Q3 2023 Eldorado Gold Corp Earnings Call
Speaker 1: transcript
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Speaker 2: transcript
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'll be an opportunity to ask questions.
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'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 2: transcript
To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to 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.
Thank you operator, and good morning, everyone I'd like to welcome you to our third quarter 2023 results conference call.
Speaker 3: transcript
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 discussion and analysis, as well as the risk factors set out in our annual information form.
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 the risk factors set out in our annual information form.
Speaker 3: transcript
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 <expletive> , Executive Vice President and Chief Operating Officer, and Simon Hilley, Senior Vice President, Technical Services, and Operations.
Our release yesterday details of 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 plus and Edgar.
Speaker 3: transcript
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 CEDAR Plus and EDGAR.
Speaker 3: transcript
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.
All dollar figures discussed today are U S 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 3: transcript
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.
Thanks, Lynn and good morning, everyone, Here's the outline for today's call.
Speaker 4: transcript
Thanks Lynette and good morning everyone. Here's the outline for today's call.
Speaker 4: transcript
I'll provide a brief overview of Q3 results and highlights before passing it to Phil to go through the financials and then Joan 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 John Simon to review our operational performance.
Then we will open the call to questions from our analysts.
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.
Speaker 4: transcript
Turning this slide four, starting with production, our performance continued to improve over the quarter with safe production of 120, 121,030 ounces of gold. 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.
The Olympias 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.
Speaker 4: transcript
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 4: transcript
In the past few months, we have energized the substation. Upgrade 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 4: transcript
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.
Okay.
Speaker 4: transcript
In the third quarter at Kisadakh, with the North Leap Leap Pad operational, we are seeing increased tones with three cells under leach, which should positively impact cold production in the fourth quarter.
In the third quarter at <unk> 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 4: transcript
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 amounts 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 4: transcript
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.
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 4: transcript
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 ore production during the third quarter, which impacted our production relative to our expectations.
Speaker 4: transcript
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 stope.
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 stopes.
Speaker 4: transcript
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. We expect...
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 to.
Speaker 4: transcript
Tightening gold production to between 475 and 495,000 ounces versus previous guidance of 475 to 515,000.
Lightning gold production to between 475, and 495000 ounces versus previous guidance of $4 75 to 515000 ounces.
Operator: 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'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.
Lowered cash operating cost to be between 730 to $780 per ounce sold versus previous guidance of 762.
Speaker 4: transcript
860.
Tightening all in sustaining cost of between 1190 and $1240 per ounce sold versus previous guidance of 11, 90% to 12 19.
Speaker 4: transcript
tightening all in sustaining costs to between 1,190 and 1,240 dollars per ounce sold versus previous guidance of 1190 to 1290.
Speaker 4: transcript
Sustaining capitol guidance remains unchanged at 114 to 139 million.
<unk> capital guidance remains unchanged at $114 million to $139 million.
Lynette Gould: I would now like to turn the conference over to Lynette Gould, Vice President Investor Relations. Please go ahead, Ms. Gould. 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, discussion, and analysis as well as the risk factors set out in our annual information form.
Speaker 4: transcript
Growth capital for the year has been reduced to 280 to 305 million from 394 to 437 million dollars, primarily driven by lower than expected growth capital spend at Scurry.
Gross capital for the year has been reduced to $280 to $305 million from $394 million to $437 million, primarily driven by lower than expected growth capital spend at series.
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 third quarter 2023 Financial and Operating Results. This should be read in conjunction with our third quarter financial statements and management discussion and analysis, both of which are available on our website.
Speaker 4: transcript
Scurries capital is expected to be between $160 to $170 million versus previous guidance of $240 to $260 million.
Serious capital is expected to be between $160 million to $170 million versus previous guidance of $240 million to $260 million.
Speaker 4: transcript
The reduction that 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 4: transcript
shifting of certain pre-production expenditures from 2023 to 2024 without impact to work progress or completion schedule. Transitioning engineering work.
Shifting of certain preproduction expenditures from 'twenty to 'twenty three to 'twenty 'twenty four without impact to work progress or completion schedule.
<unk> engineering work in degrees.
Speaker 4: transcript
an updated execution approach to major earth works while maintaining construction schedule flexibility.
An updated execution approach to major Earth works, while maintaining construction schedule flexibility.
Speaker 4: transcript
In addition, the closing of the project financing in April , which was slightly delayed from our initial expectation, meant the slower ramp up than what was expected in awarding the contracts.
In addition.
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.
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.
This lower than.
Speaker 4: transcript
This lower than expected spending growth capital of stories in 2023 is not impacting overall project plan, including cost and schedule. And we remain comfortable. We are on track for first goal in mid 2025.
This lower than expected spend in growth capital that stories 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 4: transcript
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.
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.
This report builds on our first climate change report that was published in 2021 and focuses on our progress implementing the climate change strategy.
Speaker 4: transcript
This report builds on our first climate change report that was published in 2021 and focuses on our progress implementing the climate change strategy.
Speaker 4: transcript
The report included our GHG emissions target achievement pathway in which we seek to mitigate our scope 1 and scope 2 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 2020 baseline by 2000 2030.
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 substation, upgraded ventilation, and added bulk emulsion blasting underground. All of this is converging to create a positive trajectory for the site going forward.
Speaker 4: transcript
Our GHG emissions target achievement pathway comprises four levers.
Our G H G emissions target achievement pathway comprises four levers.
Speaker 4: transcript
Operational efficiencies and continuous improvement, technologies, processes, and energy generation, red V-carbonism.
Operational efficiencies and continuous improvement.
Technologies processes and energy generation.
Red de carbonization.
And mine shut down and operational changes.
Speaker 4: transcript
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.
George Burns: In the third quarter at Kisadak, with the North Leap Teap Leap Pad operational, we are seeing increased tons with three cells under leach, which should positively impact gold 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.
Speaker 4: transcript
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 4: transcript
In addition, we are committed to further investigating how we will incorporate Scurries operational emissions to a climate target and invite you to
In addition, we are committed to further investigating how we will incorporate scurries operational emissions.
