Q4 2024 Eldorado Gold Corp Earnings Call
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Speaker Change: 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.
Lynette Gould: Thank you operator, and good morning, everyone. It's my pleasure to welcome you to our fourth quarter and year end 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 <unk> measures. During the call. Please refer to the cautionary statements included in the presentation.
Lynette Gould: And the disclosure of non <unk> 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 Bernie, How executive Vice President and Chief Financial Officer.
Low Smith: Low Smith Executive Vice President development, Greece, and Simon Healey Executive Vice President operational operation and technical services.
Speaker Change: Our release yesterday details, our fourth quarter and year end 2024 financial and operating results. This should be read in conjunction with our year end 2020 for financial statements and management's discussion and analysis both of which are available on our website. We have also both been filed on SEDAR plus at Edgar Al Dor.
Speaker Change: All 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 besides from our web site.
Speaker Change: After the prepared remarks, we will open the call for Q&A at this time, we will invite analysts to queue for questions I will now turn the call over to George.
George Burns: Thanks, Linda and good morning, everyone.
Speaker Change: Here's the outline for today's call.
Speaker Change: I'll provide an overview of Q4 and 2024 results and highlights.
Speaker Change: I will then pass the call over to Paul to go through our financials, and then loan assignments to review our operational performance.
And then we will open the call to questions from our analysts.
Speaker Change: Turning to slide for 2024 was a strong operational and financial year at El Dorado.
Speaker Change: By many accomplishments.
Speaker Change: Plan for fourth quarter was the strongest quarter of the year with the same production of 155668 ounces.
Speaker Change: We finished the full year with gold production of 520293 ounces.
Speaker Change: Aligned with our tightened guidance range and 7% increase over 2023 production.
Speaker Change: Production benefited from higher mining rates and ore throughput a more complex.
Speaker Change: Operational upgrades against Saddam and increased productivity at Olympias.
Speaker Change: On the cost side, our cash costs and all in sustaining costs met our tightened guidance range.
Speaker Change: Were higher compared to 23, primarily as a result of higher royalty fees, driven by higher gold prices labor costs and sustaining capital.
Paul Bernie: Paul will touch on our cost in more detail later on the call.
Speaker Change: During 2020 for each of our assets continued to execute it.
Speaker Change: Quebec, that's the law.
Speaker Change: Not complex, we achieved record production of 996538 ounces.
Speaker Change: Joe casing efficiency and capability of our operations.
Speaker Change: Furthermore, the declaration of an inaugural mineral reserve and subsequent technical reported a remark marks a significant milestone in our strategic growth and development efforts in the Abitibi.
Speaker Change: This reinvestment in high return growth continues to create long term value.
Speaker Change: Our Turkish operations performed well during the year <unk> continues to deliver at a steady rate and we were pleased to announce a two year mine life extension with a 23% increase in mineral reserves compared to the previous year.
Speaker Change: As guest at all during the year, we experienced slower than anticipated Leach kinetics and delivered an exceptional fourth quarter driving a stronger finish to the year, reflecting our commitment to excellent operations.
In Greece, <unk> was a significant focus during 2024 and we continued to advance construction.
Speaker Change: Once in production next year. This mine will be transformational for the company.
Speaker Change: Our focus at <unk> remains on delivering on key milestones in our commitment to driving long term growth and value for our stakeholders.
Speaker Change: Olympias, we successfully concluded the labor negotiations, which coupled with productivity improvements supports the 650000 tonne per annum plant expansion an increase from 500000 tonnes per annum positioning the mine for long term profitability over its current life of <unk>.
Speaker Change: 15 years.
Speaker Change: Turning to slide five in the fourth quarter, our lost time injury injury frequency rate was 1.02, an increase from the LTI AFR zero for two in the fourth quarter of 2023.
Speaker Change: In 2020 for the LTI AFR was zero point 99, an increase from 0.65 in 2023.
Speaker Change: We take pride in our safety performance and our employees dedication to safe operations, but we recognize there is still more to achieve.
Speaker Change: In 2025, our conviction to health and safety improvements remained steadfast with a strong emphasis on preventing high potential incidents and empowering our employees to cultivate a positive health and safety culture.
Speaker Change: We had a number of notable achievements throughout the year, including in the fourth quarter for <unk> was honored with a silver award at the 2024 Euro Mine Safety Awards.
Second place amongst 15 nominations in Europe they were.
Speaker Change: <unk> recognizes our innovative virtual and augmented reality training programs.
Speaker Change: We also published our annual conflict free Gold report in December reaffirming our gold products to not cause contribution to our benefit from conflict.
Speaker Change: In addition, we published an update to our climate and greenhouse gas emissions annual report, including progress against our climate targets.
Speaker Change: Both reports are available on our website.
Speaker Change: Before I turn the call over to Paul to discuss the financial highlights I just wanted to touch on our news release announcing the filing of an amended technical report for the <unk> complex.
Speaker Change: This was the result of our continuous disclosure review by the British Columbia Securities Commission.
Speaker Change: And the Amendment Tech report the preliminary economic assessment previously contained in section four has been removed in addition to other minor changes.
