Q1 2024 Eldorado Gold Corp Earnings Call

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Operator: Thank you for standing by. This is the conference operator. Welcome to the Eldorado Gold first quarter 2024 results conference call.

Thank you for standing by this is the conference operator welcome to the Eldorado Gold first quarter 2024 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.

Operator: As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. I would now like to turn the conference over to Lynette Gould, Vice President, Investor Relations, Communications, and External Affairs. Please go ahead, Ms. Gould.

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 Communications and external Affairs. Please go ahead Miss Gould.

Lynette Gould: Thank you operator, and good morning, everyone I'd like to welcome you to our first quarter 2024 results conference call before we begin I would like to remind you that we will be making forward looking statements and referring to non I F. R. S measures during the call. Please refer to the cautionary statements included in the presentation and disclosure.

Lynette Gould: Thank you, operator, and good morning everyone. I'd like to welcome you to our first quarter 2024 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 and risk factors in our management's discussion and analysis. Joining me on the call today are George Burns, President and Chief Executive Officer; Paul Ferneyhough, Executive Vice President and Chief Financial Officer; Lo Smith, Executive Vice President, Development Greece; and Simon Hille, Executive Vice President, Technical Services and Operations.

Lynette Gould: On non I F. R S measures and risk factors in our management's discussion and analysis joining.

Speaker Change: Joining me on the call today, we have George Burns, President and Chief Executive Officer, Paul for Anyhow, Executive Vice President and Chief Financial Officer, Low Smith Executive Vice President Development, Greece, and Simon Hilli Executive Vice President Technical services and operations.

Lynette Gould: Our news release yesterday details our first quarter 2024 financial and operating results. This should be read in conjunction with our first quarter 2024 financial statements and management's discussion and analysis, both of which are available on our website. They have also both been filed on CDAR Plus and EDGAR.

Speaker Change: Our news release yesterday with details our first quarter 2024 financial and operating results there shouldn't be read in conjunction with our first quarter 'twenty 'twenty four financial statements and management's discussion and analysis both of which are available on our website. They are also both been filed on SEDAR and Edgar.

Lynette Gould: All dollar figures discussed today are U.S. dollars unless otherwise stated. We will be speaking from the slides that accompany this webcast. You can download a copy of these slides from our website. After the prepared remarks, we will open the call for Q&A. At this time, we will invite analysts to queue for questions. I am now happy to turn the call over to George.

Speaker Change: All dollar figures discussed today are U S dollars unless otherwise stated we will be speaking to the slides that accompany this webcast.

Speaker Change: You can download a copy of these slides from our website.

Speaker Change: After their prepared remarks, we will open the call for Q&A at this time, we will invite analysts to queue for questions I am now happy to turn the call over to George.

George Raymond Burns: Thanks, Linda and good morning, everyone.

George Raymond Burns: Thanks, Lynette, and good morning, everyone. We are pleased to have Lo Smith, our Executive Vice President, Development Greece, join us on the call. With Joe Dick recently retiring from his COO role and moving into a consulting role, Lowell will review our Greek assets. Our board and management team spent this week at our Lamarque complex in Val-d'Or, Quebec, celebrating its fifth operating anniversary. We acquired Lamarck in 2017, shortly after I joined the company.

George Raymond Burns: We were pleased to have low Smith, our executive Vice President development, Bruce join us on the call.

George Raymond Burns: With Joe <expletive> recently, retiring from the CEO role and moving into a consulting role local review our Greek assets.

George Raymond Burns: Our board and management team spent this week at or a little more complex and Val d'or, Quebec celebrating its fifth operating anniversary.

George Raymond Burns: We acquired the Mark in 2017, shortly after I joined the company.

George Raymond Burns: Within two years, we had announced an initial maiden reserve, refurbished the old Sigma Mill, and began operations on time and on budget. In the first five years, we have produced approximately 850,000 ounces of gold, exceeding the pre-feasibility expectation of 644,000 ounces by 32%, with the remaining 877,000 ounces in reserves as of September 30, 2023, with Oramok expected to announce an initial reserve later this year and a number of exploration targets on our large land package. This operation has exceeded our expectations, and it has a bright future ahead of it.

George Raymond Burns: Within two years, we had announced an initial maiden reserve.

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George Raymond Burns: Old Sigma mill and began operations on time and on budget.

George Raymond Burns: In the first five years, we have produced approximately 850000 ounces of gold.

George Raymond Burns: Exceeding the feasibility expectation of 644000 ounces by 32% with the remaining 877000 ounces in reserves.

George Raymond Burns: September 30 of 2023.

George Raymond Burns: With aura Mark expected to announce an initial reserve later this year and a number of exploration targets on our large land package.

This operation has exceeded our expectation and it has a bright future ahead of it.

Speaker Change: Here's the outline for today's call.

George Raymond Burns: Here is the outline for today's call. I will provide a brief overview of the Q1 results and highlights. I will then pass the call over to Paul to go through our financial results, and then on to Lowell and Simon to review our operational performance. We will then open the call to questions from our analysts. Turning to slide four, the first quarter was consistent with guidance, delivering safe production of 117,111 ounces of gold. Historically, production is lower in the first quarter of the year, as winter conditions at Kisiladaw slow down leach kinetics.

Speaker Change: I will provide a brief overview of the Q1 results and highlights.

Speaker Change: And then pass the call over to Paul to go through our financial results and then onto low assignment to review our operational performance.

Paul: We'll then open the call to questions from our analysts.

Paul: Turning to slide four the first quarter was consistent with guidance delivering safe production of 117111 ounces of gold.

Paul: Historically production is lower in the first quarter of the year. It was winter conditions at Kinston slowed down Leach kinetics.

George Raymond Burns: This is combined with expected or great variability across the operation. Looking ahead, we continue to expect increased production in the second quarter and a stronger second half of the year, remaining on track with our guidance to produce between 505 and 555,000 ounces of gold in 2024. Total cast costs and all in sustaining costs were $922 per ounce sold and $1,262 per ounce sold, respectively. Costs increased as a result of higher royalties, labor costs, and consumables.

Paul: This was combined with expected ore grade variability across the operations. Looking ahead, we continue to expect increased production in the second quarter and a stronger second half of the year remaining on track with our guidance to produce between 505 and 555000 ounces of gold for.

Paul: <unk> 2024.

Paul: Total cash costs and all in sustaining costs were $922 per ounce sold in $262 per ounce sold respectively.

Paul: Cost increased as a result of higher royalties labor cost in consumables.

George Raymond Burns: With the higher gold prices, royalty costs increased in Greece and Turkey as royalty structures are calculated on a sliding scale linked to the gold price. Detailed royalty tables are available in our recently filed technical reports for Olympias and FM Chukaru. While we see higher costs this quarter, they are in line with our 2024 guidance range. Paul will touch on the cost in more detail later in the call.

Paul: With the higher gold prices royalty costs increased in Greece, and Turkey as.

Paul: It was royalty structure as calculated on a sliding scale linked to the gold price.

Paul: Detailed royalty tables are available in our recently filed technical reports for Olympias and F. M. Two crew.

While we see higher cost this quarter. They are in line with our 2024 guidance ranges.

Paul: Paul will touch on the cost in more detail later in the call.

Paul: Turning to slide five in the first quarter, our lost time frequency rate increased to $1 63 recorded incidents per million person hours worked compared to 0.87 in Q1 2023.

George Raymond Burns: Turning to slide five, in the first quarter, our last time frequency rate increased to 1.63. Recorded incidents per million person hours worked compared to 0.87 in Q1 2023. Our commitment to a safe workplace is unchanged, and we recognize this as a continuous journey of improvement, and we expect to return to our trend of improving frequency rates. Our health and safety focus in 2024 is based on preventing high-potential incidents and further empowering our employees to promote a positive and healthy safety culture. In Sustainability, we were pleased to be the only non-oil sands mining company named as one of the 30 companies in the Globe and Mail's Road to Net Zero, recognizing our progress against our corporate climate targets.

Paul: Our commitment to a safe workplace is unchanged and recognition recognize this is a continuous journey of improvement and we expect to return to our trend of improving frequency rates.

Paul: Our health and safety focus in 2024 is based on preventing high potential incidents and further empowering our employees to promote a positive and healthy safety culture.

Paul: In sustainability, we were pleased to be the only non oil sands mining company named as one of the 30 companies in the Globe and Mail's Road to net zero, recognizing our progress against our corporate climate targets.

Paul: This was included within the globes.