So our climate targets.
And invite you to read the full report available on our website.
Speaker 4: transcript
The highlight is we entered the fourth quarter has been a well-attended investor and analyst mind tour that we hosted at all four of our European assets. Scorries, Olympias, Kisadah, and FNG.
The highlight as we entered the fourth quarter has been a well attended investor and analysts mine tour that we hosted at all four of our European assets stories Olympias kissing.
George Burns: 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. 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.
F M chew through.
Speaker 4: transcript
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 4: transcript
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.
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.
Speaker 4: transcript
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 4: transcript
I think everyone that attended the tour was impressed with our sight teams and the significant achievements that we have made across the business.
I think everyone that attended the tour was impressed with our site teams and these significant achievements that we have made across the business.
Speaker 4: transcript
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.
We plan in the future to host our Investor and analyst tours, we continued to deliver our growth and value creation that is unique amongst our peers.
Speaker 5: transcript
I'll stop there and turn the call over to Phil for a review of our financial results. Thank you, George. Good morning, everyone. So.
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 5: transcript
Elder Ratter reported a net loss attributable to shareholders from continuing operations of 6.6 million or three cents loss per share in a 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 2023.
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.
After adjusting for onetime nonrecurring items adjusted net earnings were $35 million or <unk> 17 per share for the quarter.
Speaker 5: transcript
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
These onetime nonrecurring items included.
Speaker 5: transcript
A one-time 22.6 million non-cash deferred tax expense.
A onetime $22 6 million noncash deferred tax expense.
Speaker 5: transcript
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 5: transcript
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.
In addition, a noncash loss of $15 2 million on foreign exchange translation of deferred tax balances related to the weakening of the lira and the euro.
Speaker 5: transcript
and partially offset by a non-cash unrealized gain of 6 million on the revaluation of the rivet instruments.
And partially offset by a noncash unrealized gain of $6 million on the revaluation of derivative instruments.
George Burns: Transitioning engineering work in degrees and updated execution approach to major earth works while maintaining construction schedule flexibility. In addition, the closing of the project financing in April, which was slightly delayed from our initial expectation, meant the 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.
Primarily the gold colors.
Speaker 5: transcript
Three cash flow in the quarter was negative 19.3 million.
Free cash flow in the quarter was negative $19 3 million.
Speaker 5: transcript
Excluding capital investment in the Scurrious Project, freak cash flow 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 5: transcript
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.
$97 5 million.
Compared to the second quarter of 2023 of $82 4 million.
Speaker 5: transcript
Third quarter cash operating costs averaged $698 per ounce sold.
Third quarter cash operating costs averaged $698 per ounce sold.
Speaker 5: transcript
And all in sustaining costs of average $177 per ounce sold.
And all in sustaining costs at <unk>.
George Burns: 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. 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 1 and scope 2 emissions from operating minds by 30% on a 2020 baseline by 2020.
$177 per ounce sold.
Speaker 5: transcript
Our cost decreased during a quarter as we continue to see lower than expected fuel and electricity price.
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 5: transcript
This was partially offset by higher royalty expenses as a result of the higher realized gold price during the quarter.
Speaker 5: transcript
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 5: transcript
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 5: transcript
Apple expenditures are 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 <unk> and it's curious where we continue to advance procurement in the project.
George Burns: Our GHG emissions target achievement pathway comprises 4 levers, operational efficiencies and continuous improvement, technologies, processes and energy generation, grid decarbonization and mind shutdown 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.
Income tax expense of $52 million increased in the quarter compared to Q3 2022.
Speaker 5: transcript
Income tax expense of 52 million increased in the quarter compared to Q3 2022.
Speaker 5: transcript
Primarily result of the retraout to 5% Turkish tax rate increase as previously noted.
Primarily primarily a result of a retroactive 5% Turkish tax rate increase as previously noted.
Current tax expense totaled $21 million in Q3 2023.
Speaker 5: transcript
Current tax expense totaled 21 million in Q3 2023.
Speaker 5: transcript
An increase from Q3 2022 current tax expense of 16 million.
An increase from Q3 2022 current tax expense of $16 million.
Speaker 5: transcript
The FIRD TACTS expense increased to 31 million in Q3 2023. Also an increase from Q3 2022, the FIRD TACTS 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 5: transcript
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.
Yeah.
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, Kisadah and FMJ Group. 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 how our productivity improvements are making a meaningful impact across the sites and in addition the opportunities that still lie ahead for us.
Turning to slide six.
Speaker 5: transcript
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 5: transcript
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 5: transcript
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 5: transcript
The availability under the facility as of September 30th was 116 million.
The availability under the facility as of September 30th was $116 million.
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. 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.
Speaker 5: transcript
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 with.
Speaker 5: transcript
With that, I will now turn the rover 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 4: transcript
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.
Phil Yee: I'll stop there and turn the call over to Phil for review of our financial results. Thank you, George.
In Q3 continued to ramp up with overall project progress at 34% and one incorporating all prior work squares progress stands at 65% complete.
Phil Yee: Good morning, everyone. Slide 5 provides a summary of our third quarter results. Elder Ratter reported a net loss attributable to shareholders from continuing operations of 6.6 million or 3 cents lost per share in a third quarter. Directly impacted by the 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.
Speaker 4: transcript
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.
Globalization 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 4: transcript
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 4: transcript
General works continue 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.
General works continued to focus on site probation relocation of temporary facilities reconditioning of the non contact water reinjection well system.
And the whole each of aggregates for construction purposes.
Speaker 4: transcript
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 6: transcript
Test-Dope work access will commence at the end of 2024 with expected completion by mid 2025.
Test work access will commence at the end of 2024 with expected completion by mid 2025.
Phil Yee: Both the result of the retroactive corporate tax rate increase meant to mention earlier. 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 scurrious project, free cash flow generation in the quarter was positive 30 million.
Speaker 6: transcript
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, $701 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 6: transcript
The spending is focused on completing detailed engineering and procurement.
The spending is focused on completing detailed engineering and procurement.
