Q4 2024 Eldorado Gold Corp Earnings Call
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.
George Burns: With our seven-year history of drilling mineral resources and successfully converting them to mineral reserves, we are confident about the future of the Lamaque complex. I'll stop there and turn the call over to Paul to review our financial results.
With our 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 Ferneyhough: Thank you, George. Good morning, everyone. Slide 6 provides a summary of our Q4 and full-year results for 2024. 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 Q3 results. Eldorado reported net earnings attributable to shareholders from continuing operations of $108 million or $0.53 per share in Q4. For the full year, net earnings attributable to shareholders from continuing operations were $301 million, equivalent to $1.48 per share. Net earnings increased for the full year 2024 and in Q4 of the year 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: Thank you George.
Paul: Good morning, everyone.
Paul: Slide six provides a summary of our fourth quarter and full year results for 2020 for 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: Eldorado reported net earnings attributable to shareholders from continuing operations of $108 million or.
Paul: <unk> 53 per share in the fourth quarter.
Paul: For the full year net earnings attributable to shareholders from continuing operations were $301 million.
Paul: Equivalent to $1 48 per share.
Paul: 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 Ferneyhough: After adjusting for one-time non-recurring items, adjusted net earnings were $128 million or $0.62 per share for the quarter. Adjusted net earnings in the quarter accounted 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. Secondly, a $10.2 million unrealized gain on derivative instruments. For the full year, adjusted net earnings were $321 million or $1.57 per share. Adjustments during the year included the following, a $50 million unrealized gain, net of capital gains tax on the G Mining Ventures deferred consideration, and a $52 million unrealized loss on derivative instruments. Our free cash flow in the quarter was $75 million or $176 million, excluding capital investment in the Skouries project. For the full year, free cash flow was $7 million or $342 million, excluding the expenditure on the Skouries project.
Paul: After adjusting for onetime nonrecurring items adjusted net earnings were $128 million.
Paul: <unk> 62 per share for the quarter.
Paul: 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: Secondly, a $10 2 million unrealized gain on derivative instruments.
For the full year adjusted net earnings were $321 million.
Paul: A $1 57 per share adjustments during the year included the following.
Paul: A $50 million unrealized gain net of capital gains tax on the G mining ventures deferred consideration.
Paul: And a 52 million unrealized loss on derivative instruments.
Our free cash flow in the quarter was $75 million.
Paul: Over $176 million, excluding capital investment in the <unk> project.
Paul: For the full year free cash flow was $7 million or.
Paul: $342 million excluding.
Paul: Excluding the expenditure on the Scariest project.
Paul Ferneyhough: This was a significant improvement over 2023, which delivered $113 million, again, excluding Skouries CapEx, thereby demonstrating the strong business foundation provided by our current operating assets during the continued high gold price environment. For the full year 2024, cash flow generated by operating activities before changes in working capital was $636 million compared to $411 million in the prior year. The increase was principally driven by revenue, which increased by $314 million, with average realized gold prices having risen from $1,944 per ounce to $2,405 per ounce, and higher volumes produced and sold. This was partially offset by higher production costs that increased by $85 million, $28 million of which related to higher royalties. As a result of sustained high gold prices, royalty expenses have impacted our total cash costs, along with increased labor expenditure.
Paul: This was a significant improvement over 2023, which delivered $113 million.
Paul: Excluding serious capex, thereby demonstrating the strong business foundation provided by our current operating assets during the continued high gold price environment.
Paul: For the full year 2024 cash flow generated by operating activities before changes in working capital was $636 million.
Paul: Compared to $411 million in the prior year.
Paul: 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: Higher volumes for these consulting.
Paul: This was partially offset by higher production costs, they increased by $85 million $28 million of which relates into higher royalties.
Paul: As a result of sustained high gold prices royalty expenses have impacted our total cash costs, along with increased labor expenditure.