George Raymond Burns: This was included within the Globe's report, Business Magazine's report on Business Magazine and utilizes research from Sustainalytics. We continue to advance our target to mitigate our greenhouse gas emissions through operational efficiencies and continuous improvement, technologies, processes, energy generation, grid decarbonization, mine planning, and operational changes. These actions also deliver operational and safety benefits. In government relations, we were proud to support the strengthening ties between the Canadian and Greek governments and business communities in March, as Prime Minister Karyakos Mitsotakis became the first sitting Greek Prime Minister to visit Canada since 1983.

Paul: Report on business magazine and utilize this research from sustained analytics.

Paul: We continue to advance our target to mitigate our greenhouse gas emissions through operational efficiencies and continuous improvement technologies processes energy generation grid de carbonization.

Paul: Mine planning and operational changes.

Paul: These actions also deliver operational and safety benefits.

Paul: And government relations, we were proud to support the strengthening ties between the Canadian and Greek governments and business communities in March as Prime Minister carry August Mitsotakis became the first Sydney Greek Prime Minister to visit Canada since 1983.

George Raymond Burns: During his remarks at one of the events, Mr. Mitsotakis spoke enthusiastically about Eldorado Gold's journey in Greece and the positive impact from investments by the company as a leading Canadian operator in Greece. I'll stop there and turn the call over to Paul for a review of our financial results.

Paul: During his remarks and one of the events Mr. Mitsotakis spoke enthusiastically to Eldorado Gold's journey in Greece, and the positive impact from investments by the company as a leading Canadian operator in Greece.

Paul: I'll stop there and turn the call over to Paul for a review of our financial results.

Paul Ferneyhough: Slide six provides a summary of our first quarter results. Our operations delivered a steady quarter, as George mentioned, in line with our expectations and aligned with our guidance, which remains unchanged across all operational and financial metrics.

Paul: Thank you George Slide six provides a summary of our first quarter results our operations delivered a steady quarter as George mentioned in line with our expectations and aligns with our guidance, which remains unchanged across all operational and financial metrics.

Paul Ferneyhough: Continued high gold prices drove strong financial results for the company. Eldorado reported net earnings attributable to shareholders from continuing operations of $35.2 million or $0.17 per share in the first quarter, positively impacted by higher revenue due to volume sold and prices realigned compared to the first quarter in 2023, after adjusting for one-time non-recurring items. Adjusted net earnings were $55.2 million, or $0.27 per share for the quarter. Adjusted net earnings in Q1 2024 accounted for the reversal of three principal items.

Paul: Continued high gold prices drove strong financial results for the quarter.

Paul: Eldorado reported net earnings attributable to shareholders from continuing operations of $35 2 million or 17 cents a share in the first quarter.

It simply impacted by higher revenue due to volume.

Paul: Prices realized compared to the first quarter 'twenty right.

Paul: After adjusting for onetime nonrecurring items.

Paul: <unk> net earnings were $55 2 million.

Paul: Or <unk> 27, a share for the quarter.

Paul: Adjusted net earnings in Q1, 2024 accounted for the reversal of three principal items.

Paul Ferneyhough: [inaudible] a $5.3 million loss on foreign exchange due to the translation of deferred tax balances net of Turkish inflation accounting. Secondly, a $16.9 million unrealized loss on the mark-to-market of derivative instruments. And finally, a $2.1 million gain on the non-cash revaluation of the embedded derivative related to the redemption option in Arsenia Notebook. Our free cash flow in the quarter was negative $30.9 million, or positive $33.7 million excluding capital investment in our Scurrius project.

Paul: Firstly.

Paul: $5 $3 million loss on foreign exchange due to the translation of deferred tax balances net of Turkish inflation accounting.

Paul: Secondly, a $16 9 million unrealized loss on the mark to market derivative instruments, and finally, a $2 1 million dollar gain on the noncash revaluation of the embedded derivative related to the redemption option in our senior notes.

Paul: Our free cash flow in the quarter was negative $39 million or positive $33 7 million.

Paul: Excluding capital investment in our school based project.

Paul Ferneyhough: Cash flow generated by operating activities before changes in working capital in the quarter was $108.3 million compared to $93.2 million in Q1 2023. As previously noted, the increase is principally related to higher sales volumes and realized prices.

Paul: Cash flow generated by operating activities before changes in working capital in the quarter was $109 3 million.

Paul: Compared to $93 2 million.

Speaker Change: In Q1, great.

Speaker Change: Previously noted the increase principally related to higher sales volumes and realized prices.

Speaker Change: First quarter total cash costs were 923 million, sorry, with $922 per ounce sold and all in sustaining cost was $1262 per ounce.

Paul Ferneyhough: First quarter total cash costs were $922 per ounce sold, and all-in sustaining costs were $1,262 per ounce sold. Our costs increased compared to Q1 2023 as a result of higher labor costs and consumables such as fuel driven by production volumes, as well as higher royalty expenses, primarily due to higher metal prices. In addition, increased sustaining capital investment contributed to higher ASIC for the quarter compared to the same period in the prior year.

Speaker Change: Our costs increased compared to Q1 2023, as a result of higher labor costs and consumables, such as steel driven by production volumes as well as higher royalty expenses, primarily due to higher metal prices.

Speaker Change: In addition increased sustaining capital investment contributed to higher <unk> for the quarter compared to the same period in the prior year.

Paul Ferneyhough: Capital expenditures were $122 million in the first quarter, including investment in growth projects at Kisledag focused on waste stripping, the North Leach Pad, and related infrastructure. At Scuries, we continue to advance major earthworks and infrastructure construction for the project, investing approximately $53 million in the period.

Speaker Change: Capital expenditures were $122 million in the first quarter.

Speaker Change: <unk> investment in growth projects at Kessler that focused on waste stripping the north heap leach pad and related infrastructure.

Speaker Change: Gary we continue to advance major earthworks and infrastructure construction projects investing approximately $53 million in that area.

Kerry Smith: Current tax expense of $12.4 million for the first quarter decreased from $20.5 million compared to the same period in 2023, primarily due to a net reduction in Turkish tax, after accounting for increased investment tax credit and inflation accounting adjustments. Deferred in-contact expense increased to $3.6 million in Q1 2024 versus a recovery of $7.8 million in Q1 2023. In the quarter, deferred tax included a $19.3 million expense related to the weakening of the lira and the euro against the US dollar, partially offset by a $14 million recovery from the application of Turkish inflation accounts.

Speaker Change: Current tax expense of $12 4 million for the first quarter decreased from $25 million compared to the same period in 2023, primarily due to a net reduction in Turkish taxes after accounting for increase in investment tax credits and inflation accounting.

Speaker Change: The adjustments.

Speaker Change: Deferred income tax expense increased to $3 6 million in Q1, 2020 ball, especially the recovery of $7 8 million.

Speaker Change: In Q1 2000 right.

In the quarter differed tax included a $19 3 million expense related to the weakening of the lira and the euro against the U S dollar.

Speaker Change: Partially offset by a $14 million recovery from the application of Turkish inflation accounting.

Kerry Smith: Turning to slide 7, our balance sheet remains well funded to meet our investment requirements. We ended the quarter with total liquidity of $628 million, including $515 million of cash and cash equivalents and $113 million of available capacity on our revolving credit facility. Cash declined over the quarter due to high levels of capital investment. However, we expect this trend to reverse over the remainder of 2024 as we benefit from strong gold prices and further draw down project finance funding for the Scurrius development.

Speaker Change: Turning to slide seven our balance sheet remains well funded to meet our investment requirements. We ended the quarter with total liquidity of $628 million, including $515 million in cash and cash equivalents and $113 million of available capacity on our.

Speaker Change: Our revolving credit facility.

Speaker Change: Cash declined over the quarter due to high levels of capital investment.

Speaker Change: We expect this trend to reverse over the remainder of 2024 as we benefit from strong gold prices and further drawdown of project finance funding at Asterias developments.

Speaker Change: We continue to focus on maintaining a solid financial position that provides flexibility to respond to opportunities and fund our growth strategy, so unlock value across our global business.

Kerry Smith: We continue to focus on maintaining a solid financial position that provides flexibility to respond to opportunities and fund our growth strategy to unlock value across our global business. With that, I'll now turn the call over to Lo to discuss the Greek asset hype. Thanks, Paul, and good morning.

Speaker Change: With that I'll now turn the call over to load to go through the Greek.

Speaker Change: Right.

Load: Thanks, Paul and good morning, starting on slide eight that was goodyear's copper gold project with <unk>.