Speaker 6: transcript
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 6: transcript
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.
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 realized gold price during the quarter.
Speaker 6: transcript
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.
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 filings and foundation to support the filters.
Speaker 6: transcript
Open-tit pre-stripping and construction of the orstock tile, water management ponds, and the integrative, extractive waste management facility dam and bankments.
Open pit pre stripping and construction of the ore stockpile water management pond, and the integrated extractive waste management facility dam embankment.
Structural concrete for the primary crusher and associated process facilities.
Speaker 6: transcript
structural concrete for the primary crusher and associated process facilities.
And.
Speaker 6: transcript
Mechanical, piping, electrical, and instrumentation for the process plan.
Mechanical piping electrical and instrumentation for the process plant.
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 Scurrious, where we continue to advance procurement and the project. Income tax expense of 52 million increased in the quarter compared to Q3 2022, primarily a result of the retro out to 5% Turkish tax rate increase as previously noted.
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 6: transcript
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.
Speaker 6: transcript
Turning to slide eight. In the third quarter, we recorded zero-boss time injuries.
Turning to slide eight in the third quarter, we recorded zero loss time injuries.
Speaker 6: transcript
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 0.7 for 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.
Phil Yee: Current tax expense total 21 million in Q3 2023, an 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 6: transcript
On our operating results, we produced 121,030 ounces 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 operations in Turkey and Canada.
Thanks Jay.
Speaker 7: transcript
Starting in Turkey A on slide nine, 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.
Studying <unk> on slide nine and keeps it a 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.
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. 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.
<unk> 2022.
Production during the third quarter was driven by the successful commissioning of the Glomeration drum that was added to the crushing circuit in the second quarter and tons placed on the heap Leach pad has continued to increase.
Speaker 7: transcript
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 heap bleach had have continued to.
Speaker 7: transcript
The largest surface area of the newly commissioned North E Bleach pad has enabled the full capacity of the 54 inch stacking equipment to increase tons' place and increase the irrigation flow rate.
The largest surface area of the newly commissioned North heap Leach pad has enabled the full capacity of that 54 and stacking equipment to increase tons supplies.
And increase the irrigation fly right.
Speaker 7: transcript
Production is expected to increase over the course of the fourth quarter as we realize 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 7: transcript
We expect to continue to do it and inventory build 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 resolved entirely lead solution.
Joe Dick: With that I will now turn over to Joe to go through the operational highlights. Thanks Phil and good morning. Starting on slide 7, at Scurrious Construction Activity in Q3 continue to ramp up with overall project progress at 34% and one incorporating all prior work Scurrious progress stands at 65% 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.
On slide 10, and that's into Curry.
Speaker 7: transcript
Their quote-unquote production was 21,142 ounces at cash operating cost of $817 per ant-cell.
Third quarter Gold production was 21142 ounces at cash operating cost of $817 per ounce sold.
Speaker 7: transcript
Go production, throughput and everything's go great at FM2 crew we're in line with plans for the quarter.
All production throughput and everything's called graded ethane J crew or online we plan for the quarter.
Speaker 7: transcript
Development towards the co-carp and air 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 7: transcript
for 2023, Edith and Two crew we expect to see a modesty increase in Q4 production over the third quarter.
For 2023 edits into crude we expect to see a modest increase in Q4 production I didn't say, Florida. Additionally.
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.
Additionally.
Speaker 7: transcript
During the quarter, the FN2 group mine was successfully certified ISO 5,000 and 1 energy management standard.
During the quarter. The <unk> mine was successfully certified ISO 5000 number one energy management standard.
And now moving to our Mac on slide 11.
Speaker 7: transcript
The quote-unquote production was 43,821 ounces at cash operating cost of $624 per ounce.
Third quarter gold production was 43821 ounces.
Our cash operating cost of $624 per ounce sold.
Speaker 7: transcript
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.
Joe Dick: Test dope 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 7: transcript
which led to reduce mining phases for all production in the third border.
Which led to reduced mining faces for oil production in Florida.
Speaker 7: transcript
The fourth quarter is expected to be stronger with development into high-grade stoves and continued stable prices.
The fourth quarter is expected to be stronger with development into high grade Stopes and continued stable prices seem right.
Speaker 7: transcript
Additionally, we remain on track to complete as 2023 in-field drilling program targeting the upper two thirds of the All-MAC depots.
Additionally, we remain on track to complete at 2023 infield drilling program targeting the upper two thirds of the <unk> deposit.
Speaker 7: transcript
At planning to take a bulk sample and announce all Machinolger was during the second half of 2020.
Our plan is to take a bulk sample and announce or Mackie noga or was it during the second half of 2024.
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 7: transcript
I'll hand the call back to Jay to repeat a circle for the result.
I'll hand, the call back to Jai to review the third quarter results at Olympias.
Speaker 6: transcript
Thanks, Simon. Moving to Olympia's on slide 12. Third quarter-bode 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 6: transcript
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 6: transcript
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 cost 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 6: transcript
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 our plants on these.
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% 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.
These milestones include.
Speaker 6: transcript
Transitioning a mechanical loading of drilled rounds with a bulk emulsion agent.
Transitioning to mechanical loading of Grilles rooms, with a bowl promotion agent.
Speaker 6: transcript
Mechanical completion of a major upgrade to the ventilation system.
Mechanical completion of a major upgrade to the ventilation system.
Speaker 6: transcript
and completion and energization of the new 150 KB substation which enabled the ventilation system start-up.
And completion and energy station of the new 150 kv substation, which enabled the ventilation system startup.
Speaker 6: transcript
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.
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 6: transcript
Gold production is expected to be steady over the fourth quarter as the productivity initiatives continues to safely deliver increased time-age 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 continued to safely deliver increased tonnage.
And increased byproduct metals, reducing our overall cash costs.
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 cost of $622 per ounce sold, which represents a 17% reduction in cash costs and similar production compared to Q3 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 heat bleached pad have continued to increase.
I'll stop there and turn it back to George for closing remarks.
Thanks Gene.
Speaker 4: transcript
Our operating business delivered a strong quarter generating improved free-cast flow, excluding capital expenditures on the Scurries project.
