Q1 2025 Eldorado Gold Corp Earnings Call

Thank you for standing by this is the conference operator, welcome to the Eldorado Gold first quarter 2025 results conference call.

Operator: Thank you for standing by.

Operator: This is the conference operator. Welcome to the Eldorado Gold first quarter 2025 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero.

As a reminder, all participants are in listen only mode and the conference is being recorded.

After the presentation there'll be an opportunity to ask questions.

She joined the question queue you May Press Star then one on your telephone keypad.

Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

Lynette Gould: I would now like to turn the conference over to Lynette Gould, Vice President, Investor Relations, Communications and External Affairs. Please go ahead, Ms. Gould. Thank you, Operator, and good morning, everyone.

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 Miss Gould.

Speaker Change: Thank you operator, and good morning, everyone I'd like to warmly welcome you to our first quarter 2025 results conference call before we begin I would like to remind you that we will be making forward looking statements.

Lynette Gould: I'd like to warmly welcome you to our first quarter 2025 results conference call. Before we begin, I would like to remind you that we will be making forward-looking statements and referring to non-IFRS measures during the call. Please refer to the cautionary statements included in the presentation and the disclosure on non-IFRS measures and risk factors in our management's discussion and analysis.

Speaker Change: Referring to non I FRS measures during the call. Please refer to the cautionary statements included in the presentation and the disclosure of non Ifr S measures and risk factors in our management's discussion and analysis.

Lynette Gould: Joining me on the call today, we have George Burns, President and Chief Executive Officer, Paul Ferneyhough, Executive Vice President and Chief Financial Officer, Louw Smith, Executive Vice President, Development Greece, and Simon Hille, Executive Vice President, Operational and Technical Services. Our release yesterday details our first quarter 2025 financial and operating results. This should be read in conjunction with our first quarter 2025 financial statements and management's discussion and analysis, both of which are available on our website. They have also both been filed on CDARplus and EDGAR. All dollar figures discussed today are U.S. dollars unless otherwise stated.

Speaker Change: Joining me on the call today, we have George Burns, President and Chief Executive Officer.

Speaker Change: Oh for Anyhow, Executive Vice President and Chief Financial Officer, Low Smith, Executive Vice President Development, Greece, and Simon Kelly Executive Vice President operational and technical services.

Speaker Change: Our release yesterday details, our first quarter 2025 financial and operating results.

Speaker Change: This should be read in conjunction with our first quarter 2025 financial statements and management's discussion and analysis both of which are available on our website. They have also both the filed on SEDAR and.

Speaker Change: And Edgar.

Speaker Change: All dollar figures discussed today are U S dollars unless otherwise stated.

Lynette Gould: We will be speaking to the slides that accompany this webcast, which you can download from our website. After the prepared remarks, we will open the call for Q&A. At this time, we will invite analysts to queue for questions.

Speaker Change: We will be speaking to the slides that accompany this webcast, which you can download from our website. After the prepared remarks, we will open the call for Q&A at this time, we will invite analysts to queue for questions.

George Burns: I will now turn the call over to George. Thanks, Lynette, and good morning, everyone.

George Burns: I'll now turn the call over to George.

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

Speaker Change: Before we begin our formal prepared remarks on behalf of the Eldorado team I would like to extend our condolences and thoughts to those impacted by the recent tragic events that took place.

George Burns: Before we begin our formal prepared remarks, on behalf of the Eldorado team, I would like to extend our condolences and thoughts to those impacted by the recent tragic event that took place in the Lapu-Lapu Festival in Vancouver this past weekend. What should have been a joyful celebration of Filipino culture and community ended in unimaginable loss, and our hearts are broken over this tragedy. In support of the efforts, we have made monetary donations to the Canadian Blood Services and to the Crisis Center of BC.

Speaker Change: Well first of all in Vancouver.

Speaker Change: Last weekend.

Speaker Change: Well it should have been a joyful celebration.

Speaker Change: Filipino culture and community.

Speaker Change: And then.

Speaker Change: Imagine a loss.

Speaker Change: First are broken or the strategy.

Speaker Change: As part of the efforts, we have made monetary donations to the Canadian blood services.

Speaker Change: So the crisis Center P C.

Speaker Change: Turning to the outline for today's call I'll begin with an overview of the first quarter 2025 results and highlights.

George Burns: Turning to the outline for today's call, I'll begin with an overview of the first quarter 2025 results and highlights. I'll then hand the call over to Paul to go through our financials, followed by Louw and Simon who will provide a review of our operational performance.

Paul: I'll, then hand, the call over to Paul we go through our financials.

Speaker Change: By law assignments go will provide a review of our operational performance.

George Burns: We will conclude by opening the call to questions from our analysts. Turning the slide forward, our operations delivered a solid quarter with safe production of 115,893 gold ounces, with Lamothe, Kitsada, and FM2 crew in line with expectations. Production at Olympias was lower than expected as a result of challenges with flotation circuit stability and unplanned maintenance on the pyrite concentrate filtration. These challenges have been resolved and production has recovered to expected levels in Q2. Looking ahead, increased production with a slightly stronger second half of the year, remaining on track to achieve our guidance to produce between 460 and 500,000 ounces of gold in 2025.

Paul: I'll conclude by opening the call to questions from our analysts.

Paul: Turning to slide four our operations delivered a solid quarter with safe production of 115893 gold ounces.

Paul: <unk> grew in line with expectations.

Paul: Production at Olympias was lower than expected as a result of challenges.

Paul: Flotation circuit stability, yes.

Paul: Unplanned maintenance on the pyrite concentrate filtration.

Paul: These challenges have been resolved and production has recovered to expected levels in Q2.

Paul: Looking ahead increased production was slightly stronger second half of the year remaining on track to achieve our guidance to produce between 460 500000 ounces of gold in 2025.

George Burns: Total cash costs and all in sustaining costs were $1,153 per ounce sold and $1,559 per ounce sold respectively. Costs were higher compared to 2024, primarily a result of higher royalties driven by higher gold prices, in addition to higher labor costs. While costs were above the top end of our guidance range for the year, we still expect to meet our annual guidance.

Paul: Total cash costs and all in sustaining costs were 11 53.

Paul: <unk> per ounce sold $15 $59 per ounce sold respectively.

Paul: Costs were higher compared to 2024, primarily a result of higher royalties driven by higher gold prices. In addition to higher labor costs.

Paul: While costs were above the top end of our guidance range for the year, we still expect to meet our annual guidance Paul will touch on our costs in more detail later in the call.

George Burns: Paul will touch on our costs in more detail later in the call. Turning to slide 5, in the first quarter, our lost time injury frequency rate was 0.7, a decrease from the LTIFR of 1.63 in the first quarter of 2024. We take pride in our safety performance and our employees' dedication to safe operations, but we recognize there is still more to achieve. During 2025, we continue to make health and safety improvements with a focus on high potential risk control and empowering employees to cultivate a positive health and safety culture.

Paul: Turning to slide five in the first quarter.

Lost time injury frequency rate was 0.7, the decrease from the LTI AFR of $1 63 in the first quarter of 2024.

Paul: We take pride in our safety performance and our employees dedication to safe operations, but we recognize there is still more to achieve.

Paul: During 2025, we continued to make health and safety improvements with a focus on high potential risk control and empowering our employees to coal demand of positive health and safety culture.

George Burns: During the quarter, as part of the Inaugural Awards of Health and Safety, Positive Recognition, an employee at KCETA was recognized for speaking up and stopping unsafe working behavior, demonstrating courageous safety leadership.

Paul: During the quarter as part of the inaugural awards of Health and safety positive recognition and importantly, kill Saddam was recognized for speaking up and stopping unsafe working behavior.

Paul: Constraining range of safety leadership.

Paul: On sustainability during the quarter.

George Burns: on sustainability during the quarter. We updated and rolled out the third version of our Sustainability Integrated Management System, SIMS, to all sites. Sims is founded and fostered on Eldorado's values and is a critical tool for driving continuous improvement of sustainability performance across our business.

Paul: We updated and rolled out the first version of our sustainability.

Paul: Integrated management system Sims to all sites.

Paul: Simpson's founders and fostered on El Dorado as values and is a critical tool for driving continuous improvement.

Paul: Stay inability performance across our business.

Paul: As everyone would have seen yesterday, we expanded our normal course issuer bid.

George Burns: As everyone would have seen yesterday, we expanded our normal horse issuer bid. This is part of our commitment to enhancing shareholder value and demonstrating confidence in the long-term prospects of our business. Given our strong financial position, expected growing production profile, and free cash flow generation, we believe the current share price does not fully reflect the underlying value of the company. We see the NCIB as an important way to return capital to our shareholders. The flexibility of the NCIB allows us to opportunistically repurchase shares while maintaining the financial strength needed to pursue our broader strategic objectives, including growth initiatives and disciplined capital allocation.

Paul: This is part of our commitment to enhancing shareholder value and demonstrating confidence in the long term prospects of our business.