Kerry Smith: Starting on slide 8 at our Scurrius Copper Gold project, we continue to progress major earthworks and infrastructure construction. Overall project progress is 73% when including the first phase of construction, and we remain on track for first production in Q3 2025 and commercial production at the end of 2025. Detailed engineering has advanced and is now 67% complete, and procurement is substantially completed.

Load: Continued to progress with.

Lloyd: With some infrastructure construction over.

Overall project progress is 73% when including the first phase of construction and we remain on track for first production in Q3, 2025 and commercial production at the infill and 20 fives do.

Lloyd: He told engineering has some bumps and is now 67% complete.

Lloyd: And procurement is substantially completed.

Kerry Smith: Mobilization of contractors and commencement of work on the Palinx Corporation Infrastructure Earthworks and Palinx, started during the quarter, with the earthworks expected to be substantially completed in Q2 2024. Additionally, the construction team made positive headway on the Crusher Building, Mullum Floatation Building, and underground development. On the critical path is the filter plant building, which continues to advance, with the piling work having commenced in Q1 2024. The Filter Building Construction Contract is on track to be awarded in Q2 2024, which will include the building structure, assembly of equipment within the building, including air compressors, conveyors, filter pressers, and other ancillary equipment, in addition to the piping and electrical work.

Lloyd: Mobilization of complex Soc and commencement of work on the tailings filtration infrastructure earthworks and fundings started during the quarter with the upward.

Lloyd: It to be substantially completed.

Lloyd: Q2, 2024th.

Lloyd: Additionally, the construction team my positive headway on the principal building modern.

Lloyd: <unk> put in place and building and underground development.

Lloyd: On the critical path is the filter plant building, which continues to advance with the piling work having commenced in Q1 2020 full but also building construction contract is on track to be awarded in Q2.

Lloyd: Between both.

Lloyd: Which will include the building structure assembly of equipment within the building.

Lloyd: Including air compressors conveyors sponsor placements.

Lloyd: And other ancillary equipment.

Lloyd: In addition to the piping electrical work.

Kerry Smith: Filter press plates arrived on site in Q1 2024, and pre-assembly has now commenced with the frames for the supporting the filter press plates already fabricated and expected to ship in Q2 2024. On this slide, you can see the photo on the right-hand side showing one of the 588 filter press plates that will be pre-assembled.

Lloyd: Total <unk> arrived on site in Q1, 2024, I'm pretty assembly has now commenced with a strange for the supporting the filter place floods or it is fabricated and expected to ship in Q2 24.

Lloyd: On this slide you can see the photo on the right hand side showing one of the 500.

The price points that will be reassembled.

Kerry Smith: We have some more detailed photos to share in the coming slides. Moving on to slide nine, during the first quarter, capital expenditures were $52.5 million.

Lloyd: We have some more detailed photos to share them, becoming slugs.

Lloyd: Moving on to slide nine.

Lloyd: During the first quarter capital spend was $52 5 million.

Kerry Smith: This is in line with our expectations as suspense is expected to ramp up significantly as mobilization and site labor increase. We remain on track to meet our guidance estimate for investment in Scurrius in 2024 of between $375 and $425 million. Work for the Mull flotation building is in progress with commissioning work on overhead cranes, installation of construction lighting and scaffolding, and the commencement of structural steel work. Commissioning of the three overhead cranes has been completed and is operational.

Lloyd: This was in line with our expectations as sustained as expected.

I'm up significantly as mobilization and slight labor increases we remain on track to meet our guidance estimate for investments. Excluding some 2020 forward of between 375 from <unk>.

Lloyd: And $25 million.

Lloyd: Workflow the modal flotation building and some progress with commissioning work on overhead claims installation of construction lighting and scaffolding and the commencement of structural steel work.

Lloyd: Commissioning of the three overhead cranes are completed and operational.

Kerry Smith: Construction, lighting, scaffolding, and steel are progressing on plan, and mobilization of mechanical, piping, and electrical work is in progress. For the underground, we expect to award the second contract in Q2, which includes the test hub work as well as additional development and services work to support the development of the underground. We remain on track with the expected completion of the IEWMF Copper Dam and to have significantly advanced the IEWMF Earthworks, Water Management Facilities, Process Plant, and Filter Plants by the end of February 2024. For the next couple of slides, I will show the progress of the work underway. Turning to slide 10.

Lloyd: Construction lighting scaffolding and steel are progressing on plan and mobilization of mechanical piping and electrical work is in progress.

Lloyd: Well the underground we expect to report the second contract in Q2.

Lloyd: This includes the pitch to work as well as additional development and services work to support the development of the underground mine.

Lloyd: We remain on track with expected completion of the E. W. Ms Cofferdam anthem Cigna.

Lloyd: Significantly advanced the E W.

Lloyd: Water management facilities process plants and filter plants by the end of 2025 are pretty full for the next couple of slides.

Lloyd: Well it shows the advancement of the work underway.

Lloyd: Turning to slide 10.

Lloyd: On the left hand side is the primary crusher excavations and slips somebody installation are progressing in all areas and the excavation of pixel for the conveyor alignment that some progress on the right hand side as opposed to planting area, where you can see photos of working for the filter plant building 50%.

Kerry Smith: On the left-hand side is the primary crusher. Excavations and slope stabilization are progressing in all areas, and the excavation and backfill for the conveyor alignment are in progress. On the right-hand side is the filter plant area, where you can see four drills are working. For the filter plant building, 50% of the total 187 piles are completed. We expect to start installing rebar late this month. The concrete will be completed in two parts, with the first part starting in early May, on slide 11.

Lloyd: The total under 87 pilots are completed we expect to start installing rebar like this month's a concrete will be completed in two parts. The first part starting in early may.

Lloyd: On slide 11.

Kerry Smith: The picture on the left-hand side is where we are excavating topsoil from the base of the low-grade ore stockpile before the fill will be brought in. On the picture on the right-hand side of this slide, you can see the pad work that has been started.

Lloyd: Pictured on the left hand side is where we are debating top soil from the base of the low grade ore stockpile before the full will be brought on.

Lloyd: The picture on the rights and side of this slide you can see the pad work that has been started once the geotechnical and the language work is done.

Kerry Smith: Once the geotechnical and drainage work is done, the open pit and underground workshops, post plant, and warehouse will be built. We will continue to provide progress updates as we advance towards first production in the third quarter of 2025. Moving to Olympias on slide 12.

Lloyd: But an underground workshops post splunk and warehouse will be both.

Lloyd: We will continue to provide.

Lloyd: Progress updates as we advance towards first production in the third quarter of 2025.

Lloyd: Moving to Olympias on slide 12.

Kerry Smith: First quarter gold production was 18,788 ounces, and total cash costs were $1,287 per ounce sold. Production was positively impacted by the productivity improvements that have been implemented over the past year, while total cash costs were impacted by increased labor costs and royalties during the quarter. For 2024, production guidance at Olympias is forecast to be 75,000 to 85,000 ounces of gold. Production in the second quarter is expected to be consistent with the first quarter.

Lloyd: First quarter gold production was <unk> 790 ounces and total cash costs were $1287 per ounce sold.

Lloyd: Production was positively impacted by the productivity improvements that have been implemented.

Lloyd: Implemented over the past year.

Lloyd: While the total cash cost that's been impacted by increased labor costs and the royalties during the quarter from 'twenty to 'twenty four production guidance with Olympias is forecast to be 75 to 85000 ounces of gold.

Lloyd: In the second quarter is expected to be consistent with the first quarter.

Kerry Smith: Through the year, we expect to see continued improvement as we advance the underground development and increase metal production from the flux zone. I'll stop there and hand it over to Simon to discuss the Turkish and Canadian options.

Lloyd: For the year, we expect to see continued improvement as we advance the underground development and increased metal production from the flex so.

Speaker Change: I'll stop there.

Speaker Change: And over to Simon to discuss the Turkish and Canadian operations.

Simon Oswald Hille: Thanks, Paul and welcome.

Simon Oswald Hille: Starting in Turkey A on slide 13, at Kishidat, first quarter production was 37,523 ounces with a cash cost of $820 per ounce sold. Production was in line with our expectations, and we included a six-day planned shutdown for maintenance in the... Total cash costs were impacted by higher fuel prices and increased royalties.

Simon Oswald Hille: Starting on slide 13, it keeps it at first quarter production was 37523 ounces with cash cost.

Simon Oswald Hille: $820 Brent so.