Our operating business that delivered a strong quarter generating improved free cash flow excluding capital expenditures on the <unk> project.
Speaker 4: transcript
We also deliver some fantastic improvements in our business.
Also deliver some fantastic improvements in our business.
Speaker 4: transcript
Both Olympias and Kislet are reach major turning point with the completion of Keyn.
Olympias and <unk> reached a major turning point with.
With the completion of key infrastructure investments bulk.
Speaker 4: transcript
Both sides are now beginning to reap the benefits from these invests.
Both sites are now beginning to reap the benefits from these investments.
Yeah.
Speaker 4: transcript
At Lamock, we're well positioned for the Armock deposit in that we've got the expiration drift and infill drilling program moving to completion this year that sets us up for the bulk sample collection next year.
Mark we are 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.
Simon Hille: The largest surface area of the newly commission nor the bleach 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 realize 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 bleach solution.
Speaker 4: transcript
and then sets us up to have our first reserve on our mock late next year. This site has continuously delivered or exceeded...
That sets us up to have.
First reserve on remark late next year.
This site has continuously deliver.
<unk> delivered or exceeded expectations.
And they are set up to deliver a strong fourth quarter.
Speaker 4: transcript
At FM Chukur, we're also advancing our exploration and in filled drilling programs to support my life extends.
At <unk>, we're also advancing our exploration and infill drilling programs to support mine life extension.
Speaker 4: transcript
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.
Simon Hille: On slide 10 at FN2 crew, their quarter goal production was 21,142 ounces at cash operating cost 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 my life. For 2023 at FN2 crew, we expect to see a modesty increase in Q4 production over the third quarter.
We are on track to deliver our growth strategy.
Speaker 4: transcript
to deliver industry-leading returns over the next couple of years. It's an exciting time.
To deliver industry, leading returns over the next couple of years.
It's an exciting time to be at El Dorado.
Speaker 4: transcript
Thank you for your time I will now turn it over to the operator for questions from our analysts.
Speaker 2: transcript
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.
Simon Hille: Additionally, during the quarter, the FN2 crew mine was successfully certified ISO 5,000 and one energy management standard. And now, moving to Lamack on slide 11, their quarter goal production was 43,821 ounces at cash operating cost of $624 per ounce sold. Production was impacted by slower than expected development in the underground as a result of spending shifts in the second quarter due to the wildfires in the reach, who led to reduce mining phases for all production in the third quarter.
Speaker 2: transcript
If you are using a speaker phone, please pick up your handset before pressing any...
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 2: transcript
To withdraw your question, please press star then two. We'll pause for a moment as colors join the-
Our first question comes from Cosmos <unk> of CIBC. Please go ahead.
Speaker 2: transcript
Our first question comes from Cosmos 2 of CIBC. Please go ahead. Great. Thanks, George Phil.
Great. Thanks, George Phil Joe Simon and Matt.
Speaker 8: transcript
Maybe my first question is on Spurious. I guess, you know, some of you are wondering how a change in the 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 all on the top end, you're lowering 2023 CAPEX of Spurious by $90 million.
Maybe my first question is on Sirius I guess.
Im wondering how a change in <unk>.
Capex at least for 2023 doesn't impact the delivery schedule.
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.
I guess my question is is this just really a shift in timing at all on the top and lower in 2020, Capex a serious by $90 million.
Speaker 8: transcript
I'm sure you're going through the budgeting process right now, George, and the bill. 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.
Simon Hille: Our plan is to take a bulk sample and announce all-maxing over what was done during the second half of 2024.
Yes cosmos. Thanks for the question, Yeah, I mean <unk>.
Speaker 4: transcript
Yeah, Cosmos, thanks for the question. Yeah, I mean, first stories.
Speaker 4: transcript
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, we roughly said the project was half built. So, I mean, 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 other high level thing.
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.
Simon Hille: I'll hand 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 goal 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.
He 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 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.
Speaker 4: transcript
Remember we just completed project financing in the second quarter. We're on a steep wrap up curve.
Speaker 4: transcript
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 yeah, the capital spins 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 low light on a few of these contracts, none of which is affecting the critical path for the project.
Onsite 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. The 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 contract.
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 initiatives continues to safely deliver increased tonage and increased by product metals, reducing our overall cash costs.
None of which is affecting the critical path for the project.
Speaker 4: transcript
So overall, we remain confident that we'll get this thing in the commissioning mid 2025 commercial production by the end of the year. Obviously with a bit lower spin this year, it's gonna 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 comments you might wanna add to that. Hmm.
Overall, we remain confident that we'll get this thing into commissioning between 25 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.
Don't know if you have a few comments you might want to add to that.
Thanks George.
Speaker 6: transcript
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.
Yes.
George I would say I would say that we.
Some of that confidence comes from.
Right from the beginning flexibility that we built into the construction schedule. So.
Speaker 6: transcript
You know, we remain continuing to project on a single ship six day 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.
George Burns: I'll stop there and turn it back to George for closing remarks. Thanks, Gene. Our operating business delivered a strong quarter generating improved free cash flow, excluding capital expenditures on the Scurries project.
Speaker 6: transcript
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.
And how to deploy resources over the remaining project time.
And I also say that.
Kinda concurred with George's comments that you know.
Speaker 6: transcript
You know, some of the optimization that we have done in the, well in this early award stage, I think is, you know, 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 in doing, being able to deliver Scorries in 2025.
Some of the optimization that we have done in the.
George Burns: We also delivered some fantastic improvements in our business, both Olympias and Kisletta reach major turning point, with the completion of key infrastructure investments. Both sides 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 infield 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 our mock late next year.
Well in this early awards stage I think as you know.
Pretty beneficial to overall project costs and so we're comfortable with that that tradeoff in time versus money in this in the near term here.
And as George said are still confident or remain contracting done being able to deliver squeeze in 2025.
Speaker 8: transcript
And then George and Joe, as you mentioned, your press release, you mentioned a few items that contributed to the decreasing cappix for the year. Part of it is transitioning engineering work to Greece. Would that result in a per minute cost savings or could you give us a bit more detail on what that entails?