Paul Ferneyhough: Sorry, Q4 total cash costs were $944 per ounce sold, and for the full year were $940 per ounce sold. Increased total cash costs drove higher all-in sustaining costs for the quarter and the full year. In Q4, AISC was $1,226 per ounce sold, and for the full year, $1,285 per ounce sold. Year-over-year comparison of AISC was also impacted by higher sustaining capital expenditures in 2024. Q4 capital expenditures at our operating mines were $174 million, including investment in growth projects at Kışladağ, where we focused on planned waste stripping, equipment 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 a building relocation due to an upcoming pit expansion.
Paul: Sorry fourth quarter total cash costs.
Paul: Costs with $944 per ounce sold and for the full year with $940 per ounce sold.
Paul: 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: Year over year comparison of Isaac was also impacted by higher sustaining capital expenditures in 2024.
Paul: Fourth quarter capital expenditures that are offering two mines were $174 million.
Paul: Including investment in growth projects at <unk>, where we focused on planned by stripping.
Paul: 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 building relocation due to upcoming pits expansion.
Paul Ferneyhough: At Skouries, major earthworks continue to advance along with infrastructure construction, and the project invested approximately $98 million in the quarter. Furthermore, the project incurred $7 million of accelerated operational capital. Overall, 2024 cash capital expenditures were $594 million. Current tax expense of $41 million for Q4 increased from $22 million compared to the same period in 2023. Current tax expense totaled $114 million for the full year, an increase from the 2023 expense of $86 million. The increase in Q4 and 2024 as a whole was primarily related to higher revenues, driving increased income taxes in Türkiye and Quebec. Deferred income tax expense of $28 million in Q4 and $21 million for the full year, compared to recoveries of $68 million in Q4 of 2023, and $28 million for 2023 as a whole. Turning to slide 7.
Paul: At Sirius major earthworks continued to advance along with infrastructure and construction and the project invested approximately $98 million in the quarter.
Paul: Furthermore, the project incurred $7 million and accelerated operational capital.
Paul: Overall in 2020 for cash capital expenditures were $594 million.
Paul: Current tax expense of $41 million for the fourth quarter increased from $22 million compared to the same period in 2023.
Paul: Tax expense totaled $114 million for the full year, an increase from the 2023 expense of $86 million.
Paul: 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: 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: For 2023 as a whole.
Paul: Turning to slide seven.
Paul Ferneyhough: Our growing balance sheet continues to be the foundation of our business, we ended the year with total liquidity of $1.1 billion, including $857 million of cash in cash equivalents and $239 million of available capacity on our senior secured credit facility. As expected, we continued to build cash through Q4 as a result of positive cash flows from our producing mines, as well as benefiting from drawdowns from the project finance facility for the Skouries development. We further augmented our cash balance in January 2025 with the full divestment of our G Mining Ventures ownership, bolstering our balance sheet with a further $155 million.
Paul: <unk> balance sheet continues to be the foundation of our business and we ended the year with total liquidity of $1 1 billion.
Paul: Including $857 million of cash and cash equivalents and 230 million $39 million.
Paul: Of available capacity on our senior secured credit facility.
Paul: 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: 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 Ferneyhough: We are committed to maintaining a strong financial position while we advance the construction of Skouries, thereby ensuring we have flexibility to respond to new business opportunities, whilst also investing in our profitable and cash flow-generating operating mines. With that, I'll now turn the call over to Louw to go through the Greek asset highlights.
Paul: 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.
Speaker Change: With that I'll now turn the call over to London to go through the Greek asset highlights. Thanks, Paul and good morning, starting on slide eight excluding a skeptical prosaic.
Louw Smith: Thanks, Paul. Good morning. Starting on slide 8 at our Skouries copper-gold project. At the end of Q4, overall project progress was 60% of phase 2 of construction. As discussed on 6 February on our conference call, we have revised project capital cost with an increase of $143 million to a total of $1.06 billion, in addition to $154 million in accelerated operational capital cost. We expect first gold production in Q1 2026 and commercial production in mid-2026. Despite the slower-than-expected ramp up due to the tight labor market in Greece, we have made significant progress. This week, we are now at approximately 1,180 workers on site and actively onboarding additional talent. At year-end 2024, detailed engineering and procurement was substantially completed. On the underground, we have received approximately 90% of the equipment and operator licenses.