Paul: Our strong financial position.

Paul: Expected growing production profile and free cash flow generation.

Paul: We believe the current share price does not fully reflect the underlying value of the company.

Paul: We see the NCI B is an important way to return capital to our shareholders.

Paul: The flexibility of the NCI be allows us to opportunistically repurchase shares while maintaining the financial strength needed to pursue our broader strategic objectives, including growth initiatives and disciplined capital allocation.

Paul Ferneyhough: I'll stop there and turn the call over to Paul for a review of our financial results. Thanks, George. Moving to slide six, our results reflect a strong and steady operation that remains in line with our guidance. Record high gold prices have supported robust cash flow generation and kept our profitability margins intact despite an increase in production costs compared to Q1 2024. In the first quarter, Eldorado generated net earnings attributable to our continuing operations of $72 million or $0.35 per share. Our performance was driven by higher average realised gold prices, which more than offset the impact of elevated production costs, including increased royalty expense, higher labour costs and greater income tax.

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

Paul: Thanks George.

Paul: Moving to slide six our results reflect a strong and steady operation. So it remains in line with our guidance.

Paul: Record high gold prices has supported robust cash flow generation.

Paul: Top profitability margins intact, despite an increase in production costs compared to Q1 2024.

Paul: In the first quarter Eldorado generated net earnings attributable to our continuing operations of $73 million.

Paul: <unk> 35 per shares.

Paul: Our performance was driven by higher average realized gold prices, which more than offset the impact of elevated production costs, including increased royalty expense higher labor costs and greater income tax expenses.

Paul: It's important to highlight that our net earnings were influenced by the gold call US. We established in 2023 is part of our balance sheet strengthening strategy. Following the restart of the <unk> project.

Paul Ferneyhough: It's important to highlight that our net earnings were influenced by the gold collars we established in 2023 as part of our balance sheet strengthening strategy following the restart of the Scurrius project. During Q1, the increase in gold prices translated to a realized derivative loss of $11 million from those collars. Moving forward, we have approximately 150,000 ounces outstanding on the gold collars, with a call price of $2,667 per ounce for the remainder of the year, and no additional collars after 2020. After excluding one-time, non-recurring items, our adjusted net earnings for the quarter are $56 million, or $0.28 per share.

Paul: During Q1, the increase in gold prices translated to a realized derivative loss of $11 million from those call us.

Paul: Moving forward, we have approximately 150000 balances outstanding on the Gulf Coast with a coal price of 2000 and $667 per ounce for the remainder of the year and no additional callers after 2025.

Paul: After excluding one time non recurring items, our adjusted net earnings for the quarter of $56 million or <unk> 28 per share.

Paul Ferneyhough: These adjustments include a $74 million tax recovery stemming from the recognition of a deferred tax asset in the quarter and an offsetting $63 million unrealized loss on derivative instruments, most notably the gold collars. Our fee cash flow for the quarter was negative $22 million. Excluding capital investments in the Scurrius project, free cash flow turns positive and totals $76 million, as compared to $34 million in Q1 2024, and underscores the strength of our operating assets in today's gold price environment. Looking at operating activities, cash flow before changes in working capital reached $137 million in Q1, up from $108 million in last year's comparable period.

Paul: These adjustments include a $74 million tax recovery stemming from the recognition of a deferred tax asset in the quarter.

Paul: And then offsetting $63 million unrealized loss on derivative instruments, most notably the Gulf callers.

Our free cash flow for the quarter was negative $22 million.

Paul: Excluding capital investments in the Sirius project free cash flow turns positive and totaled $76 million as compared to $34 million in Q1, 2024, and underscores the strength of our operating assets in today's gold price environment.

Paul: Looking at operating activities cash flow before changes in working capital reached $477 million in Q1 up from $108 million in last year's comparable period.

Paul Ferneyhough: This increase is primarily the result of a 38% jump in revenue, which rose to $355 million from $255 million, buoyed by an average realized gold price of $2,933 per ounce in Q1 2025, compared to $2,086 in the previous year. While production costs increased $25 million to $148 million during the quarter from the comparable quarter last year, roughly one-third of the increase was due to higher royalty expenses in Greece and Turkey. High gold prices have driven both revenue and sum costs up. In Q1, total cash costs reached $1,153 per ounce sold, and all in sustaining costs climbed to $1,559 per ounce, reflecting not only the impact of higher production costs and royalties, but also a modest increase in sustaining capital expenditures compared to 2012.

Paul: This increase is primarily the result of a 38% jump in revenue, which rose to $355 million from $255 million buoyed by an average realized gold price of $2933 per ounce in Q1 2025 compared to 2096.

Paul: In the previous year.

Paul: While production costs increased $25 million to $148 million during the quarter from the comparable quarter last year, roughly one third of the increase was due to higher royalty expenses in Greece and Turkey.

Paul: Heiko.

Paul: High gold prices have driven by revenue and some cost softwood in.

Paul: In Q1 total cash cost reached $1153 per ounce sold and all in sustaining costs climbed to $1569 per ounce, reflecting not only the impact of higher production costs and royalties, but also a modest increase in sustaining capital expenditures.

Paul: Compared to 12 months ago.

Paul: Yeah.

Paul Ferneyhough: Capital investments in our operating mines this quarter amounted to $71 million. These expenditures supported growth projects, including at Kisledag, where they range from planned waste stripping and procurement of equipment to support the extended mine life to the ongoing construction of the second phase of the North Leach Pad and North ADR infrastructure. At Scudis, progress is advancing as planned, with earthworks and infrastructure developments moving steadily. During the quarter, we invested approximately $84 million in the project, along with an additional $6 million in accelerated operational capital to support our transition to self-performing open-pit mining operations. Our current tax expense for the quarter was $47 million, an increase from $12 million in the same period last year, reflecting higher operating profitability in Canada and Turkey.

Paul: Capital investments at our operating lines this quarter amounted to $71 million.

Paul: These expenditures supported growth projects, including that could flip back where they range from planned waste stripping in procurement of equipment to support and extended mine life.

Paul: So the ongoing construction of the second phase of the North heap Leach pad and north ADR infrastructure.

Paul: That's good if progress is advancing as planned with US works in infrastructure developments moving steadily.

Paul: During the quarter, we invested approximately $84 million in the project along with an additional $6 million and accelerated operational capital to support our transition to self performing.

Paul: Mining operations.

Paul: Our current tax expense for the quarter was $47 million, an increase from $12 million in the same period last year, reflecting higher operating profitability in Canada and Turkey.

Paul Ferneyhough: Deferred income tax recovery of $80 million in the quarter compared to an expense of $4 million in Q1 2020. This recovery included a $74 million benefit from the recognition of deferred tax assets, with the remainder driven by favourable local currency movements against the US dollar.

Paul: Deferred income tax recovery of $80 million in the quarter compared to an expense of $4 million in Q1 2024.

Paul: This recovery included $74 million benefit from the recognition of deferred tax assets with the remainder driven by favorable local currency movements against the U S dollar.

Paul: Before I transition to our balance sheet I want to briefly address the ongoing global U S tariff discussions.

Paul Ferneyhough: Before I transition to our balance sheet, I want to briefly address the ongoing global US tariff discussion. Although it is early to pinpoint the final impact, our preliminary analysis on our Canadian business unit suggests these tariffs could add a consolidated impact of approximately $4 per ounce to our total cash costs. $6 per ounce to our ASIC for the rest of the year.

Paul: Although it's early to pinpoint the final impacts our preliminary analysis on our Canadian business unit suggests these terrorists could out of consolidated impact.

Paul: Proximately $4 per ounce to our total cash costs of $6 per ounce to our ASIC for the rest of this year.

Paul: Turning to slide seven.

Paul Ferneyhough: Turning to slide 7, our robust balance sheet remains the cornerstone of our business. providing us with abundant financial flexibility. We concluded the first quarter with a total liquidity of $1.2 billion, comprising $978 million in cash and cash equivalents, and $241 million available under our senior secured credit. This strong financial foundation continues to empower us to invest in profitable, cash-flow-generating operations while progressing with the construction of SCURIOs and positioning ourselves to seize new opportunities as they arise.

Paul: Our robust balance sheet remains the cornerstone of our business, providing us with abundant financial flexibility.

Paul: We concluded the first quarter with a total liquidity of $1 3 billion comprising.

Paul: Comprising $978 million in cash and cash equivalents at $241 million available under our senior secured credit facility.

Paul: This strong financial foundation continues to empower us to invest in profitable cash flow generating operations, while progressing with the construction of scarious positioning ourselves to seize new opportunities as they have life.

Louw Smith: With that overview, I'll now turn the call over to Louw, who will guide you through the highlights of our Greek aspects. Thanks, Paul, and good morning. starting on slide 8 at our Scurrius Copper Gold project. At the end of Q1, overall project progress was 66% for Phase 2 of construction. We continue to expect first gold production in the first quarter of 2026 and commercial production in mid-2026. We have experienced a steady ramp-up of required skilled labour during the quarter with a heavy emphasis on concrete and filtered plant mechanical, and exceeded our target of 1,300 at the end of March, with approximately 1,375 personnel through the gate each day.