Perfect and then.
Georgia, Joe as you mentioned the 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.
George Burns: This side has continuously delivered exceeded expectations, and they're set up to deliver a strong fourth quarter. At FM Chukur, we're also advancing our exploration and infield 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.
Would that result in a permanent cost savings or could you give us a bit more detail on.
What that entails.
Speaker 6: transcript
Cosmos, this is show, 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.
Go ahead, Joe Cosmos 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.
A better cost structure for engineering.
But also there was a bit of time in making that transition so.
Speaker 6: transcript
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.
A bit slower delivery, but everything's on track now working working well so.
George Burns: It's an exciting time to be at Eldorado. Thank you for your time.
Pretty pleased with that.
Speaker 8: transcript
Great. And then, you know, going back to Q2, you have mentioned at that time that, you know, several contracts were going to get awarded in two weeks, likely, it sounds like it didn't happen, but, you know, that's okay. But you also mentioned that,
Great and then going.
Going back to Q2.
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 handset before pressing any keys. To withdraw your question, please press star then two. We'll pause for a moment as colors join the queue.
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.
The U S.
Speaker 9: transcript
The FS 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, you know, looking out for some kind of update? If that's a case, maybe one. Where we sit today. This is your case.
<unk> 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 look at some kind of update if that's the case.
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 really a shift in timing? You know, on the top end, you're lowering 2023 capex as serious by $90 million. I'm sure you're going through the budgeting process right now, George and Phil.
Maybe one.
Where we sit today.
Thanks, Mike.
Go ahead George go ahead Joe.
Okay.
Cosmos, where we sit today is that.
Speaker 6: transcript
The most where we sit today is that, you know,
Speaker 6: transcript
We did an update based on completion of award, of 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 what we said today is.
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.
So that's where we sit today is we're not updating based on on.
Speaker 6: transcript
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 does that complete through the end of the year.
Cosmos Chiu: 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, I mean, the group that went and visited the site could see we have a tremendous amount of infrastructure already on the project site.
We will update based on any material changes that we may see and if not then I think we'll.
Hold where we're at.
Speaker 4: transcript
House must let me just add a few comments to that. So I just want to make it clear when we set 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.
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 and we obviously made.
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. But some of it's actually optimization, where we're pushing some cost off without any impact to schedule.
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 4: transcript
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 and 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.
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 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.
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, 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.
And the work that you saw on site.
Speaker 4: transcript
that we've completed this year. So, we got a lot of confidence in our summit. We have a lot of confidence in the work we've done.
But we've completed this year, so we got a lot of confidence.
We have a lot of confidence in the work we've done.
Speaker 4: transcript
We don't have any 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.
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. 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, so certainly, you know, we have flexibility in how to deploy resources over the remaining project time.
Speaker 4: transcript
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.
We needed to acquire.
And the filter essentially are manufactured so we're already working on plans to to put those filters together on site.
Speaker 4: transcript
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. And maybe one last comment, you know, on the civil work.
That risk is essentially eliminated now so.
We remain confident and again those those things we've 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.
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 the 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 trade off in time versus money in the near term here. And as George said, are still confident or remain confident on being able to deliver scores in 2025.
On the civil works.
Speaker 4: transcript
We had originally contemplated that as four individual contracts. And we took time to digest all the bits 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.
We had originally contemplated that as for individual contracts and we took the time to digest all the bids.
And 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. It's a contractor we've got familiar out familiarity with as they've done work on the token all to stem. The last couple of years. So we're taking our time to make.
Speaker 4: transcript
It's a contractor we've got familiar out, familiarity with as they've done work on the Polkanal to STAM 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...
Sure we've 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 about a little bit of slippage in the spend or getting these contracts. It's actually so far it turned to be positive to take our time and get the best possible cost.
George Burns: 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, 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.
Speaker 4: transcript
So far, it turned to be positive to take our time and get the best possible contract to ensure the best possible outcome on this project.
Track to ensure the best possible outcome on this project.
Speaker 8: transcript
That's great to hear George. Maybe one last question, switching gears a little bit to Olympias.
That's great to hear George.
Maybe one last question switching gears a little bit.
Olympias.
Speaker 8: transcript
Very good quarter in Q3 and so, you know, I guess going back to your happen a bit of
Good quarter in Q3, and so I guess going back there have been a bit or not.
Speaker 8: transcript
Not a volatility, but a bit of different than the quarters. Q1 was good, Q2 was not as good, Q3 now is good once again.
Volatility of a bit of a different in the quarters Q1 was good Q2 was not as good Q3 now is good once again.
Speaker 8: transcript
Can we expect more stability going forward now that you've implemented say bulk of motion, you've implemented or the ventilation is now in place, is the current level what we can continue to expect in terms of production cost was fairly good as well, 1390 and NLs and Q3, is that a good level of cost or can we expect even better?
Can we expect more stability going forward.
Implemented.
Bulk of emotion will implement 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.
George Burns: Great. And then going back to Q2, you have mentioned at that time that several contracts were going to get awarded, likely it didn't happen, but that's okay. But you also mentioned that the FS 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 pleased? Cosmos, go ahead, George.
Is that is that a good level of costs or can we expect even even better.
Sure Cosmos, maybe I'll answer it just some of the high level.
Speaker 4: transcript
Cosmos maybe I'll answer it just some of the high level
Speaker 4: transcript
implications on over-bias results and Joe can speak to the operational. So I mean, Olympus 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 Olympus has to do with external markets. You know, we got hit with that payability issue a year ago. We've been pawned some of that back by finding...
Implications on Olympias results and Joe can speak to the operational.
I mean for Olympias number one I would say the infrastructure improvements we've put in place.
Our a game changer for us but.
Some of the volatility on Olympias has to do with external markets. We got hit with that pay ability issue a year ago, we've been plants some of that back by finding.
Speaker 4: transcript
other customers who we avoid the VAT and even within China now.
Other customers are we avoid the vap.
George Burns: 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. 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 what we're at.
