Q3 2024 Eldorado Gold Corp Earnings Call

Thank you for standing by this is the conference operator, welcome to the Eldorado Gold third quarter 2024 results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded.

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Unknown Attendee: Welcome to the Eldorado Gold third quarter 2024 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded.

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I would now like to turn the conference over to Lynette Gould, Vice President Investor Relations Communications and external affairs.

Lynette Gould: 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.

The scope.

Thank you operator, and good morning, everyone I'd like to warmly welcome you to our third 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 EIOPA rest of measures during the call. Please refer to the cautionary statements included in the presentation.

Lynette Gould: Thank you, Operator, and good morning, everyone.

Lynette Gould: I'd like to warmly welcome you to our third 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.

And the disclosure of non I as far as measures and risk factors in our management's discussion and analysis join.

Lynette Gould: Joining me on the call today, we have George Burns, President and Chief Executive Officer, Paul Ferneyhough, Executive Vice President and Chief Financial Officer, Louw Smith, Executive Vice President, Development Greece, and Simon Hille, Executive Vice President, Operations and Technical Services. Our news release yesterday details our third quarter 2024 financial and operating results. This should be read in conjunction with our third quarter 2024 financial statements and management's discussion and analysis, both of which are available on our website. They've also both been filed on CDAR Plus and EDGAR. All dollar figures discussed today are U.S. dollars unless otherwise stated.

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.

Smith Executive Vice President development, Greece, and Simon Hilli Executive Vice President operations and technical services.

Our news release yesterday details of our third quarter 2024 financial and operating results. This should be read in conjunction with our third quarter 'twenty three 'twenty four financial statements and management's discussion and analysis both of which are available on our website. They've also both been filed on SEDAR plus and Edgar all.

Dollar figures discussed today are U S dollars unless otherwise stated we will be speaking to the slides that accompany this webcast and you can download a copy of the slides from our website.

Lynette Gould: We will be speaking to the slides that accompany this webcast, and you can download a copy of the slides from our website. After the prepared remarks, we will open the call for Q&A.

After the prepared remarks, we will open the call for Q&A at this time, we will invite analysts to queue for questions.

Lynette Gould: 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. I will then pass the call over to Paul to go through our financial results, and then on to Louw and Simon to review our operational performance. Turning to slide four, during the third quarter we achieved safe gold production of 125,195 ounces, aligning with our progress towards full year guidance. At Olympias, we successfully concluded the CBA negotiations and reached a mutually beneficial agreement with the union workforce in early August.

Speaker Change: I will now turn the call over to George.

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

George Burns: The outline for today's call.

George Burns: I'll provide a brief overview of Q3 results and highlights I will then pass the call over to all of the goals of all financial results and then on the on assignment to review our operational performance.

George Burns: Turning to slide four during the third quarter, we achieved safe gold production of 125195 ounces aligning with our progress towards full year guidance.

George Burns: At Olympias, we successfully concluded the CBA negotiations and reach a mutually beneficial agreement with the Union workforce in early August.

George Burns: This three-year agreement, combined with increased productivity in our underground operations and as contemplated in our guidance, supports the 650,000 ton per annum expansion, an increase from the 500,000 tons per annum positioning Olympias for long-term profitability. Total cash costs and all unsustaining costs were in line with our expectations at $953 per ounce sold and $1,335 per ounce sold respectively. Cost increased primarily as a result of higher royalties driven by higher gold prices, in addition to higher labor costs during the quarter. Paul will touch on our costs in more detail later in the call. We're in a strong position as we get into the fourth quarter with our year to date production having increased 7% compared to the same period in 2023 and increased 12% compared to the same period in 2022.

George Burns: Three year agreement combined with increased productivity in our underground operations and is contemplated in our guidance. Some parts of the 650000 tonne per annum expansion an increase from the 5000 tonnes per annum positioning us.

George Burns: For long term profitability.

George Burns: Total cash cost and all in sustaining costs were in line with our expectations at $963 per household.

George Burns: <unk> hundred $35 per ounce sold respectively.

George Burns: Costs increased primarily as a result of higher royalties driven by higher gold prices. In addition to higher labor costs during the quarter.

George Burns: I'll touch on our cost in more detail later in the call.

George Burns: We're in a strong position as we get into the fourth quarter was our year to date production, having increased 7% compared to the same period in 2023 and increased 12% compared to the same period in 2022.

George Burns: We have maintained but tightened our guidance ranges on gold production and cost while slightly lowering the bottom end of the SCRI's capital investment and depreciation expense. We also increased the upper end on capital investment at our operating mines, reflecting our full year expectations given the operational and financial performance to date. We now anticipate gold production to be between 505 and 530,000 ounces versus previous guidance of 505 to 555,000 ounces. As a result of inventory buildup at Kisadat caused by slower leach cycles and work stoppages totaling 17 days in Q2 at Olympia. Total cast costs to be between $910 and $940 per ounce sold versus the previous guidance of $840 to $900.

George Burns: We have maintained a tightened our guidance ranges on gold production and cost.

George Burns: Slightly lowering the bottom end of the <unk> capital investment and depreciation expense.

George Burns: We also increased the upper end on capital investment at our operating mines, reflecting our full year expectations.

George Burns: The operational and financial performance to date.

George Burns: We now anticipate oil production to be between 505 and 530000 ounces.

George Burns: Previous guidance of 505 to 555000 ounces as a result of inventory build up I guess about caused by lower slower Leach life cycles and work stoppages totaling 17 days in Q2 at Olympias.

Total cash costs to be between 910 and $940 per ounce sold versus the previous guidance.

George Burns: For ease of 940.

George Burns: All in sustaining costs are expected to be between $1,260 and $1,290 per ounce sold versus previous guidance of $1,190 to $1,290 per ounce sold. The tightened cost guidance is towards the high end of our previous guidance, primarily the result of lower production and higher royalties in Greece and Turkey due to increased gold prices. Appreciation is expected to be between $250 and $260 million, down from $280 to $290 million as a result of lower depreciation at Kisadat and Olympias, combined with favorable adjustment to ARO depreciation at FM Chukuru in Q1 2024. Sustaining capital guidance is expected to be between $135 and $145 million versus previous guidance of $135 to $160 million, primarily due to deferral of projects at Olympia.

George Burns: All in sustaining costs are expected to be between $12 60 in 12 90 per ounce sold versus previous guidance of 1100 19 at 12 under $90 per household.

George Burns: Titan cost guidance is towards the high end of our previous guidance, primarily as a result of lower production and higher royalties in Greece, and Turkey due to increased gold prices.

George Burns: Depreciation is expected to be between 200 and $260 million down from $280 million to $290 million as a result of lower depreciation and kill Saddam handle MBS.

George Burns: With favorable adjustment to erode appreciation of that from chew through Q1, 'twenty 'twenty four.

Sustaining capital guidance is expected to be between 135 and $145 million versus previous guidance of $135 million to $160 million.

George Burns: Primarily due to deferral of projects at Olympias.

George Burns: Scurry's capital is expected to be between $350 and $380 million versus previous guidance of $375 to $425 million. The lowering of the guidance is driven primarily by work that is not on the critical path, and that has been rescheduled to later in the project phase, and the slower than expected mobilization of contractors to site during the first three quarters of 2024. Our growth capital at the operating mines is expected to be between $145 and $160 million versus previous guidance of $122 to $144 million. Capital has increased over the prior guidance, primarily driven by waste stripping and accelerated spending for the second phase of the North Leach Pad at Kisada.

George Burns: <unk> capital is expected to be between 350 and $380 million versus previous guidance of $375 million to $425 million. The lowering of the guidance is driven primarily by word and it's not on the critical path and that has been rescheduled to a later.

George Burns: And the project phase.

George Burns: Slower than expected mobilization of contractors to site during the first three quarters of 2024.

George Burns: Our growth capital at the operating mines is expected to be between 145 and $160 million versus previous guidance of $122 million to $144 million.

Capital has increased over the prior guidance, primarily driven by waste stripping and accelerated spending for the second phase of the north Leach pad of course.

George Burns: At Scurries, we remain on track for first production in Q3 2025. We have significantly de-risked the project since we put it back into construction in April 2023, with all major contracts signed, including the filtered tailings building structure, which is on the critical path. We have approximately 1,000 people at site, including our operational readiness team, which is in the process of operationalizing both the surface and underground mine. Thus far, we are seeing productivity slightly beating our assumption. We are steadily progressing towards year-end target of 1,300 workers on site. Our focus, once we have the additional personnel on site, will turn to integrating them to our assumed productivity levels to maintain the schedule and budget.

George Burns: That's scary and we remain on track for first production in Q3 2025.

George Burns: This can only read the rest of the project since we've put it back into construction in April 'twenty to 'twenty three with all major contracts signed including the filtered tailings building structure, which is on the critical path.

George Burns: We have approximately 1000 people at site, including our operational readiness team, which is in the process.

George Burns: Operational wise in both the surface and underground mine.

George Burns: Thus far we are seeing productivity slightly beating our assumptions we are steadily progressing towards year end target of 1300 workers on site.

George Burns: Our focus.

George Burns: Once we have the additional personnel on site will turn to integrating them tour assumed productivity levels to maintain our schedule and budget.