Speaker Change: The BC SC took the view that the economic assessment in our technical report did not meet the definition of P. A.
Speaker Change: Ni 43, 101 for two reasons.
Speaker Change: And then the commissions.
Speaker Change: The view that the study was not enough of a scope.
Speaker Change: A re scope of the project as required by the rules.
Speaker Change: Second in the Commission's view it was not consistent with the definition of pega to apply the same inputs and parameters used in the reserve case to the inferred resources, even though those inputs and parameters are conservative and have a high level of confidence.
Speaker Change: The amended tech the report does not alter any other aspect of the January 2025 report, including the mineral resource estimates and the mineral reserve estimates the financial assumptions or the economic analysis and the pre feasibility study for the reserve case.
Speaker Change: Specifically the technical information supporting the inaugural mineral reserve Apple remark remains part of the amended technical report.
Speaker Change: Our confidence in the development of a second mine at Beaumont complex was bolstered by the successful completion of the remodel bulk sample in December of 2024.
Paul Bernie: So there are seven year history of drilling mineral resources and successfully converting them to mineral reserves. We are confident about the future of the hallmark complex I'll stop there and turn the call over to Paul to review our financial results.
Paul Bernie: Thank you George.
Paul Bernie: Good morning, everyone.
Paul Bernie: Slide six provides a summary of our fourth quarter and full year results for 2024.
Paul Bernie: Efficient operations and continued high gold prices have been the foundation of both our quarterly and full year financial results delivering in line with our tightened guidance issued during our <unk> results.
Paul Bernie: Eldorado reported net earnings attributable to shareholders from continuing operations of $108 million or.
Paul Bernie: <unk> 53 per share in the fourth quarter.
Paul Bernie: For the full year net earnings attributable to shareholders from continuing operations were $301 million.
Paul Bernie: Equivalent to $1 48 per share.
Paul Bernie: Net earnings increased for the full year 2024, and in the fourth quarter VA compared to prior year periods. As a result of higher gold prices and sales volumes, partially offset by higher production costs, including increased royalties and associated income tax expenses.
Paul Bernie: After adjusting for onetime nonrecurring items adjusted net earnings were $128 million.
Paul Bernie: <unk> 62 per share for the quarter.
Paul Bernie: Adjusted net earnings in the quarter accounting for two principal items being firstly, a $26 $5 million loss on foreign exchange due to the translation of deferred tax balances primarily in Greece.
Paul Bernie: And secondly, a $10 2 million unrealized gain on derivative instruments.
Paul Bernie: For the full year adjusted net earnings were $321 million.
Paul Bernie: A $1 57 per share adjustments during the year included the following.
Paul Bernie: A $50 million unrealized gain net of capital gains tax on the GE mining ventures deferred consideration.
Paul Bernie: And a 52 million unrealized loss on derivative instruments.
Paul Bernie: Our free cash flow in the quarter was $75 million or $176 million, excluding capital investment in the <unk> project.
For the full year free cash flow was $7 million or.
Paul Bernie: A $342 million.
Paul Bernie: Excluding the expenditure on the Sirius project.
Paul Bernie: This was a significant improvement over 2023, which delivered $113 million.
Paul Bernie: Excluding serious capex, thereby demonstrating the strong business foundation provided by our current operating assets during the continued high gold price environment.
Paul Bernie: For the full year 2024 cash flow generated by operating activities before changes in working capital was $636 million.
Paul Bernie: Compared to $411 million in the prior year the.
Paul Bernie: The increase was principally driven by revenue, which increased by $314 million with average realized gold prices, having risen from $1944 per ounce to $2405 per ounce.
Paul Bernie: And higher volumes for these consulting.
Paul Bernie: This was partially offset by higher production costs, they increased by $85 million $28 million of which relates into higher royalties.
Paul Bernie: As a result of sustained high gold prices royalty expenses have impacted our total cash costs, along with increased labor expenditure.
Paul Bernie: Further sorry fourth quarter total cash costs.
Paul Bernie: Costs with $944 per ounce sold and for the full year with $940 per ounce sold.
Paul Bernie: Increased total cash costs drove higher all in sustaining costs for the quarter and the full year in the fourth quarter ASIC was $1226 per ounce sold and for the full year was $285 per ounce sold.
Paul Bernie: Year over year comparison of Isaac was also impacted by higher sustaining capital expenditures in 2024.
Paul Bernie: Fourth quarter capital expenditures that are offering two mines were $174 million.
Paul Bernie: Including investment in growth projects at <unk>, where we focused on plant by stripping.
Paul Bernie: Shipment to support the mine life extension continued construction of the second phase of the North heap Leach pad and related infrastructure and preparation work for one building relocation due to upcoming pits expansion.
Paul Bernie: At Sirius major us what's continued to advance along with infrastructure and construction and the project invested approximately $98 million in the quarter.
Paul Bernie: Furthermore, the project incurred $7 million and accelerated operational capital.
Paul Bernie: Overall in 2020 for cash capital expenditures were $594 million.
Paul Bernie: Current tax expense of $41 million.
Paul Bernie: For the fourth quarter increased from $22 million compared to the same period in 2023.