And even within China now we have <unk> at times.
Speaker 4: transcript
we avoid VAT at times in that some of the contractors pay for it in order to get that concentrate. So we've got clawback some of that. Zinc metal price is down quite a bit and that's had a material impact on the byproduct credit value that we get.
And that some of the contractors pay for it.
In order to get that concentrates so we've got plot back some of that.
Zinc metal prices down quite a bit and thats had a material impact on the byproduct credit value that we get and then overall, we were late getting that infrastructure.
Speaker 4: transcript
And then overall, 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
Was completed in Q2.
We had planned on getting that up in Q1, and so that had a cascading impact on the.
Speaker 4: transcript
So I would say at a high level, some of these external factors just add volatility, 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 positioned now and Joe, you can add anything you want to that.
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.
George Burns: 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. It's just 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.
Much better position now and Joe you can add anything you want to that.
Speaker 6: transcript
I think it covered it pretty well. George Cosmos, the only thing that I would add is that
I think you've covered it pretty well George Cosmos, the only thing that I would add is that.
Speaker 6: transcript
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 2020.
Complete 2023, and 2024, we anticipate continued.
Continued.
Improvement in our underground operations.
Running into a point where.
Mine and mill are pretty evenly matched so there'll be kind of a period.
George Burns: 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 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.
Going forward were.
A bit of work will be required in the mill to take advantage of additional.
Speaker 6: transcript
additional production from underground. So we'll keep you apprised to that as we move along. But likely to see a bit of multi-bottom acting in 2024.
Production from underground so we will keep you apprised as that as we move along.
Likely to see a.
A bit of mill Debottlenecking in 2024.
Great. Thanks, George and team for answering all my questions. Congrats once again on a very solid Q3 and have a good weekend.
Speaker 8: transcript
Great, thanks George and team for answering all my questions. Congrats once again on a very solid Q3 and have a good weekend.
George Burns: So we've got a lot of confidence in our summit. 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.
Thanks Cosmos.
Speaker 2: transcript
Our next question comes from Carrie McRory of Canacroge Inuity. Please go ahead.
Our next question comes from Kerry Macquarie of Canaccord Genuity. Please go ahead.
Hey, Good morning, guys. Just wondering about the case for the AG $3 6 million tonnes is a huge.
Speaker 10: transcript
Hey, good morning guys, just wondering about Kishwadaeg, 3.6 million tons is a huge off-kick in town stack. Obviously the North Heapley Tad is open, and you've got the bigger gear in there. Just wondering how we should think about that rate and go forward basis. Thank you.
Ticking tons stocked obviously, the north heap Leach pad is open and you've got the bigger gear in there I'm just wondering how we should think about that rate on a go forward basis.
George Burns: 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. And maybe one last comment on the civil work. Chris, we had originally contemplated that as four individual contracts and we took time to digest all the bits that came in but a lot of working into optimizing that piece of work and in fact have landed with with one contractor and we're seeing synergies out of that work.
But simon.
Hi, Kerry and yeah. Thanks for the question.
Speaker 7: transcript
Yeah, I think that right is what we are planning.
Yes, I think the that right is what we are planning.
Speaker 7: transcript
forward that you know what we've been sort of alluding to with the bigger Cheerle's handling experiment that we have now available.
Mhm forward, that's what we've been sort of a leading to with the bigger materials handling equipment that we have now available.
Speaker 7: transcript
You know, only caveat to that would be, the summer months are our best, you know, stacking and availability months. I just do the weather effects. Typically, we do do a small, you know,
And any caveat to that would be in the summer months are our best and stacking and availability months.
Just due to weather effects.
<unk>.
We do see a small.
Yeah.
George Burns: It's a contractor we've got familiar out familiarity with as they've done work on the poke and all of the stem 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 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. That's great to hear, George.
Speaker 7: transcript
impact from the colder months, which we really factor into our plan 61, but beyond that, we expect to be at those type of rates a majority.
Impact from the colder months, which we really factor into our plan.
But beyond that we expect to be at those type of rights in the majority of the year.
And I might just supplement that I mean, if you can.
Speaker 4: transcript
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 a 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 huge. When you look at me, you can develop the ways you think, and numbers, therefore we live, especially first you will need it. and we will sort of do more.
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.
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.
George Burns: Maybe one last question switching gears a little bit to Olympias, very good quarter and Q3 and so I guess going back there have been a bit of not volatility but a bit of difference in the quarters Q1 was good, Q2 was not as good, Q3 now is good once again. Can we expect more stability going forward now that you've implemented say bulk of motion, you've implemented or the ventilation is now in place is the current level what we can continue to expect in terms of production costs were fairly good as well 1390 and else in Q3.
And essentially it was because we were adding.
Speaker 4: transcript
essentially cement to the conveyors to do binding of the fines to support the high-pressure grinding roll 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 do binding of the fines to support the hyperscale grinding role and that caused plugging and clogging of the transfer points between conveyors.
I mean, our production dropped off as a result of that challenge and as Simon said by putting in these larger conveyors.
Larger stacking equipment.
Speaker 4: transcript
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 tonnages 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. Well, obviously we're trying to push the open pit and the circuit.
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 you saw in Q3, I think is a good assumption going forward.
George Burns: Is that a good level of cost or can we expect even better? 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. We've got hit with that payability issue a year ago, we've been caught some of that back by finding other customers who we avoid the VAT and even within China now we avoid VAT at times in that some of the contractors pay for it and order to get that concentrate so we've got plot back some of that.
We've been trying to push the open pit and the circuit.
Speaker 4: transcript
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 gonna 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 <unk> in the collaboration and how finely crushed the or how much gold, we expose and how effectively we can rinse that gold out of the crest heap Leach pad.
It's going to be our focus going forward, that's probably our opportunity going forward as well.
Speaker 10: transcript
Great, that's the color. And maybe just a follow up on Kiss with Egg. You know, obviously the operations go working through the rain event from May, June . I'm just wondering how you're seeing production sort of adding in the cube. We're here. Are you starting to see an uptick in that sort of that impact where I-
Great. That's good color and maybe just to follow up on <unk>.