George Burns: We are managing this closely and taking proactive measures such as rescheduling some non-critical work on process control facilities to mitigate potential challenges in a tight construction labor market. Turning to slide five, year to date, our lost time frequency rate increased to 0.91 per million worked hours compared to 0.71 in the same period in 2023. Positively, our total recordable incidents for the first nine months of 2024 have decreased to 3.11 from 4.70 per million hours worked compared to the same period in 2023. Our commitment to providing and sustaining a safe, healthy workplace remains steadfast, and we acknowledge that this is an ongoing journey of continuous improvement.

George Burns: We're managing this closely and taking proactive measures such as rescheduling. Some noncritical work on process control facilities to mitigate potential challenges in a tight construction labor market.

George Burns: Turning to slide five year to date, our lost time frequency rate increased to 0.91 per million hours compared to 0.71 in the same periods in 2023.

George Burns: Positively our total recordable incidents for the first nine months of 2024 have just decreased to 3.1.

George Burns: 470 per million hours work compared to the same periods in 2023.

George Burns: Commitment to providing and sustaining a safe healthy workplace remains steadfast and we acknowledge that this is an ongoing journey of continuous improvement.

George Burns: Our health and safety focus in 2024 continues to be based on preventing high potential incidents and further empowering our employees to promote a positive health and safety culture. I would also like to congratulate our team in Quebec, where a number of supervisors were recently recognized for leading their teams to achieve between 50,000 and 200,000 hours without a lost time incident. This stands as a testament to their dedication to maintaining a safe and healthy workplace. Additionally, congratulations to members of our KESADA and FM Çukuru Mine Rescue Teams in Turkey, who collaborated in the third mine rescue competition organized by the Turkey's Miners Association, tying for first place in the FEST Mine Rescue Team Award.

George Burns: Health and safety focus in 2020 forward continues to be based on preventing high potential incidents and further empowering our employees to promote a positive health and safety culture.

George Burns: I would also like to congratulate our team in Quebec for a number of Supervisors were recently recognized for leading their teams to achieve between 50000 and 200000 hours without a lost time incident.

George Burns: As a testament to their dedication to maintaining a safe and healthy workplace.

George Burns: Additionally, congratulations to members of our guests about an S. M Chew through mine rescue teams in Turkey, a collar.

George Burns: Collaborators and the third mine rescue competitions and organized by the Turkeys Miners Association.

George Burns: For first place in the best buy and rescue team Award.

Paul Ferneyhough: I'll stop there and turn the call over to Paul for a review of our financial results. Thank you, George. Slide 6 provides a summary of our third quarter results. Our operations delivered in line with our guidance and we continue to be encouraged by high gold prices that contributed to our strong overall financial results in the quarter. As George highlighted, we've tightened our annual guidance ranges and continue to see potential upside in cash flow generation if gold prices remain at their current level. Eldorado reported net earnings attributable to shareholders from continuing operations of approximately $101 million, or 49 cents per share, in the quarter.

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

Thank you George.

Paul Anyhow: Slide six provides a summary of our third quarter results.

Paul Anyhow: Our operations delivered in line with our guidance and we continue to be encouraged by high coal prices that contributed to our strong overall financial results.

Paul Anyhow: Water.

Paul Anyhow: George highlighted we've tightened our annual guidance ranges and continue to see potential upside and cash flow generation if gold prices remain at their current levels.

Paul Anyhow: Eldorado reported net earnings attributable to shareholders from continuing operations of approximately $101 million or 49 cents per share in the quarter.

Paul Ferneyhough: As compared to the same quarter in 2023, the net earnings were positively impacted by higher revenue due to higher volumes sold and prices realised, and again on deferred consideration due from G-mining that was recognised in the quarter. The deferred consideration relates to the sale in 2021 of the Tokenton XenoMine. Following G Mining's declaration of commercial production in early September, we are set to receive $60 million in September 2025 on the first anniversary of the declaration. It should be noted that G Mining has the option to defer $30 million of the consideration for one additional year, after which the balancing payment will increase to $35 million.

As compared to the same quarter in 2023.

Paul Anyhow: Earnings were positively impacted by higher revenue due to higher volumes sold and prices realized.

Paul Anyhow: And the gain on deferred consideration ju from G mining that was recognized in the quarter.

Paul Anyhow: The deferred consideration related to the sale in 2021 of its own pension xenon mine.

Paul Anyhow: Following G mining declaration of commercial production in early September we are set to receive $60 million in September 2025.

Paul Anyhow: First anniversary of the declaration.

Paul Anyhow: It should be noted that the G. By the auction took the 530 million is a consideration for one additional year after which the balancing tightened will increase to $75 million.

Paul Anyhow: Following the inclusion of one time non recurring items adjusted net earnings was $71 million or 75 cents per share for the quarter.

Paul Ferneyhough: following the inclusion of one-time non-recurring items. Adjusted net earnings were $71 million, or $0.35 per share for the The adjustments in the quarter accounted for the reversal of two principal items. Firstly, a $50 million net of withholding tax gain on the g-mining deferred consideration, and secondly, a $33 million unrealized loss on derivative interest. Our free cash flow in the quarter was negative $4.8 million, or positive $98.3 million, excluding the capital investment in the Scurrius project. reflecting the strong performance of our underlying operators. In the third quarter, cash flow generated by operating activities before changes in working capital was $166.5 million compared to $97.5 million in the same quarter in the prior year.

Paul Anyhow: The adjustments in the quarter accounted for the reversal of two principal items.

Paul Anyhow: Firstly, a $50 million net of withholding tax gain on the G mining deferred consideration and SEC.

Paul Anyhow: Secondly, a $33 million unrealized loss on derivative instruments.

Our free cash flow in the quarter was negative $4 $8 million.

Paul Anyhow: A positive $98 $3 million.

Paul Anyhow: Excluding the capital investment in the Scariest project.

Paul Anyhow: The strong performance of our underlying operating assets.

Paul Anyhow: In the third quarter cash flow generated by operating activities before changes in working capital was $166 $5 million compared to $97 $5 million in the second quarter and the prior year.

Paul Ferneyhough: The increase is principally driven by revenue, which increased by $87 million. driven by higher volumes and realized gold prices. Partially offset by higher production costs, they increased by $26 million. 10 million of which related to higher Third quarter total cash costs were $953 per ounce sold and all in sustaining costs were $1,335 per ounce sold. Our costs increased compared to Q3 2023, primarily as a result of higher royalty expenses and increased labour costs. The higher royalty expense in Q3 impacted ASIC by approximately $70 per ounce when compared to our original 4-year guidance. In addition, increased sustaining capital investment at Lomac, FM Chukuru and Olympias contributed to higher ASIC for the quarter compared to the same period in the prior year.

Paul Anyhow: The increase was principally driven by revenue, which increased by $87 million.

Paul Anyhow: Given by higher volumes in realized gold prices.

Paul Anyhow: Partially offset by higher production costs they incur.

Paul Anyhow: <unk> by $26 million 10 million of which related to higher royalties.

Third quarter total cash costs were $953 per ounce sold and all in sustaining costs were $1375.

Paul Anyhow: Okay.

Our costs increased compared to Q3 2023, primarily as a result of higher royalty expenses and <unk>.

Paul Anyhow: Increased labor costs.

Paul Anyhow: The higher royalty expense in Q3 impacted ASIC by approximately $70 per ounce when compared to our original full year guidance.

Paul Anyhow: In addition increased sustaining capital investment at La back essentially correct handling P. S contributing to high I think for the quarter compared to the same period in the prior year.

Paul Ferneyhough: Capital expenditures on a cash basis were $169 million in the third quarter, including investment in growth projects at Kisledag, where we focused on planned waste stripping and the North Heap Leach Pad and related infrastructure. At Scurrius, we continue to advance major earthworks and infrastructure construction for the project and invested approximately $83 million in the quarter. It's worth noting we have restarted investing our own equity in the project in the fourth quarter this year following the catch-up of the project finance funding to our agreed 80-20 split. Current tax expense of approximately $40 million for the third quarter increased from approximately $21 million compared to the same period in 2021.

Paul Anyhow: Capital expenditures on a cash basis were $169 million in the third quarter include.

Paul Anyhow: Including investment in growth projects that gets the dog, where we focused our planet's waste stripping and the north heap leach pad and related infrastructure.

Paul Anyhow: At <unk>, we continue to advance major earthworks and infrastructure construction to the project and invested approximately $83 million in the quarter.

It's worth, noting we have restarted investing our own equity in the project in the fourth quarter. This year following the catch up of the project finance funding to our agreed 80 20 split.

Speaker Change: Current tax expense of approximately $40 million for the third quarter increased from approximately $21 million compared to the same period in 2023.

Paul Ferneyhough: The increase is primarily due to, firstly, capital gains tax of $9.9 million on the recognition of the deferred consideration related to the sale of the token to Xenomine, and secondly, increased Turkish taxes of $5 million, and finally, increased mining duties in Quebec of $3.4 million. The deferred income tax recorded an $11.4 million recovery in Q3 2024, compared to an expense of just over $30 million in the comparable quarter in the prior year. In the quarter, deferred tax included an $8.2 million expense reflecting the use of tax pools in excess of accounting deductions in Canada. A one-time $5.9 million expense for Dutch tax exposure accruals.