Speaker Change: At the end of Q4 overall project progress was 60% of phase two of consumption.
Speaker Change: 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.
Speaker Change: $6 million in addition, $254 million.
Speaker Change: I would like to operational capital cost.
Speaker Change: We expect first gold production in the first quarter of 2026 and commercial production in mid 2026.
Speaker Change: Despite the slower than expected ramp up due to tightened labor market place. We have made significant progress. This week, we are now approximately.
Speaker Change: 1190 workers on site and actively Onboarding additional talent.
Speaker Change: At year end 2020, full detailed engineering and procurement lists substantially completed.
Speaker Change: On the underground we have received approximately 90% of the equipment and operate the licenses developed.
Louw Smith: Development mining has been ramping up with access to the test slopes advanced ahead of plan at the upper level. The two test slopes are expected to be completed in 2025. On this slide, you can see on the right-hand side the advancement of the decline feeder tunnel from the coarse ore stockpile and the assembly of the conveyors that will transport the oversized ore to the pebble crusher. Moving on to slide 9. During Q4, the construction project capital investment at Skouries was $98 million, and the full-year spend was $325 million. The photos on this slide and the next few slides will show the advancement of the work underway. As you can see on the last photo on the left of the slide, the 3 thickeners continued to advance. Concrete works for the first 2 thickeners has reached approximately 85% and 65% respectively.
Speaker Change: Development mining has been ramping up with access to the test stopes and bonds ahead of plan at the upper level.
Speaker Change: Test stopes are expected to be completed in 2025.
Speaker Change: On this slide you can see on the right hand side, the advancement of <unk> feet of tunnel from the coarse ore stockpile and the assembly of the conveyors that will transport the oversized or to the pebble crusher.
Speaker Change: Moving onto slide nine.
Speaker Change: During the fourth quarter. The construction project capital investment is <unk> was $98 million.
Speaker Change: And the full year spend was $325 million.
Speaker Change: Photos on the slides in the next few slides will slow through the advancement of the work underway.
Speaker Change: As you can see on the loans further on the rest of the slide the three thickness continuing to advance.
Speaker Change: 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.
Louw Smith: As you can see on the left of this photo, the third thickener construction has commenced. Infrastructure on the west side of the main process building is shown, including construction works progressing on the secondary substation and control building. On the two far right photos, infrastructure on the east side of the main process building is shown. The structural steel installation is complete at the water pump house and nearing completion for the lime plant building, and flotation blowers building, including the lime plant plate work progressing. Turning to slide 10, at the filter tailings facility, we have included a link to a time-lapse video showcasing the progress of the concrete foundation, which is nearly complete. We have achieved a milestone with the commencement of the structural steel construction, and we are rigorously advancing the building.
Speaker Change: Construction has commenced.
Speaker Change: Infrastructure on the west side of the mine proceeds both in the showroom.
Speaker Change: Including consumption will be progressing on the secondary substation and control bookings.
Speaker Change: On the two following run photos infrastructure on the east side of the mountain proceeds building structural steel installation is complete over water pump house and nearing completion for the line planning building and pension flows building, including the volume pumped playbook.
Speaker Change: Missing.
Speaker Change: Turning to slide 10, as the footprint savings.
Speaker Change: Savings facility. We have included a link to a time lapse video showcasing the brokers 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 ball.
Speaker Change: Thanks.