Paul Bernie: Tax expense totaled $114 million for the full year, an increase from the 2023 expense of $86 million.
Paul Bernie: The increase in the fourth quarter and 2024 as a whole was primarily related to higher revenues driving increased income taxes in Turkey in Quebec.
Paul Bernie: Deferred income tax expense of $28 million in the fourth quarter and $21 million for the full year compared to recoveries of $68 million in the fourth quarter of 2023 and $28 million.
Paul Bernie: For 2023 as a whole.
Paul Bernie: Turning to slide seven.
Paul Bernie: <unk> balance sheet continues to be the foundation of our business and we ended the year with total liquidity of $1 1 billion.
Paul Bernie: Including $857 million of cash and cash equivalents and 230 million $39 million.
Paul Bernie: Of available capacity on our senior secured credit facility.
Paul Bernie: As expected we continue to build cash during the fourth quarter as a result of positive cash flows from our producing mines as well as benefiting from drawdowns from the project finance facility for this curious development.
Paul Bernie: We further augmented our cash balance in January 2025, with a full divestment of our G mining ventures ownership bolstering our balance sheet with a further $155 million.
Paul Bernie: We are committed to maintaining a strong financial position, while we advanced the construction of <unk>, thereby ensuring we have flexibility to respond to new business opportunities, whilst also investing in a profitable and cash flow generating operating volumes.
Paul Bernie: With that I'll now turn the call over to London to goes through the Greek asset highlights. Thanks, Paul and good morning, starting on slide eight excluding us optical prosaic.
Paul Bernie: At the end of Q4 overall project progress was 60% of phase two of consumption.
Paul Bernie: As discussed on February six on our conference call. We have revised project capital costs with an increase of $143 million to a total of one point.
Paul Bernie: $6 million in addition, $254 million.
Paul Bernie: Moving to operational costs.
Paul Bernie: We expect first gold production in the first quarter of 2026 and commercial production in mid 2026.
Paul Bernie: Despite the slower than expected ramp up due to tightened labor market place. We have made significant progress. This week, we are now approximately.
Paul Bernie: 1190 workers on site and actively Onboarding additional talent.
Paul Bernie: At year end 2020, full detailed engineering and procurement lists substantially completed.
Paul Bernie: On the underground we have received approximately 90% of the equipment and operate the licenses developed.
Paul Bernie: Development mining has been ramping up with access to the test Stopes advanced ahead of plan at the upper level.
Paul Bernie: Test stopes are expected to be completed in 2025.
Paul Bernie: This slide you can see on the right hand side, the advancement of the reclaimed feet of tunnel from the coarse ore stockpile and the assembly of the conveyors that will transport the oversized or to the pebble crusher.
Paul Bernie: Moving onto slide nine.
Paul Bernie: During the fourth quarter. The construction project capital investment is <unk> was $98 million.
Paul Bernie: The full year spend was $325 million.
Paul Bernie: Photos on the slides in the next few slides will slow through the advancement of the work underway.
Paul Bernie: As you can see on the loans further on the rest of the slide the three thickness continuing to advance.
Paul Bernie: Concrete works for the <unk> two <unk> has reached approximately 95% and 65% respectively and as you can see on the left of this photo.
Paul Bernie: Construction has commenced.
Paul Bernie: Infrastructure on the west side of the mountain proceeds both in the showroom.
Paul Bernie: Including construction work progressing on the secondary substation and control building.
Paul Bernie: On the two following run photos infrastructure on the east side of the mountain proceeds building a solid structural steel installation is complete as the water pump house and nearing completion for the line planning building and flotation Lewis building, including the mine plant playbook progressing.
Paul Bernie: Turning to slide 10, as the footprint savings.
Paul Bernie: Savings facility, we have included a link to a timeless videos showcasing the purpose of the concrete foundation, which is nearly complete and we have achieved a milestone with the commencement of the structural steel consumption and we are vigorously advancing the bulk.
Paul Bernie: Thanks.
Paul Bernie: On slide 11, we have completed the foundation construction for the primary crusher, including excavations and obtaining roles.
Paul Bernie: <unk> has enabled the commencement ultimate custom building such as.
Paul Bernie: In this photo you can see the fixed location construction.
Paul Bernie: Will assist with the boat.
Moving to Olympias on slide 12.
Paul Bernie: Fourth quarter Gold production was 15922 ounces and total cash costs were $1468 per ounce sold.
Paul Bernie: Production was lower than the fourth quarter of 2023, as a result of slightly lower throughput and lowered the rates in the quarter.
Lower throughput plus as a result of planned equipment downtime and unplanned maintenance light to support pumps and played photo printers.
Paul Bernie: Negatively impacted our throughput.
Paul Bernie: Total persistence resumed normal operations in Germany.
Paul Bernie: Total cash costs were impacted by increased labor.
Paul Bernie: <unk> expenses as a result of the scope and prices as well as higher gold ounces sold compared to the fourth quarter of 2023.
Speaker Change: I'll start David and hand, it over to Simon to discuss the Turkish and Canadian operations.
David: Thanks Sai.
Speaker Change: Starting in <unk> on slide 13 case of that delivered the strongest quarter of the production entitling 50 success in 483 assets.