Simon Oswald Hille: Production was in line with our expectations and we included a six day planned shutdown for maintenance and in Florida.

Total cash costs were impacted by higher fuel prices and increased royalties.

Simon Oswald Hille: For 2024, production guidance at Kishidar is 180,000 to 195,000 oz of gold. Production is expected to increase over the course of the second quarter as we realize increased stacking rates and normal leach kinetics. Work also continues on optimizing our on-belt agglomeration and materials handling transition points to improve quality and consistency of the stack. On slide 14, at FM2Crew, first quarter gold production was 18,501 oz at a total cash cost of $1,154 per oz sold. Gold production, throughput, and average gold grade at FM2Crew were in line with the plan for the quarter. 2024.

Simon Oswald Hille: For 2020 full production guidance since it keeps a diary of a 190000 to 195000 ounces of gold production is expected to increase over the course of the second quarter as we realized increased decking rights and normal Leach kinetics.

Simon Oswald Hille: Work also continues on optimizing our unbilled agglomeration and materials handling transition points, turning to improve quality and consistency of sector.

Simon Oswald Hille: On slide 14 edits into crude third quarter gold production was 18501 ounces at total cash costs of $1154 per ounce sold.

Simon Oswald Hille: Gold production throughput and average gold grade of <unk> were in line with the plan for the quarter.

Simon Oswald Hille: For 2020 full production guidance. It is into currently 75000 to 85000 ounces of gold.

Simon Oswald Hille: Production guidance at FN2Crew is 75,000 to 85,000 ounces of gold. Production in the second quarter is expected to be slightly higher, Benefiting from Higher Grades. And now moving to the LAMAC complex on slide 15. The Lynette Complex delivered first order production of... 42,299 ounces at a total cash cost of... $779 per ounce sold. Production was in line with expectations, although total cash costs were impacted by higher

Simon Oswald Hille: And in the second quarter is expected to be slightly.

Speaker Change: Hi, benefiting from higher right.

Speaker Change: And now moving to the La Mac complex on slide 15.

Speaker Change: The linac complex really the first quarter production.

Speaker Change: 43299 ounces at total cash costs stone.

Speaker Change: $779 per ounce production was inline with expectations.

Speaker Change: Cash costs were impacted by higher road.

Speaker Change: Additional additionally, higher costs were incurred a labor contract at <unk>.

Speaker Change: And equipment rentals increased productivity with a focus on ramping up development rights during the quarter.

We were pleased to take delivery of that second Sandvik electric track during the first quarter.

Simon Oswald Hille: Additionally, higher costs were incurred for labor, contractors, and equipment rental to increase productivity with a focus on ramping up development rates during the quarter. We were pleased to take delivery of our second Sandvik electric truck during the first quarter. Our battery electric truck was delivered in Q2 of 2023 and is currently working to specification. LAMAC was the first to apply this underground technology in Quebec. These trucks have a 50 ton capacity and increased ramp speeds and are playing a key role in improving production efficiency, reducing diesel particulate matter, and mitigating our greenhouse gas emissions.

Speaker Change: Battery electric truck was delivered in Q2 of 2023 and is currently working to specifications.

Speaker Change: <unk> was the first to apply these underground technology each bank.

Speaker Change: These trucks had 50 ton capacity and increase rent space and are playing a key role in improving production efficiency, reducing diesel particulate matter and mitigating greenhouse gas emissions.

Speaker Change: During the first quarter, we continued to advance the infill drilling program targeting the opportunities of the <unk>.

Speaker Change: All Mac deposit.

Speaker Change: And we remain on track to take bulk sample complete a pre feasibility study and then Nancy or Mackie noga or is it by the end of 2024.

Speaker Change: In 2020 full production guidance of a Mac.

Simon Oswald Hille: During the first quarter, we continued to advance the infill drilling program targeting the upper two-thirds of the ORMAC deposit. And we remain on track to take a bulk sample, complete a pre-feasibility study, and announce the ORMAC Inaugural Reserve by the end of 2024. In 2024, production guidance at the LAMACC Complex is 175,000 to 190,000 ounces of gold. Production is expected to increase in the second quarter as we realize higher grades. I'll stop there and turn the call back to George for his closing remarks.

Speaker Change: Is the 175000 to 190000 ounces of gold production is expected to increase in the second quarter as we realize hi, Greg.

Speaker Change: I'll stop there and turn the call back to George for his closing remarks.

George Raymond Burns: Thanks team.

George Raymond Burns: About five years ago, we shifted our philosophy from a focus on multiple jurisdictions to to focus on Canada.

George Raymond Burns: <unk> in Turkey.

George Raymond Burns: And with that focus we updated a feasibility study on tokens Zeno in later divest of that asset G mining.

George Raymond Burns: This was done to bring forward returns to our shareholders in a time when our focus was on higher quality assets I E series and Perama Hill.

George Raymond Burns: About five years ago, we shifted our philosophy from a focus on multiple jurisdictions to focus on Canada, Greece, and Turkey Egg.

George Raymond Burns: That strategy has been unfolding very well over the last couple of years with the reinvestment and kiss.

George Raymond Burns: <unk> and extended mine life exploration focus on FM chew through extending mine life.

George Raymond Burns: And with that focus, we updated a feasibility study on tokens in Xeno and later divested that asset to G-Mining. This was done to bring returns to our shareholders at a time when our focus was on higher quality assets, i.e., Scurries and Paramahill.

George Raymond Burns: Acquisition of La Marc and increasing production and exploration success.

George Raymond Burns: And moving the grease getting <unk> back into construction and delivering operational improvements on olympias.

George Raymond Burns: We're off to a good start this year, which reflects our ongoing commitment to driving through operational efficiencies at each of our operations.

George Raymond Burns: That strategy has been unfolding very well over the last couple of years, with the reinvestment in Kisleda and extended mine life, and the focus on FM Chukuru, extending mine life. Acquisition of Lamarck and increasing production and exploration success, and moving to Greece, getting Scurys back into construction, and delivering operational improvements on Olympia. We're off to a good start this year, which reflects our ongoing commitment to driving operational efficiencies at each of our operations.

We are in a unique position amongst mid cap mining companies with high quality growth production over the next four years. The addition of copper production to our portfolio a robust balance sheet to fully fund our growth initiatives and our cost profile that is expected to decline.

George Raymond Burns: It's a great time to be at El Dorado, where we're positioned with higher metal prices, along with increasing production and reducing costs, which is a distinct advantage compared to most of our peers.

George Raymond Burns: We are in a unique position amongst the mid-cap mining companies with high-quality growth production over the next four years, the addition of copper production to our portfolio, a robust balance sheet to fully fund our growth initiatives, and a cost profile that is expected to decline. It's a great time to be at Eldorado, where we are positioned with higher metal prices, along with increasing production and reducing costs, which is a distinct advantage compared to most of our peers. We expect this to continue to deliver significant value for our stakeholders. Thank you for your time. I will now turn the call over to the operator for questions from our analysts.

George Raymond Burns: We expect this to continue to deliver significant value for our stakeholders.

Speaker Change: Thank you for your time.

Speaker Change: Now I'll turn the call over to the operator for questions from our analysts.

Speaker Change: Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear tone acknowledging your request. If you are using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two we will pause.

Speaker Change: For a moment as callers join the queue.

Speaker Change: Our first question.

Operator: Thank you. We will now begin the question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any key. To withdraw your question, please press star, then 2. We will pause for a moment as callers join the queue. Our first question is from Cosmos Chiu of CIBC. Please go ahead.

Cosmos: From Cosmos <unk> of CIBC. Please go ahead.

Cosmos: Thank you George and team for the call and presentation.

Cosmos: Maybe my first question is on Catholics as scary as.

Cosmos: As you mentioned, the 52 and a half million dollar spent in Q1 was as expected.

Speaker Change: Certainly not.

Speaker Change: Not a 25% of your full year guidance.

Speaker Change: $375 million to $425 million.

Speaker Change: On that George I don't know how much you can share with us what's your expectation in terms of Capex.

Cosmos Chiu: Thank you, George and team, for the call and presentation. Maybe my first question is about Catholic Ascuria.

Capex for Q2, your Capex spend for Q3 or Q4.

Cosmos Chiu: As you mentioned, the $52.5 million spent in Q1 was as expected, and not 25% of your full year guidance of $375 to $425 million. On that, George, I don't know how much you can share with us. What's your expectation in terms of your CapEx for Q2, your CapEx plan for Q3 or Q4? Or if that's too much detail, at least maybe could you tell us like what percentage and how it is gonna ramp up for the subsequent quarters?