Louw Smith: On slide 11, we have completed the foundation construction for the primary crusher, including excavations and the retaining walls, which has enabled the commencement of the crusher building structure. In this photo, you can see the fixed location construction crane that will assist with the build. Moving to Olympias on slide 12. Q4 gold production was 15,923 ounces, and total cash costs were $1,463 per ounce sold. Production was lower than the Q4 of 2023 as a result of slightly lower throughput and lower gold grades in the quarter. Lower throughput was as a result of planned equipment downtime and unplanned maintenance related to the gold concentrate filter presses, which negatively impacted mill throughput. The filter presses will resume normal operations in late January.
Speaker Change: On slide 11, we have completed the foundation construction for the primary crusher, including excavations and obtaining roles.
Speaker Change: <unk> has enabled the commencement of the crusher building such as.
Speaker Change: In this photo you can see the fixed location construction.
Speaker Change: Will assist with the boat.
Speaker Change: Moving to Olympias on slide 12.
Speaker Change: Fourth quarter Gold production was 15000 unknown to the 10 22 ounces and total cash costs were $1468 per ounce sold.
Speaker Change: Production was lower than the fourth quarter of 2023, as a result of slightly lower throughput and lowered both highlights in the quarter.
Speaker Change: Lower throughput plus as a result of planned equipment downtime and unplanned maintenance I would like to support contemplate photo prints.
Speaker Change: Negatively impacted our throughput.
Speaker Change: The total principal has been resumed normal operations in late January.
Louw Smith: The total cash costs were impacted by increased labor and higher royalty expenses as a result of higher realized gold prices, as well as higher gold ounces sold compared to Q4 2023. I'll stop there and hand it over to Simon to discuss the Turkish and Canadian operations.
Speaker Change: Total cash costs were impacted by increased labor.
Speaker Change: <unk> expenses as a result of Iot realized gold 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.
Simon Hille: Thanks, Louw. Starting in Turkey on slide 13. Kışladağ delivered the strongest Q4 of the year, with production totaling 56,483 ounces and total cash costs of $978 per ounce sold. Total cash costs were primarily impacted by the higher gold production and ounces sold, along with higher labor costs in addition to local cost inflation, which was not offset by depreciation of the lira against the US dollar. Production in the Q4 benefited from the operation of the new north ADR facility, enabling optimization of carbon loading, recovery, and regeneration. The north ADR facility has a higher capacity for carbon management compared to the south ADR facility. The commencement of the north ADR operations was combined with steady performance in stacking, leaching, and ongoing inventory drawdown activities.
David: Thanks Syed.
Speaker Change: Starting in <unk> on slide 13 piece of that delivered the strongest quarter of the year with production Entitling 50 success in 483 assets.
David: Entitled cash costs at $978 per ounce sold.
Speaker Change: Total cash costs were primarily impacted by.
Speaker Change: By the higher gold production and higher and <unk>, 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: Facility, enabling optimization of cabin lighting recovery in regenerate.
Speaker Change: The North IVF facility has a high 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.
Simon Hille: During Q4, we advanced the engineering study that is focused on geo-metallurgical understanding of future paces and optimization of the crushing and leach circuits. At Efemçukuru on slide 14, Q4 gold production was 19,451 ounces at total cash costs of $1,376 per ounce sold. Gold production, throughput, and average gold grade at Efemçukuru were in line with the plan for the quarter. This year marks the 10th consecutive year of Efemçukuru achieving annual production guidance. A true testament to the team's dedication to continuous improvement. Now moving to the Lamaque on slide 15. Lamaque delivered production of 63,742 ounces at total cash costs of $615 per ounce sold. Q4 production benefited from the additional ore from the Ormaque bulk sample, coupled with higher throughput rates and higher grade.
Speaker Change: During the fourth quarter, we advanced the engineering study that is focused on GM metallurgical understanding of Egypt places an optimized version of the crushing and leach seconds.
Speaker Change: And it's been 10 crew on slide 14 fourth quarter Gold production was 19 451 axis at total cash costs of $1376 per ounce sold.
Speaker Change: Golar production throughput and average gold grade Fmj crude were in line with that plan for the quarter.
Speaker Change: The CMS at 10th consecutive year.