Speaker Change: The increase is primarily due to firstly capital gains tax of $9 $9 million on the recognition of the deferred consideration related to the sale of the Tiger Zadar mine.

Speaker Change: And secondly increased Turkish taxes of $5 million and finally increased by any G. T cell Kodak is $3 $4 million.

Speaker Change: Deferred income tax reported an $11 4 million dollar recovery in Q3 2024 compared to an expense of just over $30 million in the comparable quarter of the prior year.

Speaker Change: In the courts that deferred tax included an $8 2 million dollar expense, reflecting the use of tax pools in excess of accounting deductions in Canada.

Speaker Change: A one time $5 9 million dollar expense the Dutch tax exposure accruals.

Paul Ferneyhough: And both of these were offset by an $8.3 million net recovery primarily related to local currency asset revaluation due to the weakening of the Turkish Lira against the US Dollar.

Speaker Change: Both of these were offset by an $8 3 million dollar net recovery primarily related to local currency asset revaluation due to the weakening of the Turkish lira against the U S dollar.

Paul Ferneyhough: Turning to slide 7, our balance sheet remains well funded to meet our investment requirements. We ended the quarter with total liquidity of $885 million, including $677 million of cash and cash equivalents and $208 million of available credit capacity. Cash increased over the quarter as a result of positive cash flow from our producing mines combined with drawdowns from the project finance facility for the Scurrius development. We expect to build cash during the remainder of 2024 as we benefit from strong gold prices and further drawdown of our project finances.

Speaker Change: Turning to slide seven our balance sheet remains well funded to meet our investment requirements.

Speaker Change: We ended the quarter with total liquidity of $885 million.

<unk> $677 million of cash and cash equivalents and $209 million available credit capacity.

Actually increased over the quarter.

As a result of positive cash flow from our producing mines.

Speaker Change: Bind with drawdowns from the project finance facility put us curious developments.

Speaker Change: We expect to build cash during the remainder of 2024 as we benefit from strong gold prices. So the drawdown of our project financing.

Paul Ferneyhough: This build will be partially offset by the restart of equity contributions from Eldorado to the Scurrius project as mentioned earlier. In summary, we're focused on maintaining a solid financial position, providing Eldorado with the flexibility to respond to opportunities. whilst delivering our growth strategy.

Speaker Change: This will be partially offset by the restarts of equity contributions from Eldorado to the scariest projects as mentioned earlier.

Speaker Change: In summary, we're focused on maintaining a solid financial position, providing el dorado with the flexibility to respond to opportunities whilst delivering outgrowth strategy.

Louw Smith: All while continuing to be committed to responsible mining as a foundation for our business, as encapsulated in our values of collaboration, courage, integrity, drive and With that, I'll now turn the call over to Louw to go through the Greek Asset Hive. Thanks Paul and good morning. Starting on slide 8 at our Ascurias Copper Gold Project. At the end of Q3, overall project progress was 79% when including the first phase of construction. This compares to 76% at the end of the second quarter. During the summer months, we anticipated slower progress due to vacations and the rescheduling of non-critical work.

Speaker Change: All while continuing to be committed to responsible mining as a foundation for our business is encapsulated in our values of collaborations courage integrity drive agility.

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

Speaker Change: Thanks, Paul and good morning.

Speaker Change: On slide eight that with studios copper gold project.

Speaker Change: At the end of Q3 overall project progress was 17, 9% when including the first phase of construction. This compares to 76% at the end of the second quarter.

Speaker Change: During the summer months, we anticipate that slower progress due to vacations and the rescheduling of noncritical work, but we are now seeing an upward trend and expect this momentum to continue over the next three quarters.

Louw Smith: But we are now seeing an upwards trend and expect this momentum to continue over the next three quarters. Detailed engineering has advanced and is now 78% complete. and continues to be focused on the critical items. We are expecting additional progress over the balance of the year and expect to be approximately 90% complete by the end of the year. Work continues to ramp up on construction of major earthwork structures, including the haul roads, water management ponds, low-grade stockpile, the integrated extractive waste management facility, primary crusher process facilities, and filter tailings facilities. Productivity Improvement Initiatives by the Earthworks Contractor, including a partial second shift, continues to yield improvement.

Speaker Change: Detailed engineering notes or bonds and is now 78% complete.

Speaker Change: And continues to be focused on the critical items, we are expecting additional progress over the balance of the year and expect to be approximately 90% complete by the end of the year.

Work continues to ramp up on construction of major afoot structures, including the whole roads water management pond low grade stockpile, the integrated extractor waste management facility primary crusher process facilities and filter tailings facility.

Speaker Change: Productivity improvement initiatives by the earthworks contract, including a partial second shift continues to yield improvements.

Louw Smith: Work continues to advance on the Filtered Ceilings Building, which is on the critical path. In September, the first contract for the building was awarded, which included the building's structure and mechanical installation. Piling has completed for the filtered tailings building and concrete work is progressing to enable construction of the structural steel. With three active drills on site, the piles for the filter buildings and chillery buildings continue to progress. work on the process plant is progressing well. Relining of the flotation tanks was completed as planned and structural and mechanical work is in progress. Off-site pipe spool fabrication continues and delivery of HDPE piping to site has commenced.

Speaker Change: Work continues to advance on the filter tailings building, which is on the critical path.

Timber the first contract for the building was awarded which included the building structure and mechanical installations.

Finding has completed for the filter tailings clothing and concrete work is progressing to enable construction of the structural steel.

Speaker Change: With three active dental phone fight the pilots for the full team pulled to buildings and utility buildings continued to progress.

Speaker Change: Work on the process plant is progressing well.

Speaker Change: Realigning of the flotation tanks was completed as planned and structural and mechanical work is in progress.

Speaker Change: Hi.

Speaker Change: Spool fabrication continues and delivery of H D. P. Piping to site has commenced scaffolding is advancing to support electrical cable players piping installations and the contractor continues to ramp up to support increasing levels of activity.

Louw Smith: Scaffolding is advancing to support electrical cable tray and piping installations and the contractor continues to ramp up to support increasing levels of activity. Work is also progressing on the underground development to support test tube mining in 2025. Approximately 70% of the equipment and operator licenses has been received to date, and development mining is ramping up. While we have lowered our underground development for 2024 to between 500 and 600 meters, we are still on track for ore from the test stoves during the plant commissioning period in 2025.

Speaker Change: Work is also progressing on the underground development to support his stope mining in the 'twenty to 'twenty five.

Speaker Change: Approximately 70% of the equipment to operate to licenses has been received to date and development mining is ramping up well.

Speaker Change: While we have lowered our underground development for 'twenty 'twenty four to between 506 hundred meters. We are still on track for ore from the pit to getting the plant commissioning period in 2025.

Speaker Change: Moving on to slide nine.

Louw Smith: Moving on to slide nine. During the third quarter, the capital investment at Scurrius was $82.7 million dollars, slightly less than our spend during the second quarter. This brings our year-to-date spend at Scurrius to $227.1 million dollars. In addition, our overall committed spend for the project is $788 million. As George mentioned earlier, we have lowered and tightened our guidance range to be between $350 and $380 million and do not expect it will have an impact on first production in Q3 2025. The photos on the slide and the next few slides will show the advancement of work underway.

Speaker Change: During the third quarter, the capital investment that studios was $82 $7 million slightly less than I was spent during the second quarter.

This brings our year to date spent that studios to under the $27 $1 million. In addition, our overall commitment committed spend for the project is 788 million.

Speaker Change: As George mentioned earlier, we have lowered and tightened our guidance range to be between 350 and $380 million and do not expect it will have an impact on first production in Q3 2025.

Speaker Change: The photos on the slide and the next few slides will show the advancement of work underway. In addition, we have provided a link of a progress update video in our Q3 news release.

Louw Smith: In addition, we have provided a link of a progress update video in our Q3 news release. Shown here, construction of the three thickeners progressed on plan during the quarter. On the right side of this slide, there are series of photos showing the progress in the interior of the main process plant. Turning to slide 10, the two photos on the left-hand side are the primary crusher. Progress continues to advance on the construction of the foundation, with retaining walls and stabilized excavations nearing completion. Construction of the Crusher Building will commence in November. On the right-hand side is the filter tailings area, where you can see three drills actively working.

Speaker Change: Shown here construction of the three seeking those progressed on plan during the quarter.

Speaker Change: On the right side of this slide there are serious of photos showing the progress in the interior of the mine plant.

Speaker Change: Plant.

Speaker Change: Turning to slide 10, the two photos on the left hand side are the primary crusher progress continued to advanced on the construction of the foundation with retaining walls and stabilized excavations nearing completion.

Production of the custom building will commence in November.

Speaker Change: On the right hand side, just the filter tailings area, where you can see three drove active leave working the contract with productivity has continued to increase and to date 388 pilots have been completed out of a total of approximately 871 at the photo facility.

Louw Smith: The contractor's productivity has continued to increase, and to date, 388 piles have been completed out of a total of approximately 871 at the filter facility. On the next two slides, you will see the advancement of work on the support infrastructure, including the process control room building, process plant substation, water pump station, lime plant, air blowers building, and flotation reagent plant area. On slide 11, infrastructure on the west side of the building is shown. including the secondary substation where foundation and steel work is progressing well, alongside advancements at the pump house and the control building where work commenced earlier this year.