George Raymond Burns: Or if that's too much detail at least maybe could you tell us like what percentage how is it going to ramp up.

George Raymond Burns: And for the subsequent quarters.

Speaker Change: Thanks Cosmos.

Speaker Change: The first quarter.

Speaker Change: Spending came right in line with our expectations and really what's driving the spending over the year is finalizing some of the major contracts.

Speaker Change: At <unk> and so I would describe the Q1 and Q2 our focus is in finalizing these last major contracts and we're well on track with that Q2 and Q3, we will be ramping up the construction activities as we bring these new contractors on the site.

George Raymond Burns: Thanks, Cosmos. Yeah, I mean, the first quarter spending came right in line with our expectations. And really what's driving the spending over the year is finalizing some of the major contracts at SCURIAS. And so I would describe Q1 and Q2 as our focus is on finalizing these last major contracts, and we're well on track with that. In Q2 and Q3, we will be ramping up the construction activities as we bring these new contractors to the site.

Speaker Change: And you'll see a lot.

Speaker Change: Longer spend in the second half of the year as a result of these additional workplace and faces the construct work and and our new contractors coming on the side. So we're on track to deliver the cost.

Speaker Change: Guidance on <unk> construction for the year and well positioned to bring this into commissioning in Q3 of next year.

George Raymond Burns: And you'll see a lot stronger spend in the second half of the year as a result of these additional workplaces and phases of construction work and our new contractors coming on the side. So, you know, we're on track to deliver the costs and guidance on securities construction for the year and well-positioned to bring this into commissioning in Q3 of next year.

Speaker Change: Great.

Speaker Change: And then as you mentioned are the contracts that ought to be finalized in Q2.

Speaker Change: I guess I read in the MD&A wanted to see second underground contractor or the other one is to filter planning construction contract.

Speaker Change: The two key contracts that need to be.

Cosmos Chiu: Great. And then, as you mentioned, the contracts that are to be finalized in Q2. I guess I read in the MD&A that one is the second underground contractor, and the other one is the filter plant construction contract. Those are two key contracts that need to be finalized in Q2. And George, you and I had talked about this in the past as well, especially during the update to CapEx a few months ago. And you had talked about inflationary pressures, but you had a good idea at that point in time about some of these contracts. What they were.

Finalize in Q2 in Georgia, and I have talked about this in the past as well.

Speaker Change: Especially during the update to Capex, a few months ago.

Speaker Change: And you know you had talked about inflationary.

Speaker Change: Inflationary pressures, but you got a good idea at that point in time some of these contracts what they would.

Speaker Change: Cost any concerns or is that still the case any concerns where we stand right now in terms of.

Speaker Change: Inflation or you know, what we're going to see in terms of the finalization of these contracts.

Speaker Change: What <unk> always sort of expected.

Cosmos Chiu: Cost. Any concerns? Is that still the case? Any concerns about where we stand right now in terms of inflation or, you know, what we're going to see in terms of the finalization of these contracts? What do you always sort of expect?

Speaker Change: Yeah, I would say we're in a good position so.

We're largely procured we've got certainty around the materials that we need to finish the construction.

Speaker Change: We've got very good visibility on these lost contracts, we're working through Finalization with our lenders and on track with finalizing those as I say over the second quarter, we're already.

George Raymond Burns: Yeah, I would say we're in a good position. So, you know, we're largely procured. We've got certainty around the materials that we need to finish the construction. We've got very good visibility on these last contracts. We're working through finalization with our lenders and on track with finalizing those, as I say, over the second quarter. We're already bringing some of the contractors on the site as we speak, and maybe I can give you a little more visibility in terms of what these contracts are about and how the ramp-up's unfolding.

Speaker Change: Bringing some of the contractors on the site as we speak and maybe I'll have low gives you a little more.

Speaker Change: Visibility in terms of what these contracts are about and how the ramp ups unfolding.

Speaker Change: Thank you George.

George Raymond Burns: Good afternoon Scott.

George Raymond Burns: On the filter plants.

Speaker Change: We currently are.

Speaker Change: During the piling.

Speaker Change: <unk>.

Speaker Change: 30% of the full deployment piling is already complete.

George Raymond Burns: Thank you, George. Good afternoon, Scott.

Kerry Smith: On the filter plant, we're currently doing the piling, and 30% of the filter plant piling is already complete. We have an opportunity to do the concrete work in two segments. So early in May, we'll ramp up and start the first concrete works at the filter plant. And in months to come, you will have a situation where we're piling and pouring concrete and then also starting to erect the fault plant structures. For the underground mine, we're in the process of mobilizing the phase two underground contractor.

Speaker Change: We have an opportunity to do noted due to the concrete work in two segments. So early in my.

Speaker Change: We will ramp up and start the first concrete works at the filter plant.

Speaker Change: And in months to come.

You will have a situation where we pilings.

Speaker Change: Pouring concrete and then also starting to erect.

Speaker Change: Just for the plant structures.

Speaker Change: For the underground mine.

Speaker Change: The process of mobilizing the phase two underground contractor.

Kerry Smith: They will be, plan to be on site, towards the end of May. I will be responsible for continuing the development of the underground mine and then also, early in 2025, extracting two test tubes that we plan to do. Additionally, they will extend the services in the mine, water, ventilation, and power, to set it up for future production.

Speaker Change: They will be our plan to be on site.

Speaker Change: Towards the end of May.

Speaker Change: They will be responsible to continue the development.

Speaker Change: Of the underground mine and then also.

Speaker Change: Early in 2025.

Speaker Change: It's connected to pitch stopes that we plan to do.

Speaker Change: Additionally, they will extend the services and the mine water installation power.

Speaker Change: To set us up for them for the future production.

George Raymond Burns: It may be one additional point that might help to give you an idea of why the spin's back end loaded. It's really people on the ground executing the work. So, you know, we were about 500 employees and 500, 600 contractors on the ground. We're now at about 700, and we'll be peaking at about 1300 in the second half of the year or so. And we're in good shape to deliver the guidance for the year and our initial commissioning in Q3 of next year.

Speaker Change: Maybe one additional point that might help to give you an idea of why the spins backend loaded is really people on the ground executing the work. So we were about 500 employees.

Speaker Change: 500, 600 contractors on the ground. We're now at about 700, and we will be peaking at about 1300 in the second half of the year. So.

Speaker Change: We're in good shape to deliver the guidance for the year and our initial commissioning in Q3 of next year.

Speaker Change: Thanks, George and maybe one last follow up question.

Cosmos Chiu: Thanks, George and Lo. And maybe one last follow-up question. As you talked about in the MD&A and, you know, remarks as well, you talked about the filter plant building being on the critical path. Is that the only item on a critical path in the near term? Or are there other components that we should be concerned about?

Speaker Change: You talked about in the MD&A and low your.

Speaker Change: My remarks, as well you talked about the filter plant building being on the critical path.

Speaker Change: Is that the only I don't want to critical path in the near term or are there other components.

Speaker Change: Components that we ship.

Speaker Change: And concerned about it as well.

George Raymond Burns: Yeah, I mean, it is the critical path item right now. There's obviously other work fronts that we need to deliver on schedule. I would say there's nothing worrying us right now.

Speaker Change: Yeah, I mean, it is the critical path item right now I mean, there's obviously other work fronts that we need to deliver an unscheduled I would say.

Speaker Change: Theres nothing worrying US right now we do have the optionality for extended work hours largely most of the construction is designed at a single shift.

George Raymond Burns: We do have the optionality for extended work hours. Largely, most of the construction is designed for a single shift, but we're working with our contractors and opportunities to get some of the work done on a second shift. So, you know, I just say we're in a good position to deliver our guidance on both initial commissioning and cost guidance.

Speaker Change: But we're working with our contractors and opportunities to get some of the work is done on a second shift so.

Speaker Change: Just to say we're in a good position to deliver our guidance on both the initial commissioning and cost guidance.

Speaker Change: Understood, Thanks, Georgia and team those are all the questions.

Cosmos Chiu: I understand. Thanks, George and team, for all the questions. Have a good weekend.

Speaker Change: Have a good weekend.

Speaker Change: Thanks Cosmos.

Michael Parkin: Our next question comes from Mike Parkin of National Bank. Please go ahead.

Speaker Change: Our next question comes from Mike Parkin of National Bank. Please go ahead.

Michael Parkin: Hi, guys congrats on the solid start to the year.

