for questions I will now turn the call over to George.
Speaker 3: transcript
Speaker 3: Thanks Lynette and good morning everyone. Here's the outline for today's call.
Thanks, Linda and good morning, everyone, Here's the outline for today's call.
Speaker 3: transcript
Speaker 3: I'll provide a brief overview of Q3 results and highlights before passing it to Phil to go through the financials, and then Joe and Simon to review our operational performance. Then we will open the call to questions.
I'll provide a brief overview of Q3 results and highlights.
Passing it to Phil to go through the financials and then Joe on assignment to review our operational performance.
Then we will open the call to questions from our analysts.
Speaker 3: transcript
Speaker 3: Turning to slide 4, starting with production. Our performance continued to improve over the quarter with safe production of 121,030 ounces of gold. At Olympias, the mine delivered its best quarter of the year and the trend is positive, with significant opportunity to make further improvements beyond where we are today.
Turning to slide four starting with production our performance continued to improve over the quarter with safe production of 120, <unk> hundred 21030 ounces of gold.
Olympias the mine delivered its best quarter of the year and the trend is positive with significant opportunities to make further improvements beyond where we are today.
Speaker 3: transcript
Speaker 3: This is a site that is really seeing innovation and technology making a difference in productivity.
This is a site that is really seeing innovation and technology and making a difference in productivity.
Speaker 3: transcript
Speaker 3: In the past few months, we have energized the substation, upgraded ventilation, and added bulk emulsion blasting underground.
In the past few months, we have energized the substation upgraded ventilation and added bulk emulsion blasting underground.
Speaker 3: transcript
Speaker 3: All of this is converging to create a positive trajectory for the site going forward.
All of this is converging to create a positive trajectory for the site going forward.
Speaker 3: transcript
Speaker 3: In the third quarter at Kistadah, with the North Leach heap leach pad operational, we are seeing increased tons with three cells under leach, which should positively impact gold production in the fourth quarter.
In the third quarter it kicks it off with the North heap Leach pad operational we're seeing increased tons with three cells under leach, which should positively impact gold production in the fourth quarter.
Speaker 3: transcript
Speaker 3: The tons placed are record amounts compared to the past six and a half years and a 19% increase relative to both the first and the second quarters of 2023.
The tons placed a record amount compared to the past six and a half years.
At a 19% increase relative to both the first and the second quarters of 2023.
Speaker 3: transcript
Speaker 3: At Lamocque, Q3 production increased over both Q1 and Q2. However, it was impacted by slower than expected development in the underground due to suspended shifts in the second quarter owing to the wildfires in the region.
Mark Q3 production increased over both Q1 and Q2, however, it was impacted by slower than expected development in the underground due to suspend it shifts in the second quarter, owing to the wildfires in the region.
Speaker 3: transcript
Speaker 3: As a result, we saw a ripple effect with reduced mining faces available for our production during the third quarter, which impacted our production relative to our expectation.
As a result, we saw a ripple effect with reduced mining faces available for ore production during the third quarter, which impacted our production relative to our expectations.
Speaker 3: transcript
Speaker 3: This site has consistently met its performance expectations, and I anticipate that it will maintain the trend throughout the fourth quarter as they access higher grade scope.
This site has consistently met performance expectations and I anticipate that it will maintain the trend throughout the fourth quarter as they access higher grade stopes.
Speaker 3: transcript
Speaker 3: As we head into the fourth quarter, we are updating our guidance range to narrow the ranges reflecting our full year expectations given the operational and financial performance to date.
As we head into the fourth quarter, we are updating our guidance range to narrow the ranges, reflecting our full your expectations given the operational and financial performance to date and we expect tight.
Speaker 3: transcript
Speaker 3: tightening gold production to between 475 and 495,000 ounces versus previous guidance of 475 to 515,000 ounces.
Tightening gold production to between 475 and 495000 ounces.
Our previous guidance of $4 75 to 515000 ounces.
Speaker 3: transcript
Speaker 3: Lowered cash operating cost to be between $730 to $780 per ounce sold versus previous guidance of $760 to $860.
Lower cash operating cost to be between 730 to $780 per ounce sold versus previous guidance of 760.
860.
Speaker 3: transcript
Speaker 3: tightening all in sustaining costs to between $1,190 and $1,240 per ounce sold versus previous guidance of $1,190 to $1,290.
Tightening all in sustaining cost of between 1190 and $1240 per ounce sold versus previous guidance of 11, 9% to 12 90.
Speaker 3: transcript
Speaker 3: Sustaining capital guidance remains unchanged at $114 to $139 million.
Sustaining capital guidance remains unchanged at $114 million to $139 million.
Speaker 3: transcript
Speaker 3: Growth capital for the year has been reduced to $280 to $305 million from $394 to $437 million primarily driven by lower than expected growth capital spend at Skurries.
Growth capital for the year has been reduced to $280 million to $305 million from $394 million to $437 million, primarily driven by lower than expected growth capital spend at series.
Speaker 3: transcript
Speaker 3: Scurries capital is expected to be between $160 to $170 million versus previous guidance of $240 to $260 million.
<unk> capital is expected to be between $160 million to $170 million versus previous guidance of $240 million to $260 million.
Speaker 3: transcript
Speaker 3: The reduction at Scurries is driven by a change in timing to award several contracts in order to optimize project execution.
The reduction that series is driven by a change in timing to award several contracts in order to optimize project execution.
Speaker 3: transcript
Shifting of certain preproduction expenditures from 'twenty to 'twenty, three 'twenty 'twenty four without impact to work progress or completion schedule.
<unk> engineering work in degrees.
Speaker 3: transcript
Speaker 3: an updated execution approach to major IRF works while maintaining construction schedule flexibility.
An updated execution approach to major Earth works, well, maintaining construction schedule flexibility.
Speaker 3: transcript
Speaker 3: In addition, the closing of the project financing in April , which was slightly delayed from our initial expectation, meant a slower ramp up than what was expected in awarding the contracts.
In addition to.
At closing of the project financing in April which was slightly delayed from our initial expectation men's a slower ramp up than what was expected in awarding the contracts.
This lower than.
Speaker 3: transcript
Speaker 3: This lower than expected spend in growth capital at Skurries in 2023 is not impacting overall project plan, including cost and schedule, and we remain comfortable we are on track for first gold in mid 2025.
This lower than expected spend in growth capital and stories in 'twenty. Two 'twenty three is not impacting overall project plan, including cost and schedule and we remain comfortable we're on track for first gold in mid 2025.
Speaker 3: transcript
Speaker 3: We are also pleased to issue our 2022 Climate Change and Greenhouse Gas Emissions Report in August , which provides a measurable progress towards our GHG mitigation target and enhancing climate resilience.
We are also pleased to issue our 2020 to climate change and greenhouse gas emissions report in August which provides a measurable progress towards our G. H D mitigation target and enhancing climate resilience.
Speaker 3: transcript
Speaker 3: This report builds on our first climate change report that was published in 2021 and focuses on our progress implementing the climate change strategy.
This report builds on our first climate change report that was published in 2021 and focuses on our progress implementing our climate change strategy.
Speaker 3: transcript
Speaker 3: The report included our GHG emissions target achievement pathway in which we seek to mitigate our scope one and scope two emissions from operating minds by 30% on a 2020 baseline by 2023.
The report included our G H G emissions target achievement pathway.
And which we seek to mitigate our scope one and scope two emissions from operating mines by 30% on a 'twenty 'twenty baseline by 2000 2030.
Speaker 3: transcript
Speaker 3: Our GHG emissions target achievement pathway comprises four levers.
Our G H G emissions target achievement pathway comprises four levers.
Speaker 3: transcript
Speaker 3: Operational efficiencies and continuous improvement, technologies, processes, and energy generation, grid, decarbonization,
Operational efficiencies and continuous improvement.
Technologies processes and energy generation.
Britain de carbonization.
And mine shut down and operational changes.
Speaker 3: transcript
Speaker 3: These opportunities will help mitigate our emissions, and we are already discovering these levers often provide multiple benefits that extend even further.
These opportunities will help mitigate our emissions and we were already discovering these levers often provide multiple benefits that extend even further.
Speaker 3: transcript
Speaker 3: We are committed to continuing to assess opportunities to improve our emissions-related impacts and enhance the resilience of our business in response to climate change.
We are committed to continuing to assess opportunities to improve our emissions related impacts and enhance the resilience of our business in response to climate change.
Speaker 3: transcript
Speaker 3: In addition, we are committed to further investigating how we will incorporate security's operational missions.
In addition, we are committed to further investigating how we will incorporate scurries operational emissions.
So our climate target.
Speaker 3: transcript
Speaker 3: invite you to read the full report available on our website.
Invite you to read the full report available on our website.
Speaker 3: transcript
Speaker 3: The highlight as we enter the fourth quarter has been a well-attended investor and analyst mind tour that we hosted at all four of our European assets, Shurys, Olympias, Kistada and FM2.
The highlight as we entered the fourth quarter has been a well attended Investor and Analyst Mine tour that we hosted at all four of our European assets stories Olympias gifts.
N F M chew through.
Speaker 3: transcript
Speaker 3: Some of you on the call today were able to get a first-hand feel for how things are going on the ground, which provided a sense of confidence in terms of the abilities of each side team.
Some of you on the call today, we're able to get a firsthand feel for how things are going on the ground, which provided a sense of confidence in terms of the abilities of each site team.
Speaker 3: transcript
Speaker 3: Each of you that participated was able to see firsthand how our productivity improvements are making a meaningful impact across the sites. In addition, the opportunities that still lie ahead for us.
Each of you that participated was able to see firsthand our productivity improvements are making a meaningful impact across the sites and in addition, the opportunities that still lie ahead for us.
Speaker 3: transcript
Speaker 3: Additionally, you're able to see directly our sustainable mining practices that we feel are best in class.
Additionally, you're able to see directly are sustainable mining practices that we feel are best in class.
Speaker 3: transcript
Speaker 3: I think everyone that attended the tour was impressed with our site teams and the significant achievements that we have made across the business.
I. Thank everyone that attended the tour was impressed with our site teams and there's significant achievements that we have made across the business.
Speaker 3: transcript
Speaker 3: We plan in the future to host more investor and analyst tours as we continue to deliver our growth and value creation that is unique amongst our peers.
We plan in the future to host our Investor and analyst tours as we continue to deliver our growth and value creation that is unique amongst our peers.
Speaker 4: transcript
Speaker 4: I'll stop there and turn the call over to Phil for a review of our financial results. Thank you, George. Good morning, everyone. Phil.
I'll stop there and turn the call over to Phil for a review of our financial results.
Thank you George good morning, everyone.
Slide five provides a summary of our third quarter results.
Speaker 4: transcript
Speaker 4: Eldorado reported a net loss attributable to shareholders from continuing operations of $6.6 million, or $0.03, lost per share in the third quarter, directly impacted by the previously disclosed 5% retroactive corporate tax rate increase in Turkey A, effective July 2023.
Eldorado reported a net loss attributable to shareholders from continuing operations of $6 6 million or three cents loss per share in the third quarter directly impacted by the previous previously disclosed 5% retroactive corporate tax rate increase in Turkey, a effective July 2012.
St.
Speaker 4: transcript
Speaker 4: After adjusting for one time non-recurring items, adjusted net earnings were $35 million, or $0.17 per share for the quarter. These one time non-recurring
After adjusting for onetime nonrecurring items adjusted net earnings were $35 million or <unk> 17 per share for the quarter.
These one time nonrecurring items included.
Speaker 4: transcript
Speaker 4: a one-time $22.6 million non-cash deferred tax expense.
A one time $22 6 million noncash deferred tax expense.
Speaker 4: transcript
Speaker 4: and a one-time out of period, current tax expense of 8.2 million, both the result of the retroactive corporate tax rate increase mentioned earlier.
And a onetime out of period current tax expense of $8 2 million.
Both the result of the retroactive corporate tax rate increase mentioned earlier.
Speaker 4: transcript
Speaker 4: In addition, a non-cash loss of 15.2 million on foreign exchange translation of deferred tax balances related to the weakening of the Lyra and the Euro.