Speaker Change: Santa Cruz, achieving annual production guidance.
Speaker Change: A testament.
Speaker Change: The team's dedication to continuous improvement.
Speaker Change: And now moving to the La Mac complex on slide 15.
Speaker Change: <unk> delivered production.
Speaker Change: <unk> of 63742 ounces at titled cash costs of $615 per episode.
Speaker Change: Fourth quarter production benefited from the additional oil from the bulk sample coupled with higher throughput rates and high grade.
Simon Hille: Total cash costs were slightly higher in Q4 compared to the comparable period in 2024, impacted by higher production costs, but almost entirely offset by the higher ounces sold. This past week, we achieved a safe production milestone with the 1 millionth ounce poured at Lamaque. We would like to congratulate the Lamaque team for your authentic dedication and hard work this year. This is a tremendous achievement. Additionally, we have recently updated a technical report that extends the mine life. We expect this mine to continue to deliver significant value for our stakeholders for years to come. I'll stop there and hand back to George for his closing remarks.
Speaker Change: Total cash costs were slightly higher in the fourth quarter compared to comparable period in 2024 impacted by higher production costs.
It almost entirely offset.
Speaker Change: By the higher answers solved.
Speaker Change: This past week.
Speaker Change: We achieved a site production milestone.
Speaker Change: We see $1 million and poured at La <unk>.
Speaker Change: I would like to.
Speaker Change: Congratulate the law maintained for your incentive dedication and hard work is yet this is a tremendous achievement.
Speaker Change: Additionally.
We have <unk>.
Speaker Change: Recently updated technical report that extends the mine life.
Speaker Change: We expect this mine to continue to deliver significant value for our stakeholders.
Speaker Change: For years to come.
Speaker Change: I'll stop there and hand back to Stuart's brief closing remarks. Thanks.
George Burns: Thanks, team. In summary, 2024 was a strong year operationally and financially. I would like to acknowledge the dedication and hard work of our teams across the sites.
Stuart: Thanks team.
Stuart: In summary, 2024 was a strong year operationally and financially.
Stuart: I'd like to acknowledge the dedication and hard work of our teams across the sites.
George Burns: We delivered 7% higher production, hitting an annual production record at Lamaque, implemented optimization initiatives at Kışladağ to draw down the gold inventory, and delivered continued Olympias productivity improvements that support our 2025 plant expansion project. We are strongly disciplined for 2025 and beyond, building on years of optimization efforts to strengthen our asset portfolio. With a solid balance sheet, we have the necessary funding to complete the construction of Skouries and continue to drive ongoing improvement projects across our assets to set up the company for the long term. Our continued focus on operational performance, cost control, and capital discipline in this record high gold price environment will enable us to create value for all stakeholders. Thank you for your time. I will now turn it over to the operator for questions from our analysts.
Stuart: We delivered 7% higher production.
Stuart: Getting an annual production record at Mohawk implemented.
Stuart: Optimization initiatives and kiss to draw down on the gold inventory and delivered continued olympias productivity improvements that support our 2025 plant expansion project.
Stuart: We are strongly disciplined for 2025 and beyond building on years of optimization efforts to strengthen our asset portfolio.
Stuart: 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.
Stuart: 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.
Stuart: Thank you for your time I will now turn it over to the operator for questions from our analysts.
Operator: 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 keypad. 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. We'll pause for a moment as any callers join the queue. Once again, that's star then one. Our first question is from Tanya Jakusconek with Scotiabank. Please go ahead.
Stuart: 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.
Stuart: To withdraw your question. Please press Star then two.
Stuart: Well pause for a moment as any callers join the queue.
Stuart: Once again that Star then one.
Tanya: Our first question is from Tanya <unk> with connect with Scotiabank. Please go ahead.