Obviously the operations co 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.
George Burns: 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 we were late getting that infrastructure that was completed in Q2. We had planned on getting that up into one 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 where we're what we're doing on the ground with the things we have control.
Thanks Carey.
Hi.
Speaker 7: transcript
Yeah, we are seeing now that we're sort of beyond the...
Yeah, we are seeing.
Now that would sort of beyond the.
The Q2, Q2 Q3 sort of challenges as.
Speaker 7: transcript
the Q2, 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.
As you are able to save them.
In the field.
Things that sort of lining out fairly nicely irrigation right and flies.
Our up where we expect them to be.
And now we're working.
George Burns: 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 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, and additional production from Underground, so we'll keep you apprised with that as we move along. But likely to see a bit of multi-bottom acting in 2024. Great, thanks, George and team for answering all my questions. Congrats once again on a very solid Q3 and have a good weekend. Thanks, Kyle Cosmos.
Working had to draw down on that inventory created.
For that period.
Okay, Great. That's it for me thanks, guys.
Thanks, Gary.
Speaker 2: transcript
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 11: transcript
Joe, four screws, you know, 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 delays? Are you pretty confident that that shouldn't be the case?
Joe for screens.
The detailed engineering done is pretty critical to keeping the timetable is there any risk that transferring that engine 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.
Speaker 6: transcript
Thanks, Gary. We're pretty confident that should not be the case and we're working in good cooperation with Laura in oversight of that engineering. 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 the other things out of that and we paid.
Thanks Kerry.
We're pretty confident that should not be the case and we're working in cooperation with fluor.
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 <unk>. So in a lot of ways. It helps us in order to be kind of get time someone's in other things out of <unk>.
Carey MacRury: Our next question comes from Carey MacRury of Canacorn Genuity. Please go ahead. Hey, good morning, guys. Just wondering about Kishwadeg, you know, 3.6 million tons is a huge uptick in town stack. Obviously, the North, deeply try to open it. You've got the bigger gear in there.
Out of that and we paid.
Speaker 6: transcript
real close attention to critical path engineering around filters and other things so that, we don't put
Real close attention to critical path engineering around filters and other things so that.
Yeah.
We don't put them.
Speaker 6: transcript
Schedule at risk over engineering and we've had good agreement with All of our vendors on production of ender drawings and such so we're feeling we're feeling pretty good about it as you know as a benefit in shortening timelines for turnaround on key information and the like being you know with the with the whole pain consolidated In Greece now
Joe Dick: Just wondering how we should think about that rate and go forward basis. Hi, Carrie. Thanks for the question. Yeah, I think that rate 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. You know, only caveat to that would be the summer months are our best, you know, stacking and availability months. I just do the weather effects typically. We do a small impact from the cold months, which we really factor into our plan for Q1, but beyond that, we expect to be at those top of rights.
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 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 increase now.
Speaker 4: transcript
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
Okay.
Gary I would say there is one additional benefit to moving some of this engineering in country early and that is yes.
You always have to run the filter of taking.
Speaker 4: transcript
Taking those engineering drawings and data and localizing it to regulations.
Taking those in engineering drawings and data and localizing it regulations.
Speaker 4: transcript
And so by doing that at an earlier phase, we eliminate some duplicate work. 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.
We eliminate some duplicate work.
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 is some some net benefits here and we haven't really put any risk to the project from that decision.
George Burns: And I might just supplement that. I mean, if you kind of look backwards over the Kishwadeg 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 essentially cement to the conveyors to do binding of the fines to support the high pressure grinding roll.
George Burns: 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, that impact not going to hit is 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 tonnages you do when you got blue sky and in great weather.
Speaker 11: transcript
Okay, okay. And are all the long-dieted and now ordered, I assume they are and some are delivered to site, or what is the status of a long-dieted? Okay.
Okay, Okay and are all the long lead items now ordered I assume they are in some of our delivered to site or what is the status of other long lead items.
Speaker 6: transcript
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 for procurement.
And the last major piece of equipment I think mentioned earlier was the filters and that filters.
Our packaged in shipment and.
Receipts are started for you.
Site Assembly, but it'll be all of that will be on site.
Speaker 6: transcript
end of 24 or the 25 so
End of 'twenty four 'twenty five so.
Speaker 6: transcript
no concerns on schedule and at this due to equipment.
No concerns on schedule and.
At this time.
Equipment.
Speaker 6: transcript
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 span by time have been accounted for as well. So feeling really good about lead done.
Okay.
And all of the.
Work on existing equipment that was installed and review has also been completed and any kind of requirements for <unk>.
George Burns: So, the run rate we saw in Q3, I think, is a good assumption going forward. 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 wheat pad. That's going to be our focus going forward. That's probably our opportunity going forward as well.
Modifications other things due to standby time had been accounted for as well so feeling really good about lead times.
Speaker 11: transcript
And just maybe one last question on Scrooge. Are you seeing any issues in terms of hiring fuel trades and labor as you ramp up to the 900 people on site by the end of the year? And second part of that is are the productivity 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.
Seeing any issues in terms of hiring skill training and labors 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 had budgeted.
Joe Dick: Great, that's good color. And maybe just a follow up on kiss with egg, you know, obviously the operations go 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. Are you starting to see an uptake and that, sort of that impact we're off. Thanks, Carey. Yeah, we are seeing now there was sort of beyond the Q2, Q2, Q3 sort of challenges as you're able to see when we're out in the field, things are 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, Carey.
Operator: Once again, if you have a question, please press star then one.
Speaker 6: transcript
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-site. So...
So to take the first part of the question.
As availability to workforce.
There've been no no issues to date for contractors managing to mobilize and bring skilled skilled workers on site.
Speaker 6: transcript
pleased with that and as far as productivity on, you know, there's not a lot of 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 today has been similar. But I think that
Pleased with that.
And as far as productivity on Theres, not a lot of or.
Not a lot of data points out there, but the work performed last year round.
The mill building cladding cranes and the rest of it was.