Pete.

Speaker Change: On the next two slides you will see the advancement of work on the support infrastructure, including the proceeds control room building process plant substation water pump station lines Plumped inflow was building and flotation reagent plumped areas.

Speaker Change: On slide you live in infrastructure on the west side of the building the children.

Speaker Change: Including the secondary substation Foundation, and steelwork is progressing well alongside the advancement at the pump health and the control building. We work commenced earlier this year.

Louw Smith: On slide 12, infrastructure on the east side of the main process building is shown, including construction works progressing on the line plant, air blowers building, compressor building and flotation reagent area.

Speaker Change: On slide 12 infrastructure on the east side of the mountain proceeds building the children, including construction work progressing on the long plant.

Speaker Change: Roy was building compress a building and flotation the agent area.

Louw Smith: We expect to provide progress updates as we advance towards the first production in the third quarter of 2025.

Speaker Change: We expect to provide progress updates as we advance towards the first production in the third quarter of 2025.

Speaker Change: Moving to Olympias on slide 13.

Louw Smith: Moving to Olympias on slide 13. The third quarter gold production was 21,211 ounces and total cash costs were $1,210 per ounce sold. During the third quarter, as George mentioned, we successfully signed a three-year CBA agreement in August, and there were no work stoppages during this period compared with the second quarter. With the planned expansion of the mill to 650,000 tons per annum from 500,000 tons per annum, we have started ordering the long lead items, including the grinding mill, thickeners, and floatation cells. Total cash costs were impacted by increased labour costs, which included one-off and back-pay repayments and higher royalty expenses as a result of higher realised gold prices.

Speaker Change: The third quarter of gold production was 21002 under lift in 11 ounces and total cash costs were $1210 per ounce sold.

Speaker Change: During the third quarter as George mentioned, we successfully signed a three youll see B are your agreement in August and they will know what stoppages during this period compared with the second quarter.

Speaker Change: With the planned expansion of the moved to six under the 50000 tons per annum from 500000 tons per annum. We.

Speaker Change: We have started ordering the long lead items, including the grinding mill thickness and flotation cells totaled.

Speaker Change: Total cash costs were impacted by increased labor costs, which included one off and back play into payments and higher royalty expenses as a result of higher realized gold price.

Louw Smith: as well as Higher Gold Ounce Assault.

Speaker Change: As well as how you go to ounces sold I will stop there and hand over to Simon to discuss the turkeys and Canadian operations.

Simon Hille: I will stop there and hand over to Simon to discuss the Turkish and Canadian operations. Thanks. Thanks, Louw.

Speaker Change: Yeah.

Speaker Change: Thanks, a lot it's not even take you in slide 14.

Simon Hille: Starting in tech, yeah, in slide 14. At Kishida, third quarter production was 41,084 oz, with total cash costs of $899 per oz gold. Total cash costs were primarily impacted by increased royalties as a result of increased average realized gold price. Production was slightly below plan as a result of a few contributing factors. The crushing circuit availability has been impacted due to maintenance issues, leading to slightly lower stack tonnes for the year to date than planned. We are working on a solution and expect to have a modified edge block installed in the first quarter of 2025.

Speaker Change: It keeps you that third quarter production was 41084 ounces.

Speaker Change: Total cash cost of $899 per ounce sold.

Speaker Change: Total cash costs were primarily impacted by increased royalties as a result of increased average realized gold price.

Speaker Change: Production was slightly blood client as a result of a few contributing factors.

Speaker Change: Causing executive viability has been impacted due to maintenance issues.

Speaker Change: Turning to slide.

Speaker Change: Tons for the year to date.

Speaker Change: We are working on a solution and expect to have that modified H block store in the first quarter of 2025.

Simon Hille: In addition, a small portion of the oil coming from the centre portion of the HPGR contains particles that are greater than 10 mils, which has slightly reduced recovery due to the larger particle size. As we continue to analyse data following the ramp-up of the HPGR and the agglomeration drum, we are seeing leach cycles extending beyond the planned 220 days, which has led to an increase in gold inventory. We have responded to these operating challenges through irrigation optimisation activities which have demonstrated positive results through drawdown of gold inventory, partially offsetting the longer leave cycle. Additionally, as we have previously discussed, the geometallurgical study has commenced with drilling currently underway.

Speaker Change: Do you see a small portion of the ore coming from the center portion of the H D. G I.

Speaker Change: Good times particles that are greater than 10 meals, which has slightly reduced recovery due to the larger party size.

Speaker Change: As we continue to analyze data.

Speaker Change: Following the ramp up of the H D. G I mean cooperation drop.

We have seen league soccer extending beyond the planned 220 days.

Speaker Change: She has led to an increase in gold inventory.

Speaker Change: We responded to these operating challenges through irrigation optimization activities, which has demonstrated positive results through a drawdown in inventory.

Speaker Change: Austin upsetting the local in Stockholm.

Speaker Change: Additionally, we previously as we've previously discussed.

Speaker Change: The G. M. Metallurgical study has commenced drilling currently after y.

Speaker Change: During the year, we had.

Simon Hille: During the year we have been constructing the absorption, desorption and recovery plan which became operational this week with the first Gold Corp. The new North ADR plan is expected to provide a number of benefits. which will be realized at both facilities. including Reduced Carbon Handling Requirements, Optimization of Stacking, Irrigation and Extraction Cycle. and decoupling of the north and south heap leach facilities for maximum cost efficiency.

Speaker Change: Being constructing the absorption D jokes.

Speaker Change: And recovery plan.

Speaker Change: Which became operational this week since go cool.

Speaker Change: You know ADR plant is expected to provide a number of benefits, which will be realized at five facilities.

Speaker Change: Including.

Speaker Change: Reduced carbon handling requirements.

Speaker Change: The amortization of snacking irrigation and extract in cycle.

Speaker Change: And decoupling of the North South heap Leach facility the maximum cost efficiency.

Simon Hille: Congratulations to the Kishida team on their drive to achieve this significant milestone.

Speaker Change: Graduations T. He keeps it out of a team.

Speaker Change: On a drive to achieve these significant milestones.

Simon Hille: at FM2Crew on slide 16. Second quarter gold production was 19,794 ounces at a total cash cost of $1,325 per ounce sold. Gold production, throughput and average gold grade at FM2Crew were in line with the plan for the quarter.

Speaker Change: And I think two crew on slide 16.

Speaker Change: Second quarter Gold production was 19794 ounces at a total cash cost.

Speaker Change: $1325 per episode.

Speaker Change: Oh production throughput and average gold grade J crew are in line with Miami, Florida.

Simon Hille: And now moving to the LAMACC complex on slide 17. LeMac delivered production of 43,106 ounces at a total cash cost of $728 per ounce sold. A slight decrease in the quarter compared to the prior year's quarter, primarily due to lower grades processed, partially offset by increased throughput. Total cash cost increases were affected by higher sales volumes, slightly higher royalties due to higher average realised gold price, and additional costs incurred in labour, contractors and equipment rentals. The team remains focused on driving productivity. with development rates increasing in both Triangle and Ormec mines during the quarter. This positive trend is expected to carry forward into the fourth quarter.

Speaker Change: Now moving to the La Mac complex on slide 17.

Speaker Change: My math can lead the production of 43160 ounces.

Speaker Change: Total cash cost of $728 per ounce sold.

The slight decrease in the quarter compared to the prior year quarter, primarily due to lower grades processed.

All right great.

Speaker Change: Total cash costs increases were affected by high volumes.

Speaker Change: Higher royalties due to higher average realized gold price and additional costs.

Speaker Change: Driver contractors and equipment rentals.

Speaker Change: Team remains focused on driving productivity.

Speaker Change: With development right.

Speaker Change: Racing insights triangle Womack mines during the quarter.

Speaker Change: This positive trend is expected to carry forward into the fourth quarter.

We remain on track to tanker bulk sample from the automatic deposit in advance and I know Bruce says by the end of 2024.

Simon Hille: We remain on track to take a bulk sample from the ORMAC deposit and announce our inaugural reserves by the end of 2024. We had an advanced development. to 173 metres compared to a plan of 150 metres for the month of September. and to over 200 metres in October. Today we have stockpiled 11,500 tonnes of material of the targeted 25,000 tonnes. We were planning to put through the mail in December from OMAC.

Speaker Change: And then develop ment.

Speaker Change: 273 meters compared to our plan of 150 made it.

Speaker Change: Uh huh.

Speaker Change: And to US 200 meters talking about.

Speaker Change: To date, we have stockpiled unless that 500 tonnes of material.

Speaker Change: Targeted 25000 tons.

Speaker Change: We were planning to put through the mill in December for a moment.

George Burns: I'll stop there and turn it back to George for his closing remarks. Thanks, team. As we head into the fourth quarter, we're in a strong position to achieve our Titan Gold production and cost guidance. Gold production levels are up 7% year to date compared to this time last year, and we continue to build momentum towards first gold production at Scurries next year. The record high gold prices have significantly boosted our margins, and the regions where we operated have also benefited from higher royalties and increased tax payments. By maintaining discipline, cost control, and capital allocation alongside elevated gold prices, we expect continued margin expansion driving further growth and free cash flow from operations.