In addition, a noncash loss of $15 2 million.
Foreign exchange translation of deferred tax balances related to the weakening of the lira and the euro.
Speaker 4: transcript
Speaker 4: and partially offset by a non-cash unrealized gain of $6 million on the revaluation of derivative instruments
And partially offset by a noncash unrealized gain of $6 million on the revaluation of derivative instruments.
Primarily the gold callers.
Speaker 4: transcript
Speaker 4: Pre-cash flow in the quarter was negative 19.3 million.
Free cash flow in the quarter was negative $19 3 million.
Speaker 4: transcript
Speaker 4: Excluding capital investment in the Scurrious Project, freak cash generation in the quarter was positive 30 million.
Excluding capital investment in the Sirius project free cash flow generation in the quarter was positive $30 million.
Speaker 4: transcript
Speaker 4: Cash flow generated by operating activities before changes in working capital total 97.5 million compared to the second quarter of 2023 of 82.4 million.
Cash flow generated by operating activities before changes in working capital.
<unk> totaled $97 5 million.
Compared to the second quarter of 2023 of $82 4 million.
Speaker 4: transcript
Speaker 4: Third quarter cash operating costs average $698 per ounce sold.
Third quarter cash operating costs averaged $698 per ounce sold.
Speaker 4: transcript
Speaker 4: and all-in-sustaining costs average of $177 per ounce sold.
And all in sustaining costs at Aberdeen standard and $77 per ounce sold.
Speaker 4: transcript
Speaker 4: Our costs decreased during the quarter as we continue to see lower than expected fuel and electricity prices.
Our cost decreased during the quarter as we continue to see lower than expected fuel and electricity prices. This was partially offset by higher royalty expenses as a result of the higher realized gold price during the quarter.
Speaker 4: transcript
Speaker 4: This was partially offset by higher royalty expenses as a result of the higher realized gold price during the quarter.
Speaker 4: All in sustaining costs per ounce sold in the third quarter, we're in line with expectation.
All in sustaining cost per ounce sold in the third quarter were in line with expectations.
Speaker 4: transcript
Speaker 4: With stronger gold production expected in the fourth quarter, we expect to see decreasing unit costs. And as George mentioned, we have updated our cost guidance range.
With stronger gold production expected in the fourth quarter, we expect to see decreasing unit costs and as George mentioned, we have updated our cost guidance ranges.
Speaker 4: Gapal expenditures of 91.1 million in the third quarter, which included investment in growth projects at Kissed Ag and at Scurrius, where we continue to advance procurement and the project.
Capital expenditures were $91 1 million in the third quarter, which included an investment in growth projects at cars today, and that's curious where we continued to advance procurement in the project.
Speaker 4: transcript
Speaker 4: Income tax expense of 52 million increased in the quarter compared to Q3 2022.
Income tax expense of $52 million increased in the quarter compared to Q3 2022.
Speaker 4: transcript
Speaker 4: Primarily result of the retraught to 5% Turkish tax rate increase as previously noted.
Primarily it's primarily a result of the retroactive to five per cent Turkish tax rate increase as previously noted.
Speaker 4: transcript
Speaker 4: Current tax expense totaled 21 million in Q3 2023.
Current tax expense totaled 21 million in Q3 2023.
Speaker 4: transcript
Speaker 4: An increase from Q3 2022 current tax returns of 16 million.
An increase from Q3 2022 current tax expense of $16 million.
Speaker 4: transcript
Speaker 4: The FIRD tax expense increased to 31 million in Q3 2023. Also an increase from Q3 2022, the FIRD tax expense of 12 million.
Deferred tax expense increased to 31 million in Q3 2023.
Also an increase from Q3 2022 deferred tax expense of $12 million.
Speaker 4: transcript
Speaker 4: These increases in Q3 2023 current and deferred tax expense over the comparative prior year period were due to the turkey A corporate tax rate increase previously mentioned.
These increases in Q3, 2023 current and deferred tax expense over the comparative prior year period were due to the tricky a corporate tax rate increase previously mentioned.
Turning to slide six.
Speaker 4: transcript
Speaker 4: At quarter end, we had unrestricted cash and cash equivalent to 476.6 million.
At quarter end, we had unrestricted cash and cash equivalents of $476 6 million.
Speaker 4: transcript
Speaker 4: With production expected to continue to improve over the fourth quarter, we expect to see our cash from continuing, our cash from operations improving further.
With production expected to continue to improve over the fourth quarter, we expect to see our cash from continuing our.
Our cash from operations improving further.
Speaker 4: transcript
Speaker 4: With the closing of the Scurrious Project Financing in April , availability under Al Dorado's 250 million Revolving Credit Facility was reduced, as Al Dorado's funding commitment for the Scurrious Project is fully backstopped by a letter of credit under that Revolving Credit Facility.
With the closing of the Sirius project financing in April availability under Eldorado's 250 million revolving credit facility was reduced as Eldorado's funding commitment for the Sirius project is fully backstopped by a letter of credit under that revolving credit facility.
Speaker 4: transcript
Speaker 4: The availability under the facility as of September 30th was 116 million.
The availability under the facility as of September 30th was $116 million.
Speaker 4: transcript
Speaker 4: We continue to focus on maintaining a solid financial position, which provides flexibility to unlock value across our global business.
We continue to focus on maintaining a solid financial position.
Which provides flexibility to unlock value across our global business.
Speaker 4: transcript
Speaker 4: With that, I will now turn it over to Joe to go through the operational highlights.
With that I'll now turn it over to Joe to go through the operational highlights.
Thanks, Phil and good morning.
Speaker 5: transcript
Speaker 5: Starting on slide seven, at Scorias construction activity in Q3 continue to ramp up with overall project progress at 34% and one incorporating all prior work, Scorias progress stands at 65% complete.
Starting on slide seven.
Scorpius construction activity.
In Q3 continued to ramp up with overall project progress at 34% and one incorporating all prior work squares progress stands at 65% complete.
Speaker 5: transcript
Speaker 5: Mobilization continued for major earthworks for construction. Hall roads needed to undertake all other major earthworks and is progressing well with work on several fronts underway.
Mobilization continued for major earthworks for construction haul roads needed to undertake all other major Earth works and is progressing well with work on several fronts underway.
Speaker 5: transcript
Speaker 5: During the quarter, the contractors for the earth works and pilings for the primary crusher were mobilized and commenced work.
During the quarter the contractors for the earthworks and pilings for the primary crusher were mobilized and commenced work.
Speaker 5: transcript
Speaker 5: General works continue to focus on site preparation, relocation of temporary facilities, recommissioning of the non-contact water reinjection well system, and the haulage of aggregates for construction purposes.
General works continued to focus on site preparation relocation of temporary facilities re commissioning of the non contact water reinjection well system.
And the whole each of aggregates for construction purposes.
Speaker 5: transcript
Speaker 5: The first phase of underground development continues to advance the Westby Klein and lateral development for the test stopes to validate the underground assumptions prior to first production from the underground.
The first phase of underground development continues to advance the west decline in lateral development for the test stopes to validate the underground assumptions prior to first production from the underground.
Speaker 5: transcript
Speaker 5: Test-stop work access will commence at the end of 2024 with expected completion by mid-2025.
Test work access will commence at the end of 'twenty 'twenty four with expected completion by mid 2025.
Speaker 5: transcript
Speaker 5: With your today's spending at Scorias at 101.3 million, we expect to ramp up our commitments during the fourth quarter and are comfortable achieving our updated guidance range of 160 to 170 million.
With year to date spending it's Korea set 101 3 million, we expect to ramp up our commitments during the fourth quarter and are comfortable achieving our updated guidance range of $160 million to $170 million.
Speaker 5: transcript
Speaker 5: The spending is focused on completing detailed engineering and procurement.
The spending is focused on completing detailed engineering and procurement.
Speaker 5: transcript
Speaker 5: As of September 30th, detailed engineering is 56% complete and procurement is 73% complete.
As of September 30th detailed engineering is 56% complete and procurement is 73% complete.
Speaker 5: transcript
Speaker 5: We continue to focus on completing key contracts with evaluations ongoing with a view to generating cost and productivity synergies during the process.
We continue to focus on completing key contracts with evaluations ongoing with a view to generating cost and productivity synergies during the process.
Speaker 5: transcript
Speaker 5: We expect to complete this process and award the remaining key contracts by the end of 2023, which include the filter plant, including the earthworks pilings and foundation to support the filter.
We expect to complete this process and award the remaining key contracts by the end of 'twenty two 'twenty three which include the filter plant, including the earthworks pilings and foundation to support the filters.
Speaker 5: transcript
Speaker 5: Open-pit pre-stripping and construction of the or stock tile, water management ponds and the integrative extractive waste management facility dam and bankmen.
Open pit pre stripping and construction of the ore stockpile water management pond, and the integrated extractive waste management facility dam embankment.
Speaker 5: transcript
Speaker 5: structural concrete for the primary crusher and associated process facilities.
Structural concrete for the primary crusher and associated process facilities.
Speaker 5: transcript
Speaker 5: mechanical, piping, electrical, and instrumentation for the process plant.
And.
Mechanical piping electrical and instrumentation for the process plant.
Speaker 5: transcript
Speaker 5: The project, both cost and schedule, remain on track for commissioning and first production in mid 2025 with commercial production expected at the end of 2025.
The project, both cost and schedule and remain on track for commissioning and first production in mid 2025 with commercial production expected at the end of 2025.
Speaker 5: transcript
Speaker 5: Turning to slide eight in the third quarter, we recorded zero lost time injuries.
Turning to slide eight in the third quarter, we recorded zero loss time injuries.
Speaker 5: transcript
Speaker 5: The last time injury frequency rate for the first nine months of the year was 0.74, a 49% decrease from the same period in 2022. We continue to take proactive steps to improve workplace safety and to ensure a safe working environment for our employees and our contractors.
The lost time injury frequency rate for the first nine months of the year was 0.74, 49% decrease from the same period in 2022, we continue to take proactive steps to improve workplace safety and to ensure a safe working environment for our employees and our contractors.
Speaker 5: transcript
Speaker 5: On our operating results, we produced 121,030 ounces of gold in the third quarter with a cash operating cost of $698 per ounce sold, a solid quarter which positions us to remain on track to meet our guidance. I'll pass it over to Simon to review the third quarter performance and operations in Torquea and Canada.
On our operating results, we produced 121030 ounces of gold in the third quarter with a cash operating cost of $698 per ounce sold a solid quarter, which positions us to remain on track to meet our guidance.
Pass it over to Simon to review, the third quarter performance and operation in Turkey and Canada.
Thanks Jay.
Speaker 6: transcript
Speaker 6: Studying Jekiae on slide 9, Akishida third quarter production was 37,219 ounces and cash operating costs of $622 per ounce sold, which represents a 17% reduction in cash costs and similar production compared to Q3 2022.
That in Turkey, a on slide nine it keeps you that third quarter production was 37219 ounces and cash operating cost of $622 per ounce sold which represents a 17% reduction in cash costs and similar production compared to Q.
<unk> 2022.
Speaker 6: transcript
Speaker 6: Production during the third quarter was driven by the successful commissioning of the agglomeration drum that was added to the crushing circuit in the second quarter and tons placed on the heap leach pad have continued to increase.
Production during the third quarter was driven by the successful commissioning of the agglomeration drum that was added to the crushing circuit in the second quarter and tons of pilot tests on the heap Leach pad have continued to increase.
Speaker 6: transcript
Speaker 6: The larger surface area of the newly commissioned North East bleach pad has enabled the full capacity of the 54 inch stacking equipment to increase tung splice and increase the irrigation fly rate.
The largest surface area of the knee.
Newly commissioned North heap Leach pad has enabled full capacity up at 64 and stacking equipment to increase 10 supplies.
Any crazy irrigation fly rights.
Speaker 6: transcript
Speaker 6: Production is expected to increase over the course of the fourth quarter as we realise full effectiveness from the upgraded materials handling equipment.