Paul: With that overview I'll now turn the call over to load who will guide you through the highlights of our Greek assets.

Load: Thanks, Paul and good morning.

Load: Starting on slide eight <unk> copper gold project.

Load: The end of Q1 overall project progress was 66, the same full phase two of construction.

Load: <unk> continued to expect first gold production in the first quarter of 2026 and commercial production.

Load: 26.

Load: We have experienced a steady ramp up of the acquired skilled labor during the quarter.

Load: Heavy emphasis on concrete and Fulton mechanical and exceeded our target of one tells them filling out of it at the end of March with approximately 1375 personnel through the gate each study.

Louw Smith: While we have exceeded our current target, it's not just about the number of people on the ground. It's ensuring we have the right skill sets and work fronts available as we navigate and continue advancing the project. The plant construction productivity remains at or slightly better than our assumptions. On the slide you can see on the top left photo the concrete works advancing of the cause or stockpile reclaimed feed tunnel. The bottom photo shows the filter tailings building with a number of Three feeder conveyors, number three feeder conveyor before installation. The top right photo shows the tank farm area at the Fulton Tidings Plot.

Load: While we have exceeded the <unk> target and it's not just about the number of people on the ground. It's ensuring we have the right skill sets and work fronts available as we navigate and continue advancing the project.

Load: The planned construction productivity remains at or slightly better than elbit assumptions.

Load: On this slide you can see on the top list.

Load: The concrete works advancing of the coarse ore stockpile at reclaim tunnel.

Load: Bottom photo shows the filter tailings building, but the number of three.

Load: Three feet of complaint number three feet of combined before installation.

Load: The photo shows the tank farm area at Fulton tightening supplant public.

Louw Smith: Pile cropping is complete and concrete placement has advanced with the first three or five tank bases having been completed.

Load: <unk> is complete and concrete.

Load: Placement has advanced for the first three of 510 basis, having been completed.

Load: Moving on to slide nine.

Louw Smith: Moving on to slide nine. During the first quarter, the project capital invested at Scurrius was $84 million. The spent in the first quarter was lower than Q4 2024, but in line with our expectations as we had completed major procurement activities last year, including the tailings filter presses, major electrical equipment and the process control system, amongst other items. Over the coming quarters, we do expect to see increasing spend with higher procurement and construction spend in line with our expectations. We remain on track to meet our project capital guidance of $400 to $450 million for the full year.

Load: During the first quarter the project capital invest at school years was $84 million.

Load: Distinct in the first quarter was lower than Q4.

Load: For 2020 fold, but in line with our expectations as we have completed major procurement activities last year, including the.

Load: Tightenings photo places.

Load: The electrical equipment and the process control system amongst other items over.

Load: Over the coming quarters, we do expect to see increasing spend with procurement and construction spend in line with our expectations. We remain on track to meet the Elba project capital guidance of $400 million to $415 million for the full year.

Louw Smith: In addition, we spent $6 million in accelerated operational capital towards the $8,200 million expected this year. Spent included mobile equipment that will be used as we move to owner-operator mining in the Eltham Pit. Some of the equipment that we have received to date includes caterable seven trucks, an excavator, front-end loaders, graders and compactors. As we ramp up equipment and personnel on site, we expect to see increasing spend over the next three quarters. OpenPit mobile equipment is arriving on site and being assembled and commissioned. OpenPit Great Control drilling is underway, and we expect to start Phase 1 OpenPit mining during Q4 2025.

Load: In addition, we spent $6 million and accelerated operational capital towards the 80 to 100 million.

Load: Expected this year.

Load: Distinct included mobile equipment that will be used as we move to relate.

Load: I'd like to a moment in the open pit.

Load: Most of the equipment that we have received to date includes kept towboat seven trucks and excavator from the low dose cohort.

Load: He goes and contact us.

Load: We go out and pump equipment and personnel on site.

Speaker Change: Great to see increasing spend over the next three quarters.

Speaker Change: Open mobile equipment is arriving on site and being assembled and commissions open pit grade control drilling is underway and we expect to start phase one open pit mining during Q4 2025.

Louw Smith: The photos on the slide and the next few slides will show the advancement of the work underway. As you can see on the large photo on the left of the slide, infrastructure around the process plant continues to advance. Work on the process plant continues to expand to additional work fronts for mechanical installations and cable place. Piping installations have started in the process plant and the pump house to enable the start of some pre-commissioning activities. In addition, water testing of the rougher flotation circuit is underway. Infrastructure on the west side of the main process plant building is shown, including construction works progressing on the secondary substation and control building.

Speaker Change: The photos on the slide and the next few slides will show you the advancement of the work underway.

Speaker Change: As you can see on the large photo on the left of the slide infrastructure of about that process.

Speaker Change: Two news to advance.

Speaker Change: Welcome to the process plant continues to expand to additional work fronts for mechanical installations table in place.

Speaker Change: Piping installations have been at.

Speaker Change: It started in the process plant and the pump house to enable the start of some pre commissioning activities. In addition, order tasting I'll say rougher flotation circuit that's underway.

Speaker Change: Infrastructure on the west side helps them buying process plant building as shown.

Speaker Change: Including construction works are progressing on the secondary substation and control building.

Louw Smith: Cable tray is completed in the substation and in progress in the control building. Infrastructure on the east side of the main process building as shown. including the structural steel installation is complete for the lime plant and the blower's building. You can also see the progress of the installation of the conveyors that will transport ore from the pebble crusher to the transfer tower.

Speaker Change: <unk> completed the substation and progress in the control building.

Speaker Change: Infrastructure on the east side of the main process building seven.

Speaker Change: Including the structural steel installation is complete for the lung plumbed and the blow of buildings.

Speaker Change: You can also see the progress of the installation of so called biased transport ore from the pebble crusher to the Tau Hotel.

Speaker Change: Moving to slide 10.

Louw Smith: Moving to slide 10. As you can see on the large photo on the right of the slide, the three thickeners continue to advance to black. Complete works for the first sticker has been completed and mechanical installations have commenced. The second figure is approximately 85% complete and the third has its base completed. On the photo to the left, earlier this week we reached an important milestone for the first part of the project. We have filled the tailings clarifier tank and started water testing in the tailings thickener circuit.

Speaker Change: As you can see on the large photo on the right of the slide.

Speaker Change: The thinking is continuing to advance to plant.

Speaker Change: Concrete works for the first thinking has been completed and mechanical installations have commenced.

Speaker Change: The second thinking of is approximately 85% complete and the third is the spice completed on.

Speaker Change: On the photo to the list earlier. This week, we reached an important milestone for the first part of the project.

Speaker Change: We have filled the tailings to clarify your tank and started testing in the tailings thinking about circuit.

Louw Smith: Turning to slide 11. at the Full-Term Claims Building. We have included a link to an updated time-lapse video showcasing the completion of the concrete foundation. Workers now transition to the installation of the structural steel and major mechanical equipment, both of which are advancing as planned. Piling for the compressor building is complete, and piling for the pipelines and the clarifier area continues to progress.

Speaker Change: Turning to slide 11.

Speaker Change: At the photo coatings building.

Speaker Change: We have included a link to an update to the time lapse video showcasing the completion of the concrete foundation.

Speaker Change: Work has now transitioned to the installation of the structural steel and major mechanical equipment. Both for fleets are advancing as planned.

Filing for a complete some building is complete and filing for <unk> and to clarify here India continues to progress.

Louw Smith: On slide 12, work continues. of the construction of the Kershaw building structure. The Concrete Foundation has been completed and work is advancing on the first level walls with approximately 60% of the walls completed in April. The first floor is expected to be finished in May which will house the apron feeder to the course or stockpile. Piling and drainage work for the primary crusher conveyor alignment to the core source stockpile was completed and final excavations are well at bat.

Speaker Change: On slide 12, where continues.

Speaker Change: Of the construction of the culture building structure.

Speaker Change: Concrete foundation has been completed and work is advancing on the first level walls with approximately 60% of the holes completed in April.

Speaker Change: The first Florida is expected to be finished in may which will house the apron feeder to the coarse ore stockpile.

Speaker Change: Filing them, but I need to work for the primary crusher conveyor the alignment to the coarse ore stockpile was completed and final excavations.

Speaker Change: Bob.

Louw Smith: Moving to Olympias on slide 13. First quarter gold production was 11,829 ounces and total cash costs were $2,398 per ounce sold. Gold production, along with the production of by-products, was affected by unplanned maintenance for the pyrite concentrate filtration that we disclosed in Q4, and subsequently resolved in January. In addition, we encountered a challenge with flotation circuit stability. During the quarter, analysis has shown that the flotation instability was generated by the viscosity modifier that is added to the paste backfill to assist in paste pumping in the undergraft. The addition of this modifier impacted flotation circuit stability, impacted recoveries across all concentrates.