Speaker Change: I'll stop there.

Turn it back to George for his closing remarks.

George Burns: Thanks team as we head into the fourth quarter are in a strong position to achieve our tightened gold production and cost guidance.

Oh production levels are up 7% year to date compared to this time last year and we continue to build momentum towards first gold production at <unk> next year.

George Burns: Our record high oil prices has significantly boosted our margins and the regions, where we operate and have also benefited from higher royalties and increased tax payments.

George Burns: By maintaining disciplined cost control and capital allocation alongside elevated gold prices. We expect continued margin expansion driving further growth in free cash flow from operations.

George Burns: Thank you for your time.

Thank you for your time I will now turn it over to the operator for questions from our analysts.

Unknown Attendee: I will now turn it over to the operator for questions from our analysts.

Thank you well now begin the question and answer session to join the question you May Press Star then one on your telephone key part that you'll hear a tone acknowledging your request.

Unknown Attendee: Thank you. We'll now begin the question and answer session. To join the question queue, you may press star then one on your telephone keyboard pad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two.

George Burns: Are you using a speakerphone please pick up your handset before pressing any key.

Speaker Change: Jay Your question. Please press Star then two.

Cosmos Chiu: Our first question is from Cosmos Chiu with CIBC, please go ahead. Thanks George and team. Maybe our first question is on Scurrius and the progress at Scurrius. As you mentioned, underground development is now targeted for 500 to 600 meters, previously 2200 meters. Fairly sizable gap, I would say, but as you said George, it's not going to impact your Q3-Q5 first production. So, my question is, You know, it's not going to impact the timing of first production, but could this impact, you know, the ramp up and the speed of that ramp up after first production? Is there a way for you to catch up on underground development?

Speaker Change: Our first question is from Cosmos <unk> with CIBC. Please go ahead.

Speaker Change: Thanks, George and team maybe the first question is on scary isn't and the progress that scary is.

Speaker Change: As you mentioned underground development is now targeted for 500 to 600 meters previously 2200 meters fairly sizable gap I would say, but as you said George it's not going to impact your Q3 two five.

Speaker Change: First production, but my question is you know, it's not going to impact the timing of first production, but could this impact you know the ramp up and the speed of that ramp up. After first production is there a way for you to catch up on underground development.

Speaker Change: Yeah Cosmos, thanks for the question so.

George Burns: Cosmo, thanks for the question. So, you know, the way I would describe it is the Scurries underground really isn't an important part of the production profile in the first several years. And in fact, it ramps up over, say, the next seven or eight years, and at the end of a decade becomes the sole feed to the plant. So, you know, we really put an emphasis on getting the underground going as part of the initial construction to really check the box and all our technical assumptions, you know, the size of the stopes. And we wanted to get early information so that we can further optimize.

Speaker Change: The way I would describe it as a <unk> on her out really isn't an important part of the production profile in the first several years and in fact, it ramps up over say the next seven or eight years.

Speaker Change: And at the end of the decade becomes the sole feed to the plant so.

Speaker Change: Yeah, we really put an emphasis on getting the underground going as part of the initial construction.

Speaker Change: Really check the box on all of our technical assumptions you know the size of the stopes.

Speaker Change: And we wanted to get early information. So that we can further optimize we have hope still that we can make the stopes.

George Burns: We have hope still that we can make the stopes larger than what's currently in our feasibility study. Now, the reason for the slower ramp up in the development really was our transition from the Greek contractor had been doing the development to date, to our Finnish contractor that's really going to ramp it up and do the test stope mining. We're bringing in European expertise on underground mining to be able to mine these large, more technical stopes that are part of the Scourge design. So, yes, I can tell you the delays were related to getting our European workers and their equipment certified and licensed to operate, but the initial productivity we're seeing out of this workforce is pretty fantastic.

Speaker Change: Larger than what's currently in our feasibility study.

Speaker Change: The reason for the <unk>.

Speaker Change: Slower ramp up in the development really was our transition from a great contract or had been doing the development to date.

Speaker Change: Our furniture contract or it's really going to ramp it up and do the test stope mining.

Speaker Change: Bringing in European expertise on underground mining to be able to combine these large more technical stopes that are part of this great design. So yes, I can tell you the delays were related to getting our European workers and their equipment certified and license to operate in.

Speaker Change: But the initial.

Productivity, we're seeing out of this workforce is pretty fantastic, we won't be able to continue to catch up as they deploy more workers and it really has no material impact on the next several years old screens operations.

George Burns: We will be able to continue to catch up as they deploy more workers, and it really has no material impact on the next several years of Scourge's operation.

Speaker Change: Mhm yeah.

Cosmos Chiu: That's good to hear. Maybe that leads in well into my next question here. As you mentioned, you know, total capex of this project is $920 million you've spent. Slightly over $410 million so far with 770 committed. So in terms of that, you know, 920 versus the 411 million that's spent, the difference, can we expect that to be spent in 2025? Or it sounds like maybe not, given that some of the underground might be, you know, pushed out a little bit in terms of development. I'm just wondering timing of the spend, and if the $920 million is still a good number.

Speaker Change: That's good to hear maybe that leads well into my next question here. As you mentioned you know total Capex of this project is now $120 million you spent.

Speaker Change: Slightly over $410 million, so far with 770 committed.

Speaker Change: So in terms of that you know 920 <unk> versus the 411 million that spent the difference can we expect that to be spent in 2000 and twenty-five or it sounds like maybe not given that some of the underground might be.

Pushed out a little bit in terms of development and I'm just wondering.

Speaker Change: Timing of the spend and then the $920 million is still a good number to use.

Speaker Change: Yeah, we're still calling.

George Burns: Yeah, we're still confident and comfortable with the $920 million. You know, our employee count on construction has been rising all year. And as we said, we're expecting a further increase over the fourth quarter. And then that larger workforce will continue to execute construction through into the third quarter. So you're going to see a significant ramp up in spending in Q4, and then even more in Q1, right through into commercial production. Regarding, you know, a few things that might not happen by commissioning time, yeah, there's some non-critical infrastructure that's been delayed a bit from archaeological studies that were done.

Speaker Change: Confident and comfortable with the $920 million.

Speaker Change: You know our our employee count on construction has been raising all year.

Speaker Change: As we said we're expecting a further increase over the fourth quarter and then a larger workforce will continue there.

Speaker Change: To execute construction.

Speaker Change: Through into the third quarter, so you're going to see a significant ramp up in spending.

Speaker Change: In Q4, and then even more in Q1.

Speaker Change: Right through into commercial production.

Speaker Change: Regarding a.

Speaker Change: A few things that might not happen.

Speaker Change: By commissioning time, yeah, there were some or some non protocol infrastructure, that's been delayed a bit from archeological studies that were done some of that might spill late.

George Burns: Some of that might spill. later into next year and perhaps even beyond, but it'll have no impact on our ability to operate. And then on the underground piece, you know, we're still going to get the plan to test stopes into the middle in the third quarter, fourth quarter of next year. So no impact on the underground portion of production next year. And, you know, you know, we'll update the market in the new year with guidance on everything. But again, the underground spend next year isn't material to our commercial production or even the next couple of years of operation.

Speaker Change: Later in the next year and perhaps even beyond that.

Speaker Change: It'll have no impact on our ability to operate.

Speaker Change: And then on the underground piece, we're still going to get.

Speaker Change: Plant two test stopes.

Speaker Change: And of the mill in the third quarter fourth quarter of next year, So no impact on the <unk>.

Speaker Change: Underground portion of production next year.

Speaker Change: And you know, we'll update the market in the new year with with guidance on everything.

Speaker Change: But again the.

Speaker Change: The underground spend next year isn't material to our commercial production or even the next couple of years of operations as it gets really another year of test stoping in 2020 six and then ramp up of infrastructure test.

George Burns: It's really another year of test doping in 2026. And then ramp up of infrastructure to then support higher mining levels, you know, over the next five years.

Speaker Change: Port higher mining levels and over the next five years so.

George Burns: So All that that I just said is not very material to... Project for next year.

Speaker Change: All of that but I, just said is not very material to the.

Speaker Change: The project for next year.

Speaker Change: Uh-huh of course.

George Burns: Maybe one last question, George, as you mentioned, you've tightened your 2024 production guidance. If I take your, you know, tightened guidance, it implies that you'll be increasing in Q4 production by about more than 10% quarter over quarter. I think Simon kind of touched on it. But could you maybe, you know, again, summarize which ones will be the drivers in terms of that potential higher production into Q4? Sure. So, you know, the first thing I would say is we're in a better position this year than last year with our year-to-date production. And as you know, we've been growing production over the last couple of years, and you're going to see that expand even further, ultimately to 45% production growth by 2027.

Speaker Change: Maybe one last question George as you mentioned, you've tightened your 'twenty 'twenty four production guidance, if I take your you know tightened guidance.

Speaker Change: It implies that you'll be increasing in Q4, our production by about more than 10% quarter over quarter.

Speaker Change: Simon kind of touched on it but could you maybe you know again summarize which ones will be the drivers in terms of that potential higher production into Q4.

George Burns: Sure. So you know.

Speaker Change: First thing I would say is we're in a better position this year.