<unk> is expected to increase over the course of the fourth quarter as we realized full effectiveness from the upgraded materials handling equipment.
In addition.
Speaker 6: transcript
Speaker 6: We expect to continue to do it and inventory built up in Q2 as a result of the substantial rainfall that resulted in diluted lead solution.
We expect to continue to draw down inventory built up in Q2 as a result of the substantial rainfall that resulted in diluted leach solution.
On slide 10, and that's into Cree third quarter Gold production was 21142 ounces at cash operating cost of $817 per ounce sold.
Speaker 6: transcript
Speaker 6: Third quarter gold production was 21,142 ounces at cash operating costs of $817 per ounce sold.
Speaker 6: transcript
Speaker 6: Go production, throughput and average go graded FM2 crew were in line with plans for the quarter.
Production throughput and Everything's got upgraded F. M. J crew are in line with plan for the quarter.
Speaker 6: transcript
Speaker 6: Development towards the cocafenaire area is on track and is expected to continue to extend mind life.
Development towards the <unk> area is on track and is expected to continue to extend mine life.
Speaker 6: transcript
Speaker 6: For 2023, at FM2Crew, we expect to see a modest increase in Q4 production over the third quarter.
But 2023 edits into crude we expect to see a modest increase in Q4 production I didn't say, Florida. Additionally.
Additionally during.
Speaker 6: transcript
Speaker 6: During the quarter, the FN2 Group Mine was successfully certified ISO 5001 Energy Management Standard.
During the call that the St. Jude Grade mine was successfully certified ISO 5000 number one energy management standard.
And now moving to our Mac on slide 11.
Speaker 6: transcript
Speaker 6: The quote-unquote production was 43,821 answers at cash operating cost of $624 per ounce.
Quarter Gold production was 43821 ounces.
Our cash operating cost of $624 per ounce sold.
Speaker 6: transcript
Speaker 6: Production was impacted by slower than expected development in the underground as a result of suspended shifts in the second quarter due to the wildfires in the reach.
Production was impacted by slower than expected development in the underground as a result of suspended shifts in the second quarter due to the wildfires in the region.
Speaker 6: transcript
Speaker 6: which led to reduce mining phases for all production in the third quarter.
Which led to reduced mining faces for production and that said, Florida.
Speaker 6: transcript
Speaker 6: The fourth quarter is expected to be stronger with development into high-grade stopes and continued stable processes.
The fourth quarter is expected to be stronger with development into high grade Stopes and continued stable prices seem right.
Speaker 6: transcript
Speaker 6: Additionally, we remain on track to complete as 2023 in field drilling program targeting the upper two thirds of the all-max deposits.
Additionally, we remain on track to complete at 2023 infield drilling program targeting the aperture of the <unk> deposit.
Speaker 6: transcript
Speaker 6: Our plan is to take a bulk sample and announce ORMAC inaugural reserves during the second half of 2020.
Our plan is to take a bulk sample and announce or Mac inaugural was added during the second half of 2024.
Speaker 6: transcript
Speaker 6: op-hand the call back to Jay to repeat a third call for the result at all.
Okay.
The call back to Jai to review the third quarter results at Olympias.
Speaker 5: transcript
Speaker 5: Thanks, Simon. Moving to Olympias on slide 12. Third quarter gold production was 18,848 ounces and cash operating costs were $885 per ounce sold.
Thanks Simon.
Moving to Olympias on slide 12.
Third quarter Gold production was 18848 ounces and cash operating costs were $885 per ounce sold.
Speaker 5: transcript
Speaker 5: Mind and process tons were up from prior quarter and at record levels for Olympia.
Mine and processed tonnes were up from prior quarter and at record levels for Olympias.
Speaker 5: transcript
Speaker 5: Cash costs improved primarily due to productivity efficiencies resulting from recent transformation initiatives, as well as slightly lower unit costs for certain consumables, including electricity.
Cash costs improved primarily due to productivity efficiencies, resulting from recent prints formation initiatives.
As well as slightly lower unit costs for certain consumables, including electricity.
Speaker 5: transcript
Speaker 5: During Q2 and early Q3, we completed a number of milestones that have resulted in our ability to increase underground development and production from the flat zone. These milestones include.
During Q2 and early Q3, we completed a number of milestones that have resulted in our ability to increase underground development in production from the plant shown.
These milestones include.
Speaker 5: transcript
Speaker 5: Transitioning to mechanical loading of drilled rounds with a bulk emulsion agent.
Transitioning to mechanical loading brill's rooms, with a bulk emulsion agent.
Speaker 5: transcript
Speaker 5: Mechanical completion of a major upgrade to the ventilation system.
Mechanical completion of a major upgrade to the ventilation system.
Speaker 5: transcript
Speaker 5: and completion and energization of the new 150 kV substation which enabled the ventilation system startup.
And completion and energy station of the new 150 kv substation, which enabled the ventilation system startup.
Speaker 5: transcript
Speaker 5: With access into the flat zone, we expect to improve not only our gold production, but also our byproduct metal production, which we expect to result in higher byproduct credits and in turn lower operating costs going forward.
With access into the flagstone, we expect to improve not only our gold production, but also where byproduct metal production, which we expect to result in higher byproduct credits and in turn lower operating costs going forward.
Speaker 5: transcript
Speaker 5: Gold production is expected to be steady over the fourth quarter as the productivity initiatives continues to safely deliver increased tonnage and increased by product metals, reducing our overall cash cost. I'll stop there and turn it back to George for closing.
Gold production is expected to be steady over the fourth quarter as the productivity initiatives continue to safely deliver increased tonnage.
And increased byproduct metals, reducing our overall cash costs.
Stop there and turn it back to George for closing remarks.
Thanks Gene.
Speaker 3: transcript
Speaker 3: Our operating business delivered a strong quarter, generating improved free cash flow, excluding capital expenditures on the SCURIES project.
Our operating business delivered a strong quarter generating improved free cash flow excluding capital expenditures on the <unk> project.
Speaker 3: transcript
Speaker 3: We also deliver some fantastic improvements in our business.
We also deliver some fantastic improvements in our business.
Speaker 3: transcript
Speaker 3: Both Olympias and Kisadar reach major turning point with the completion of K'ien-Fu.
Both olympias and <unk> reached a major turning point with.
With the completion of key infrastructure investments bulk.
Speaker 3: transcript
Speaker 3: Both sides are now beginning to reap the benefits from these investments.
Both sites are now beginning to reap the benefits from these investments.
Speaker 3: transcript
Speaker 3: At Lamarck, we're well positioned for the Armak deposit in that we've got the exploration drift and infill drilling program moving to completion this year that sets us up for the bulk sample collection next year.
Yeah.
Mark we're well positioned for the <unk> deposit and that we've got the exploration drift and infill drilling program moving to completion this year that sets us up for.
So the bulk sample collection next year.
Speaker 3: transcript
Speaker 3: which then sets us up to have our first reserve on our mock late next year. This site has continuously delivered or exceeded...
Which then sets us up to have our first reserve on remark late next year.
This site has continuously deliver.
Deliver exceeded expectations.
And they are set up to deliver a strong fourth quarter.
Speaker 3: transcript
Speaker 3: At FM Chukuru, we're also advancing our exploration and infill drilling programs to support mine life extension.
F M to currency, we're also advancing our exploration and infill drilling programs to support mine life extension.
Speaker 3: transcript
Speaker 3: And at Scurries, we're just six months past finalization of the project financing. And the project is advancing nicely towards the start of commissioning in mid 2025 to deliver commercial production on budget and on schedule by the end of 2025. We are on track.
And at <unk>, We're just six months past Finalization of the project financing and the project is advancing nicely towards the start of commissioning in mid 2025 to deliver commercial production on budget and on schedule by the end of 2025.
We are on track to deliver our growth strategy.
Speaker 3: transcript
Speaker 3: to deliver industry-leading returns over the next couple of years. It's an exciting time to be at Al Dorado.
Deliver industry, leading returns over the next couple of years.
It's an exciting time to be at El Dorado.
Speaker 3: transcript
Speaker 3: Thank you for your time. I will now turn it over to the operator for questions from our analysts.
Thank you for your time I will now turn it over to the operator for questions from our analysts.
Speaker 1: transcript
Speaker 1: Thank you. We will now begin the question and answer session. To join the question, you may press star, then one, on your telephone keypad. You will hear a tone acknowledging your request.
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, you'll hear a tone acknowledging your request.
Speaker 1: transcript
Speaker 1: If you are using a speakerphone, please pick up your handset before pressing any key.
If you are using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two we'll pause for a moment as callers join the queue.
Speaker 1: transcript
Speaker 1: To withdraw your question, please press star, then two. We'll pause for a moment as callers join the.
Speaker 1: transcript
Speaker 1: Our first question comes from Cosmos, Chu of CIBC. Please go ahead. Great. Thanks, George Phil.
Our first question comes from Cosmos <unk> of CIBC. Please go ahead.
Great. Thanks, George Phil Joe Simon than that.
Speaker 7: transcript
Speaker 7: Maybe my first question is on Scariest. I guess, you know, some are wondering how a change in a cat-x, at least for 2023, doesn't impact the delivery schedule. I guess my question is, is this just really a shift in timing? It'll on the top end, you're lowering 2023 cat-x of Scariest by $90 million.
Maybe my first question is on Sirius I guess.
Some are wondering how a change in capex at least for 2023 doesn't impact the delivery schedule.
I guess my question is is this just really a shift in timing at all on the top end Youre lowering 2000, twenty's capex, a serious by $90 million.
Speaker 7: transcript
Speaker 7: I'm sure you're going through the budgeting process right now, George and Phil. Is that going to show up in 2024?
I'm sure you're going through the budgeting process right now George Phil is that going to show up in 2024.
Speaker 3: transcript
Speaker 3: Yeah, Cosmos, thanks for the question. Yeah, I mean, for scurries, I'd say a couple of key things I'd point out. Number one, you have to remember that prior to starting the work this year, you know, we roughly said the project was half built. So, I mean, the, the group that went and visited the site could see we have a tremendous amount of infrastructure already on the project site. And then the, the other high level thing.
Yeah Cosmos. Thanks for the question, Yeah, I mean first Gary's I'd say a couple of key things I'd point out number one you have to remember that.
Here to starting the work this year, we had roughly said the project was half built so you mean that the group that went and visited the site could see we have a tremendous amount of infrastructure.
On the project site and then the other high level thing I'd say is remember we just completed the project financing in the second quarter. We're on a steep ramp up curve. We have a lot of people on site doing construction now, but that's going to accelerate over the next number of months as we get a few of these major contracts. So so yes.
Speaker 3: transcript
Speaker 3: Remember, we just completed project financing in the second quarter. We're on a steep ramp up curve.
Speaker 3: transcript
Speaker 3: We have a lot of people on site doing construction now, but that's gonna accelerate over the next number of months as we get a few of these major contracts. So yeah, the capital spins down a bit. Some of it's actually optimization where we're pushing some costs off without any impact to schedule. And some of it is just simply a little bit light on a few of these contracts, none of which is affecting the critical path for the project.
Capital spend is down a bit some of it's actually optimization, where we're pushing some cost off without any impact to schedule and some of it is just simply a little bit light on a few of these contracts none of which is affecting the critical path for the project.
Speaker 3: transcript
Speaker 3: So overall we remain confident that we'll get this thing into commissioning mid 2025 commercial production by the end of the year. Obviously with a bit lower spend this year, it's gonna be a heavier lift next year. But again, when we look at critical paths, we're not concerned about the schedule or overall capital cost. And Joe, I don't know if you have a few comments you might wanna add to that. for
So.
Overall, we remain confident that we'll get this thing into commissioning mid 2025 commercial production by the end of the year, obviously was a bit lower spend this year, it's going to be a heavier lift next year, but again when we look at critical path, we're not concerned about the schedule or overall capital cost and Joe I don't know if you have a few car.
Operator: Thank you for standing by. This is the conference operator. Welcome to the Eldorado Gold 3rd quarter 2023 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'll 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.
Once you might want to add to that.
Oh, Thanks, George Hi, Cosmos.