David: Entitled cash costs at $978 per ounce sold total.
Speaker Change: Total cash costs were primarily impacted by.
Speaker Change: By the higher gold production and higher end episode, along with higher labor costs. In addition to local cost inflation, which was not offset by depreciation of the lira against the U S dollar.
Speaker Change: Production in the fourth quarter benefited from the operation of an $80.
Speaker Change: Our facility, enabling optimization of cabin lighting recovery in regenerate.
Speaker Change: The North IVF facility has a higher capacity for carbon management compared to the south IVF facility.
Speaker Change: The commencement of the note IDI operations was combined with steady performance in stacking right team and ongoing inventory drawdown activities.
Speaker Change: During the fourth quarter, we advanced the engineering study that is focused on Geo metallurgical understanding of Egypt places an optimized version of the crushing athletes decades.
Speaker Change: Hi, This is Tim crew on slide 14 fourth quarter Gold production was 19 451 axis at total cash costs of $1376 per ounce sold.
An unplanned maintenance light to the gold concentrate photo prints.
Speaker Change: Golar production throughput and average gold grade Fmj crude were in line with that flat for the quarter.
These negatively impacted our throughput.
Persistence, because even normal operations in late January.
Speaker Change: The CMS that 10th consecutive yet.
Total cash costs were impacted by increased labor then.
Speaker Change: Santa Cruz, achieving annual production guidance.
Royalty expenses as a result of the.
Speaker Change: <unk> tests.
Speaker Change: The team's dedication to continuous improvement.
Skagen prices as well as higher adult ounces sold compared to the fourth quarter of 2023.
Speaker Change: And now moving to the La Mac complex on slide 15.
Speaker Change: <unk> delivered production of 63, SaaS and 742 ounces at titled cash costs of $615 per episode.
I'll start David and hand, it over to Simon to discuss the Turkish and Canadian operations.
Hi, Stan.
Starting with <unk> on slide 13 piece of that delivered the strongest quarter of the production, Thailand 50 success in 483 axis.
Speaker Change: Fourth quarter production benefited from the additional from the bulk sample coupled with higher throughput rates and higher grade.
Entitled cash costs at $978 per ounce sold.
Speaker Change: Total cash costs were slightly higher in the fourth quarter compared to comparable period in 2024.
Total cash costs were primarily impacted.
By the higher gold production and higher and episode along with higher labor costs. In addition to local cost inflation, which was not offset by depreciation of the lira against the U S dollar.
Speaker Change: Impacted by higher production costs, but almost entirely offset.
Speaker Change: By the higher and solid.
Speaker Change: This past week we.
Speaker Change: We achieved a site production milestone.
Production in the fourth quarter benefited from the operation of the new dose.
Speaker Change: We see 1 million ads poured at dramatically.
Our facility, enabling optimization of carbon lighting recovery in regenerate.
Speaker Change: I would like to.
Speaker Change: Congratulate Bill are maintained for your incentive dedication and hard work is yet this is a tremendous achievement.
The North IVF facility has a higher capacity for carbon management compared to the south IDF facility.
Speaker Change: Additionally.
Speaker Change: We have <unk>.
Speaker Change: Recently updated technical report that extends the mine life, we expect.
The commencement of the node idea operations was combined with steady performance in stacking right team and ongoing inventory drawdown activities.
Speaker Change: <unk> mine team continued to deliver significant value for our stakeholders.
Speaker Change: For years to come.
During the fourth quarter, we advanced the engineering study that is focused on GM metallurgical understanding of Egypt places and optimization of the crushing and leach circuits.
Speaker Change: I'll stop there and habit still its brief closing remarks.
Speaker Change: <unk> team.
Speaker Change: In summary, 2024 was a strong year operationally and financially.
And it's been two crew on slide 14 fourth quarter Gold production was 19 451 ounces at total cash costs of $1376 per ounce sold.
Speaker Change: I'd like to acknowledge the dedication and hard work of our teams across the sites.
Speaker Change: We delivered 7% higher production hitting.
Speaker Change: Hitting an annual production record at Mohawk implemented.
Speaker Change: Optimization initiatives and kiss to draw down on the gold inventory and delivered continued olympias productivity improvements that support our 2025 plant expansion project.
Gold production throughput and average gold grade if into crude were in line with that plan for the quarter.
<unk> 10th consecutive year.
And then two crew achieving annual production guidance.
Speaker Change: We are strongly disciplined for 2025 and beyond building on years of optimization efforts to strengthen our asset portfolio with.
A testament to the team's dedication to continuous improvement.
And now moving to the La Mac complex on slide 15.
Speaker Change: With a solid balance sheet, we have the necessary funding to complete the construction of <unk> and continue to drive ongoing improvement projects across our assets to set up the company for the long term.
Hello, Max delivered production of 63, SaaS 742 ounces at total cash costs of $615 per ounce sold.
Speaker Change: Our continued focus on operational performance cost control and capital discipline and this record high gold price environment will enable us to create value for all stakeholders.
Both Florida production benefited from the additional oil from the bulk sample coupled with higher throughput rates and high grade.
Total cash costs were slightly higher in the fourth quarter compared to <unk>.