Tanya Jakusconek: Great. Good morning. Thank you so much for taking my question. Maybe just a follow-up on Skouries. I'd just like to understand, when we had the call in early February, we talked about the tightness in the labor market and needing another 150 specialized labor force for Skouries. I'm just wondering, an update on the progress there and of the 150, can you break it down into buckets of what we need for electrical, mechanical, et cetera? That would be useful. Number 2, how are we looking at in terms of hiring, let's say, inside the EU and then outside if we have to? Just maybe a little bit of an update there, if there is since February. Oh my God, February is earlier this month. Okay. Since early as this month.
Tanya: Great. Good morning, and thank you so much for taking my question.
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 Nathan and another 150.
Speaker Change: You know specialized labor fourth four scores.
Speaker Change: Just wondering on that.
Speaker Change: Date on the progress there in Florida.
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.
Speaker Change: 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 there.
Speaker Change: Since that February Oh, My God February earlier this month okay.
Speaker Change: Okay.
Speaker Change: Okay.
George Burns: Yeah, Tanya, I'd say that we're making good progress to hit our target total construction workforce of 1,300 people on the ground. That roughly is what we need to average through this year and into 2025 to deliver our updated guidance for commercial production by the middle of 2025. Specifically now, the focus has been on concrete workers. That's kind of been our bottleneck late 2023 and into 2024. We're at 1,180 average over the last week and tracking to get to that 1,300 by quarter end. In terms of where we're trying to recruit, our focus continues to be local where we can. The really tight construction market in Greece has forced us to look outside. We're having success both within the country and outside the country of finding those additional workers.
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.
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 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: And so we're at 11 80 average over the last week and tracking to get to that 1300 by quarter end.
Speaker Change: And then in terms of where we're trying to recruit.
Speaker Change: Our focus continues to be multiple where we can.
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.
George Burns: Right now, we're trying to get about 80 more concrete workers to get to that Q1 target, and we have pretty good visibility that we'll be successful. In terms of the transition into the other trades, obviously, as the concrete wraps up in many areas of the plant, then we can move into setting structural steel and then setting mechanical equipment, and then follow that up with electrical and control systems. 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 in the additional trades to complete the work. All I can describe for you right now is that we're on track to get to that 1,300 level, and we're working very hard to ensure we can bring in the additional trades as required as the project continues to progress.
Speaker Change: Right now we're trying to get about any more concrete workers to get to the Q1 target and we have pretty good visibility that we'll be successful in.
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 electrical and control systems.
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: The additional trains as required as some project continues to progress.
Tanya Jakusconek: Okay, you're comfortable getting the concrete workers that you need. Mechanical, electrical, when do you start looking or hiring for those electrical control systems? When are we looking for those people and sort of the divisions, I guess. Go ahead.
Speaker Change: Okay, So youre comfortable getting there.
Speaker Change: Workday.
Speaker Change: Sure.
Speaker Change: Mechanical electrical when do you look at our hiring for those electrical control system.
Speaker Change: When are we looking for Idose.
Speaker Change: And sort of the division.
Speaker Change: Go ahead.
George Burns: Yeah, we have pipe fitters, mechanical, electrical control system at site now constructing. The areas where we're doing concrete, we don't have the work available for them to begin till the concrete's finished. It's a phased approach. I'll give you an example. The critical path in the projects from the beginning has been the dry stack filter facility. It's a pretty big facility. In the video we uploaded today, it shows the critical path part of that facility is the building that will house the six filters that removes the water from the tailings. The concrete is nearly complete. In the next week or so, we'll pour the last piece. The first part of the plant that was poured, we're already setting up the structural steel.
Speaker Change: Yes, so that we have.
Speaker Change: Pipe Fitters mechanical electrical control system at site now constructing so certain parts of the plant already for those sort of skills.
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 I'll give you. An example, so the critical path on the projects.
Speaker Change: From the beginning has been the dry stack filter facility, it's a pretty big facility and the video uploaded today. It shows a critical part of that facility is the building that will house. The six films that removes the water from the tailings so the concrete.
Speaker Change: <unk> nearly completed in the next week or so or part of the last piece.