Speaker 5: transcript
Speaker 5: I would say that, you know, as we, some of that confidence comes from, right from the beginning flexibility that we built into the construction schedule.
I would say I would say that you know as we do some of that confidence comes from right.
Right from the beginning flexibility that we built into the construction schedule. So you.
Lynette Gould: I would now like to turn the conference over to Lynette Gould, Vice President Investor Relations. Please go ahead, Miss Gould. Thank you operator and good morning everyone. I'd like to welcome you to our 3rd quarter 2023 Resolved Conference call. Before we begin, I would like to remind you that we will be making forward looking statements and referring to non-IFRS measures during the call. Please refer to the cautionary statements included in the presentation and the disclosure on non-IFRS measures in our management discussion and analysis, as well as the risk factors set out in our annual information form.
Speaker 5: transcript
Speaker 5: You know, we remain continuing to project on a on a single shift, six day a week construction schedule. So certainly, you know, we have flexibility.
We remain continuing to project on a on a single ship six day week construction schedule. So certainly we have flexibility.
Lynette Gould: Joining me on the call today, we have George Burns, President and Chief Executive Officer, Philly Yee, Executive Vice President and Chief Financial Officer, Joe Dick, Executive Vice President and Chief Operating Officer, and Simon Hilly, Senior Vice President, Technical Services and Operations. Our release yesterday details our 3rd quarter 2023 Financial and Operating Resolve. This should be read in conjunction with our 3rd quarter financial statements and management discussion and analysis, both of which are available on our website.
Speaker 5: transcript
Speaker 5: and how to deploy resources over the remaining project time. And I also say that, you know, kind of concurrent with your just comments that.
In how to deploy resources over the remaining project time and I also say that.
Kind of concur with George's comments that you know some of the optimization that we have done in the <unk>.
Speaker 5: transcript
Speaker 5: You know, some of the optimization that we have done in the well in this early awards stage, I think is pretty beneficial to overall project costs. And so, you know, we're comfortable with that, that trade off in time versus money in the near term here. And as George said, we're still confident or remain confident on being able to deliver Scorrious in 2025.
Well in this early award stage I think it's.
You know pretty beneficial to overall project costs and so you know we're comfortable with that that tradeoff in time versus money at least in the near term here and and as George said, we're still confident or remain contracting done being able to deliver score isn't.
25.
Speaker 7: transcript
Speaker 7: Perfect. And then, you know, George and Joe, as you mentioned in your press release, you mentioned a few items that contributed to the decreasing capex for the year. Part of it is transitioning engineering work to Greece. Would that result in a permanent cost savings, or could you give us a bit more detail on on what that entails?
Perfect and then.
Georgia, Joe as you mentioned, you've got a press release, you mentioned a few items that contributed to the decrease in capex for the year.
Part of it is transitioning engineering work to Greece.
Would that result in a permanent cost savings or could you give us a bit more detail on what that entails.
Lynette Gould: They have also both been filed on Cedar Plus and Edgar. All dollar figures discussed and say are US dollars unless otherwise stated. We will be speaking to the slides that accompany this webcast, and you can download a copy of these slides from our website. After the prepared remarks, we will open the call for Q&A.
Speaker 5: transcript
Speaker 5: Go ahead, Joe. Cosmos, this is Joe. Yeah, that's kind of what was being reflected there. As we move the engineering, the offshore engineering from Vancouver to Greece, we see a better cost structure for engineering. But also, there was a bit of time in making that transition, so.
Go ahead, Joe Cosmos.
This is Joe Yeah that that's kind of what was being reflected there as.
As we move the engineering the offshore engineering from Vancouver to Greece, we see a.
You're a better cost structure for engineering, but also there was a bit of time in making that transition. So.
Operator: At this time, we will invite analysts to queue for questions.
George Burns: I will now turn the call over to George. Thanks, Lynette, and good morning, everyone. Here's the outline for today's call. I'll provide a brief overview of Q3 results and highlights before passing it to Phil to go through the financials, and then Joe and Simon to review our operational performance. Then we will open the call to questions from our analysts. Turning this slide 4, starting with production, our performance continue to improve over the quarter with safe production of 120, 121,030 ounces of gold.
Speaker 5: transcript
Speaker 5: improved cost and for a period as that was transitioning and ramping up a bit slower delivery but everything is on track now and working well so.
Improved cost and for a period as that was transitioning and ramping up.
Uh huh.
Lower delivery, but everything's on track no working working well so.
Pretty pleased with that.
Speaker 7: transcript
Speaker 7: Great. And then, you know, going back to Q2, you had mentioned at that time that, you know, several contracts were going to get awarded in Q3. Likely, it sounds like it didn't happen, but, you know, that's okay. But you also mentioned that
Great and then.
Going back to Q2.
You had mentioned at that time.
Several contracts, we're going to get awarded.
It sounds like it didn't happen, but that's okay, but you also mentioned that are there.
Speaker 8: transcript
Speaker 8: The estimate will be updated to the project control budget with some kind of update expected by the end of Q3. We're past Q3 now, but again, should we be expecting some kind of update? Should we be looking out for some kind of update if that's the case? Maybe when? Where are we set today?
The F S estimate will be updated to the project control budget.
George Burns: At Olympias, the mine delivered its best quarter of the year, and the trend is positive. It was significant opportunity to make further improvements beyond where we are today. This is a site that is really seeing innovation and technology making a difference in productivity. In the past few months, we have energized the sub-station, upgraded ventilation, and added bulk emulsion blasting underground. All of this is converging to create a positive trajectory for the site going forward.
With some kind of update expected by the end of Q3.
Well it pass Q3 now but.
Again should we be expecting some kind of update should we look at some kind of update if that's the case maybe.
Maybe one.
Where we sit today for those months.
Go ahead George go ahead Joe.
Speaker 8: transcript
Speaker 8: possible before we sit today is that, you know,
Kosmos where we sit today is that.
Speaker 8: transcript
Speaker 8: We did an update based on completion of award of contracts. And when that work is completed, we'll update, should we see any type of material information that needs to be passed along? So that's what we said today is.
We didn't update based on completion of award.
George Burns: In the third quarter at Kisadah, with the North Leap Beach pad operational, we are seeing increased tons with three cells under leach, which had positively impact all production in the fourth quarter. The tons placed are record amounts compared to the past six and a half years, and a 19% increase relative to both the first and the second quarters of 2023. At the mock, Q3 production increased over both Q1 and Q2. However, it was impacted by slower than expected development in the underground due to suspended shifts in the second quarter, falling to the wildfires in the region.
Contracts and when that work is completed we'll update you know should we see any type of material information that needs to be passed along.
So that's where we sit today is we're not updating based on on.
Speaker 8: transcript
Speaker 8: we're not updating based on the commitment schedule. And as that completes through the end of the year, we'll update based on any material changes that we may see. And if not, then I think we'll, you know,
The commitment schedule and that's bad complete through the end of the year, we'll update based on any material changes that we may see.
And if not then I think will.
Hold where we're at.
Speaker 3: transcript
Speaker 3: I was going to let me just add a few comments to that. So I just want to make it clear when we said that in Q2, we're not signaling that we expect anything to come out of that necessarily. It's just, it's an important milestone in the work. It will give us some updated information. So in the feasibility study, we obviously made assumptions on productivity, numbers of employees required to do each piece of work. And so once we get a contract negotiated, we've got improved information.
I was gonna slip maybe just to add a few comments to that so I just want to make it clear when we said that in Q2, where we're not signaling that we expect anything to come out of that necessarily it's just it's an important milestone in the work it will give us some updated information so when the feasibility study.
George Burns: The ripple effect with reduced mining faces available for our production during the third quarter, which impacted our production relative to our expectations. This site is consistently met its performance expectations, and I anticipate that it will maintain the trend throughout the fourth quarter as they access higher grade stoves.
Obviously made assumptions on productivity numbers of employees required to do each each piece of work and so once we get a contract negotiated we've got improved information and.
Speaker 3: transcript
Speaker 3: And so, we'll digest that. We're not expecting anything to change, but if it does, that will be a time to bring the market up to speed. So, and I would remind you again that, you know, it was roughly half built when we started. We have the confidence in all that work that was done. It was built into the feasibility study. And we've done quite a bit of work beginning last year, including putting up the building around the mill facility, the cranes, and the work that you saw on site.
George Burns: As we head into the fourth quarter, we are updating our guidance range to narrow the ranges, reflecting our full-year expectations given the operational and financial performance to date, and we expect tightening Gold production to between 475 and 495,000 ounces versus previous guidance of 475 to 515,000 ounces. Lower cash operating costs to be between $730 to $780 per ounce sold versus previous guidance of $760 to $860. Tightening all in sustaining costs to between $1,190 and $1,240 per ounce sold versus previous guidance of 1190 to 1290.
And so we'll digest that we're not expecting anything to change, but if it does that will be a time to.
To bring the market up to speed so.
I would remind you again that you know it was roughly half built when we started we have the confidence and all of that work that was done that was built into the feasibility study and we've done quite a bit of work beginning last year, including putting up the building around the mill facility, the cranes and the and the work that you saw on site.
Speaker 3: transcript
Speaker 3: that we've completed this year. So we got a lot of confidence in our commitment. We have a lot of confidence in the work we've done.
But we've completed this year or so and we got a lot of confidence.
We have a lot of confidence in the work we've done.
Speaker 3: transcript
Speaker 3: Um, we don't have any, um, critical equipment that we have any concern about. I mean, the filters was really the last.
We don't have any.
Critical equipment that we have any concern about the filters was really the last major piece of equipment that we needed to acquire and and the filter essentially are manufactured so we're already working on plans to to put those filters together on site.
Speaker 3: transcript
Speaker 3: major piece of equipment that we needed to acquire, and the filters essentially are manufactured, so we're already working on plans to put those filters together on site.
George Burns: Sustaining capital guidance remains unchanged at $114 to $139 million. Growth capital for the year has been reduced to $280 to $305 million from $394 to $437 million, primarily driven by lower than expected growth capital spend at Scurries. Scurries capital is expected to be between $160 to $170 million versus previous guidance of $240 to $260 million. The reduction that Scurries is driven by, a change in timing to award several contracts in order to optimize project execution, shifting of certain pre-production expenditures from 2023 to 2024, without impact to work progress or completion schedule, transitioning engineering work in degrees, and updated execution approach to major earthworks while maintaining construction schedule flexibility.
Speaker 3: transcript
Speaker 3: that risk is essentially eliminated now. So we remain confident, and again, those things we pointed to in Q2 are going to be additional data, additional information, a little later than planned just due to these contracts slipping a little bit, but again, not affecting schedule. And maybe one last comment, you know, on the civil works.
That risk is essentially eliminated now so we remain confident and again those those things that we pointed to in Q2 are going to be additional data additional information a little later than planned just due to these contracts slipping a little bit, but again not affecting schedule and maybe one last comment you know.
On the Civil works, we had originally contemplated that as for individual contracts and we took the time to digest all the bids came in but a lot of work into optimizing that piece of work and in fact have landed with with one contractor and we're seeing synergies out of that work.
Speaker 3: transcript
Speaker 3: We had originally contemplated that as four individual contracts, and we took time to digest all the bids that came in, put a lot of work into optimizing that piece of work, and in fact have landed with one contractor, and we're seeing synergies out of that work.
Speaker 3: transcript
Speaker 3: It's a contractor we've got familiarity with, as they've done work on the Coconolatus Dam the last couple of years. So we're taking our time to make sure we got the right partner and the optimized execution strategy. And so far, things have gone very well for us. So I wouldn't be concerned about a little bit of slippage in the spend or getting these contracts. It's actually.
It's a contractor we've got familiar out familiarity with as they've done work on the token all of this down the last couple of years. So we're taking our time to make sure. We got the right partner and the optimize execution strategy and so far things have gone very well for us so I wouldn't be concerned of.
A little bit of slippage in the spend or getting these contracts it's actually.