Michael Parkin: Hi guys, congrats on a solid start to the year. Just a question on a follow-up on some of the statements on Olympias and Eppamcooker around labor costs. Can you give us a sense of how much as a percentage labor costs have increased year over year?

Michael Parkin: Just a question a follow up on some of the statements on Olympias and Aetna Cukor on labor cost can you give us a sense of.

Michael Parkin: As a percentage of labor cost have increased year over year.

George Raymond Burns: Well, maybe I'll make some high-level comments, and Paul can give you a little more detail on that. So, I mean, at Olympias, I'd say the bigger focus is on productivity and efficiency. Last year, we delivered quite a bit of improvement, but this year, we have some additional opportunities. We're in collective bargaining with our union. Our focus is on shift schedules that will be more productive. We have a number of improvement opportunities this year that will help deliver higher production from the underground and support the expected expansion of Olympias from 490,000 tons to 650,000 tons per annum. And so, with those negotiations ending in a positive expected in Q2-Q3, we can then focus on long-lead items and delivering the expansion to Olympias, which will really lower our costs and improve our margins on Olympias.

Michael Parkin: Well, maybe I'll make some high level comments and Paul can give you a little more detail on it so I mean at olympias.

Paul: I'd say the bigger focus is on productivity and efficiencies and last year, we delivered quite a bit of improvement, but this year. We have some additional opportunities. We are in collective bargaining with our union our focus is on <unk>.

Paul: <unk> schedule that will be more productive.

Paul: We have a number of of improvement opportunities. This year that will help deliver higher production from the underground and support the expected expansion of Olympias from 490000 tonnes to 650000 tonnes per annum and so.

Paul: With those negotiations ending in a positive.

Expected in Q2 Q3, we then focus on long lead items and delivering the the expansion of the olympias, which will really.

Paul: Lower our costs and improve our margins on olympias.

Speaker Change: Yeah, Mike and Paul.

Paul Ferneyhough: Yeah, Mike and Paul, you know, it's worth reflecting that at FM Chukaru and Olympias, the direct labor costs are about 22% and 33% respectively. We're still working through our CBA arrangements in Greece, and we've concluded them in Turkey, and across the boards, really, we're seeing labor costs increase by about 2%.

Speaker Change: Reflecting that at <unk> and Olympias.

Speaker Change: The labor the labor costs are about 22% and 33% respectively.

Speaker Change: Respectively and were working through our CPA arrangements stellar in Greece, and we've concluded them in Turkey.

Speaker Change: Across the board really were seeing like the cost increased by about 2%.

Speaker Change: Okay pretty much okay.

Michael Parkin: Okay, pretty much okay. Can you remind me again when we were over there? In the fall at Olympia.

Speaker Change:

Speaker Change: Can you remind me again, when we were over there.

Speaker Change: The fall.

Speaker Change: It appears.

George Raymond Burns: I believe you were still sitting at like a bloated kind of workforce number, is that? Sticking, and some of those guys will transition to scurries, or are there potentially layoffs still on the horizon? Is that something you're delaying until negotiations with the union are complete? Just any kind of color you can provide on the latest on that.

Speaker Change: Believe you are still sitting out.

Speaker Change: Bloated kind of workforce number is that.

Speaker Change: Sticking in some of those guys will transition to securities or is there potentially layoffs still on the horizon is that something.

Speaker Change: You're delaying until negotiations with the Union are complete just any kind of color you can provide on the latest.

George Raymond Burns: Yeah, Mike, I would begin with when we shut down Mavis, Petrus, and Sputoni, we weren't aggressive with workforce reductions, and our focus was really getting improvements embedded in Olympias, some of the workforce support of that transitioning Mavis, Petrus, and Sputoni to care and maintenance. And then having the workforce capable of developing training programs, to improve our productivity at Olympias, but then to support the ramp-up of the SCURI. So yeah, I would say we're still overstaffed.

On that situation.

Speaker Change: Yeah, Mike I would I would begin with when we shut down Memphis Petro sense for Tony we werent aggressive with workforce reductions and our focus was really getting improvements and better than olympias. Some of the workforce supportive that transitioning mabus Petrus on strip.

Speaker Change: Tony the care and maintenance and then having a workforce capable to develop training programs to improve our productivity at olympias, but then to support.

Speaker Change: The ramp up of a scurry, so yeah, I would say we're still overstaffed.

George Raymond Burns: I will also say some of the objectives we have in collective bargaining this year will improve ship efficiencies and enable us to transfer some of the workforce into our training programs to get ready for SCURI's commissioning next year. So yeah, I mean, our costs are up a bit from where we expect them to be, partly just being sensitive that we need the workforce and we're treating our people well with our strategy. But yeah, I would expect to see Olympia's costs drop down as we focus on moving people over to SCURI.

Speaker Change: I'll also say some of the objectives, we have in collective bargaining. This year will improve ship efficiencies enable us to transfer some of the workforce into our training programs to get ready for stories commissioning next year. So yeah, I mean, our costs are up a bit from where.

Speaker Change: We expect them to be.

Speaker Change: Partly just being sensitive that we need workforce.

Speaker Change: And.

Speaker Change: We're training our people well with our strategy.

Speaker Change: Yeah, I would expect to see olympias costs dropped down as we focus on moving people over to <unk>.

Speaker Change: Okay, and then on that same topic.

Michael Parkin: OK, and on that same topic. We're hearing from a lot of miners that labor tightness in the Quebec Abitibi and into Ontario is pretty tight. Any comments in terms of what you're experiencing at LAMAC?

Speaker Change: We're hearing from a lot of miners that labor tightness in the Quebec cabinet to be.

Speaker Change: And then to Ontario, it's pretty tight any comments in terms of what youre experiencing at the Mac.

Speaker Change: Well definitely in the Val Dor area.

George Raymond Burns: Well, definitely in the Val d'Or area, there's expanding production, new mines coming on stream, and that is definitely putting some pressure on all the operators in the region, including us. So far, we haven't been impacted. And we've been training new employees. We're located right next to the city of Val d'Or, so we have that advantage.

Speaker Change: Expanding production of new mines coming on stream.

That is definitely putting some pressure on all of the operators in the region, including us So far we haven't been impacted and we've been training new employees.

Speaker Change: They're located right next to the city of Val d'or. So we got that advantage and so yes, we see the pressure.

Michael Parkin: And so, yeah, we see the pressure. We're mitigating it to date, and expect to continue to make a little more visibility. It's not just about people. I mean, sometimes you can attract people in. Our industry pays very well. There are also housing challenges that the local communities are working on. So everybody's doing the best they can to train and develop an additional workforce. But those pressures are real, and they're going to continue to be a challenge for all of us in the region.

Speaker Change: We're we're mitigating it to date and expect to continue.

Speaker Change: There's a little more visibility it's not just about people I mean, sometimes you can attract people in our industry pays very well Theres also housing challenges that the local communities are working on so everybody is doing the best they can train and develop additional workforce, but those pressures are real and they're going to.

Speaker Change: <unk>.

Speaker Change: So it'd be a challenge for all of us in the region.

Speaker Change: And is there any discussion going on with the federal government.

George Raymond Burns: Is there any discussion going on with the federal government? I don't think it's any surprise that the numbers of new immigrants into Canada are pretty substantial as an overall percentage increase. Are you seeing any of that glow in your workforce in the region, or are you finding them more in the southern urban centers? And therefore, an opportunity to maybe work with the government to establish the Immigration Support Program to bring some skilled labor in for those much-needed jobs in the North.

Speaker Change: I don't think it's any surprise the numbers of new immigrants into Canada being pretty substantial as an overall percentage increase are you seeing any of that flow into your workforce in the region or are you finding they're more in the southern urban centers.

Speaker Change: And therefore, an opportunity to maybe work with government to establish.

Speaker Change: And the immigration support programs that bring some skilled labor in for those much needed jobs more in the north.

Speaker Change: Well I mean, we have we.

George Raymond Burns: Well, I mean, we have two focuses. I mean, one of ours is diversity.

Speaker Change: We had two focuses I mean, one of ours our diversity. So we're trying to get more women into our industry and into our company and we've we've been success successful in that vein and one of our initiatives was to bring in some young engineers and graduates out of Latin America that are looking for opportunities and we are.

George Raymond Burns: So we're trying to get more women into our industry and into our company, and we've been successful in that vein. And one of our initiatives was to bring in some young engineers and graduates out of Latin America that are looking for opportunities. And we've been successful at bringing a few into our Lamarck operation that, in fact, we were visiting this week and met one of them who was very energized about the opportunity to bring her mining engineering expertise to Canada into our business.