Speaker Change: No.
Speaker Change: First part of the plant 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.
George Burns: You can see in the video, there's 2 stories of structural steel that's been set in the last week or 2, and that eventually will be a 4-story building, and it will continue to progress across the concrete plant. What's happened here in just 2 weeks is we've gone from all concrete work to now setting structural steel. As the steel gets completed, then we'll have mechanics coming in to set the major equipment that will go in it. At some point, the building will go up. As I say, every part of the plant has this transition happening where we move from concrete to structural steel, then the mechanical sets, then electrical and control system. This will evolve at different paces through every portion of the plant for the remainder of this year. Again, it's very complex.
Speaker Change: Week or two 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 will have mechanics coming in to <unk>.
Speaker Change: The major equipment that will go in at some point the building will go up so as I said.
Speaker Change: Say every part of the plant and 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 have <unk>.
George Burns: I can tell you we have electricians, control system people at site today. 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. We're focused to support our contractors to ensure we have the right trades at the right moments to meet our schedule. Maybe the last thing I'd say that gives us a bit of comfort is our current estimate assumes a solid day shift work and a light second shift work. 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. It's all about the people. I can only tell you we're working hard on it. We have visibility.
Speaker Change: Patricians 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: 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: And maybe the last thing I would say that it gives us a better comfort is our current estimate assumes.
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 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.
George Burns: We can meet our schedule, and we'll try to beat it.
Tanya Jakusconek: Okay. Basically, George, we need to get another 120 people with the appropriate backgrounds by the end of March, so in the next month or so.
Speaker Change: Okay. So basically George we need to get them not that much money.
Speaker Change: People with the appropriate.
Speaker Change: Background by the end of Q like by the end of March so in the next month or so.
George Burns: That's correct.
Speaker Change: That's correct.
Tanya Jakusconek: Okay. Thank you for that, and thank you for a bit of the color on what you're doing there. Maybe just on this economic, this removal of the preliminary assessment in the technical report. I'm sorry, I just jumped in a bit later. Can you just review that again? I haven't seen that before, so I'm just trying to understand what exactly happened.
Speaker Change: Okay. Thank you for that and thank you for that Chris.
Speaker Change: The color on what Youre doing now.
Sam: Then maybe just on that Sam.
Sam: Economic and global update preliminary assessment in the technical report I'm, sorry, I just jumped in a bit later, so can you just review that again.
Sam: I haven't seen that before it's on the signs of it to understand what exactly happened.
George Burns: Yeah. We filed an updated 43-101 technical report, and I would tell you the key thing in it was we've got now a reserve at AurMac, and that stands. What the commission came back with is that we had a PEA in Section 24, and in that PEA, the commission's view was we were using technical and economic parameters included in our reserve case that we had high confidence in that shouldn't be used in a PEA case. We pulled that whole section out, and you shouldn't be relying on that PEA as it's in an inferred resource case. The inferred resources are still intact. The PEA and the economics that go with it can't be relied upon based on the BC Commission's review.
Speaker Change: Yes, so we filed.
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: The Commission came back with is that we had a PPA in section 24, and then that pega.
Speaker Change: Commissions view was we were using technical and economic parameters.
Speaker Change: And our reserve case.
Speaker Change: That we had high confidence and that shouldnt be used in our pega case.
Speaker Change: And so we pulled that whole section out and.
Speaker Change: <unk>.
Speaker Change: You shouldnt be relying on that Pega is it's an inferred resource resource case.
Speaker Change: The inferred resources are still intact, the PPA and the economics that go with it can't be relied upon.
Speaker Change: Just on the BC Commission's review.
Tanya Jakusconek: That's basically because you used inferred in that PEA?
Speaker Change: And that basically because you used in Bergen that pega.