Speaker Change: Moving to Olympias on slide 13.

Speaker Change: First quarter Gold production was 11000 820 million ounces and total cash costs were $2300 per ounce sold.

Speaker Change: Gold production along with the production of byproducts was affected by unplanned maintenance for the pyrite concentrate filtration that we disclosed in Q4.

Speaker Change: And subsequently resolved in Germany. In addition.

Speaker Change: Encountered challenges with Floatation circuit stability.

Speaker Change: During the quarter.

Speaker Change: This has shown that.

Speaker Change: And stability was generated by the viscosity modifier that is added to the paste backfill to assist in place pumping in the underground.

Speaker Change: The addition of this modifier impacted for the flotation circuit stability impacted recoveries across all constantly.

Speaker Change: Pivotal mitigation steps have been enacted.

Louw Smith: Several mitigation steps have been enacted that have stabilised the flotation performance to date in the second quarter, and production has recovered to expected levels in Q2. Total cash costs were impacted by lower by-product sales, lower gold sold, and higher royalties, partially offset by slightly lower gold treatment and refining charges, and slightly lower selling costs due to the lower volumes.

Speaker Change: Stabilize the fermentation performance to date in the second quarter.

Speaker Change: Production has recovered to expected levels in Q2.

Speaker Change: Total cash costs were impacted by lower by product cycles, lower gold sold and higher royalties, partially offset by slightly lower gold treatment and refining charges and slightly lower selling costs due to the lower volumes I'll stop there and handed over to Simon to discuss the turkeys.

Simon Hille: I'll stop there and hand it over to Simon to discuss the Turkish and Canadian operations. Thanks Louw. Standing in Turkey A on slide 14. Kishida delivered a solid start to the year with production totalling 44,000. 319 ounces and total cash costs of $1,039 per ounce sold. Total cash costs were primarily impacted by higher royalties. driven by higher gold price, a stronger lira and higher labour costs. Production was strong as we continued lynching gold ounces from tonnes stacked in 2024, as well as higher average grade of new tonnes placed in the quarter. Additionally, ounces stacked increased by 21% compared to the prior year, primarily due to increased average stacking rate.

Simon: And Canadian operations.

Simon: Thanks, Lloyd studying in Tychy EE on slide 14.

Simon: You should add to lipid a solid start to the year with production totaling 44319 ounces.

Simon: Total cash cost of $1039 to add so.

Simon: Total cash costs were primarily impacted by higher royalties driven by higher gold price a struggle here at and highlight the costs.

Simon: Production was strong as we continued leaching gold assets from Titan stacked 2020, full as well as higher average grade of lead time to price in the quarter.

Simon: Additionally, anthem stacked increased by 21% compared to the prior year, primarily due to increased average stacking right.

Simon Hille: We continued advancing the engineering and geometalogical studies, which are focused on understanding the future mining phases and optimising the crushing and leach circuits. We expect to provide results in conjunction with our Q3 reporting. and FM2 Crew.

Simon: We continued advancing the engineering and Geo metallurgical studies, which are focused on understanding the future mining phases, and optimizing the crushing and leach circuits.

Simon: We expect to provide results in conjunction with that Q3 reporting.

Speaker Change: That isn't to Craig.

Simon Hille: on slide 15. First quarter gold production was 19,307 ounces. at total cash costs of $1,357 per ounce sold. Gold production, throughput and average gold grade at FM2Crew were in line with the plan for the quarter.

Simon: On slide 15.

Speaker Change: First quarter gold production was 19307 ounces.

Speaker Change: Total cash cost of $1357 per ounce.

Speaker Change: So.

Speaker Change: Gold production throughput and average gold grade it if it <unk> were in line with the plan for the quarter.

Speaker Change: And now moving to the La Mac complex on slide 16.

Simon Hille: and now moving to the LAMAC complex on slide 16. Mac delivered production of 40,438 ounces at total cash costs of $836 per ounce sold. First quarter production was impacted by lower grades and recovery during the quarter, which was partially offset by higher average throughput at the mill. Total cash costs were higher in the quarter than the comparable period in 2024, impacted by lower volume sold and additional labour and contractor costs. In 2024, the center of production was primarily in the C4 ozone. and we are now operating on several levels, extending into the C5. This has moved the center of production lower over time.

Speaker Change: Amit lipid production of 40438 ounces at total cash costs of $836 per ounce sold.

Speaker Change: First quarter production was impacted by lower grades and recovery during the quarter.

Speaker Change: Which was partially offset by higher average throughput at the mill.

Speaker Change: Total cash costs were higher in the quarter than the comparable period in 2024 impacted.

Speaker Change: Impacted by lower volumes sold an additional buyback contracted costs.

Speaker Change: In 2024 at the center of production was primarily in the seat for bauxite.

Speaker Change: And we are now operating on several levels extending into the C. Five OSA.

Speaker Change: He says Naved the center of production level or at the time.

Simon Hille: Adding distance and time to haulage cycle, thereby incurring additional costs. related to haulage, equipment, and personnel requirements. Total cash costs were also impacted by slightly higher royalties due to the higher realised gold price, partially offset by the weakening Canadian dollar.

Speaker Change: I think distance and time to fully cycle, thereby clearing.

Speaker Change: Costs.

Speaker Change: Related to haulage equipment and personnel requirements.

Speaker Change: Total cash costs were also impacted by slightly higher royalties due to the higher realized gold price, partially offset by the weakening Canadian dollar.

Speaker Change: I would like to take a moment again.

George Burns: I would like to take a moment again to shine a spotlight on what we mentioned in our Q4 2024 conference call.

Speaker Change: China's spotlight on what we mentioned in our Q4 2024 conference call.

George Burns: The Superb Achievement decides to leave it with production of the A Millionth Ounce. was a great achievement. Bravo team.

Speaker Change: <unk> curve.

Speaker Change: Achievement beside affiliated with production.

Speaker Change: The $1 billion ounce.

George Burns: It was a great achievement for <unk> and with that I'll hand back to George.

George Burns: And with that, I'll hand back to George. Thanks, team. In summary, it's been a solid start to the year operationally and financially.

George Burns: Thanks team.

George Burns: In summary, it's been a solid start to the year operationally and financially.

George Burns: I would like to acknowledge the dedication and hard work of our teams across the site. We are strongly positioned for the balance of 2025 and beyond, building on years of optimization efforts to strengthen our asset portfolio and stable production base. With a solid balance sheet and high quality assets, we are well positioned to generate significant value for our stakeholders that is further enhanced by the strength in today's gold and copper price.

George Burns: I'd like to acknowledge the dedication and hard work of our teams across the sites.

George Burns: We are strongly positioned for the balance of 2025 and beyond building on years of optimization efforts to strengthen our asset portfolio and stable production base with.

George Burns: With a solid balance sheet and high quality assets, we are well positioned to generate significant value for our stakeholders.

George Burns: Further enhanced by the strength in today's gold and copper price.

George Burns: Thank you for your time.

Speaker Change: For your time I will now turn it over to the operator from questions from our analysts.

Operator: I will now turn it over to the operator for questions from our analysts. Thank you. We'll now begin the analyst 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.

Speaker Change: Thank you well now begin the analyst question and answer session did 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.

Speaker Change: Thank you.

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

Cosmos Chiu: Our first question is from Cosmos Chiu with CIBC, please go ahead. Thanks, George. Um, maybe my first question is on security. I know it's more complex than that and appreciate all the pictures that were shown to us in terms of progress. But my question is on the, you know, the 66% completion of phase two that you've given to us, and that increased from 60% last quarter. How can, you know, we and also investors potentially use that as a yardstick of how your progress is going? For example, like, do we, is it, should we expect to see 100% by Q1, or close to 100% by Q1 2026 ahead of your first production?

Cosmos: Thanks, George and maybe my first question is on scary.

Cosmos: I know, it's more complex than that and I. Appreciate all the pictures that were shown to us in terms of progress, but my question is on the.

Cosmos: 66% completion of phase two that you've given to us and that increased from 60% last quarter.

Cosmos: Okay.

Cosmos: Also investors potentially use that as a yardstick of how youre progresses go.

Cosmos: For example, like do we is it should we expect to see 100% by Q1 close to 90% by Q1.

Cosmos: 2026 ahead of your gross production is that how we can use it maybe if you could help itself.

Cosmos Chiu: Is that how we can use it? Maybe if you can help us out.

Cosmos: Yes. Thanks for the question Cosmo So yes for sure we planned to be commissioned and even have first production in Q1 of next year at which point the construction would be at a 100%.

George Burns: Yeah, thanks for the question, Cosmos. So yeah, for sure, we're we plan to be in commissioning and have first production in Q1 of next year, at which point the construction would be at 100%. And then in terms of how that, how that number is going to increase over the coming quarters, you know, There's really two key aspects here. One is the number of construction workforce we have at site, and the work they're doing in piping, mechanical, electrical, so that that work will push up. But the other thing that comes with that is we, as we get certain work completed, We then start installing equipment, and some of the work's being done off-site.