Speaker Change: Last year with our year to date production.

Speaker Change: As you know we've been wrong production over the last couple of years and Youre going to see that expand even further ultimately the 45% production growth by 2027, and so we're on track to deliver the high quality growth in terms of the fourth quarter and even the year in our production.

George Burns: So we're on track to deliver that high-quality growth. In terms of the fourth quarter, and even here, you know, our production at Lamarck and FM Chukar are going to be stronger relative to original guidance, and we're a bit weaker at Kisadog and Olympias for the reasons we noted. And you're going to see a strong quarter at Lamarck consistent with prior years. And, you know, at Olympias, you know, we're, collective bargaining is in a good position now, and we're expecting a strong quarter out of Olympias in the fourth quarter relative to the challenges we had in Q2, so.

Speaker Change: Mark and <unk> are going to be stronger relative to original guidance and were a bit weaker and kiss a dog and Olympia is for the reasons, we noted and you're going to see a strong order at lamarck are consistent with prior years.

Speaker Change:

Speaker Change: You know at Olympias.

Speaker Change: Our collective bargaining is in a good position now and we're expecting a strong quarter out of the olympias in the fourth quarter relative to the challenges we had in Q2 so yeah.

George Burns: At any rate, we're comfortable with our updated guidance and expecting a good fourth quarter.

Speaker Change: Anyway.

Speaker Change: We're comfortable with our our updated guidance and expecting a good fourth quarter.

Speaker Change: Great. Thanks, George and team. It goes all the questions I have have a good weekend.

Cosmos Chiu: Great, thanks George and team. Those are all the questions I have.

Unknown Attendee: Have a good weekend.

Unknown Attendee: Thank you.

Speaker Change: Thank you.

Mike Parkin: The next question is for Mike Parkin with National Bank, please go ahead. Hi guys, thanks for taking my questions. On slide 14, you notice you're doing some sub-cell collection system, deep ripping procedures. new approach to the solution. I can't remember off the top of my head but you guys use stackers don't you for placing the agglomerated, well I guess it's a mix of agglomerated and non-agglomerated or on the pad.

Speaker Change: The next question is from Mike Parkin with National Bank. Please go ahead.

Mike Parkin: Hey, guys. Thanks for taking my question.

Mike Parkin: On slide 14.

Mike Parkin: You know you're doing some oh collection system deep ripping procedures.

Do you approach the solution I cant remember off top of my head, but you guys use doctors don't you for.

And the the Agglomerated well I guess, it's a mix of a bomber agree a.

Mike Parkin: Agglomerated and non warmer aided ore on the pad so what.

Simon Hille: So what Causing you to add ripping on the new, I assume it's on the new pad only, and did you do that on the old pad? And what's making you decide to do that if you're using like a grasshopper system, I would think you're not worried about compression.

Mike Parkin: What.

Speaker Change: Causing you to add ripping on I assume it's on the new patio did you do that on the old part and what's making you decided to do that you.

Speaker Change: Youre using like a grasshopper system, I think you're not worried about compression.

Simon Hille: Great, great question, Mike. I mean, yes, we use a conveyor system that takes the crushed and agglomerated ore from the crushing facility out to our heat bleach pad. And at the end of the grasshoppers, we have a radial stacker. So you're right, that radial stacker minimizes compaction of, say, haul trucks delivering the ore to the pad. In our case, we've got, these are rubber-tired grasshoppers and rubber-tired conveyors. So there's a bit of compaction. You've got maintenance and other light vehicles. And it's a typical practice where you do ripping to try to fluff up the crushed ore and maximize the ability to get good permeability throughout the ore.

Great Great question, Mike I mean, yes, we use a conveyer system that takes the crushed and agglomerated ore from the crushing facility outdoor heap Leach pad and at the end of the grass offers we have a radio stacker.

Speaker Change: So you're right that radial stacker minimises compaction of say haul trucks delivering the ore to the pad in our case. We've got these are rubber tire grasshoppers and retired.

Speaker Change: And Bayer are so there's a bit of compacts and you've got maintenance and other light vehicles and it is a typical practice, where you do ripping to try those well.

Speaker Change: Crushed ore and maximize the ability to get good permeability throughout Europe.

Simon Hille: So I can just tell you in all copper and gold leaching, ripping is a pretty important part of... efficient and good permeability. The challenge with a dozer doing that ripping is it does it in one direction and you can pull it. you know, multiple directions, but what we can do with these track hoes is rip it in every direction. And we can do some ripping without removing grip emitters if we have a particular pad that's saying a bit of ponding or not getting good permeability. So it just does a lot better job of fluffing up the ore and maximizing permeability through the pad.

So I can just tell you in all the copper and gold leaching roofing is a pretty important part of those.

Speaker Change: Efficient and good permeability.

Speaker Change: Challenge was a dozer doing that ripping is it does it in one direction and you know you you can pull it.

Speaker Change: You know multiple directions, but what we can do with these track hose is rip it in.

Speaker Change: In every direction.

Speaker Change: And we can do some ripping without removing drip of matters that we have a particular pad is seeing a bit of a partnering or not getting good permeability. So.

Speaker Change: It just is a lot better job of Fluffing and maximizing permeability through the path.

Simon Hille: And, you know, I think, you know, we only agglomerate roughly a third of the total crushed material. And that third that goes through the agglomeration drum gets mixed with the other two thirds. And we're kind of counting on the transfer points between grasshoppers to mix and further agglomerate the entire feed to the to the pad.

Speaker Change: And I think you know, we only agglomerate roughly a third of the total crushed material.

Speaker Change: And that third that goes through the agglomeration drum gets mixed with the other two thirds and we're kind of counting on the transfer of points between grasshoppers to mix and further agglomerate entire feed to the to the pad.

Simon Hille: So, I mean, I mean, that's one of the things we're studying over the next several quarters is, what happens if we add more agglomeration drums. You know, and we're also looking at particle size, what could we do to brush a bit finer? That's probably more screening.

Speaker Change: So I mean, I mean, that's one of the things we're studying over the next several quarters as well.

Speaker Change: What happens if we add more collaboration drums.

Speaker Change: And we're also looking at particle size, what could we do the crusher bit finer that's probably more screening.

Speaker Change: And at the end of the day.

Simon Hille: And at the end of the day, is there an ability to further optimize recovery and total production, including even de-modelizing the plant? So that's the study underway. To go back to your specific question, it's just a better way to rip the surface and to further optimize permeability in the pad.

Speaker Change: Their ability to further optimize recovery in total production and clothing human Debottlenecking to play out. So that's the study underway and back to your your.

Speaker Change: Your specific question.

Speaker Change: Just a better way to go.

Speaker Change: Surface and.

Speaker Change: So further optimize permeability in the pad.

Speaker Change: Yeah.

Simon Hille: Are you seeing any concerns around structural integrity? I remember when we were there a year ago, you had samples of like the Column test showing that the agglomeration really withstood well on a structural kind of integrity in terms of resisting compaction. Is that kind of proving up in the pad application versus the column test?

Speaker Change: And are you seeing any concerns around structural integrity I remember when we were there a year ago.

Speaker Change: You had samples or break D.

Column tests, showing that the agglomeration really did well on a structural kind of integrity in terms of.

Speaker Change: Resisting come action is that kind of proving up in a pad application Bruce Collins huh.

Speaker Change: Yeah over to you Simon.

Simon Hille: Yeah, over to you, Simon. Yeah, thanks, Mike. Yeah, we continue, you know, prior to, you know, putting the agglomeration drum into circuit, you know, we didn't have a lot of cement as a binder to create that stability. So with the agglomeration drum, we do add that cement and it does create that, both those agglomerated balls as well as some further strength into the actual pad.

Speaker Change: Yeah. Thanks, Mike.

Simon Hilli: Yeah, we can T. You know trying to.

Simon Hilli: Yeah, putting vehicles right.

Simon Hilli: Okay.

Simon Hilli: We didn't have a lot of asthma defined it.

Simon Hilli: To create that stability. So we can make on where I see.

Simon Hilli: Drop we can do that.

Speaker Change: That's correct.

Speaker Change: But it says.

Speaker Change: Alrighty pools as well as.

Speaker Change: Since the sprint T into the actual path.

Speaker Change: Okay. That's it for me guys. Thanks.

Unknown Attendee: Okay, that's it for me, guys. Thanks.

Speaker Change: Thanks, Mike.

Unknown Attendee: Thanks, bye.

Tanya Jakusconek: The next question is from Tanya Jakusconek with Scotiabank. Please go ahead. Great.

The next question is from Tanya and she please connect with Scotiabank. Please go ahead.

Oh, great Karl Good morning, everyone. Thank you so much for taking my question, maybe George I, just wanted to come back to the non clinical work.

Tanya Jakusconek: Good morning everyone. Thank you so much for taking my question. Maybe George, I just wanted to come back to the non-critical work that you've kind of deferred at SCORES. Can you just review with me what you've deferred? So part of it is the underground development. What else has been deferred? Yeah, so the underground development was deferred really just due to delays and getting licensing of the workforce and permitting and equipment. The archaeological impacts are non-critical infrastructure, such as our truck shop for the open pit. So we have workarounds for that, you know, we'll use what I've used it at many startup operations, C-tainers as a wall and a lid over the top for doing maintenance until we can get the truck shop constructed.