George Burns: In addition, the closing of the project financing in April, which was slightly delayed from our initial expectation, meant a slower ramp up than what was expected in awarding the contracts. This lower than expected spending growth capital at Scurries in 2023 is not impacting overall project plan, including cost and schedule, and we remain comfortable we are on track for first gold in mid 2025.
Speaker 3: transcript
Speaker 3: so far turned to be positive to take our time and get the best possible contract to ensure the best possible outcome on this project.
So far it turned to be positive to take our time and get the best possible contract and.
Sure the best possible outcome on this project.
Speaker 7: transcript
Speaker 7: That's great to hear, George. Maybe one last question. Switching gears a little bit to Olympia.
That's great to hear George maybe one last.
Question switching gears a little bit.
N P S.
Speaker 7: transcript
Speaker 7: very good quarter in Q3. And so, you know, I guess going back there have been a bit of
Very good quarter in Q3, and so I guess going back there have been a bit or not.
Speaker 7: transcript
Speaker 7: Not volatility, but a bit of different in the quarters. Q1 was good, Q2 was not as good, Q3 now is good once again.
Volatility of a bit of a difference in the quarters Q1 was good Q2 was not as good Q3 dollars. Good once again.
George Burns: We are also pleased to issue our 2022 climate change in greenhouse gas emissions report in August which provides a measurable progress towards our GHG mitigation target and enhancing climate resilience. This report builds on our first climate change report that was published in 2021 and focuses on our progress implementing the climate change strategy. The report included our GHG emissions target achievement pathway in which we seek to mitigate our scope one and scope two emissions from operating minds by 30% on a 2020 baseline by 2020 30.
Speaker 7: transcript
Speaker 7: Can we expect more stability, you know, going forward now that, you know, you've implemented, say, bulk in motion, you've implemented, or the ventilation is now in place? You know, is the current level what we can continue to expect in terms of production? Costs were, you know, fairly good as well, $1,390 an ounce in Q3. Is that a good level of cost, or can we expect even better?
Can we expect more stability going for it and all that.
Implemented say bulk of emotion inclement or the ventilation is now in place.
<unk> is the current level.
What we can continue to expect in terms of production costs were fairly good as well as 13 90 analysis. In Q3 is that is that a good level costs are okay, and we expect even even better.
Speaker 3: transcript
Speaker 3: Cosmos maybe I'll answer it just some of the high level
Sure Cosmos, maybe I'll answer it just some of the high level.
Speaker 3: transcript
Speaker 3: implications on Olympia's results, and Joe can speak to the operational. So, I mean, for Olympia's, number one, I would say the infrastructure improvements we've put in place are a game changer for us. But some of the volatility on Olympia's has to do with external markets. We got hit with that payability issue a year ago. We've been plowing some of that back by finding.
The implications on the Orbitz results and Joe can speak to the operational so I mean for Olympias number one I would say the infrastructure improvements we've put in place are a game changer for us but some.
George Burns: Our GHG emissions target achievement pathway comprises four levers, operational efficiencies and continuous improvement, technologies, processes and energy generation, grid decarbonization and mine shut down and operational changes. These opportunities will help mitigate our emissions and we are already discovering these levers often provide multiple benefits that extend even further. We are committed to continuing to assess opportunities to improve our emissions related impacts and enhance the resilience of our business in response to climate change. In addition, we are committed to further investigating how we will incorporate Scurries operational emissions to a climate target and invite you to read the full report available on our website.
Some of the volatility at Olympias has to do with external markets. We got hit with a pay ability issue a year ago, we've been pulling some of that back by finding.
Speaker 3: transcript
Speaker 3: other customers, where we avoid the VAT. And even within China now.
Other customers are we avoid the V a T and even within China now we have one at times and that some of the contractors pay for it.
Speaker 3: transcript
Speaker 3: we avoid VAT at times in that some of the contractors pay for it in order to get that concentrate. So we've got clawed back some of that. Zinc metal price is down quite a bit and that's had a material impact on the by-product credit value that we get. And then overall, you know, we were late getting that infrastructure that was completed in Q2. And we had planned on getting that up in Q1. And so that had a cascading impact on
In order to get that concentrates so we've got clawed back some of that.
Zinc metal prices down quite a bit and that has had a material impact on the byproduct credit value that we get and then overall we were late getting that infrastructure that was completed in Q2.
We had planned on getting that up in Q1, and so that had a cascading impact on the quarter. So I would say at a high level. Some of these external factors just add volatility to olympias and I think youll see some of that continue but overall, what we're what we're doing on the ground with the things we have control.
Speaker 3: transcript
Speaker 3: So I would say at a high level, some of these external factors just add volatility to Olympias. And I think you'll see some of that continue. But overall, what we're doing on the ground with the things we have control, we're in a much better position now. Joe, you can add anything you want to that.
George Burns: The highlight is we entered the fourth quarter has been a well-attended investor and analyst mine tour that we hosted at all four of our European assets, Scurries, Olympias, Kisadata and FNChukuru. Some of you on the call today were able to get a firsthand feel for how things are going on the ground which provided a sense of confidence in terms of the abilities of each side team. Each of you that participated was able to see firsthand our productivity improvements are making a meaningful impact across the sites and in addition the opportunities that still lie ahead for us.
Much better position now.
Joe you can add anything you want to that.
George Burns: Additionally, you are able to see directly our sustainable mining practices that we feel are best in class. I think everyone that attended the tour was impressed with our site teams and the significant achievements that we have made across the business.
Speaker 8: transcript
Speaker 8: I think it covered it pretty well. George Cosmos, the only thing that I would add is that
Well I think you covered it pretty well George Cosmos, the only thing that I would add is that.
Speaker 5: transcript
Speaker 5: As we go into 2020, you know, complete 2023 and 2024, we anticipate, you know, continued improvement in our underground operations. And we're running into a point where mine and mail are pretty evenly matched. So there will be, you know, kind of a period going forward where a bit of work will be required in the mail to take advantage of additional.
As we go into 'twenty 'twenty, you complete 2023, and 2024, we anticipate a continued.
Improvement in our underground operations, and we're running into a point where mine.
Mine and mill are pretty evenly matched so there'll be kind of a period.
Going forward were.
A bit of work will be required in the mill to take advantage of additional.
Speaker 8: transcript
Speaker 8: additional production from underground. We'll keep you apprised of that as we move along. Likely to see a bit of melty bottlenecking in 2024.
Additional production from underground so we'll keep you apprised of that as we move along.
George Burns: We plan in the future to host more investor and analyst tours. We continue to deliver our growth and value creation that is unique amongst our peers.
Likely to see.
A bit of mill Debottlenecking in 'twenty 'twenty four.
Okay.
Speaker 7: transcript
Speaker 7: Great, thanks George and team for answering all my questions. Congrats once again on a very solid Q3 and have a good weekend.
Thanks, George and team for answering all my questions. Congrats once again on a very solid Q3 and have a good weekend.
Phil Yee: I'll stop there and turn the call over to Phil for a review of our financial results. Thank you, George. Good morning, everyone.
Thanks Cosmos.
Speaker 1: transcript
Speaker 1: Our next question comes from Carrie McRory of Canacred Genuity. Please go ahead.
Our next question comes from Kerry Macquarie of Canaccord Genuity. Please go ahead.
Phil Yee: Flight 5 provides the summary of our third quarter results. Elder Ratter reported a net loss attributable to shareholders from continuing operations of 6.6 million or three cents lost per share in a third quarter. Directly impacted by the previous previously disclosed 5% retroactive corporate tax rate increase in Turkey a effective July 2023. After adjusting for one-time non-recurring items, adjusted net earnings for 35 million or 17 cents per share for the quarter, these one-time non-recurring items included, a one-time 22.6 million non-cash deferred tax expense, and a one-time out of period, current tax expense of 8.2 million, both the result of the retroactive corporate tax rate increase, mentioned earlier.
Speaker 9: transcript
Speaker 9: Hey, good morning, guys. Just wondering about Kishwadeg, you know, 3.6 million tons is a huge uptick in tons stacked. Obviously, the North Heaplink pad is open and you've got the bigger gear in there. Just wondering how we should think about that weight on a go forward basis.
Hey, Good morning, guys. Just wondering about case with AG three 6 million tonnes is a huge uptick in tons stocked obviously, the north heap Leach pad is open and we.
Think of a gearing there I'm just wondering how we should think about that in waves on a go forward basis.
But simon.
Hi, Kerry and yeah. Thanks for the question.
Speaker 6: transcript
Yeah, I think the that right is and what we are planning Hum.
Speaker 6: transcript
Speaker 6: moving forward. That's what we've been sort of alluding to with the bigger materials handling experiment that we have now available.
Forward. That's you know what we've been sort of a leading to with the vigor and materials handling equipment that we have now available.
Speaker 6: transcript
Speaker 6: You know, only caveat to that would be, the summer months are our best stacking and availability months. I just do the weather effects. Typically, we do a small...
And any caveat to that would be.
Summer months are alright, best and stacking and availability months I, just due to weather effects.
Typically and we do see a small.
Phil Yee: In addition, a non-cash loss of 15.2 million on foreign exchange translation of deferred tax balances related to the weakening of the lira and the euro, and partially offset by a non-cash unrealized gain of 6 million on the revaluation of derivative instruments, primarily the gold callers. Free cash flow in the quarter was negative 19.3 million, excluding capital investment in the scariest project, free cash flow generation in the quarter was positive 30 million.
Yeah.
Speaker 6: transcript
Speaker 6: impact from the colder months, which we really factor into our plan for Q1. But beyond that, we expect to be at those type of rates for majority of the year.
Impact from the colder months, which we really factor into our plan for Q1, but beyond that we expect to be at those type of rights, but majority of the year.
Speaker 3: transcript
Speaker 3: And I might just supplement that. I mean, if you kind of look backwards over the Kiss of that life, you know, it was a pretty consistent performer with a number of expansions over time. And really what happened beginning, beginning of last year, we started agglomerating the ore on the conveyor belts. And that causes some pretty big challenges, particularly last winter. And essentially it was because we were adding things.
And I might just supplement that I mean, if you kind of look backwards over the course of their life.
It was a pretty consistent performer with a number of expansions over time and really what happened before.
Beginning at the beginning of last year, we started agglomerated ore on the conveyor belts and that causes some pretty big challenges, particularly last winter and essentially it was because we were adding.
Phil Yee: Cash flow generated by operating activities before changes in working capital total 97.5 million compared to the second quarter of 2023 of 82.4 million. Third quarter cash operating costs averaged $698 per ounce sold, and all in sustaining costs averaged $177 per ounce sold. Our cost decreased during the quarter as we continue to see lower than expected fuel and electricity prices. This was partially offset by higher royalty expenses as a result of the higher realizable price during the quarter.
Speaker 3: transcript
Speaker 3: essentially cement to the conveyors to do binding of the fines to support the high pressure grinding role. And that caused plugging and clogging of the transfer points between conveyors. So, I mean, our production dropped off as a result of that challenge. And as Simon said, by putting in these larger conveyors and the larger stacking equipment,
Essentially cement to the conveyors to new binding of the fines to support the hyperscale grinding role and that caused plugging and clogging of the transfer points between conveyors. So I mean, our production dropped off as a result of that challenge and as Simon said by putting in these larger conveyor.
<unk> and the larger stacking equipment.
Speaker 3: transcript
Speaker 3: that that impact is not going to hit us going forward, but we will see some seasonal impacts. Whenever we get a lot of rain or particularly in the winter, it's tougher to get the same tonnage as you do when you got blue sky and great weather. So the run rate we saw in Q3, I think, is a good assumption going forward. We'll obviously be trying to push the open pit and the circuit.
That that impact is not going to hit us going forward, but we will see some seasonal impacts whenever we get a lot of rain or particularly in the winter. It's tougher to get the same tonnage as you do when you got blue Sky and in great weather. So the run rate. We you saw in Q3 I think is a good assumption going forward.
Phil Yee: All in sustaining costs per ounce sold in the third quarter were in line with expectations. With stronger gold production expected in the fourth quarter, we expect to see decreasing unit costs, and as George mentioned, we have updated our cost guidance ranges. Capital expenditures are 91.1 million in the third quarter, which included investment in growth projects at Kisadag and at Scurrius, where we continue to advance procurement and the project. Income tax expense of 52 million increased in the quarter compared to Q3 2022.