Cosmos: And then in terms of how that.

Cosmos: How that number is going to increase over the coming quarters.

Cosmos: <unk>.

Cosmos: There's really two key aspects here one is the number of.

Cosmos: Construction workforce, we have at site and the work they're doing in piping mechanical electrical.

Cosmos: So that work will push up but the other thing that comes with that as we as we get certain.

Cosmos: Work completed.

Cosmos: We then started installing equipment in some of the work is being done off site for instance, we're assembling some of them some of the mechanical equipment that'll be in the dry stack tailings facility.

George Burns: For instance, we're assembling some of the mechanical equipment that'll be in the dry stack tailings facility in Thessaloniki. So those workers aren't coming to site, they're assembling those pieces, and when we're ready to put those into the dry stack tailings facility, we'll set that equipment, and then you'll see progress against that construction. So, where we're at today, we've got the... Concrete Construction Workforce that we need to complete and continue the concrete work. And we'll be ramping up piping and mechanical significantly in Q2 and into Q3 as the concrete finishes and we're able to then move on to the next phase in various parts of the construction.

Cosmos: So those workers are coming to the site, they're assembling those pieces and when we're ready to book those into the dry stack tailings facility will set that equipment and then youll see progress against that as construction. So.

Cosmos: Where we're at today, we've we've got.

Cosmos: Concrete construction workforce that we need to complete and continue the concrete work and.

Cosmos: And we will be ramping up piping and mechanical significantly in Q2 and into Q3 as the concrete finishes and we're able to then move on to the next phase in various parts of the construction so.

George Burns: So it's going to be evolving. I think we're in a very good position right now with our workforce, our general contractors.

Cosmos: It's gonna be evolving, but I think very very good position right now with our workforce.

Cosmos: Our general contractors.

George Burns: Thank you. have visibility on the workforce that we need to bring to site over the coming quarters. And our HELLUS team have backup labor lined up, I'd say like a plan B, a plan C, if for some reason the contractors fall short on workforce. So I think we've done a lot of really constructive work to have flexibility and contingencies to ensure we have the labor at the right time and feel comfortable with our guidance of first quarter production and mid-next year commercial production.

Cosmos: Visibility on the workforce that we need to bring decide over the coming quarters.

Cosmos: Our <unk> team have.

Cosmos: Labour lined up say like a plan B and plan C.

Cosmos: For some reason the contractors fall short on a word for us. So I think we've done a lot of really constructive word too.

Cosmos: We have flexibility and contingencies to ensure we have the labor at the right time and feel comfortable with our guidance of first quarter production in mid next year commercial production.

Speaker Change: And George that leads well into my next question here as you mentioned getting DNA proactively built.

Cosmos Chiu: And George, that leads in well to my next question here. As you mentioned in your MD&A, you proactively built contingency plans to protect a schedule and budget.

Speaker Change: <unk> plans to protect us schedule and budget, you've kind of touched on it just now but could you maybe elaborate a little bit more in terms of.

George Burns: You kind of touched on it just now, but could you maybe elaborate a little bit more in terms of, you know, as you said, Plan B, Plan C, even a Plan D and anything that you can share with us? Well, maybe starting with the workforce. So our primary objective has always been to to hire construction workers from Greece. And we've made some pretty good progress over the last quarter to find additional workforce, particularly mechanical and piping. And then on plan B, both our contractors and our Hellas team have found multiple opportunities within the EU of available workforce to meet our needs.

Speaker Change: As you said Glen do you see even a plan.

Speaker Change: Anything that you can share with us.

Speaker Change: Well, maybe starting with the workforce. So our primary objective has always been to.

Speaker Change: It's a higher construction workers from Greece, and we've made some pretty good progress over the last quarter to find additional workforce, particularly in mechanical and piping.

Speaker Change: And then on plan B, both our contractors and our <unk> team have found multiple opportunities within the EU of available workforce to meet our needs.

Cosmos Chiu: And generally there's areas close to Greece like Romania, Bulgaria, Italy, where we've got people lined up. I call that kind of plan B, and plan C would be going a little further away to Scandinavia. So at any rate, we've got good visibility on the workforce that we need to progress this construction over the coming quarters. Great.

Speaker Change: And generally there is theres areas close degrees slides.

Speaker Change: Romania, Bulgaria, Italy, where we've got people lined up.

Speaker Change: I would call that kind of a plan b and plan C would be going a little further away to Scandinavia.

Speaker Change: So anyway, we've got we've got good visibility on the workforce that we need to for breakfast construction over the coming orders.

Speaker Change: Great.

Cosmos Chiu: Maybe switching gears a little bit. The NCIV, good to see that you've increased your NCIV for the, you know, potential shares that you can buy back. And I think if you do buy back, it shows the market you have confidence in your timeline for Scurrius.

Speaker Change: Maybe switching gears a little bit.

Speaker Change: The N CIB good to see that you've increased.

You're in CIB.

Speaker Change: Potential shares.

Speaker Change: That you can buy back and I think if we do buyback that's it shows the market do you have confidence in your timeline for Sirius.

George Burns: In terms of that, like, should we or could we expect your usage of the NCIV facility to increase as we get closer to completion of Scurrius? Or is that really not a factor? It's really dependent on pre-cash flow on the price. It's not really dependent on how close you get to the completion of construction of Scurrius.

Speaker Change: In terms of that like should we or could we expect.

Speaker Change: Usage of the CIB facility to increase as we get closer to completion of scarious or is that really not a factor is really dependent on free cash flow of the price because its all really dependent on how close you get to the completion of construction of schools.

Speaker Change: Across most of the way I would describe it is we've got good confidence now in our construction and we believe our shares are undervalued and we think now's the time to begin buying back shares and will.

George Burns: Cosmos, the way I would describe it is, you know, we've got good confidence now in our construction, and we believe our shares are undervalued, and we think now is the time to begin buying back shares. And, you know, we'll be monitoring our progress. We'll be monitoring our share price movement and make the best decisions we can for our shareholders as this year unfolds. So I think your first comment, I think it does show confidence from our management team that we're on track, and our share price is undervalued, and this is a mechanism to improve that situation.

Speaker Change: We will be monitoring our progress will be performed during our share price movement and make the best decisions. We can for for our shareholders as this year unfolds. So.

Speaker Change: I think your first comment that I think industrial confidence from our management team that we are on track.

Speaker Change: And our share price is undervalued and this is a mechanism to improve that situation.

Speaker Change: Perfect. Thanks, Georgia team those are all the questions I have have a good weekend.

Cosmos Chiu: Perfect.

Cosmos Chiu: Thanks, George and team. Those are the questions I have. Have a good weekend. Thank you.

Speaker Change: Thank you.

The next question is from Tanya <unk> with Scotiabank. Please go ahead.

Tanya Jakusconek: The next question is from Tanya Jakusconek with Scotiabank. Please go ahead. Great. Good morning, everyone. Thank you so much for taking my questions. Maybe let's start with the easy one. Just thinking about your year, and I know, George, you mentioned a stronger second half of the year, and we know that Q2, we're supposed to see better performance coming out of Olympia, getting back to normalize, but how do you see the year in terms of first half, second half? Am I looking at that 48% in the first half, 52 in the second half, and sort of Q1 and Q2 being similar?

Speaker Change: Great. Thank you good morning, everyone. Thank you so much for taking my question.

Speaker Change: Maybe let's start with the easy one.

Speaker Change: Just thinking about your year end I know George you mentioned, a stronger second half of the year.

And we know that Q2 is supposed to be better performance coming out of <unk>.

Speaker Change: M P S getting back to normalized but how do you see the year in terms of first half second half it am I looking at that 48% in.

Speaker Change: In the first half 52 in the second half and sort of Q1 and Q2 being similar.

Speaker Change: I think thats exactly correct way to describe all the year's going to unfold.

George Burns: I think that's an exact, correct way to describe how the year is going to unfold. Okay, and then anything unusual on the maintenance side that I should be thinking about in that first half, second half? Anything down for maintenance at any of the operations? Nothing beyond routine. Preventive Medicine.

Speaker Change: Okay, and then anything unusual on the maintenance side that I should be thinking about in that first half second half.

Speaker Change: Anything down for maintenance and any of the operations.

Speaker Change: Nothing beyond routine.

Speaker Change: Preventative maintenance.

Speaker Change: Okay.

Tanya Jakusconek: Thank you. And since I have you on, George, I just wanted to come back to SCORES before I go to Paul on some other financials. Just on SCORES, maybe just for my own understanding, you've mentioned you've got your Plan B and C on your labour. You mentioned that, you know, the next phase for Q2, Q3 are really the piping, electrical, mechanical. You mentioned you have the workforce on the mechanical and piping. What about the electrical or did you just miss that out? Or maybe as I think about it, is any one of that area more constraint than the other?