Speaker Change: I think you've kind of alright.

Speaker Change: Can you just review with me what you have with deferred so part of the underground development.

Speaker Change: What else has been deferred.

George Burns: Yeah. So the underground development was deferred really just due to delays in getting licensing of the workforce and permitting it equipment.

The archeological impacts are non critical infrastructure, such as R. R truck shop for the open pit.

George Burns: So we have workarounds for that you know we'll use.

George Burns: Houston at many start up operations.

<unk> is a wall and a little over the top for we're doing maintenance until we can get the truck shop constructed so and workarounds aren't in place depending on the timing of.

George Burns: So workarounds are in place depending on the timing of Getting this archaeological clearance, it might still get done next year, it might not, but it will not impact our ability to operate. and I think you can remember the Saranago operation in Argentina when we built that prior company. It was two years before the truck shop was built. had no impact on the operation. So it's a truck shop is one of the issues and another one we have an office plan for both the underground and open pit separate facilities. The open pit office is also being delayed by these archeological studies, so we'll be using the underground office and other facilities during the interim phase while we get that office constructed.

George Burns: Getting this archaeological Clarence yeah, it might still get done next year it might it might not but it will not impact our ability to operate.

George Burns: I think you can remember the Cerro <expletive> operation in Argentina, when we built that.

Our company.

George Burns: And two years before the truck shop was built.

George Burns: No impact on the operations.

George Burns: So it's a truck shop as one of the issues and then the other one we have an.

George Burns: But office plans, both the underground and open pit separate facilities.

George Burns: The open pit office is also being delayed by these archeological studies, so we'll be using the underground office and other facilities during the interim phase while we.

George Burns: We get that office constructed so again, it's not in the core infrastructure that was planned to be worked on this quarter and next that'll be delayed to some degree.

George Burns: So, again, it's noncritical infrastructure that was planned to be worked on this quarter and next that will be delayed to some degree.

Tanya Jakusconek: Okay, so really what I'm taking from you is that it's really the truck shop and sort of the office. that you can operate from other areas.

Speaker Change: Okay. So really what I'm, taking from here is that it's really the top shop inside of the office.

Speaker Change: But you can operate from you know other area I guess as an aside what's taking so long I kind of logical for Matt.

George Burns: And just as an aside, what's taking so long for this archeological permit? Are there some disputes on it? I mean, I remember the vase that, like, I think there was a vase or something that we were reviewing with this permit, a vase that was found. Yeah, well, I mean... So in the open pit near the outcrop, there was a furnace that was deemed to be back in the days of Alexander the Great, where they were processing ore outcrops. So we moved that a couple of years ago. In this case, on kind of the edge of the pit.

Speaker Change: All right.

Speaker Change: All right.

Speaker Change: Hey, Mike.

Speaker Change: The veins are something that we've lived with healing.

Speaker Change: Hi, Matt.

Speaker Change: And based on the sound.

Mike Parkin: Yeah, well I mean.

Mike Parkin: So in the open pit nearly outcrop a there was a.

Furnace that was deemed to be back in the days of Alexander with a great where they for processing it or our crops. So we move that a couple of years ago in this case.

Kind of the edge of the pit.

George Burns: where this infrastructure was going to be put in. They've been doing these archeological studies. And unlike North America, you know, there's a long history of civilizations in Greece and other European countries, and there's lots of artifacts. So even though this is up in the foothills above the Aegean, they have found some things. And, you know, they want to make sure that this area is cleared appropriately. And so just to describe it, you've got, I don't know, around 40, 50 people, laborers with wheelbarrows and archeologists that are sifting through the sands and the surface. And they're obviously finding some things because we have a lot of activity.

Mike Parkin: Whereas this infrastructure was gonna be put and they've been doing these archeological studies.

Unlike North America, because I know, there's a long history of civilizations Ah in Greece.

Mike Parkin: Other European countries and Theres lots of artifact. So even though this is up in the foothills about Virginia and they have found.

Mike Parkin: Some things and they wanted to make sure that.

Mike Parkin: Areas cleared appropriately and so just to describe as you've got I don't know around 40 50 people.

Mike Parkin: Laborers with wheel barrels and archaeological under sifting through the.

Mike Parkin: The sands on the surface.

Mike Parkin: Obviously, finding some things because we got a lot of activity, but they really have to complete the work to determine.

George Burns: But they really have to complete the work to determine, you know, what's there, how significant is it, could it be moved, are we going to have to work around and leave it in place. Those are the sort of things that happen typically in Greece on any construction project. I'm fortunate to say this is the only activity and it's not critical to our startup. And, you know, we'll have workarounds for it, so.

Mike Parkin: What's there how significant is it could it be moved or are we going to have to work around and leave it in place those are the sort of things that happen typically in Greece on any construction project.

Mike Parkin: Fortunate to say this.

Mike Parkin: The only activity and it's not critical to our start up and we will have workarounds for it so.

Tanya Jakusconek: I'd say a normal process in race. Okay, so yeah, so it's separate from that furnace of Alexander. Okay.

Mike Parkin: I'd say a normal process injuries.

Mike Parkin: Okay.

Mike Parkin: I'm not far enough.

Mike Parkin: Right.

Speaker Change: Mm Hmm.

Tanya Jakusconek: Okay, just wanted to come back to and I don't know who wants to take this question just on the inflation you mentioned that you know you're seeing high higher labor costs so just wanted to review with you I have in my notes here from previous calls that about and maybe this is, if someone can correct me if I'm wrong, I had about 30% of your cost is labor, that's yourself employed, and then about 40% is I include the contractors. So I'm gonna start first, is that a correct number that I have? I think 27% is the number, so you're very close.

Speaker Change: Okay, just wanted to come back to them and I don't know who wants to take a question just on on and on the inflation you mentioned.

That you know you're seeing high higher labor costs. So I just wanted to review with you I have in my notes here from previous calls that about.

Speaker Change: And maybe this is something I can correct me, if I'm wrong I had about 30% of your.

Speaker Change: Our cost of labor that you self employed and then about 40% if I could.

Speaker Change: The contractor is I'm gonna start first is that a correct number that I have.

Speaker Change: I think 27% since a number of articles.

Paul Ferneyhough: 27% and Q3. Okay, so sorry, did I hear 47 or 27? 2727 Okay, so 2-7 is all of your employees. Oh, for labor, yes. Labor. And it says that also include contractors or is that SAFRA? It's the contractors are separate that gets billed as a single item. So that 27% is our workforce. And what would be the percentage that would be contractors? And the reason I'm asking, George, is I'm just trying to understand if you have different inflation in your stuff, you know, your own workforce at 27 percent. And how is that different from the contractors?

Speaker Change: Only 7% in Q3.

Speaker Change: Okay.

Speaker Change: 47 or 27.

Speaker Change: But the seven to seven.

Speaker Change: Okay. So two seven in all of your employees.

Speaker Change: Oh for labor, yes.

Speaker Change: And does that also include contractors or has that background.

Speaker Change: It's the contractors are separate buckets.

Speaker Change: And as a single line item, so that 27% as our workforce.

Speaker Change: And what would be the percentage that would be contractor and the reason I'm asking do I guess I'm just trying to understand if you have different inflation and New York.

Speaker Change: Work force at 27% and how is that different from the contractor that's all I'm trying to get.

George Burns: That's all I'm trying to get. I don't have the contractor percentage, but I would tell you, there isn't a significant difference other than timing, you know, obviously, where we have union operations in Turkey and Greece, when we do our collective bargaining, immediately, there's a change in labor costs, the contractors are on different schedules. So timing would be a bit different. But I would say that the inflationary pressures are very similar.

Speaker Change: I don't have the contract or percentage, but I would tell you there isn't a significant difference other than timing.

Obviously, where we have union operations in Turkey, and Greece.

We do our collective bargaining immediately there is a change in labor cost of contractors are on different schedules, so timing would be a bit different but I would say that.

Inflationary pressures are very similar.

Tanya Jakusconek: And when you did your current agreement at Olympia, what sort of inflation rate did we see there for labor? So we signed a three-year agreement on Olympias, and it averages about 3% over the three-year contract. So, you know, fairly consistent with inflation in Europe. Lynette Gould Yeah. That's good to hear. Okay.

Speaker Change: And when you take your current agreement mm Atlanta, Olympia outside of an inflation rate in D. C banner for labor.

Speaker Change: So we signed a three year agreement on Olympias and it averages about 3% over the three year contract.

Speaker Change: So fairly consistent.

Speaker Change: System with inflation in Europe right. Yeah. That's good to hear Okay, and then the other thing that I wanted to make sure I understood. You know there was such a big I think I think was mentioned that $70 an ounce.

Paul Ferneyhough: And then the other thing that I wanted to make sure I understood, you know, there was such a big, I think, I think was mentioned that $70 an ounce. the impact from increase in gold price in your royalties. I think it was this quarter. If I can remember correctly, and I just need to understand my sensitivity again, I think you did your budgets at 1900. And I think for every $100 move, it was about $20 per ounce impact on your cost. Maybe I could just have that confirmed. And just so that I understand that when you go to give guidance next year, I can kind of understand what the gold price impact would be on your cost.