Speaker Change: Thank you for your time I will now turn it over to the operator for questions from our analysts.
Comparable period in 2024.
Impacted by higher production costs, but almost entirely offset.
Thank you.
Speaker Change: We will now begin the question and answer session.
By the higher ounces sold.
Speaker Change: And the question queue. You May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any Keith.
This past week we.
We achieved a site production milestone.
We see $1 million and support AD format, we would like to.
Speaker Change: To withdraw your question. Please press Star then two.
Bill: Congratulate Bill are maintained for your incentive dedication and hard work is yet this is a tremendous achievement.
Speaker Change: Well pause for a moment as any callers join the queue.
Speaker Change: Once again that Star then one.
Additionally.
We have <unk>.
Bill: Recently updated technical report that extends the mine life. We expect this mine to continue to deliver significant value for <unk>.
Speaker Change: Our first question is from Tanya <unk> with connect with Scotiabank. Please go ahead.
Bill: Call It is.
Bill: For years to come I'll stop there and hand back to storage for his closing remarks.
Tanya: Great. Good morning. Thank you so much for taking my question.
Bill: Thanks team.
Bill: In summary, 2024 was a strong year operationally and financially.
Speaker Change: Maybe just.
Speaker Change: A follow up on that Laurie I, just like to understand when we had the call in early February we had talked about the labor that the tightness in the labor market and needing another 150.
Bill: I'd like to acknowledge the dedication and hard work of our teams across the sites.
Bill: We delivered 7% higher production.
Bill: Getting an annual production record of lock implemented.
Speaker Change: You know specialized labor fourth for our scores.
Bill: Optimization initiatives.
Bill: To draw down on the gold inventory and delivered continued olympias productivity improvements that support our 2025 plant expansion project.
Speaker Change: I'm just wondering on that.
Speaker Change: Based on the progress there and sort of you know of.
Speaker Change: The 150 can you break it down into buckets of what we need for electrical and mechanical et cetera, et cetera that would be useful and then number two.
Bill: We are strongly disciplined for 2025 and beyond building on years of optimization efforts to strengthen our asset portfolio.
How are we looking at in terms of hiring let's say inside the EU and then outside if we have to to get maybe a little bit of an update that if there is that in February.
Bill: With a solid balance sheet, we have the necessary funding to complete the construction of Sirius and continue to drive ongoing improvement projects across our assets to set up the company for the long term.
Speaker Change: February earlier this month okay.
Speaker Change: Bob.
Bill: Our continued focus on operational performance cost control and capital discipline and this record high gold price environment will enable us to create value for all stakeholders. Thank.
Speaker Change: Okay.
Speaker Change: Yeah, John I would say that.
Speaker Change: Making good progress to hit our target.
Speaker Change: Total construction workforce of 1300 people on the ground is that roughly.
Bill: Thank you for your time I will now turn it over to the operator for questions from our analysts.
Speaker Change: Roughly is what we need to average through this year and into the new year to deliver our updated guidance for commercial production by the middle of next year specifically.
Bill: Thank you.
Speaker Change: We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any Keith.
Speaker Change: Specifically now the focus has been on concrete burgers.
Speaker Change: That's kind of been our bottleneck late last year and into the new year.
Speaker Change: So we're at 11 AAV average over the last week and tracking to get to that 1300 by quarter end.
Speaker Change: To withdraw your question. Please press Star then two.
Speaker Change: Well pause for a moment as any callers join the queue.
Speaker Change: And then in terms of where we're trying to recruit.
Speaker Change: Once again Thats Star then one.
Speaker Change: Focus continues to be multiple where we can.
Speaker Change: Really tight construction margins in Greece has forced us to look outside and we're having success both within the country and outside of the three of finding those additional workers.
Speaker Change: Our first question is from Tanya <unk> disconnect with Scotiabank. Please go ahead.
Speaker Change: Great. Good morning, and thank you so much for taking my question.
Speaker Change: Right now we're trying to get about 80 more concrete workers to get to the Q1 target and we have pretty good visibility that we'll be successful.
Speaker Change: Maybe just a follow up on matts, Laurie I, just like to understand them. When we have the call in early February we have them, we talked about the labor that the tightness in the labor market and needing another 150.
Speaker Change: In terms of the transitioned into the other trades, obviously is the concrete wraps up in many areas of the plant then we can move into southern structural steel and then setting mechanical equipment and then follow that up with the electrical and control systems.
Speaker Change: You know specialized that labor force for <unk>.
Speaker Change: Just wondering on that.
Speaker Change: It's fairly complex all of this is going to evolve it'll be an ongoing focus of ours as we complete certain work that we bring and the additional trades to complete the work. So it's all I can describe for you right. Now is that we're on track to get to the 1300 level and we're working very hard to ensure we can bring in.
Speaker Change: Date on the progress there and sort of you know.
Speaker Change: Of the 150 can you break it down into buckets of what we need for electrical and mechanical et cetera, et cetera that would be useful and then number two.
Speaker Change: How are we looking at in terms of hiring let's say inside the EU and then outside if we have to suggest maybe a little bit of an update there. If there is since that February Oh, My God February earlier. This month, okay. So as early as this month.