Speaker Change: Great. Thank you and since I have you on George I, just wanted to come back to scoring before I can look at par another financial sometimes boy, maybe just for my own requirement you mentioned, you've got your plan B and C. On your Labor you mentioned that you know the Max space like Q2 Q3.

Randy: Randy piping electrical and mechanical.

Randy: You mentioned you have the workforce on that on the mechanical and piping what about the electrical or did you just net that out or maybe as I think about it.

Randy: One of that area more constraint on the other.

Randy: And I'd say.

Randy: Yes.

Randy: Yes, thanks for the question.

Randy: Our visibility on all of the trades required.

Randy: To meet our schedule, we've got good visibility and we've got contingency plans in all of the trades second comment is I mean, each area of the plans evolving differently.

George Burns: and Labor. Second comment is, I mean, each area of the plan is evolving differently. So Q2 is going to be more heavy on mechanical and piping, but there is going to be a ramp up in electrical and control system. There are certain areas of the plant where it's ready for that work. You know, if you look at the critical path on the project, it still remains to be the dry stack tailings filter area. And you can see from the photos, we're progressing well on the concrete now. We've made a lot of progress in the structural steel, and we've actually installed some of the equipment in the bottom of that building for filtering the tailings.

Randy: So Q2 is going to be more hip even mechanical and piping, but there is going to be a ramp up in electrical and control system. There are certain areas of the plant or is ready for that work.

If you look at the the critical path on the project it still remains to be the dry stack tailings filter area and you can see from the photos, we're progressing well on the concrete now we've made a lot of progress and the structural steel and we've actually installed some of the equipment in the bottom of that building for films during the tailing.

Randy: So things are progressing well, we're beginning to do mechanical there and is that mechanical work advances we will start doing electrical control system stuff in Q3, and Q4. So every work fronts a bit different but yeah, sorry, I didn't mention it but we do have good visibility on each of the trades required.

George Burns: So things are progressing well. We're beginning to do mechanical there, and as that mechanical work advances, we'll start doing electrical and control system stuff in Q3 and Q4. So every work front's a bit different, but yeah, sorry I didn't mention it, but we do have good visibility on each of the trades required. It's just, I was trying to highlight Q2, it's really going to ramp up on mechanical and piping across the facility.

Randy: Just I was trying to highlight Q2, it's really going to ramp up on mechanical and piping across the facility.

Tanya Jakusconek: Okay, and then maybe if we move to just the training on the open pit side, so you've got the equipment coming to site, and you're obviously self-mining, starting in Q4 of this year in the open pit. How is that going? Well, our executive team visited Louw and the site team over the quarter a couple of times, actually, and I was able to meet the first crew that we've hired. I'd say they were excited. They've gone through all of the kind of classroom-type training, and they were beginning to get on the equipment. I'd say roughly around a third of the employees we've hired so far have certifications, have the training, and the other two-thirds are working towards those certifications.

Jeff: Okay, and then maybe if we move to Jeff.

Jeff: Training on the open side, you've got the equipment coming to fight.

Jeff: Obviously, south mining starting in Q4 this year.

Jeff: And the open pit how has that gone.

Jeff: Well our executive team.

Jeff: It is low and the site team over the quarter, a couple of times actually and.

I was able to meet the first crew that we've hired.

Speaker Change: Say they were excited.

Speaker Change: They've gone through all of the kind of classroom type training and they were beginning to get on the equipment.

Speaker Change: I'd say roughly <unk>.

Speaker Change: Around a third of the employees, we've hired so far have certifications.

Speaker Change: Have the training and the other two thirds are working toward certification. So it was great to see the team starting to get on the gear.

George Burns: So it was great to see the team starting to get on the gear and start operating the equipment. And in terms of the timing, I mean, we're now operating that equipment, and it's going to ramp up pretty steadily over Q2 and Q3. So we'll be moving LOC with our equipment, ramping it up all year long, and, you know, they'll be moving some waste to support the construction activities and delivering stockpile material to our contractor that's doing all the civil works. And they'll begin to mine some more this year that we'll stockpile for commissioning and ramp up next year.

Speaker Change: And start operating the equipment.

Speaker Change: In terms of the timing I mean.

Speaker Change: We're now operating that equipment and its going to ramp up pretty steadily over Q2 and Q3, So we'll be moving.

Speaker Change: Rock with our equipment.

Speaker Change: Ramping it up all year long and.

Speaker Change: We'll be moving some ways to support.

The construction activities are delivering stockpiled material too.

Speaker Change: Our contractor that's doing all of the civil works and hopefully getting they'll begin to mine. Some more of this year that will stockpile for commissioning and ramp up next year. So we're on track for gears, arriving and we're beginning to train their workforce.

George Burns: So we're on track. The gear's arriving, and we're beginning to train that workforce.

George Burns: And can you remind me, George, how many people you have right now for the open pit and how many do you need to have in place or do you have them already all there? So, Tanya, hello. We currently have, in Q1, we recruited 12 open pit operators and another 15 has followed in April, so we'll build it up over the course of the year to 80. As George has said, there's strong support in training. We also now have started hiring mobile maintenance personnel and they will be trained by Caterpillar to support this equipment in the future.

Speaker Change: And can you remind me George how many people you have right now for the open pattern. How many do you need to have in place or do you have them already all of that.

Speaker Change: So Tony on slow.

Speaker Change: We.

Speaker Change: We currently have in Q1, we recorded.

Speaker Change: Telephone operators and.

Speaker Change: Another 15 has followed in April.

Speaker Change: So we'll both adult over the course of the year.

Speaker Change: Two zero.

Speaker Change: Two of them.

Speaker Change: As George said.

Speaker Change: There is strong support from our <unk>.

Speaker Change: In training.

We also now have started hiring local maintenance.

Speaker Change: Personnel and I will be joined by Caterpillar to support this equipment in future.

Speaker Change: Okay. So you have 27, right now and having to go to 80.

George Burns: Okay, so you have 27 right now and having to go to 80.

Speaker Change: Yeah.

Tanya Jakusconek: Thank you so much for that and good luck and it seems like you've got the labour there which is good.

Speaker Change: Right. Okay. Yeah. Thank you so much for that and good luck and seems like you've got a you know the labor there which is good.

Tanya Jakusconek: Maybe if I can just move over to Paul to talk about just the tariffs and the prepaid. And sorry, with the prepaid, I'll do the easier one. The prepaid and can we just, you know, you have it, have to deliver the remaining amount during 2025.

Speaker Change: Maybe if I can just move over to Paul.

Speaker Change: Talk about just the <unk>.

Speaker Change: On the prepaid and probably with the prepaid all duty on the prepaid on and can we get them.

Speaker Change: You know you have it.

Speaker Change: The topic of lever the remaining amount during 2025, just as a reminder for me in the income statement showing up under our belt.

Paul Ferneyhough: Just as a reminder for me, in the income statement, is it showing up under other? The items that we've prepaid are showing up on the balance sheet and accounts receivables.

Speaker Change: The items that we prepaid showing up on the balance sheet and accounts receivable.

Speaker Change: Hi, Dan.

Speaker Change: Okay.

Speaker Change: Hi.

Paul Ferneyhough: All right, and then maybe on the interest expense, which was quite high for me versus what I was expecting, what exactly is happening there? Is less being capitalized? I'm just trying to understand why it was so high. What should I be thinking about that?

Speaker Change: And maybe on the interest expense, which were quite high.

Speaker Change: For me, what I was expecting what exactly is happening there lasting capitalize I'm just trying to understand why it was so high.

Speaker Change: What should I be thinking about that.

Speaker Change: Yes, there were two reasons both of them sort of one offs compared to where we were 12 months ago.

Paul Ferneyhough: Yeah, there were two reasons, both of them sort of one-offs compared to where we were 12 months ago. Firstly, following the sale of our stake in G-Mining, we accounted for the margin that we paid on that through that line. And then secondly, 12 months ago, we had a reversal of commitment fees relating to the project financing, which then went into capitalization. So that was a catch-up from prior periods. So between the two of them, that accounts for about a $10 million difference.

Firstly following the sale of our stake in G mining, where we accounted for the margin that we paid on that through the through that line and then secondly, 12 months ago, we had a reversal of commitment fees relating to the project financing, which theyre waiting to capitalization. So that was a catch up from prior periods.

Speaker Change: So between the two of them that accounts for about a $10 million difference otherwise our underlying.

Paul Ferneyhough: Otherwise, our underlying financing expenses, there's no real change. Everything to do with the term facility increase gets capitalized. And you can see that through note 10 if you refer to that one. So there's no real change. Okay, so we should think about it going back to a more normalized rate in Q2 on Yeah, yeah, definitely.

Speaker Change: Financing expenses, there's no real change.

Speaker Change: Everything to do with the term facility increase gets capitalized and you see that through 10, if you referred to that one so no real change.

Speaker Change: Okay. So we should think about it going back to a more normalized rate in Q2 onward.

Speaker Change: Yes, yes definitely.

Speaker Change: Okay, and then maybe if I could just squeeze in my follow up question.