Obviously be trying to push the open pit and the circuit.
Speaker 3: transcript
Speaker 3: for more tons, but I'd say the bigger opportunity and upside is actually in the agglomeration and how fine we crush the ore, how much gold we expose, and how effectively we can rinse that gold out of the crushed heap leach pad. That's going to be our focus going forward. That's probably our opportunity going forward as well.
For more tons, but I'd say, the bigger opportunity and upside is actually in and the agglomeration and how finely crushed they are how much gold, we expose and how effectively we can rinse that gold out of the crest heap Leach pad, that's going to be our focus going forward, that's probably our opportune.
<unk> going forward as well.
Phil Yee: Primarily a result of the retro out to 5% Turkish tax rate increase as previously noted. Current tax expense total 21 million in Q3 2023 and increase from Q3 2022 current tax expense of 16 million. The third tax expense increased the 31 million in Q3 2023 also an increase from Q3 2022 deferred tax expense of 12 million. These increases in Q3 2023 current and deferred tax expense over the comparative prior year period were due to the Turkey A corporate tax rate increase previously mentioned.
Speaker 9: transcript
Speaker 9: That's great. That's good color and maybe just to follow up on kiss the bag. You know, obviously the operations co working through the rain event from May, June , I'm just wondering how you're seeing production sort of adding in the queue for here you're starting to see an uptick in that sort of that impact where
Great.
Color and maybe just a follow up on <unk>.
Obviously, the operations still working through the rain event from May June I'm, just wondering how youre seeing production sort of heading into Q4 here, you're starting to see an uptick in that sort of that impact warehouse.
Thanks Carey.
Speaker 6: transcript
Speaker 6: Yeah, we are seeing that it was sort of beyond the...
I.
Yeah, we are seeing them.
Now that would sort of beyond the.
Speaker 6: transcript
Speaker 6: Q2, Q3 sort of challenges as you're able to see when we're out in the field, things are sort of lining out fairly nicely. Irrigation rate and flows are up where we expect them to be and now we're working hard to draw down on that inventory created over that period.
The Q2 Q2 Q3, so the challenge is as as.
As you are able to save them around in the field.
Things that sort of lining up fairly nicely irrigation right and flies Oh, right, where we expect them to be and now were working had to draw down on that inventory created over that period.
Phil Yee: Turning to slide six. At quarter end we had unrestricted cash and cash equivalent to 476.6 million. With production expected to continue to improve over the fourth quarter, we expect to see our cash from continuing our cash from operations improving further, for the closing of the Scurrious Project Financing in April, availability under Eldorado's 250 million revolving credit facility was reduced as Eldorado's funding commitment for the Scurrious Project is fully backstopped by a letter of credit under that revolving credit facility. The availability under the facility as of September 30th was 116 million. We continue to focus on maintaining a solid financial position which provides flexibility to unlock value across our global business.
Okay, Great. That's it for me thanks, guys.
Thanks, Gary.
Speaker 1: transcript
Speaker 1: Once again, if you have a question, please press star then one. Our next question comes from Carrie Smith of Haywood Securities. Please go ahead.
Once again, if you have a question. Please press Star then one our next question comes from Kerry Smith of Haywood Securities. Please go ahead.
Thanks, operator.
Speaker 10: transcript
Speaker 10: Joe, for Scurries, getting the detailed engineering done is pretty critical to keeping the timetable. Is there any risk that transferring that engineering group from Vancouver to Greece is going to cause any kind of delays? Or are you pretty confident that that shouldn't be the case?
Joe for screening.
Getting the detailed engineering done is pretty critical to keeping the timetable is there any risk that transferring that engineering groups in Vancouver, two degrees is going to cause any kind of delays or are you pretty confident that that shouldn't be the case.
Joe Dick: With that, I will now turn over to Joe to go through the operational highlights. Thanks Bill and good morning. Starting on slide 7 at Scurrious Construction Activity in 2-3 continue to ramp up with overall project progress at 34 percent and one incorporating all prior work Scurrious Progress stands at 65 percent complete. Mobilization continued for major earth works for construction hall roads needed to undertake all other major earth works and is progressing well with work on several fronts underway.
Speaker 8: transcript
Speaker 8: Thanks, Kerry. We're pretty confident that should not be the case and we're working in good cooperation with more in oversight of that engineering. So, so essentially, we're still running the engineering schedule in concert with them, but we're doing it from site rather than afar. So, in a lot of ways, it helps us in order to be, you know, kind of get time zones and other things out of out of that. And we, we paid
Thanks Kerry.
We're pretty confident that should not be the case and we're working in good cooperation with floor.
And oversight of that engineering. So so essentially we're still running the engineering schedule in concert with them, but we're doing it from site rather than a bar. So when you're in a lot of ways. It helps us in order to be you know kind of get time someone's in other things out of out of that and we paid.
Speaker 8: transcript
Speaker 8: real close attention to critical path engineering around filters and other things so that, you know, we don't put
Real close attention to critical path engineering.
Filters and other things so that.
We don't put them.
Joe Dick: During the quarter, the contractors for the earth works and pilings for the primary crusher were mobilized and commenced work. General works continued to focus on site preparation, relocation of temporary facilities, recommissioning of the non-contact water re-injection well system, and the hallage of aggregates for construction purposes. The first phase of underground development continues to advance the Westby line and lateral development for the test stopes to validate the underground assumptions prior to first production from the underground.
Speaker 8: transcript
Speaker 8: Schedule at risk, over engineering, and we've had good agreement with all of our vendors on production of vendor drawings and such. So we're feeling pretty good about it, as a benefit in shortening timelines for turnaround on key information and the like, being with the whole team consolidated engagement.
Schedule at risk over engineering, and we've had good agreement with.
All of our vendors on production of vendor groins and such so we're feeling we're feeling pretty good about it.
As a benefit in shortening timelines for turnaround on key information and the like being you know.
With the with the whole team consolidated increase now.
Speaker 3: Kerry, I'd say there's one additional benefit to moving some of this engineering in country early. And that is, you always have to run the filter of
Cary I'd say, there's one additional benefit to moving some of this engineering in country early and that is you always have to run the filter of taken.
Joe Dick: Test stope work access will commence at the end of 2024 with expected completion by mid 2025. With year-to-date spending at Scurrious at 101.3 million, we expect to ramp up our commitments during the fourth quarter and are comfortable achieving our updated guidance range of 160 to 170 million. The spending is focused on completing detailed engineering and procurement. As of September 30, detailed engineering is 56 percent complete and procurement is 73 percent complete.
Speaker 3: transcript
Speaker 3: taking those engineering drawings and data and localizing it to regulations.
Taking those in engineering drawings and data and localizing its regulations.
Speaker 3: transcript
Speaker 3: And so by doing that at an earlier phase, we eliminate some duplicate work and it's a bit more efficient. And we've got confidence in the capability of these firms within Greece to be able to do this work. So I think there's some net benefits here and we haven't really put any risk to the project from that decision.
So by doing that at an earlier phase I mean, we eliminate some duplicate work and it's a bit more efficient and we've got confidence in the capability of these firms within reach to be able to do this work. So I think there are some some net benefits here and we haven't really put any risk to the project from that decision.
Speaker 10: Okay, okay. And are all the long be items now ordered? I assume they are and some are delivered to site or what is the status of a long be die? Okay.
Okay, Okay and are all the long lead items now ordered I assume they are in similar delivered to site or what is the status of other long lead items.
Joe Dick: We continue to focus on completing key contracts with evaluations ongoing, with a view to generating cost and productivity synergies during the process. We expect to complete this process and award the remaining key contracts by the end of 2023, which include the filter plant, including the earthworks, pilings, and foundation to support the filters. Open pit pre-stripping and construction of the ore stock tile, water management ponds, and the integrative extractive waste management facility dam embankment, structural concrete for the primary crusher and associated process facilities, and mechanical piping, electrical, and instrumentation for the process plant.
Speaker 8: transcript
Speaker 8: Carrie, this is Joe. So there are no long lead items remaining on critical path. I mean, we're just cleaning up bulk items for procurement. In the last major piece of equipment, I think mentioned earlier was the filters and the filters are packaged in shipment and receipts are started for site assembly, but it'll be all of that will be on site.
Kerry this is Joe so.
There are no long lead items remaining on critical path I mean, we're just cleaning up.
Bulk items or procurement.
Major piece of equipment I think mentioned earlier was the filters and that filters.
Our package then in shipment and receipts are started for you know site assembly, but it'll be all of that will be on site.
Speaker 8: transcript
Speaker 8: end of 24, early 25.
Into 'twenty four 'twenty five so.
Speaker 8: transcript
Speaker 8: no concerns on schedule and at this due to equipment.
No concerns on schedule and.
Yes.
Due to equipment.
Speaker 5: transcript
Speaker 5: You know, and all of the work on existing equipment that was installed and review has also been completed and any kind of requirements for modifications, other things due to standby time have been accounted for as well. So feeling really good about lead done.
Hum.
Joe Dick: The project, both cost and schedule, remain on track for commissioning and first production in mid 2025 with commercial production expected at the end of 2025. Turning to slide 8. In the third quarter, we recorded zero lost time injuries. The last time injury frequency rate for the first nine months of the year was 0.74 of 49 percent decrease from the same period in 2022. We continue to take proactive steps to improve workplace safety and to ensure a safe working environment for our employees and our contractors.
And all of the work on existing equipment that was installed and review has also been completed and any kind of requirements for.
Modifications are other things due to standby time had been accounted for as well so feeling really good about lead times.
Speaker 10: transcript
Speaker 10: Okay, and just maybe one last question on scurries. Are you seeing any issues in terms of hiring skilled trades and laborers as you ramp up to the 900 people on site by the end of the year? And and the second part to that is are the productivities that you're seeing so far from the contractors sort of add or better than what you'd budgeted?
Okay.
And just maybe one last question on screen how are you.
Seeing any issues in terms of hiring skilled trades and labor as you ramp up to the 900 people on site by the end of the year end and the second part to that is are the productivity that you're seeing so far from the contractors sort of at or better than what you'd budgeted.
Joe Dick: On our operating results, we produced 121,030 ounces of gold in the third quarter with a cash operating cost of $698 per ounce sold, a solid quarter which positions us to remain on track to meet our guidance.
Speaker 8: transcript
Speaker 8: So to take the first part of the question, as availability to workforce, there have been no issues to date for contractors managing to mobilize and bring skilled workers on sites.
So to take the first part of the question.
Its availability to our workforce.
Simon Hille: I'll pass it over to Simon to review the third quarter performance and operations in Turkey and Canada. Thanks, Joe. Starting in Turkey A on slide 9, a Kishada third quarter production was 37,219 ounces and cash operating costs of $622 per ounce sold which represents a 17 percent reduction in cash costs and similar production compared to 23, 2022. Production during the third quarter was driven by the successful commissioning of the agglomeration drum that was added to the crushing circuit in the second quarter and tons of playlists on the Hebleach pad have continued to increase.
There.
No no issues to date for contractors.
Managing to mobilize and bring skilled skilled workers on site. So.
Speaker 5: transcript
Speaker 5: pleased with that and as far as productivity on, you know, there's not a lot of a lot not a lot of data points out there, but you know, the work performed last year around the mail building cladding cranes and the rest of it was at expectation or kind of at feasibility levels and the work ongoing to date has been similar. But I think that was
I'm pleased with that and as far as productivity on you know theres not a lot of a lot.
Not a lot of data points out there, but you know the work performed last year around.
The mill building cladding cranes and the rest of it was at expectation or kind of bad feasibility level with M D.
Work ongoing to date has been similar.
But you know I think I think that remains.
Speaker 8: transcript
Speaker 8: you know, a watch point for us going forward. But so far, Kerry, we're pretty pleased with productivities and how they match up with feasibility.
You know a watch point for us going forward, but so far we're pretty pleased with productivity and how they match up with feasibility.