Speaker Change: The additional trains as required as some project continues to progress.
Speaker Change: Okay, so you're comfortable that getting that.
Speaker Change: Workday.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: John I would say that.
Speaker Change: Mechanical electrical when do you look at our hiring for those electrical control system.
Speaker Change: Making good progress to hit our target.
Speaker Change: Total construction workforce of 1300 people on the ground of that roughly is what we need to average through this year and into the new year to deliver our updated guidance for commercial production by the middle of next year.
Speaker Change: When are we looking for.
Speaker Change: And sort of the division.
Speaker Change: Go ahead.
Speaker Change: Yes, so that we have.
Speaker Change: Pipe Fitters mechanical electrical control system at the site now constructing so certain parts of the plant are ready for those sort of skills.
Speaker Change: Specifically now the focus has been on concrete burgers.
Speaker Change: That's kind of been our bottleneck late last year and into the new year.
Speaker Change: Areas, where we're doing concrete we don't have the work available for them to begin until the concrete finished so it's a phased approach. So I'll give you. An example, so the critical path on the projects.
Speaker Change: So we're at 11 80 average over the last week and tracking to get to that 1300 by quarter end.
Speaker Change: At the beginning has been the dry stack filter facility.
Speaker Change: And then in terms of where we're trying to recruit.
Speaker Change: A pretty big facility.
Speaker Change: Our focus continues to be multiple where we can.
Speaker Change: And the video uploaded today it shows a critical part of that facility is the building that will house. The six films through that removes the water from the tailings. So the concrete is nearly complete in the next week or so or part of the last piece.
Speaker Change: Really tight construction margins in Greece has forced us to look outside and we're having success both within the country and outside of the three of finding those additional workers.
Speaker Change: Right now, we're trying to get about AAV more concrete workers to get to the Q1 target and we have pretty good visibility that we'll be successful.
Speaker Change: Look.
Speaker Change: The first part of the plant that was poured we're already setting up the structural steel. So you can see in the video there's two stories of structural steel that's been set in the last week.
Speaker Change: In terms of the transitioned into the other trades, obviously is the concrete wraps up in many areas of the plant and then we can move into southern structural steel and then setting mechanical equipment, and then follow that up with electrical and control systems.
Speaker Change: Week or two.
Speaker Change: And that eventually will be a four storey building and it will continue to progress across the concrete plant. So what's happened here in just two weeks as we've gone from all concrete work to now setting structural steel as a steel gets completed then we'll held mechanics coming in to set.
Speaker Change: It's fairly complex. How this is going to evolve it'll be an ongoing focus of ours as we complete certain work that we bring and the additional trades to complete the work. So it's all I can describe for you right. Now is that we are on track to get to the 1300 level and we're working very hard to ensure we can bring in.
Speaker Change: The major equipment that will go in at some point the building will go up so as.
Speaker Change: As I say every part of the plant has this transition happening where we move from concrete structural scale, then the mechanical sets than electrical and control system and this will evolve as different paces through every portion of the plan for the remainder of this year. So again, it's very complex I can tell you we have.
Speaker Change: The additional trains as required as the project continues to progress.
Speaker Change: Okay, so you're comfortable getting there.
Speaker Change: Workday.
Speaker Change: Sure.
Mechanical electrical when do you look at our hiring for those electrical control system.
Speaker Change: Electricians control system people outside today.
Speaker Change: And as we open up these additional work fronts as concrete gets completed over the coming couple of months and quarters, we'll be ramping up those other trades. So.
Speaker Change: When are we looking for those.
Speaker Change: And sort of the division.
Speaker Change: Go ahead.
Speaker Change: Yes.
Speaker Change: <unk>.
Speaker Change: We're focused to support our contractors to ensure we have the right trades at the right moments to meet our schedule on so.
Speaker Change: Pipe Fitters mechanical electrical control system at site now constructing so certain parts of the plant ready for those sort of skills.
Speaker Change: And maybe the last thing I would say that it gives us a better comfort is our current estimate assumes a.
Speaker Change: Areas, where we're doing concrete we don't have the work available for them to begin until the concrete finished so it's a phased approach. So I'll give you. An example, so the critical path on the projects.
Speaker Change: A solid day shift work.
Speaker Change: And.
Speaker Change: A light second shift work.
Speaker Change: And we're working aggressively to find the people required to be able to have more work done on the second shift which de risks the schedule that we currently have so it's all about the people I can only tell you. We are working hard on it we have visibility we can meet our schedule and we will try to beat it.
Speaker Change: From the beginning has been the dry stack filter facility, it's a pretty big facility.
Speaker Change: And in the video uploaded today. It shows a critical part of that facility is the building that will house. The six films tours that removes the water from the tailings. So the concrete is nearly completed in the next week or so or part of the last piece.
George Burns: Okay. So basically George we need to get that much money.
April: April with the appropriate.
April: Background by the end of Q like by the end of March so in the next month or so.
Speaker Change: Look the first part of the plant was poured we're already setting up structural steel. So you can see in the video there's two stories of structural steel that's been set in the last.
April: That's correct.
April: Okay. Thank you for that and thank you for asking.