Speaker Change: <unk> been successful at bringing a few into our landmark operation that.

Speaker Change: We are revisiting this weekend met one of them was very energized about the opportunity to.

Speaker Change: To bring her mining engineering expertise into Canada into our business. So there are opportunities that we're executing on.

George Raymond Burns: So there are opportunities that we're executing on. I would say regionally, the bigger challenge is really housing. That's what we're working on with the local communities in Quebec to try to support additional houses so we can attract Canadians and or immigrants into the region and put them through our training programs. Okay, thanks.

Speaker Change: I would say regionally the bigger challenge is really housing.

Speaker Change: That's what we're working on with our local communities and come back to try to to support additional houses. So we can attract canadians and or immigrants into the region and put them through our training programs.

Speaker Change: Okay. Thank you very much that sounds good.

Michael Parkin: Okay, thanks very much. That sounds good.

Speaker Change: Our next question comes from Kerry Smith of Haywood Securities. Please go ahead.

Kerry Smith: Our next question comes from Kerry Smith of Haywood Securities. Please go ahead.

Kerry Smith: Thanks, operator. George, or, or maybe Simon can answer this question.

Thanks, operator.

Kerry Smith: George or or maybe.

Kerry Smith: Simon can answer this question the tons to the pad this year tissue bag I'm. Just wondering if you can give any guidance on what that total number might be Q1 was lower than than I was expecting and certainly lower than Q4.

Kerry Smith: The times to the pad this year at Tisha Day; I'm just wondering if you can give any guidance on what that total number might be. Q1 was lower than I was expecting and certainly lower than Q4 or Q1 a year ago. I'm just wondering what the total times would be to the pad this year.

Kerry Smith: Our Q1, a year ago and I'm, just wondering what the total tons would be get the pad this year.

Kerry Smith: Okay.

Kerry Smith: Yeah.

George Raymond Burns: Yeah, I mean, Simon grabs that number. I'd say, Kerry, that we have come to the recognition that Q1 is going to be weak going forward and historically has been, just winter months, crushing and conveying material to the heaps, a bit of a challenge. So, and in this Q1, we actually had a tire change lined up for our high pressure grinding roll pressure. So, some additional downtown to rebuild that. But, you know, we're expecting to see production ramp up through the warmer weather, Q2 and through the summer, and we are on track to deliver our guidance for the year. Simon, any additional color? Yeah, hi Kerry.

Simon Oswald Hille: Simon grabs that number.

Simon Oswald Hille: I'd say carry that we have we have come to the recognition that Q1 is going to be weak going forward and historically has been just winter winter months.

Simon Oswald Hille: Crushing and conveying materials of the heaps of bit of a challenge.

Simon Oswald Hille: So and this Q1, we actually had a tire change lined up for our high pressure grinding roll crushers. So some additional downtime to rebuild that.

Simon Oswald Hille: But we're expecting to see the production ramp up through the warmer weather in Q2 and through the summer and.

Simon Oswald Hille: On track to deliver our guidance for the year.

Simon Oswald Hille: So I mean, any additional color, yeah, hi, Kerry and.

Simon Oswald Hille: Yes.

Simon Oswald Hille: Yeah, hi Kerry. Yeah, but...

Speaker Change: The range.

Speaker Change: He is sitting 20 to $30 7 million tons a year in it.

Simon Oswald Hille: The range is 13.2 to 13.7 million tonnes per year, and Georgia is spot on that it was a six-day shutdown, so that had probably the biggest impact on the total tonne stack for the first quarter. Moving forward, we expect, and we generally plan for higher stacking rates, so you should see that start to normalize from what we did last year.

Speaker Change: But on the six day shutdown.

Speaker Change: Im sorry.

Speaker Change: Is that probably the biggest impact on the total tonnes stacked.

Speaker Change: For the first quarter.

Speaker Change: Moving forward as we become more common conditions.

Speaker Change: We expect we generally plan for highest spectrum right.

Speaker Change: See that start to normalize from what we did last year.

Kerry Smith: Okay, so you're still expecting to kind of be in that 13 and a half million tons to the pad range this year, then, despite this lower Q1?

Speaker Change: Okay, so you're still expecting to kind of be in that.

Speaker Change: $19 5 million tons to the pads range. This year then despite the slower Q1, okay.

Kerry Smith: And the second question, maybe Luke can answer, how big are these two stopes that you're planning to take, these test stopes at Screws, once the ramp gets down there next year?

Speaker Change: Alright, that's great that's helpful. That's.

Speaker Change: That's helpful. Thank you and the second question, maybe you can answer.

Speaker Change: How are how big are these two stopes that you're planning to take these test stopes that screws once the once the ramp that's down there next year.

Speaker Change: The dimension of the stopes.

Kerry Smith: The dimension of these stokes is 60 meters high, 15 meters wide, and 30 meters deep. So what we're busy with at the moment is to... Let me just share that our operations team for Scurrius, we've appointed the GM, 80% of his direct reports are on site, and his technical services team is complete. So they have the opportunity now to do a detailed study and benchmark in the industry and really seek and measure against best practices in the industry, how to extract those steps.

Speaker Change: 60 meters high.

Speaker Change: 15 meters wide and 30 meters deep.

Speaker Change: So what were you busy with at the moment is too.

Speaker Change: Let me just share that.

Speaker Change: Our operations team for studios, we have appointed Jim 80%. So fees direct reports is on site and each technical services team is complete so they.

Hence the opportunity now to.

Speaker Change: Detailed study.

Speaker Change: And benchmark in the industry and really seek.

Against best practices in the industry.

Speaker Change: How to extract those stopes.

Speaker Change: And those dimensions Kerry we're in the design in the feasibility study.

Kerry Smith: And those dimensions Kerry were in the design in the feasibility study. You know, we are looking for opportunities to make the slopes a bit wider, and that'll depend on the results of the geotechnical work in these first two test stokes.

Speaker Change: We are looking for opportunities to make the stopes are bit wider.

Speaker Change: And that will depend on the results from the geotechnical work in these first two test stopes.

Kerry Smith: Okay. But they'd be 60,000, 70,000-tonne stokes each. So I guess I'm just thinking about the timing of when those... stokes would be mined out, and when they would actually be sampled, just in terms of when we might get the results of what the grades were, etc., and the mineability of them, or we can provide that data.

Kerry Smith: Okay, that'd be 60, 70000 ton still teach so I guess I'm just thinking about the timing of when those stopes will be mined out when they would actually be sampled and just in terms of when we might get.

Kerry Smith: The results of <unk>.

Kerry Smith: What the grades were et cetera in the mine ability of them, where we can provide that data.

Well, the and the tonnage per stope, it's about 40000 tons or so.

Kerry Smith: Well, in terms of the tonnage per stope, it's about 40,000 tons per stope.

Kerry Smith: Yes.

Kerry Smith: Yeah, we plan to extract those totes early in the new year, early 2025.

Kerry Smith: Plan to extract those stopes early in the new year early 2025 coupon.

Speaker Change: Okay. Okay. Okay and are you planning to kind of provide that information to the marketers with more confirmatory work for you guys and if we don't hear anything we just assume it's in line with what your assumptions were.

Kerry Smith: Okay, okay. And are you planning to kind of provide that information to the marketer? It's just more confirmatory work for you guys, and if we don't hear anything, we just assume it's in line with what your assumptions were.

Speaker Change: But with our quarterly guidance will include those production numbers.

Kerry Smith: With our quarterly guidance, we'll include those production numbers.

Kerry Smith: Okay, okay, so I guess we'll see those results sometime mid-year next year, I guess, right? Okay. Okay, great. And the last question I had was just for Paul on the depreciation in the quarter was low relative to your guidance, which I think was $280 to $290 million for the year, and your depreciation in Q1 was like $54.5 million. Just wondering if there was something weird that went on in the quarter and that's why the number was low, or what we should be thinking about for depreciation per ounce for the rest of the year.

Speaker Change: Okay. Okay. Okay. So I guess, we'd see those results sometime in mid year next year I guess.

Correct.

Speaker Change: Okay, Okay, great and the last question I had was just for Paul on the depreciation in the quarter was.

Paul: Hello routes, certainly relative to your guidance, which I think was $280 million to $90 million for the year and your your depreciation in Q1. It was like $54 5 million just wondering if.