Simon Hille: The largest surface area of the newly commissioned North Hebleach pad has enabled the full capacity of the 54 inch stacking equipment to increase tons of place and increase the irrigation flow rates. Production is expected to increase over the course of the fourth quarter as we realise full effectiveness from the upgraded materials handling equipment. In addition, we expect to continue to draw down inventory built-up in Q2 as a result of the substantial rainfall that resulted in diluted lead solution.
Speaker 10: transcript
Speaker 10: Okay, okay. And just on Kishidag, maybe Simon can answer, are the recoveries through the aguamerating material kind of tracking with what you expected or better or how are they tracking?
Okay, Okay, and just on the kitchen bag, maybe Simon cancer or are the recoveries through the agglomerated material kind of tracking with what you expected or better or how are they how are they tracking.
Thanks Carey.
Speaker 6: transcript
Speaker 6: Yes, so far we're still pretty comfortable with the recovery's tracking as planned when we...
Yeah, so far we and we're still pretty comfortable with the recoveries tracking as planned at when we.
And initiated the H P G III investment and really the agglomeration drum as a supplement to that to help us and prove out and materials handling and tenant ability on the pads and SIFI.
Speaker 6: transcript
Speaker 6: and initiated the HVGR investment. And really the agoneration drum is a supplement to that. To help us improve our materials handling and permeability on the pads and so far.
Simon Hille: On slide 10 at FN2 crew, their quarter goal production was 21,142 ounces at cash operating costs of $817 per ounce sold. Goal production, throughput and average goal-graded FN2 crew were in line with plans for the quarter. Development towards the co-carp in our area is on track and is expected to continue to extend mine line. For 2023 at FN2 crew, we expect to see a modesty increase in Q4 production over the third quarter.
Speaker 10: transcript
Speaker 10: Okay, okay, and then just one last question if I could, how are the two electric trucks operating at LaNac? I know you brought those two pieces of kid in and what is the experience been?
Okay. Okay, and then just one last question if I could how are the two electric trucks operating at monarch. I know you brought those two pieces of kit in and you know what what has the experience been.
Speaker 6: transcript
Speaker 6: So we purchased two, that's correct. We only have received one so far. And right now that one has been used pretty extensively to train and test the workforce while we're preparing for implementation in the underground activities. So...
So we purchased two that's correct and we only have received one satisfy them.
And that right now that one has being used pretty extensively to to try and test.
Simon Hille: Additionally, during the quarter, the FN2 crew mine was successfully certified ISO 5,001 energy management standard. Moving to a Macon slide 11, their quarter goal production was 43,821 ounces at cash operating costs of $624 per ounce sold. Production was impacted by slower than expected development in the underground as a result of suspended shifts in the second quarter due to the wildfires in the in, which led to reduce mining phases for all reduction in the third quarter.
The workforce, while we're preparing a full implementation.
In the underground activities.
Speaker 6: transcript
Speaker 6: We expect to see the second be the in the first quarter of 2024.
We expect to see the second and B the a in the first quarter of 2024, but so that's the plan right now and we'll be rolling the first wanting to service and through this quarter.
Speaker 6: transcript
Speaker 6: So that's the sort of plan right now. And it will be rolling the first one into the service through this quarter. And then the second one as it comes on to side, in Q1.
And then the second one I think.
As it comes on to side in Q1 of 2024.
Speaker 3: transcript
Speaker 3: Kerry, one of the things that I heard last week, it was pretty cool. Simon, Ben, there to see that the truck that just arrived yet, but...
Gary one of the things that I heard last week, it was pretty cool because I haven't been there to see that the truckload just arrived yet but.
Simon Hille: The fourth quarter is expected to be stronger, with development into high-grade stoves and continued stable processing rates. Additionally, we remain on track to complete as 2023 infield drilling program targeting the upper two thirds of the all-max deposit. Our plan is to take a bulk sample and announce O'Mackie Nogra was aired during the second half of 2024.
Speaker 3: transcript
Speaker 3: It's about two minutes to change the battery, which is, to me, pretty amazing. You can, you know, one of the big issues for us is, you gotta have an efficient truck where you're not stop charging. And so we got spare batteries, but it takes two minutes basically to take a battery off and then get the other battery on to keep the truck moving. So they've come a long ways with...
It's about two minutes to change the battery, which is to me pretty amazing you can you know one of the big issues for us is.
You got it you got to have an efficient truck, where youre not stopped charging and so we've got spare batteries, but it takes two minutes basically to take a battery off and then get the other battery on to keep the track moving so they've come a long ways with <unk>.
Simon Hille: Okay, the call back to Jay to repeat a third quarter result at Olympia's. Thanks, Simon. Moving to Olympia's on slide 12, third quarter gold production was 18,848 ounces, and cash operating costs were $885 per ounce sold. Mind and processed tons were up from prior quarter and at record levels for Olympias. Cash costs improved primarily due to productivity efficiencies resulting from recent transformation initiatives, as well as slightly lower unit costs for certain consumables, including electricity.
Speaker 3: transcript
Speaker 3: making these electric trucks efficient. We can't wait to get the thing underground and see what it can do for us on productivity. They're faster, that's obviously a big win. And the ventilation impacts are pretty enormous for us. We don't need air to deal with diesel emissions with these trucks, so. Right.
Making these electric truck sufficient and we can't wait to get the thing underground and see what it can do for us on productivity there faster. That's that's obviously a big win.
And the ventilation impacts are pretty enormous for us.
We don't need there.
To to deal with diesel emissions with these trucks so.
Okay, that's gonna be awesome thing.
Speaker 10: transcript
Speaker 10: And I guess the battery packs have to be changed with equipment or can it be changed by a mechanic or an electrician? Like, are they heavy?
And then I guess the battery packs has to be changed with equipment or can it be changed by a mechanic or an electrician.
The heavy.
Speaker 6: transcript
Speaker 6: So there's an in-built battery changing unit, so essentially part of the design of the truck is to actually have a removal system installed on the truck so it's powered to lift off and
So there's an inbuilt battery changing unit so essentially part of the design of the track use tax do you have at a removal system and installed on the tracks. So it is powered at least off and.
Simon Hille: During Q2 and early Q3, we completed a number of milestones that have resulted in our ability to increase underground development and production from the flat zone. These milestones include transitioning to mechanical loading of drilled rounds with a bulk emulsion agent, mechanical completion of a major upgrade to the ventilation system, and completion and energization of the new 150 KB substation, which enabled the ventilation system startup. With access into the flat zone, we expect to improve not only our gold production, but also our byproduct metal production, which we expect to result in higher byproduct credits and in turn lower operating costs going forward. Gold production is expected to be steady over the fourth quarter as the productivity initiative continues to safely deliver increased kindage and increased by product metals, reducing our overall cash costs.
Speaker 6: transcript
Speaker 6: drop down and then pick up a secondary battery, or without the need of a third party that put it together. So, the truck driver can do that without leaving the truck.
Drop down and then pick up a secondary battery oh without the need of that I'd said party that and put it together.
If truck drive that I can't do that without leaving a truck.
Speaker 10: transcript
Speaker 10: Okay, okay, great. Okay, that's great. I appreciate it. Thanks for answering my questions.
Okay. Okay, great. Okay. That's great I appreciate it thanks for answering my questions.
Thanks, Gary.
Speaker 1: transcript
Speaker 1: That is all the time we have for today and this concludes the question and answer session and today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
That is all the time, we have for today and this concludes the question and answer session and today's conference call. You may disconnect your lines.
You for participating and have a pleasant day.
Speaker 11: transcript
Speaker 11: Tr?or Triction
Okay.
Yes.
Okay.
Yes.
George Burns: I'll stop there and turn it back to George for closing remarks. Thanks, Gene. Our operating business to deliver to strong quarter, generating improved free cash flow, excluding capital expenditures on the Scurries project. We also delivered some fantastic improvements in our business.
Hmm.
Hum.
Speaker 11: transcript
Speaker 11: St.
Yeah.
[music].
Hum.
Yes.
[music].
George Burns: Both Olympias and Kisadal reach major turning point with the completion of key infrastructure investments. Both sites are now beginning to reap the benefits from these investments. At Lamak we're well positioned for the Armak deposit in that we've got the exploration drift and infill drilling program moving to completion this year that sets us up for the bulk sample collection next year, which then sets us up to have our first reserve on Armak late next year.
Uh huh.
[music].
George Burns: This site has continuously delivered our exceeded expectations and they're set up to deliver a strong fourth quarter. At FM Chukur, we're also advancing our exploration and infill drilling programs to support my life extends, and at Scurries we're just six months past finalization of the project financing and the project is advancing nicely towards the start of commissioning in mid 2025 to deliver commercial production on budget and on schedule by the end of 2025. We are on track to deliver our growth strategy to deliver industry leading returns over the next couple of years.
Yeah.
Uh huh.
Yeah.
[music].
Yes.
Okay.
George Burns: It's an exciting time to be at Eldorado. Thank you for your time.
Operator: 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. You will hear a tone acknowledging your request. If you are using a speaker phone, please pick up your hands that before pressing any keys to withdraw your question, please press star then two. We'll pause for a moment as colors join the queue.
Cosmos Chiu: Our first question comes from Cosmos Chiu of CIBC. Please go ahead. Great. Thanks, George, Phil, Joe, Simon and Matt. Maybe my first question is on Scurries. I guess, you know, someone wondering how a change in capex, at least for 2023 doesn't impact the delivery schedule. I guess my question is, is this just really a shift in timing? It'll end on the top end. You're lowering 2023 capex as serious by 90 million dollars.
Cosmos Chiu: I'm sure you're going through the budgeting process right now, George and Phil. Is that going to show up in 2024? Yeah, Cosmos, thanks for the question. Yeah, I mean, for Scurries, I'd say a couple of key things I'd point out. Number one, you have to remember that prior to starting the work this year, you know, we roughly said the project was half built. So, you mean the group that went and visited the site could see we have a tremendous amount of infrastructure already on the project site.
Cosmos Chiu: And then the other high level thing I'd say is remember, we just completed project financing in the second quarter. We're on a steep ramp up curve. We have a lot of people on site doing construction now, but that's going to accelerate over the next number of months is we get a few of these major contracts. So, so yeah, the capital spins down a bit. Some of it's actually optimization, where we're pushing some cost off without any impact the schedule.
Cosmos Chiu: And some of it is just simply a little bit light on a few of these contracts, none of which is affecting the critical path for the project. So, you know, overall we remain confident that we'll get this thing into commissioning mid 2025 commercial production by the end of the year. Obviously, with a bit lower spin this year, it's going to be a heavier lift next year. But again, when we look at critical path, we're not concerned about the schedule or overall capital cost.
Cosmos Chiu: And Joe, I don't know if you have a few comments you might want to add to that. Thanks, George. Hi, cosmos. Yeah, George, I would say I would say that, you know, as we some of that confidence comes from right from the beginning flexibility that we built into the construction schedule. So, you know, we remain continuing to project on a single ship six day week construction schedule. So, certainly, you know, we have flexibility in how to deploy resources over the remaining project time.
Cosmos Chiu: And I also say that, you know, kind of concurrent with your just comments that, you know, some of the optimization that we have done in. Well, in this early award stage, I think it's, you know, pre beneficial to overall project costs. And so, you know, we're comfortable with that, that trade off in time versus money in the near term here. And as George said, we're still confident or remain confident on being able to deliver screws in 2025.
Cosmos Chiu: Perfect. And then George and Joe, as you mentioned, your press release, you mentioned a few items that contributed to the decreasing Catholics for the year. Part of it is transitioning engineering work to Greece. Would that result in a permanent cost savings or could you give us a bit more detail on what that entails? Cosmos Chiu, yeah, that's kind of what was being reflected there as we move the engineering, the offshore engineering from Vancouver to Greece.
Cosmos Chiu: We see a better cost structure for engineering, but also there was a bit of time in making that transition. So, improved cost and for a period as that was transitioning and ramping up a bit slower delivery, but everything's on track now and working well. So, pretty pleased with that. Great. And then going back to Q2, you have mentioned at that time that several contracts were going to get awarded and likely it didn't happen, but that's okay.