At expectation or kind of bad feasibility level within the.
Work ongoing to date has been.
Similar but.
But I think I think that remains.
Speaker 6: transcript
you know, a watch point for us going forward. But so far, Kerry were pretty pleased with productivity and how they match up with feasibility.
I'll watch point for us going forward.
But so far Kerry.
Pretty pleased with productivity and how they match up with feasibility.
Speaker 11: transcript
Okay, okay. And just on Tissue bag maybe sun can answer are the recovery through the agglomerating material kind of tracking with what you expected or or better or how are they how are they tracking?
Okay, Okay, and just on tissue, maybe Simon cancer are the recoveries through the agglomerated material kind of tracking with what you expected or better or how are they how are they tracking.
Carey Smith: Our next question comes from Carey 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 shouldn't be the case? Thanks, Carey. We're pretty confident that should not be the case and we're working in good cooperation with Laura in oversight of that engineering.
Thanks Carey.
Speaker 7: transcript
So far we are still pretty comfortable with the recovery tracking as planned when we...
Yes, so far we will.
We're still pretty comfortable with the recoveries tracking as planned when we.
Speaker 7: transcript
initiated the HBGR investment and really the agoneration drum is a supplement to that to help us improve our materials handling and the ability on the pads and so far.
And initiated the <unk> 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.
Carey Smith: 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 the other things out of that and we paid real close attention to critical path engineering and around filters and other things so that we don't put schedule at risk over engineering and we've had good agreement with all of our vendors on production of vendor drawings and such.
Speaker 11: transcript
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.
What has the experience been.
So we purchased two, that's correct. We only ever 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.
And right now that one has been used pretty extensively to to try and test.
Carey Smith: 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 in Greece now. Carey, 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. So I think there's some some net benefits here and we haven't really put any risk to the project from that decision.
The workforce, while we're preparing.
Full implementation.
In the underground activities.
Speaker 7: transcript
We expect to see the second be the in the first quarter of 2024.
We expect to see the second.
The in the first quarter of 2024.
Speaker 7: transcript
So that's the sort of plan right now. And it will be rolling the first one into that service through this quarter. And then the second one as it comes on to side in Q1.
So thats the plan right now and we'll be rolling the first wanting to service.
Through this quarter.
And then the second one.
As it comes onto side.
In Q1 of 2024.
Speaker 4: transcript
Carrie, one of the things that I heard last week, it was pretty cool. If I haven't been there to see that the truck would just arrive yet, but...
Gary one of the things that I heard last week.
Pretty cool so I haven't been there to see that the truckload just arrived yet but.
Speaker 4: transcript
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.
One of the big issues for Us is okay.
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 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.
Joe Dick: 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? Okay. Carey, 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 end of 24 or the 25.
Speaker 4: transcript
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. 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 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.
And it's gonna be awesome thing.
Speaker 11: transcript
And I guess the battery packs have to be changed with equipment or it can 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.
Joe Dick: 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 you know any kind of requirements for modifications, other things due to you know span by time have been accounted for as well. So feeling really good about lead done.
The heavy.
Speaker 7: transcript
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 party that put it together. So the truck driver can do that without leaving the truck.
So there's an inbuilt battery changing gannett, so essentially part of the design of the track is to actually have that our removal system.
I installed on the tracks so its talent.
To lift off and.
Drop down and then pick up a secondary battery.
Oh without the need of that I'd said party that.
To put it together so in fact drive that I can't do that without leaving a truck.
Joe Dick: Okay, and just maybe one last question on Scrooge, are you seeing any issues in terms of hiring skill trades and labor as you ramp up to the 900 people on site by the end of the year and second part of that is are the productivity that you're seeing so far from the contractors sort of add or better than what you'd budgeted. So I'll take the first part of the question as availability to workforce.
Speaker 11: transcript
Okay, okay, great. Okay, let's create, I appreciate it. Thanks for answering my questions.
Okay. Okay, great. Okay, that's great I appreciate.
Great. 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.
Speaker 2: transcript
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.
Speaker 12: transcript
????
[music].
Joe Dick: There have been no issues today for contractors managing to mobilize and bring skilled skilled workers on site so please with that and as far as productivity's on you know there's not a lot of 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 today has been similar. But I think I think that remains. You know a watch point for us going forward but so far carry with pretty pleased with productivity and how they match up with feasibility.
Okay.
Hum.
[music].
Speaker 12: transcript
To.
Simon Hille: Okay, okay and just on this day maybe son can answer 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 Carrie. Yeah so far we were still pretty comfortable with the recoveries tracking as plan when we initiated the HPGR investment and really the agglomeration drum is a supplement to that to help us improve our materials handling and productivity on the pads and and so far.
Yeah.
Uh huh.
[music].
Speaker 12: transcript
I.
Okay.
Yeah.
Yeah.
[music].
Yeah.
Okay.
Joe Dick: Okay okay and then just one last question if I could how are the two electric trucks operating at Lenark and you brought those two pieces of kid in and what what is the experience been. So so we purchased two that's correct we only ever 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.
Joe Dick: 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 to will be rolling the first one into that service through this quarter and then the second one as it as it comes on to side in q1 of 2020. Kerry, one of the things that I heard last week, it was pretty cool. I haven't been there to see the truck that just arrived yet, but it's about two minutes to change the battery, which is, to me, pretty amazing.
Joe Dick: You can, you know, one of the big issues for us is, you got to, you got to 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 battery on to keep the truck moving. 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.
Joe Dick: They're faster. That's, that's obviously a big win. In the ventilation impacts are pretty enormous for us. We don't need air to, to deal with these emissions with these trucks. So it's going to be awesome. And I guess the battery packs have to be changed with equipment, or it can be changed by a biomechanic or an electrician. 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.
Joe Dick: So it's powered to lift off and drop down and then pick up a secondary battery. Or without the need of, I said, potty to put it together. So instructor, I can do that without leaving the truck. Okay.
Carey Smith: Great. Okay. That's great. I appreciate it. Thanks for answering my questions. Thanks, Gary.
Operator: 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. [inaudible]