Paul Ferneyhough: And then maybe, if I could just squeeze in my tariff question. I'm just interested, you mentioned the couple of dollars per ounce impact, I think it was $4 on the total cash, top six on all-in sustaining, but maybe just besides the numbers from a higher level, Paul, what is, I'm assuming it's in the consumables that you will see that impact, and maybe can you just review from a higher level what consumables would be impacted that you are either getting from the U.S. or others? I mean, absolutely, Tanya. There's considerable uncertainty on how this is going to impact our business.

Speaker Change: Interest you mentioned the couple of dollars per ounce.

Speaker Change: In fact, I think it was.

Speaker Change: $4 on a total cash cost of an online sustaining but maybe just the size of the numbers from that.

Speaker Change: A higher level.

Speaker Change: What is I'm, assuming it's in the consumables that you will see that impact and maybe can you just review from a higher level, what consumables would be impactful.

Speaker Change: You are either.

Speaker Change: Starting from the latter.

Speaker Change: Hi, there.

Speaker Change: I mean, absolutely Tanya there's considerable uncertainty of how this is going to impact our business, but the real area, where we're focused on it is in Quebec.

Paul Ferneyhough: But the real area where we're focused on it is in Quebec. We do have some items that we purchased from the US, principally explosives and cyanide. And so there's two ways they may be impacted. Firstly, if Canada implements tariffs on bringing those into the country. Or secondly, if tariffs into the US increase the input costs on our suppliers, which then get passed on to us. At that estimate of four to six across total cash costs and ASIC is just where we see those things at the moment. I've also been working with our procurement teams, getting them to look at fast moving items that we use at all of our operations, in fact, to ensure that if there was some supply squeeze as tariffs were being implemented, that we have appropriate levels of inventory on hand.

Speaker Change: We do have some items that we purchase from the U S principally explosives and cyanide and so there's two ways. They may be impacted firstly as Canada implements tariffs on bringing those into the country or secondly, if tariffs into the U S increased the input costs on all our suppliers.

Speaker Change: They can get passed on to us.

Speaker Change: Estimate of four to six across total cash costs in either case, just where we see those things at the moment.

Speaker Change: <unk> also been working with our procurement teams getting them to look at fast moving items that we use at all of our operations in fact to ensure that they stay with some supply squeeze as terrorists were being implemented that we have appropriate levels of inventory on hand. So they are looking at that as well we will keep an eye on it.

Paul Ferneyhough: So they're looking at that as well. We'll keep an eye on it until we get greater certainty as to exactly what this means. And you'll have seen it changes on a daily basis, it seems at certain times. We won't really know but but I feel pretty comfortable that it's not material. And that's where that sort of four to six dollars an ounce.

Speaker Change: Until we get greater certainty as to exactly what this means and youll have seen it changes on a daily basis. It seems at certain times.

Speaker Change: We won't really know, but I feel pretty comfortable that it's not material.

Speaker Change: That's the way of that sort of 4% to $6 an ounce comes from.

Paul Ferneyhough: Yeah, it's funny because I'm so I guess surprised that a lot of the mining companies buy explosives from the US and kind of surprised that we can't buy them in Canada. But are there alternatives for us in Canada to buy explosives? I understand cyanide with DuPont, but I'm just wondering on the explosive side, are there other opportunities within Canada? Yeah, so we source explosives for other parts of our operations, not from the US, and I think we would look to existing suppliers. If we could source in Canada, then certainly we wouldn't ignore that opportunity. But it's something we'd look at if we see supplies squeezing in that particular point.

Speaker Change: Yeah, it's funny because I'm so I.

Speaker Change: Hi, I guess surprised that a lot of the mining companies by explosive from the laughing.

Speaker Change: But we can't vitamin came it at that.

Speaker Change: Are there alternative for Hudson candidates with high explosives, and cyanide with Dupont that I'm just wondering on the clothing side are there other opportunities up in Canada.

Speaker Change: Yeah. So we source explosive for other parts of our operations nor from the U S and I think we would look to existing suppliers.

Speaker Change: If we could source in Canada, then suddenly we wouldn't.

Speaker Change: Ignore that opportunity, but it's something we'd look at it if we see supplies squeezing in that particular point.

Tanya Jakusconek: Yeah, thanks for that. I'm just surprised in general from how much of explosives come from the U.S. Thank you so much for helping me and I'll let someone else ask questions.

Speaker Change: Yeah, Yeah, thanks for that and I'm just surprised in general from Matt how much self explosive come from Neil. Thank you. So much for helping me and I'll, let someone else ask question.

Speaker Change: Once again any analyst who has a question should press Star then one.

Operator: Once again, any analyst who has a question should press star then 1.

Don Demarco: The next question is from Don DeMarco with National Bank Financial. Please go ahead. Thank you, operator. And good morning, George and team. So, guys, Scurrius CapEx, a bit light in Q1, if we just simply take full year guidance and divide by four. Was that intentional or do you expect to catch up over the balance of the year? I do see that mining starting in Q4. Yeah, I mean, at a high level, what I would describe is we had an increase in construction labor in Q1 versus Q4. So we are seeing the ramp up in construction workers and that is impacting the cost.

Don Demarco: The next question is from Don Demarco with National Bank Financial. Please go ahead.

Don Demarco: Thank you operator, and good morning, George and team.

Don Demarco: Guys.

Speaker Change: Serious capex a bit light in Q1, if we just take simply take full year guidance and divide by four.

Speaker Change: Intentional or do you expect to catch up over the balance of the year I do see that open pit mining starting in Q4.

Speaker Change: Yeah, I mean at a high level, what I would describe as we had an increase in construction labor in Q1 versus Q4. So we are seeing the ramp up in construction workers that is impacting the cost.

George Burns: What didn't happen in Q1, we weren't putting into the cost additional equipment that we're installing as part of the construction, and essentially it was a heavy amount of concrete work.

Speaker Change: What didn't happen in Q1, we werent.

Speaker Change: Putting in so the cost additional equipment that were installing as part of the construction.

Speaker Change: Essentially it was.

Speaker Change: Concrete work, what Youll see in Q2, and Q3 is that concrete works finished we'll be doing that mechanical work will be slotting in equipment.

George Burns: What you'll see in Q2 and Q3 is that concrete work's finished, we'll be doing that mechanical work, we'll be slotting in equipment, and you'll be seeing the cost increase. So I would just describe Q2 as expected, and we're on track. Perfect. And so continuing with Scurrius, procurement's complete, should we take that as a mitigating risk to further CAPEX increases? I mean, I know you've talked about labor, but just to the point, like, overall, how would you characterize CAPEX or schedule risk going forward? Well, I mean, first of all, if you look at the categories, you know, we've got the materials we need at site or, you know, in Thessaloniki nearby, so we don't have risk of not having the gear or cost increases on gear.

Speaker Change: And you'll be seeing the cost increase so I would just describe.

Speaker Change: As expected and were on track.

Speaker Change: Perfect.

Speaker Change: And so continue it's curious.

Speaker Change: Procurement is complete and so you would take that as a mitigating risk to further capex increases I mean, I know you've talked about labor, but just to the point like overall, how would you characterize capex or schedule risk going forward at this point.

Speaker Change: Well I mean first of all if you look at the categories. We've got the materials, we need at site or.

Speaker Change: So it says lending nearby so we don't have risk.

Speaker Change: Not having the gear.

Speaker Change: Cost increases on gear, so that would boils down to.

George Burns: So now it boils down to executing the construction schedule that's largely driven on having the workforce we need when we need it and for that workforce to deliver the productivity that we've assumed. And so I've talked quite a bit about we've got good visibility on getting the construction workforce as we need it. Regarding productivity, thus far, including the ramp up that happened in Q1, we continue to see productivity's at or slightly better than what we've assumed. So feeling comfortable that we're on track with schedule. And if we're on track with schedule, we're going to be on track with cost.

Speaker Change: Executing the construction schedule and that's largely driven on having the workforce, we need when we need it and for that were enforced to deliver the productivity that we've assumed.

Speaker Change: And so I've talked quite a bit about we've got good visibility on getting the construction workforce as we needed regarding productivity, thus far including the ramp up that happened in Q1, we continue to see productivity is at or slightly better than what we've assumed so feeling.

Speaker Change: Feeling comfortable that we're on track with schedule and we're on track with schedule, we're going to be on track with cost.

Don Demarco: Okay, thanks for that.

Speaker Change: Okay. Thanks for that and then just as a final question and this is the continuation of what Cosmos asked earlier.

Don Demarco: Then, just as a final question, and this is the continuation of what Cosmos had asked earlier, on the NCIB, I think... You know, you indicated there's a step change increase from 350,000 to over 10 million shares. So what's remarkable to me is just the magnitude of the increase. Can you add some color on what's behind this increase in your intentions? Is it just to give you that flexibility if you need it, or is this really, you're thinking that there will be that material step change increase in utilizing this facility? This ends the idea.

Speaker Change: On the on CIB I think.