George Burns: Well, all PEAs have inferred. If you go back to when Eldorado acquired Integra in 2017, we acquired mineral resources and inferred resources, and we acquired a PEA at that stage. We were able to complete a pre-feasibility study, and we had enough measure in the indicated resources to convert that to a reserve by the end of 2017. What we have now, we have reserves both on AurMac and on Triangle. The Commission's view is we can't have a PEA using technical assumptions on our reserve case built into a PEA. If it was standalone somewhere else, we'd have been okay. Because it's tied to a mineral reserve on both of those deposits, they're telling us we can't have a PEA in this case. We've pulled it, and I just bring you back to what we've been doing from the beginning.
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: Resources, and inferred resources, and we acquired <unk>.
Speaker Change: EBITDA at that stage.
Speaker Change: We were able to complete a pre feasibility study and we had enough of measured and indicated resource versus to convert that to a reserve by the end of 2017.
Speaker Change: What we have now we have reserves, both on <unk> and on triangle.
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, we would have been.
Speaker Change: Okay, but because it's tied to.
Speaker Change: So our mineral reserve on both of those deposits.
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.
George Burns: It's been quite a positive journey for us over the last 6, 7 years. We acquired AurMac in 2017. We had 1.2 million ounces of indicated resources, 631,000 ounces of inferred resources. We closed that transaction in July 2017. At the end of the year, we had a mineral reserve of 893,000 ounces, and we grew the inferred resources to 1.3 million ounces. We did that with drilling, and we converted to a reserve with infill drilling. We were successful in that acquisition. Since then, we've grown the reserves on Triangle. We discovered the AurMac deposit. We had an inaugural inferred resource of 803,000 ounces of inferred resources on AurMac in February 2021.
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 $1 2 million ounces of indicated resources.
Speaker Change: 631000 ounces of inferred resources and.
Speaker Change: And we closed that transaction.
Speaker Change: In July of 2017.
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 was infill drilling. So we were successful in that acquisition and since then.
Speaker Change: And we've grown.
Speaker Change: The reserves on triangle, we discovered the remark deposit.
Speaker Change: We haven't.
Speaker Change: Gorilla inferred resource of 803000 ounces of inferred resources.
Speaker Change: Demand 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.
George Burns: In the Q4 of last year, we did enough drilling to expand that resource and convert a portion of it to a mineral reserve backed by a pre-feasibility study. We've had an evolution of success of finding additional inferred resources, Infill drilling, combining it with feasibility study engineering work, and then converting it into reserves. Where we sit at the end of last year, we have mineral reserves of 1.3 million ounces. We've produced 1 million ounces of gold from the operation since acquisition, and we have 2.6 million ounces of inferred resource. We have a robust amount of inferred resources on both AurMac and Triangle, and we're actively drilling. We have 8 drill rigs underground and 3 rigs on surface. This year alone, we'll drill 43,000 meters into Triangle to work towards converting those inferred resources to reserves.
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 $1 3 million ounces.
We produced 1 million ounces.
Speaker Change: Of gold from the operations since acquisition and we have $2 6 million ounces of inferred resource. So we have a robust.
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.
George Burns: We have 48,000 meters of planned drilling on AurMac, again, with the intention of converting those inferred resources into reserves. This is an ongoing multiple year progress. At any rate, we feel very confident we'll continue to add value at both now Triangle and AurMac, and we've got a bright future ahead of us. The unfortunate thing for us is that we did pull the PEA, and we shouldn't rely on that chapter. As I say, those inferred resources stand, and our success story continues.
Speaker Change: <unk> progress so any rate we feel very confident we will continue to add value at both now triangle and remark.
We've got a bright future ahead of us.
Speaker Change: The unfortunate thing for US is is that we did pull the PGA and shouldnt rely on that chapter.
Speaker Change: As I say those inferred resources stand on our success story continues.
Tanya Jakusconek: It's super confusing, but okay. Thank you.
Speaker Change: Okay Supercomputing back okay. Thank you.
Operator: Once again, if you have a question, please press star then one. As there are no further questions at this time, this concludes the question and answer session and today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.
Speaker 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.