Cosmos Chiu: But you also mentioned that the FSS estimate will be updated to the project control budget with some kind of update expected by the end of Q3. We're past Q3 now, but again, should we be expecting some kind of update? Should we be thanks for that? Go ahead, George. Go ahead, Joe. Cosmos, what we said today is that we didn't update based on completion of award of contracts, and when that work is completed, we'll update, should we see any type of material information that needs to be passed along.
Cosmos Chiu: So, that's what we said today is we're not updating based on the commitment schedule, and as that completes through the end of the year, we'll update based on any material changes that we may see, and if not, then I think we'll hold where we're at. Cosmos, let me just add a few comments to that. So, I just want to make it clear when we said that in Q2, we're not signaling that we expect anything to come out of that necessarily.
Cosmos Chiu: It's just, it's an important milestone in the work. It will give us some updated information. So, in the feasibility study, we obviously made assumptions on productivity, numbers of employees required to do each piece of work. And so, once we get a contract negotiated, we've got improved information. And so, we'll digest that. We're not expecting anything to change, but if it does, that will be a time to bring the market up to speed.
Cosmos Chiu: So, and I would remind you again, that, you know, it was roughly half built when we started. We have the confidence in all that work that was done. It was built into the feasibility study. And we've done quite a bit of work beginning last year, including putting up the building around the mill facility, the cranes, and the work that you saw on site that we've completed this year. So, and we've got a lot of confidence in our limit.
Cosmos Chiu: We have a lot of confidence in the work we've done. We don't have any critical equipment that we have any concern about. I mean, the filters was really the last major piece of equipment that we needed to acquire. And the filters, essentially, are manufactured. So, we're already working on plans to put those filters together on site. That risk is essentially eliminated now. So, we remain confident, and again, those things we pointed to in Q2 are going to be additional data, additional information, a little later than plan, just due to these contracts slipping a little bit, but again, not affecting schedule.
Cosmos Chiu: And maybe one last comment, you know, on the civil works, we had originally contemplated that as four individual contracts. And we put up time to digest all the bits that came in, put a lot of working into optimizing that piece of work. And in fact, have landed with one contractor. And we're seeing synergies out of that work. It's a contractor, we've got familiar out familiarity with, as they've done work on the coconut stem the last couple of years.
Cosmos Chiu: So, we're taking our time to make sure we've got the right partner and the optimized execution strategy and so far, things have gone very well for us. So, I wouldn't be concerned about a little bit of slippage in the spend or getting these contracts. It's actually so far turned to be positive to take our time and get the best possible contract to ensure the best possible outcome on this project.
George Burns: That's great to hear, George.
Cosmos Chiu: Maybe one last question, switching gears a little bit to Olympias. Very good quarter in Q3. And so, you know, I guess going back to have been a bit of not volatility, but a bit of different in the quarters. Q1 was good. Q2 was not as good. Q3 now is good once again. Can we expect more stability, you know, going forward now that you've implemented say bulk of motion, you've implemented or the ventilation is now in place, you know, is the current level what we can continue to expect in terms of production costs were, you know, fairly good as well. Q3 is that a good level costs, or can we expect even better.
George Burns: Cosmos, maybe I'll answer it just some of the high level implications on Olympias results and Joe can speak to the operational. So, I mean, for Olympias number one, I would say the infrastructure improvements we put in place are a game changer for us. But, you know, some of the volatility on Olympias has to do with external markets, you know, we've got hit with that payability issue a year ago. We've been pawned some of that back by finding other customers, we avoid the VAT.
George Burns: And even within China now, we avoid VAT at times in that some of the contractors pay for it in order to get that concentrate. So, we've got plot back some of that zinc metal prices down quite a bit and that's had a material impact on the byproduct credit value that we get. And then overall, you know, we were late getting that infrastructure that was completed in Q2. We had planned on getting that up into one.
George Burns: And so that had a cascading impact on the core. So, I would say at a high level, some of these external factors just add volatility to Olympias. And I think you'll see some of that continue. But overall, what we're doing on the ground with the things we have control, we're much better position now and Joe, you can add anything you want to that. I think it covered it pretty well. George Cosmos, the only thing that I would add is that as we go into 2020, you know, complete 2023 and 2024, we anticipate, you know, continued improvement in our underground operations and we're running into a point where.
George Burns: Mine and mail are pretty evenly matched. So, there will be, you know, kind of a period going forward where a bit of work will be required in the mail to take advantage of additional additional production from underground. So, we'll keep you apprised with that as we move on. But likely to see, you know, a bit of multi bottom acting in 2024.
Cosmos Chiu: Great. Thanks, George, and team for answering all my questions. Congrats once again on very solid Q3 and have a good weekend. Thanks.
Kerry McRory: Our next question comes from Carrie McRory of Canacorn Genuity. Please go ahead. I think it wanted guys just wondering about just for the egg, you know, 3.6 million tons is a huge uptick in town stack, obviously the North Heapley cat is open and you've got the bigger gear in there. Just wondering how we should think about that rate and go forward basis. That's time. Hi, Kerry. Thanks for the question. Yeah, I think that right is what we are planning forward that's what we've been sort of alluding to with the bigger materials handling experiment that we have now available.
Kerry McRory: You know, only caveat to that would be the summer months are at best stacking and availability months. I just do the weather effects typically. We do do a small impact from the colder months, which we really factor into our plan 61, but beyond that, we expect to be at those top of rights, a majority of the. I might just supplement that. I mean, if you kind of look backwards over the kiss of that life, it was a pretty consistent performer with a number of expansions over time.
Kerry McRory: And really what happened beginning last year, we started agglomerating the ore on the conveyor belts. And that causes some pretty big challenges, particularly last winter. And essentially, it was because we were adding essentially cement to the conveyors to do binding of the fines to support the high pressure grinding role. And that caused plugging and clogging of the transfer points between conveyors. So, I mean, our production dropped off as a result of that challenge.
Kerry McRory: And as Simon said, by putting in these larger conveyors and larger stacking equipment, that impact's not going to hit us going forward, but we will see some seasonal impacts whenever we get a lot of rain or particularly in the winter, it's tougher to get the same counties as you do when you got blue sky and in great weather. So, the run rate we saw in Q3, I think, is a good assumption going forward.
Kerry McRory: Well, obviously, we're trying to push the open pit and the circuit for more tons. But I'd say the bigger opportunity and upside is actually in the agglomeration and how fine we pressed the ore, how much gold we expose, and how effectively we can rinse that gold out of the pressed heap leach pad. That's going to be our focus going forward. That's probably our opportunity going forward as well. Great. That's good color.
Kerry McRory: And maybe just to follow up on kiss the day. Obviously, the operations goal working through the rain event from May, June. I'm just wondering how you're seeing production sort of adding in the Q4 here. Are you starting to see an uptick in that sort of that impact we're off? Thanks, Kerry. Yeah, we are seeing now that we're sort of beyond the Q2, Q2, Q3 sort of challenges as you're able to see when we're out in the field.
Kerry McRory: Things are sort of lining out fairly nicely irrigation rate and flows are up where we expect them to be. And now we're working hard to draw down on that inventory created over that period. Thanks, Gary. Once again, if you have a question, please press star then one.
Kerry Smith: Our next question comes from Kerry Smith of Haywood Securities. Please go ahead. Thanks, operator. Joe, for Scurries, you're getting the detailed engineering done is pretty critical to keep in the timetable. Is there any risk that transferring that engineering group from Vancouver to Greece is going to cause any kind of delay? Are you pretty confident that that should be the case? Thanks, Gary. We're pretty confident that should not be the case and we're working in good, good cooperation with more in oversight of that engineering.
Kerry Smith: So, so essentially we're still running the engineering schedule in concert with them, but we're doing it from site rather than a far. So in a lot of ways, it helps us in order to be kind of get time. Some of them other things out of out of that and we paid real close attention to critical path engineering and around filters and other things so that, you know, we don't put schedule at risk over engineering and we've had good agreement with all of our vendors own production of undergrines and such.
Kerry Smith: So we're feeling pretty good about it as a benefit in shortening timelines for turnaround on key information and the like being, you know, with the with the whole team consolidated in Greece now. Gary, I'd say there's one additional benefit to moving some of this engineering in country early and that is you always have to run the filter of taking those engineering drawings and data and localizing it to regulations. And so by doing that at an earlier phase, we eliminate some duplicate work and it's a bit more efficient and we've got confidence in the capability of these firms within Greece to be able to do this work.
Kerry Smith: So I think there's some some net benefits here and we haven't really put any risk to the project from that decision. Okay, okay, and are all the long lead items now ordered. I assume they are and some are delivered to site or what is the status of all the long lead items. Gary, this is Joe. So there are no long lead items remaining on critical path. I mean, we're just cleaning up bulk items for procurement in the last major piece of equipment.
Kerry Smith: But I think mentioned earlier was the filters and the filters are packaged and in shipment and and receipts are started for, you know, site assembly, but it'll be all of that will be on site. End of 24 or the 25 so no concerns on schedule and at this due to equipment. You know, and all of the work on existing equipment that was installed and review has also been completed and any kind of requirements for modifications, other things due to stand by time have been accounted for as well.
Kerry Smith: So feeling really good about lead done. Okay, and just maybe one last question on Scrooge. Are you seeing any issues in terms of hiring steel trades and labor as you ramp up to the 900 people on site by the end of the year? And second part to that is are the productivities that you're seeing so far from the contractors sort of add or better than what you'd budgeted.
Joe Dick: So I'd like to take the first part of the question as availability to workforce. There've been no issues to date for contractors managing to mobilize and bring skilled workers on sites so please with that. And as far as productivity's on you know there's not a lot of data points out there but you know the work performed last year around the mail building cladding cranes and the rest of it was at expectation or kind of at feasibility levels and the work ongoing to date has been similar. But I think that remains you know a watch point for us going forward but so far Kerry were pretty pleased with productivities and how they match up with feasibility.
Simon Hille: Okay okay and just on Kishadeg maybe some can answer are are the recoveries through the agglomerating material kind of tracking with what you expected or or better or how are they how are they tracking. Thanks Kerry. Yes so far we we're still pretty comfortable with the recoveries tracking as planned when we initiated the HVGR investment and really the agglomeration drum is a supplement to that to help us improve our materials handling and availability on the pads and so far.
Kerry Smith: Okay and then just one last question if I could how are the two electric trucks operating at Lanark and you brought those two pieces of kit in and you know what what is the experience been. So we purchased two that's correct we only have received one so far and right now that one has been used pretty extensively to train and test the workforce while we're preparing for implementation in the underground activities so we expect to see the second be the in the first quarter of 2024 so that's the sort of plan right now and so we'll be rolling the first one into the service through this quarter and then the second one as it as it comes on to side in 2021 of 2024.
Kerry Smith: Kerry one of one of the things that I heard last week it was pretty cool. It's about two minutes to change the battery, which is, to me, pretty amazing. One of the big issues for us is you've got to have an efficient truck where you're not stop charging. So we've got spare batteries but it takes two minutes basically to take a battery off and then get the other battery on to keep the truck moving.
Kerry Smith: So they've come a long ways with making these electric trucks efficient. We can't wait to get the thing underground and see what it can do for us on productivity. They're faster. That's obviously a big win. And the ventilation impacts are pretty enormous for us. We don't need air to deal with diesel emissions with these trucks. So it's going to be awesome. And I guess the battery pack has to be changed with equipment or it can be changed by a mechanic or an electrician.
Kerry Smith: Like, are they heavy? So there's an inbuilt battery changing in it. So essentially part of the design of the truck is to actually have a removal system installed on the truck. So it's powered to lift off and drop down and then pick up a secondary battery or without the need of a third potty that put it together. So instructor, I bet it can't do that without leaving the truck. Okay. Great. Okay.
Kerry Smith: That's great. I appreciate it. Thanks for answering my questions. Thanks, Gary. That is all the time we have for today and this concludes the question and answer session and today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.