April: On what Youre doing now.
Speaker Change: Week or two.
Speaker Change: And that eventually will be able to perform storey building and it will continue to progress across the concrete plant. So what's happened here in just two weeks as we've gone from all concrete word to now setting structural steel as a steel gets completed then we will have mechanics coming in to set.
April: And then maybe just on that Amit.
April: Mike.
We will update preliminary assessment in the technical report.
April: Sorry, I just jumped in a bit later, so can you just review that again I.
April: I haven't seen that before so I'm just trying to understand what exactly happened.
Speaker Change: Yes, so we filed.
Speaker Change: The major equipment that will go in at some point the building will go up so.
April: An updated 43 101.
Speaker Change: As I say every part of the plant has this transition happening where we move from concrete structural steel then the mechanical sets than electrical and control system and this will evolve as different paces through every portion of the plan for the remainder of this year. So again, it's very complex I can tell you we.
Our reported and I would tell you the key thing in inflows.
April: We've got now a reserve at a remark in that stance.
April: What the commission came back with is that we had a PPA in section 24, and then that pega.
April: Commissions view was we were using technical and economic parameters.
Speaker Change: Electricians control system people at site today and as we open up these additional work fronts as concrete gets completed over the coming couple of months and quarters, we'll be ramping up those other trades. So.
April: Alluded in our reserve case.
April: We have high confidence and that shouldnt be used.
April: Our pega case.
Speaker Change: We're focused to support our contractors.
April: And so we pulled that whole section out and.
Speaker Change: Sure we have the right trades at the right moments to meet our schedule and so.
Speaker Change: You shouldnt be relying on that pega is in the inferred resource resource case.
Speaker Change: And then maybe the last thing I would say that it gives us a better comfort is our current estimate assumes.
Speaker Change: So the inferred resources are still intact, the PGA and economics.
Speaker Change: All of the day shift work.
Speaker Change: So with it can't be relied upon based on the BC Commission's review.
Speaker Change: And.
Speaker Change: A light second shift work and.
Speaker Change: And we're working aggressively to find the people required to be able to have more work done on the second shift which de risks the schedule that we currently have so it's all about the people I can only tell you we're working hard on it we have visibility we can meet our schedule and we will try to beat it.
Speaker Change: And that basically because you used in Bergen that pega.
Speaker Change: While all Ppas have inferred I mean, if you go back to when Eldorado acquired.
Speaker Change: Integra in 2017, we enquired we acquired.
Speaker Change: Mineral.
Speaker Change: Okay. So so basically George we need to get them not that much money.
Speaker Change: Resources, and inferred resources and we acquired a.
Speaker Change: With the appropriate.
The PPA at that stage.
Speaker Change: Background by the end of Q like by the end of March so in the next month or so.
Speaker Change: We were able to complete a pre feasibility study and we had enough measured and indicated resources to convert that to a reserve by the end of 2017.
Speaker Change: That's correct.
Speaker Change: Okay. Thank you for that and thank you for your interest.
Speaker Change: What we have now we have reserves ballpark or mark and on triangle.
Speaker Change: It does.
Speaker Change: On what Youre doing now.
Speaker Change: And then maybe just on this summer.
Speaker Change: And so the Commission's view is we can't have a PPA using technical assumptions on our reserve case built into a PPA so for standalone somewhere else.
Speaker Change: Amit.
Speaker Change: Global update for you on M&A assessment in the technical report.
Speaker Change: Sorry, I just jumped in a bit later, so can you just review that again I.
Speaker Change: I haven't seen that reports on this trying to understand what exactly happened.
Speaker Change: Okay, but because its tied.
Speaker Change: So our mineral reserve on both of those deposits.
Speaker Change: Yes, so we filed.
Speaker Change: They are telling us we can't have a PPA in this case, so we've pulled it in and just spend you're back to what we've been doing from the beginning.
Speaker Change: An updated 43 101 technical report and I would tell you the key thing in inflows.
Speaker Change: We've got now a reserve at a remark in that stance.
Speaker Change: It's been quite a positive journey for us over the last.
Speaker Change: Once the commission came back with is that we had a P E and section 24, and then the P. Eight the <unk>.
Speaker Change: Six seven years, we acquired <unk> in 2017, we had $1 2 million ounces of indicated resources.
Speaker Change: Commissions view was we were using technical and economic parameters.
Speaker Change: 631000 ounces of inferred resources and.
Speaker Change: And we closed that transaction.
Speaker Change: Alluded in our reserve case.
Speaker Change: In July of 2017.
Speaker Change: We have high confidence and that shouldnt be used.
Speaker Change: At the end of the year, we had a mineral reserve of 893000 ounces and we grew the inferred resources to one 3 million ounces. So we did that with drilling and we converted to a reserve with infill drilling. So we were successful in.
Speaker Change: Our pega case.
Speaker Change: And so we pulled that whole section out and.
Speaker Change: <unk>.
You shouldnt be relying on that Pega is it's an inferred resource resource case.
Speaker Change: So the inferred resources are still intact, the PTA and economics.
Speaker Change: And that acquisition and since then we've grown.