Speaker Change: The impact from increase in gold price and your royalty.

Speaker Change: It was good quarter I can't remember correctly and I just need to understand why can't the Kennedy again, I think he did get back in 1900 and I think for every hundred dollar move it was about $20 per ounce impact on your car, maybe I could get hop back from friends and just so that I understand that when you go to give guidance next year.

Speaker Change: I can kind of understand what the coal price impact would be on your costs.

Paul Ferneyhough: So Tanya, it's Paul here. In the third quarter, compared to our budget, just to give you a sense, the royalty cost is around $105 per ounce more. And so we had our budget set at $1,900 and our realized prices were $2,492. And so the difference there, a $600 increase in realized prices gave us $105 an ounce more in royalties. Okay, perfect. That's a great sensitivity to have.

Speaker Change: So 10 years, it's a it's Paul here and in the third quarter compared to a budget just to give you a sense.

Speaker Change: The royalty cost is around $105 per ounce more I'm, sorry, we had a budget set at 19 $100 in our realized prices were 2492, I'm sorry, the difference that $600 increase in realized prices gives us a hungry and $5 an ounce more.

Speaker Change: And royalties.

Speaker Change: Okay, perfect that's likely to happen and then finally I know their numbers that would be by yourself or how are you.

George Burns: And then finally, another number that would be very useful for us is how are you thinking, and I appreciate all of your reserves are based on, you know, looking at cutoff grades, etc. So I'm thinking you're going to be reporting your reserves very shortly, usually in early December. So we're just like two months away. Oh, no, not even two months, months and a bit. Can we just, you know, maybe talk a little bit about how you're thinking about your reserves and your cutoff grades? Ultimately, I think I had a $1,400 gold prize for your reserve.

Speaker Change: Are you thinking and I. Appreciate all of you are right. There is that based on you know looking at cut off grades et cetera, I'm thinking you're going to be reporting everything very shortly I'm using early December the wacky like two months away Oh, no not even two months not that.

Speaker Change: Can we just maybe talk a little bit about how you're thinking about.

Speaker Change: And you have cut off grade then.

You know ultimately I think I heard a 1400 dollar both high for you right there.

George Burns: Maybe someone can share how you're thinking about that as we come to your reserve basis. Sure. So, yeah, our current reserves are at $1,400. We do expect to update our reserve statements before the end of the year. We're not looking at a material change in price assumption. And we essentially look to our peers. We take a look back, three, five year look back on metal prices. But we continue to believe it's appropriate to stay conservative on metal price and reserves to ensure we have solid margins in any gold price environment. Even though we're in a pretty good bull run, and it appears to be continuing, we're not going to count on that from a reserve and resource statement perspective.

Speaker Change: Maybe someone can share how you're thinking about that as we come to T O N E.

Speaker Change: Sure. So yeah, where are our current reserves are 1400 you.

Speaker Change: We do expect to obtain a reserve statements for the end of the year.

Speaker Change: We're not looking at a material change in price assumption and we essentially look toward errors.

Speaker Change: Take a look back three five year look back that metal prices, but.

Speaker Change: But we continue to believe it's appropriate to stay conservative on metal price and reserves to ensure we have solid margins in any gold price environment.

Speaker Change: Even though we're in a pretty good all rather than it appears to be continuing.

We're not going to count on that from a reserve.

Speaker Change: And resource statement perspective, so as you say, we will be updating the market with a definitive price assumptions for this year's reserve update just don't expect any material change.

Tanya Jakusconek: So as you say, we'll be updating the market with the definitive price assumptions for this year's reserve update, just don't expect any material change. And when you say material change, I mean, I would, I'm assuming it, you know, it's like a, you know, less than 10%. Would that be material to you? Yeah, less than 10% would be not material. Thank you. And thank you, thank you for all my questions. I really, really appreciate it.

Speaker Change: And when you say material change I mean, I would I'm, assuming you know, it's like you know less than 10% with that Pete I carried out to you.

Speaker Change: Yeah, less than 10% would be not material.

Speaker Change: Okay. Thank you and thank you taking all my questions I really really appreciate it and I'll, let someone else ask.

Unknown Attendee: And I'll let someone else. Thank you. Thanks, Tanya.

Speaker Change: Thank you thanks, Tom.

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

Lawson Winder: Once again, if you have a question, please press star then 1. Caller is Lawson Winder with Bank of America Securities. Please go ahead. Thank you very much, operator. And good morning, George and team to you guys in Vancouver. And thank you for the update. Very comprehensive today.

Colleen Lawson Winder with Bank of America Securities. Please go ahead.

Speaker Change: Thank you very much operator, and good morning, George and TMT guys in Vancouver.

Speaker Change: Thank you for the update very comprehensive today.

Lawson Winder: One thing I wanted to follow up on with respect to Tanya's questioning on on labor inflation is just, I might have missed it, but did you disclose what is the built in annual increase in labor inflation with the new CDA? And if not, can you share that? And whether there's any difference year to year? Is there a consistent each year of the contract? Yeah, so for a collective bargaining agreement on Olympias, it's a three year agreement. Over the three years, it's kind of averaging 3% each year. So fairly close to inflation. There was an addition, additionally, a one off payment that isn't cumulative on their base that was tied into our decision to move forward with the expansion of Olympias.

Speaker Change: One thing I wanted to follow up on with respect detainees questioning on on labor inflation is just.

I might've missed it but did you disclose what is the built in annual increase in our labor inflation with the new C. D. A.

Speaker Change: And if not can you share that and whether there's any difference year to year or is it a consistent.

Speaker Change: Each year of the contract.

Speaker Change: Yeah, so for our collective Ari agreement on Olympias, it's a three year agreement.

Speaker Change: Over the three years, that's kind of averaging 3% each year, so fairly close to inflation.

Speaker Change: In addition, additionally, a one off payment that isn't cumulative.

Speaker Change: Other base that was tied into our decision to move forward with the expansion of Olivia So anyway I'd say.

George Burns: So anyway, I'd say It was a good win-win agreement with our workforce and salary wage increase is consistent with inflation.

It was a it was a good win win agreement with our workforce.

Speaker Change: And in the.

Speaker Change: Salary wage increases consistent with inflation in Europe.

Yeah fantastic Thanks for that and then.

Unknown Attendee: Yeah, fantastic. Thanks for that.

George Burns: And then just looking at and thinking about capital allocation. The gold price is up, obviously, significant. You guys are clearly benefiting from that, you know, despite the spending on Squiries. Is there any thought internally to potentially reinstating the dividend near term, or is that a decision that just has to wait until the completion of construction at Squirian? Yeah, I mean, dividend definitely is a focus of the company. And our view is when we set and reestablish our dividend and our dividend policy, we want it to be sustainable. And so for us, the focus will be in 2026.

Speaker Change: Just looking at and thinking about capital allocation.

Speaker Change:

Speaker Change: And again.

Speaker Change: The gold prices, obviously significant you guys are clearly benefiting from that.

Speaker Change: Right the spending on Fountain square East.

Is there any thought internally to potentially reinstating the dividend near term or was that a decision that just has to wait until the completion of construction at our score is.

Speaker Change: Yeah I mean.

Speaker Change: Dividend definitely is a focus of the company and our view is when we set that.

Speaker Change: Reestablish our dividends and our dividend policy, we wanted to be sustainable and so for us the focus will be in 2026 after were in commercial production.

George Burns: After we're in commercial production.

Speaker Change: Okay, and probably an obvious answer to my final question on capital allocation, but just.

George Burns: Okay, and probably an obvious answer to my final question on capital allocation, but just as you look at potential options for growth, obviously you have a lot in the portfolio. What about external options for growth? What's your stance on M&A is really the question. I mean, does Eldorado feel that you can be opportunistic? Should opportunities come along? Or is that something that's just off the table for now? Well, I mean, we have a corporate development team. And like every company, we're always looking for opportunities. You know, obviously, with our focus on scurries, that's priority one.

Speaker Change: As you look at the potential options for growth, obviously, you have a lot in the portfolio.

Speaker Change:

What about external options for growth it does cause eldorado or what's your stance on M&A is really the question I mean, because eldorado feel that that like you.

Speaker Change: You can be opportunistic should opportunities come along or is that something that's just off the table for now.

Speaker Change: Well I mean, we have a corporate development team and like every company, we're always looking for opportunities.

Obviously with our focus on Scurries that's priority one.

George Burns: If an exceptional opportunity came along, we're definitely going to look at it. We'd be opportunistic. So I'd say it's not a primary focus. It's a secondary focus for us.

Speaker Change: An exceptional opportunity came along we're definitely going to look at it we'd be opportunistic. So I'd say, it's not a primary focus it's a secondary focus for us.

Speaker Change: Okay. Thanks, very much George I appreciate it.

Lawson Winder: Okay, thanks very much, George. I appreciate it.

Unknown Attendee: Thank you.

George Burns: Thank you.

Speaker Change: That is all the time, we have quick question. Today. 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.

Unknown Attendee: That is all the time we have for questions today. This concludes the question and answer session and today's conference call.

Unknown Attendee: You may disconnect your lines. Thank you for participating and have a pleasant day.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change:

Yeah.

Speaker Change: Yeah.

Speaker Change: Yeah.

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