Speaker Change: You know you indicated is a step change increase from 350000 over 10 million shares. So what's remarkable to me. It's just the magnitude of the increase.

Speaker Change: Can you add some color on.

Speaker Change: What's behind this increase in your intention is it just to give you that flexibility if you need it.

Speaker Change: Or is this really youre thinking that it will be that material step change increase in.

Speaker Change: Utilizing this facility.

Speaker Change: Defense EIB.

Paul Ferneyhough: Yeah, so I'll pick that up. It's Paul. Really, we're moving from an NCIB that we were using to support some of our long term incentive programs where we have to acquire stock and holding a trust to an NCIB that's focused on returning value to shareholders. As we go through capital allocation decisions and we look at where we believe we are in terms of investment for scurrious delivery of the business on the background of current high gold prices, we have a balance sheet that has the flexibility for us to return some of that capital to shareholders.

Yes, so I'll make a lot of it's Paul.

Speaker Change: Really when moving from an NCI be than we were using to support.

Some of our long term incentive programs, where we have to acquire stock and holiday trust to an NCI be this focus on returning value to shareholders.

Speaker Change: As we go through capital allocation decisions and we look at.

Speaker Change: We believe we are in terms of investment for <unk> delivery of the business on the background of a current high gold prices, we have a balance sheet that has the flexibility for us to return some of that capital to shareholders and so really moving to a N CIB that allows us to acquire up to 5% of our share.

Paul Ferneyhough: And so really moving to an NCIB that allows us to acquire up to 5% of our share capital based on the rules and regulations that govern that program, this is going to be something that now, as we see market conditions over coming weeks and days, where we feel it's appropriate, we're going to be able to step into the market and purchase some of our stock to the benefit of our shareholders. So really this is changing our stance, demonstrating confidence in the financial performance of the business, confidence in where we are with the scurrious project, and therefore looking to reward our shareholders with additional value.

Speaker Change: Capital based on the rules and regulations that come from that program. This is going to be something that now as we see market conditions.

Speaker Change: Over the coming weeks and days.

Speaker Change: Where we feel it's appropriate we're going to get the stuff into the market and purchase some of our stock to the benefit of our shareholders. So really this is a change in our stance.

Speaker Change: Demonstrating confidence in our financial performance of the business confidence and where we are with the <unk> project and therefore looking to reward our shareholders with additional value. So that's what we're going to target to that.

Paul Ferneyhough: So that's what the life target is.

Don Demarco: Okay, thank you for that, Paul.

Speaker Change: Okay. Thank you for that Paul and George.

Don Demarco: And, George and team, that's all for me. Good luck with Q2 and the rest of the year. Thank you.

Speaker Change: Georgia team that's all for me good luck with the Q2 and the rest of the year.

Speaker Change: Thank you.

Speaker Change: The next question is from Lawson Winder with Bank of America Securities. Please go ahead.

Lawson Winder: The next question is from Lawson Winder with Bank of American Securities. Please go ahead. Thank you very much, operator. And good morning, George and Paul.

Lawson Winder: Yeah. Thank you very much operator, and good morning, George and Paul.

Lawson Winder: I'm going to ask you about the buyback again, and ask it in a bit of a different way. And that is, when you budgeted your balance sheet, and your, your liquidity for the build out of Squareias, I mean, I don't think selling those g mining shares was part of that. And so Why not just allocate that entire windfall from G-Mining shares to the buyback? Yeah, thanks for the question. I mean, look, the maximum that we can allocate to the buyback under the NCIB is 5%. That's broadly comparable to the money that we received for the sale of the G mining stocks and also the deferred consideration that we have coming later in the year.

Lawson Winder: I'm going to ask about the buyback again and ask it in a bit of a different way and that is.

Lawson Winder: When you budgeted your balance sheet and your.

Lawson Winder: Your liquidity for the build out of <unk>.

Lawson Winder: I don't think.

Lawson Winder: Selling those G mining shares was part of that and so well.

Lawson Winder: Why not just allocate that entire windfall from hue lighting shares to the buyback.

Lawson Winder: Yes. Thanks for the question I mean look the maximum that we can allocate to the buyback under the CIB is 5%.

Lawson Winder: That's broadly comparable to the money that we received for the size of the G mining stocks and also the <unk>.

Lawson Winder: Third consideration that we have coming later in the year.

Paul Ferneyhough: I wouldn't link the two together. We're just looking to use the NCIB to its maximum amount over a period of time going forwards. The pace at which we do that will be governed by market conditions and we will be opportunistic if market conditions are favourable for us to buy back what we believe are undervalued stocks.

Lawson Winder: I wouldn't link the two together.

Lawson Winder: Just looking to use the M CIB to its maximum amount over a period of time going forwards the pace at which we do that will be governed by market conditions, and we will be opportunistic.

Lawson Winder: If market conditions are favorable for us to buy back what we believe are undervalued stock.

Lawson Winder: Okay and then.

Lawson Winder: Okay, and then just back to Scorius and thinking about Unknown Attendee, Michael Siperco, Lynette Gould, Louw Smith, Steven Reid, Eldorado Gold Unknown Attendee, Michael Siperco, Lynette Gould, Louw Smith, Steven We don't have a lot of visibility on the timing. And so maybe I'd ask the question, you know, to what extent can you sort of plan for that competition? The timings, you know, maybe it's going to work out perfectly. You can just get under the line before some of those infrastructure projects in Germany and elsewhere start to ramp up. But I mean, thinking about it from a budgeting point of view, have you budgeted to any extent the risk of some meaningful inflation in the cost of that skilled labor?

Lawson Winder: Just back to score is and thinking about.

Lawson Winder: Risks around skilled labor availability, and then and thinking about your competition for that skilled labor.

Lawson Winder: There are huge physical programs being rolled out in Germany and will.

Lawson Winder: Probably start to see them in other countries.

Lawson Winder: We don't have a lot of visibility on the timing and so maybe that asked the question.

Lawson Winder: To what extent can you sort of plan for that competition.

Lawson Winder: The timing.

Lawson Winder: Maybe you can work out perfectly you can just get them into the line before some of those infrastructure projects in Germany and elsewhere, it start to ramp up but I mean.

Lawson Winder: Thinking about it from a from a budgeting point of view have you budgeted.

Lawson Winder: Any extent the risk of some meaningful inflation in the cost of that skilled labor.

George Burns: Thanks for the question. Maybe the first thing, just to give you a bit more visibility, we've identified over 700 skilled workers in the EU to support the construction, so that's basically the plan A, B, and C, where we've found available trades workers to meet our schedule. That makes us feel comfortable. In terms of the cost, I'm really not worried about the cost. Depending on the country that the worker comes from, the EU, there is higher costs, say from Scandinavia versus the Balkans, but it's not that material. It's within our estimates and our guidance. And I guess the other question was, these other EU investments, our visibility is that our schedule's ahead of what you just described, so we're not worried about it.

Lawson Winder: Thanks for the question maybe the first thing just to give you a bit more visibility. We've we've identified over 700 skilled workers in the EU to support the construction so that.

Lawson Winder: Basically the plan, a b and C or we.

Lawson Winder: Found available trades workers to meet our schedule that makes us feel comfortable in terms of the cost.

Lawson Winder: We're really not worried about the cost.

Lawson Winder: Depending on the country the work or it comes from the EU there is higher cost save from Scandinavia versus the Balkans, but it's not that material.

Lawson Winder: Our our estimates in our guidance.

Lawson Winder: Yes, I guess to your other question was these other <unk> investments our visibility is that our schedules are ahead of what you just described.

Lawson Winder: We're not worried about it I'd say.

George Burns: And I'd say, you know, the fact we've got Plan B and C gives us that comfort that we'll have the people we need when we need them.

Lawson Winder: The fact that we've got plan B and C gives us that comfort that we'll have the people we need when we need them.

Lawson Winder: Okay.

George Burns: Okay, fantastic. Appreciate it. In addition, in those plans, we are in contact with those companies that we identified to supply labour, so we're actively sharing, exchanging headcount requirements with them, so it's an ongoing process. Conversation in Scurrius.

Lawson Winder: I appreciate it.

Lawson Winder: Our vision.

Lawson Winder: Those in those plans we are in contact with those with.

Lawson Winder: With those companies to be identified to support labor. So we actively.

Sharing exchanging.

Lawson Winder: Head count's deployments with them so.

Lawson Winder: It's ongoing combos.

Lawson Winder: Compensation in <unk>.

Lawson Winder: Okay.

Operator: Okay, thank you both. That's all the time we have today. This concludes the question and answer session and today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. [music] © The Bulletproof Executive 2013

Lawson Winder: Okay. Thank you both.

Lawson Winder: Okay.

Lawson Winder: That's all the time, we have today. This concludes our question and answer session and today's conference call. You may disconnect. Your lines. Thank you for participating.

Lawson Winder: Supporting and haven't tightened.

Lawson Winder: [music].

Lawson Winder: Yeah.

Lawson Winder: [music].