Speaker Change: So with it can't be relied upon based on the BC Commission's review.
Speaker Change: The reserves on triangle, we discovered the remark deposit.
We haven't.
Speaker Change: And that basically because you used in Bergen that pega.
Speaker Change: Algorithm inferred resource of 803000 ounces of inferred resources.
Speaker Change: Paul <unk> I mean, if you go back to when El Dorado acquired.
Speaker Change: Our remarks in February of 2021, and then in the fourth quarter of last year, we didn't have enough drilling to expand the resource and convert portion of it to our mineral reserve backed by a pre feasibility study. So we've had an evolution of success of both.
Speaker Change: Integra in 2017, we enquired we acquired.
Mineral.
Speaker Change: Resources, and inferred resources and we acquired a.
Speaker Change: Finding additional inferred resources.
Speaker Change: Our PPA at that stage.
Speaker Change: In fill drilling.
Speaker Change: We were able to complete a pre feasibility study and we have enough measured and indicated resource versus to convert that to a reserve by the end of 2017.
Speaker Change: Binding it with feasibility study engineering work and then converting it into reserves, so where we said at the end of last year.
Speaker Change: What we have now we have reserves, both on or Mark and on triangle.
Speaker Change: We have mineral reserves of $1 3 million ounces.
Speaker Change: We produced 1 million ounces.
Speaker Change: And so the Commission's view is we can't have a P E using technical assumptions of our reserve case built into a PPA so for Standalone somewhere else.
Speaker Change: Of gold from the operations since acquisition and we have $2 6 million ounces of inferred resource. So we have a robust.
Speaker Change: Amount of inferred resources on both our Mark and triangle.
Speaker Change: Okay, but because it's tied.
Speaker Change: To our mineral reserve on both of those deposits.
Speaker Change: And we are actively drilling we have eight drill rigs underground and three drilling rigs on surface.
Speaker Change: They are telling us we can't have a PPA in this case, so we've pulled it in and just spend you're back to what we've been doing from the beginning it's.
Speaker Change: This year alone, we will drill 43000 meters in the triangle that converts to work towards converting those inferred resources to reserves and we have 48000 meters of planned drilling on a remark again with the intention of converting those inferred resources into reserves and this is an ongoing multiple year.
Speaker Change: It's been quite a positive journey for us over the last.
Speaker Change: Six seven years, we acquired <unk> in 2017, we had.
Speaker Change: One 2 million ounces of indicated resources.
Speaker Change: 631000 ounces of inferred resources and.
Speaker Change: <unk> progress so any rate we feel very confident we will continue to add value at <unk>.
And we closed that transaction.
Speaker Change: In July of 2017.
Speaker Change: Now triangle and remark.
Speaker Change: At the end of the year, we had a mineral reserve of 893000 ounces and we grew the inferred resources to $1 3 million analysis. So we did that with drilling and we converted to a reserve was infill drilling. So we were successful in.
Speaker Change: We've got a bright future ahead of us than.
Speaker Change: And unfortunate thing for US is is that we did pull the pega and you shouldnt rely on that chapter.
Speaker Change: As I say those inferred resources stand on our success story continues.
Speaker Change: That acquisition and since then we've grown.
Speaker Change: Okay Supercomputing back okay. Thank you.
Speaker Change: The reserves on triangle, we discovered the remark deposit.
Speaker Change: Once again, if you have a question. Please press Star then one.
We haven't.
Speaker Change: Gorilla inferred resource of 803000 ounces of inferred resources.
Speaker Change: A remark in February of 2021, and then in the fourth quarter of last year, we didn't have enough drilling to expand the resource and convert a portion of it to our mineral reserve backed by a pre feasibility study. So we've had an evolution of success of both.
Speaker Change: As there are no further questions at this time. This concludes our question and answer session and today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change: Finding additional inferred resources in.
Speaker Change: In fill drilling.
Speaker Change: Binding it with feasibility study engineering work and then converting it into reserves, so where we said at the end of last year.
Speaker Change: We have mineral reserves of one 3 million ounces.
Speaker Change: We produced 1 million ounces of gold from the operations since acquisition and we have $2 6 million ounces of inferred resource. So we have a robust.
Speaker Change: Amount of inferred resources on both our Mark and triangle.
Speaker Change: And we are actively drilling we have eight drill rigs underground and three drilling rigs on surface.
Speaker Change: This year alone, we will drill 43000 meters in the triangle that converts to work towards converting those inferred resources to reserves and we have 48000 meters of planned drilling on a remark again with the intention of converting those inferred resources into reserves and this is an ongoing multiple year.
Speaker Change: <unk> progress so any rate we feel very confident we will continue to add value at both now triangle and remark.
Speaker Change: We've got a bright future ahead of us.
Speaker Change: Unfortunate thing for US is is that we did pull the pega and you shouldnt rely on that chapter.
Speaker Change: As I say those inferred resources stand on our success story continues.
Speaker Change: Okay Super confusing okay. Thank you.
Speaker Change: Once again, if you have a question. Please press Star then one.
Speaker Change: As there are no further questions at this time. This concludes our question and answer session and today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change: [music].
Speaker Change:
Speaker Change: Yeah.