Paul: There's something weird that went out in the quarter and that's why the number was low or what your what we should be thinking about for depreciation per ounce for the rest of the year.

Paul Ferneyhough: Kerry, as I reflect on depreciation in the first quarter vis-à-vis our full-year guidance, there are a couple of things that jump out at me. First of all, we did have a one-off adjustment at FM Chukaru for about $4-5 million, and I don't expect to see another one-off adjustment like that. Secondly, we're clearly back-end weighted in line with our production volumes, so we will see a move towards a higher quarterly charge as unit volumes move up.

Carry as I reflect on depreciation in the first quarter. These are V. Our full year guidance. There's a couple of things that jumped out at me.

Paul: First of all we did have a one off adjustment at FMC growth.

Paul: For about $4 million to $5 million is unexpected to see another one off adjustment like that secondly, we're clearly backend weighted in line with our production volume. So we will see a move towards a higher quarterly charge.

Paul: As the unit volumes move up and then finally Kessler, Doug as we are seeing that stacking on the north heap Leach pad. It's caused us to go back and say look theres a longer life, there and therefore the unit rate is a little bit lower so all in all I'm expecting full year to be very much at the bottom end of <unk>.

Paul Ferneyhough: And then finally, Kisledag, as we're seeing that stacking on the North Heat leach pad, it's caused us to go back and say, look, there's a longer life there, and therefore the unit rate is a little bit lower. So all in all, I'm expecting full year to be very much at the bottom end of the range. And so as far as the quarterly charge is concerned, you just need to think about something that's going to add up to around two rates.

Paul: The range.

Paul: And so as far as the corporate charges can span you just need to think about something that's going to add up to around two <unk>.

Kerry Smith: Okay, okay, that's helpful. Okay, that's fabulous. Thanks very much, guys.

Speaker Change: Okay. Okay. That's helpful. Okay. That's that's fabulous thanks, very much guys.

Speaker Change: Thanks, Gary.

Speaker Change: Once again, if you have a question. Please press Star then one.

Operator: Once again, if you have a question, please press star then 1. Our next question comes from Delvin Zee of Scotiabank. Please go ahead.

Speaker Change: Our next question comes from Galvin Z of Scotiabank. Please go ahead.

Speaker Change: Okay.

Delvin Zee: I guess congratulations on the quarter. There are a couple of questions from me. In terms of inflationary pressures, do you feel there could be inflation in certain areas? Do you see an easing of the inflationary pressures? You mentioned labor for Lamarck and fuel for the superdeck. Thank you.

Galvin Z: Hey, guys congratulation for that.

Galvin Z: For the quarter.

Galvin Z: A couple of questions from me.

Galvin Z: In terms of inflation.

Galvin Z: Sure.

With inflation in certain areas.

Galvin Z: Mhm.

Galvin Z: The effective tax rate.

Galvin Z: You mentioned on labor.

Galvin Z: Tomorrow.

Galvin Z: Hello.

George Raymond Burns: Well, I mean, I guess first I'd start with Scurries. I think the updated capital estimate integrated the inflationary impacts we expect as we deliver this over the next year and a half. Beyond our focus on this quarter's impact, and I wouldn't say we're worried about any other inflationary pressures across the business. Diesel and turkey obviously are open pits at Kisadah, it's fairly reliant on truck haulage, and so diesel costs do impact this, and we've seen an upward trend in diesel costs, keeping up with the industry, but the rest of our operations are underground, less reliant. And as Simon pointed out, we're beginning to pivot towards battery-electric trucks, which will benefit us. Not only in diesel cost reduction, but also in less particulates in the underground and positively impacting ventilation volumes.

Galvin Z: Okay.

Galvin Z: Yes.

Galvin Z: Well I mean, I guess first I'd start with Scurries I think the updated capital estimate embedded.

Galvin Z: The inflationary impacts we expect as we deliver this over the next year and a half.

Galvin Z: Beyond.

Galvin Z: Our focus on this quarter's impact.

Galvin Z: I wouldn't say, we're worried about any other inflationary pressures across the business.

Galvin Z: Diesel and in Turkey, obviously, our open pit at <unk>, it's fairly reliant on truck haulage, and so diesel cost to impact us and we've seen.

Galvin Z: And upward trend in diesel costs, hitting the industry, but the rest of our operations our underground less reliant and as Simon pointed out we're beginning to pivot towards battery electric trucks, which will will benefit us not only in the diesel cost reduction, but also the less of less particulate in the underground.

Galvin Z: And positively impact in ventilation volumes.

Speaker Change: Okay Yeah.

Delvin Zee: Okay, yeah. The couple who's better is Chiwetel Ejiofor and Kyrkie Ejiofor. Like Forrest, he's the main driver.

Speaker Change: The car better.

Speaker Change: Or is it.

Speaker Change: And the main driver.

Speaker Change: They have to send out.

Delvin Zee: Sorry, I couldn't hear that very well. You were asking a question about Kisara?

Speaker Change: Sorry.

Speaker Change: Couldnt hear that very well you were asking a question about <unk>.

Delvin Zee: What about the TOTA? Did the Q1 cars do better? Is the Forex the main driver to stand out?

Speaker Change: About <unk> of the Purion cost better.

Speaker Change: Is that the Forex and the main driver.

Speaker Change: You should stand out.

Paul Ferneyhough: Yeah, so we've certainly seen a further weakening in the Turkish lira versus the U.S. dollar. And so that means that, you know, where we may have seen increases in labor costs, for example, that is broadly offset. We expect labor costs to be up slightly, but we still believe the Turkish Lira will continue to devalue. We're modeling an average for the year of 33 to 1 for the U.S. dollar, with it being high at 30 at the beginning of the year and then devaluing to 35 at the end of the year. So that will obviously help offset any inflation in terms of its reporting in U.S. dollars.

Speaker Change: Yeah. So.

Speaker Change: We've certainly seen a.

Speaker Change: Further weakening in the Turkish lira versus the U S dollar.

Speaker Change: That means that where we may have seen increase increases in labor costs. For example that is broadly offset we expect labor costs to be up slightly.

Speaker Change: But we still believe the.

Speaker Change: Turkish Lira will continue to devalue, we're modeling an average for the year of 33 to one for the U S. Dollar would that being hot 30 at the beginning of the Air and then devalue into 35 at the end of the year. So that will obviously help offset any inflation in terms of its reporting in U S dollars.

Delvin Zee: I appreciate it, Harlan. Thank you. And also, in terms of the production profile for the remainder of the year, so there's a 45, 55, first half, second half, still holds true. And the increase in Q2. I've been with Chiu Kuo, Olympia Chibu, Jack, and I have waited to just say, you know, the mark to be even for the rest of the year.

Speaker Change: Okay.

Speaker Change: No I appreciate that color, thank you and Dallas.

In terms of the production profile for the remainder of the year.

Dallas: So it is a 45 55 first half second half.

Speaker Change: You too.

Speaker Change: The increase from Q2.

Speaker Change: I've been to Corral Olympics, you be second half weighted.

Speaker Change: Even though the market to be even for the rest of the year.

George Raymond Burns: Yeah, so the 45-55 still holds true from first half to second half. And as we spoke earlier, we expect Q2 to be a bit stronger than Q1, largely driven by Kisadig throughput and kinetics, and then partially impacted by underground or a great, it's just uh you know changes in the stopes that we'll be mining, but I think the key 45-55 still holds true for the year.

Speaker Change: Yes, so the $45 55 still holds true first half to second half.

Speaker Change: And as we spoke earlier, we expect Q2 to be a bit stronger than Q1, largely driven by kiss throughput and kinetics and then partially impacted by underground ore agree it's just.

Speaker Change: Changes in the stopes that we will be mining.

Speaker Change: But I think the key $45 55 still holds true for the year.

Delvin Zee: And, as we were saying, thank you for that. That's been Shoukou and Lynette Gould.

Speaker Change: Okay.

Speaker Change: The back up in Q2 in ones yet to do that.

Delvin Zee: Thank you for waiting. That's true. Okay. We appreciate it. Thank you so much.

Speaker Change: Can have weighted.

Speaker Change: Yeah.

Speaker Change: That's correct.

Speaker Change: Okay.

Speaker Change: Great appreciate it thank you so much.

Speaker Change: Thank you.

Operator: That is all the time we have for today, and this includes the question and answer session as well as today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Speaker Change: Yeah.

Speaker Change: That is all the time, we have for today and this concludes the question and answer session as well as today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Hum.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Yeah.