Q3 2025 Eldorado Gold Corp Earnings Call
Thank you for standing by. This is the conference operator. Welcome to the El Dorado, gold, third 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 will be an opportunity to ask questions to join the question queue. You may press star then 1 on your telephone keypad. Do you need assistance during the content call you may signal an operator by pressing star then zero?
I would now like to turn the conference over to a minute gold, vice president, investor relations Communications and external Affairs. Please, go ahead Miss gold.
Thank you, operator, and good morning everyone. I'd like to welcome you to our third 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. Joining me on the call today we have George Burns chief executive officer, Christian Milo president Paul fing how Executive Vice President and Chief Financial Officer. Lo Smith, Executive Vice President development grief and Simon hilly, Executive Vice President operations, and Technical Services. Our release yesterday details, our third quarter, 2025 financial and operating results. This should be read in conjunction with our third 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 Cedar Plus and EDGAR.
All dollar figures discussed today are US Dollars. Unless otherwise stated, we will be speaking to the slides that accompany this webcast, which can be downloaded from our website. After the prepared remarks, we will open the call for Q&A at this time, we will invite analysts to queue for questions. I will now turn the call over to George
Thanks, Lynette, and good morning, everyone.
We are pleased to welcome Christian Milo as president, joining us part of my succession planning. Christian has already been actively engaged with our leadership team, through recent budget and strategy discussions, and has met with a number of our shareholders and analysts since joining last month.
He brings a fresh perspective and a strong focus on our key priorities.
His appointment further strengthens our leadership team as we continue to advance our growth strategy in a position. El Dorado for long-term success.
Turning to the outline for today's call. I'll begin with an overview of our third quarter, 2025 results and highlights. I'll then hand the call over to Christian for his remarks followed by Paul on our financials and then Lo and Simon with an update on projects and operations.
Turning the slide for our third quarter highlights.
We achieved safe production of 115,190 gold ounces and generated approximately $777 million of free cash flow, excluding scurries investment.
Operational performance remains strong at leech benefiting from early processing of the remaining portion of the second.
Or Mac bulk sample.
Had fewer tons placed on the pad and lower grade stack as a result of reduced equipment, availability and short-term. Mine plan, resequencing as well as placement of ore on a test pad for the whole or Ecommerce project.
Fmq crew May maintain stable production while Olympia's had challenges from stockpiled or containing. The viscosity modifier used in the tailings pace back, fill the negatively, impacted the process water chemistry in the flotation circuit.
During the third quarter, we improved management of the stockpile of ore but modest modest negative impacts on metal recovery. May persist, as we continue processing material from affected backs. Phil Stomps and stop files.
We were tightening our 2025 guidance range on gold production and now expect to be between 470 and 490,000 Oz.
Turning the cost, we have revised our 2025 guidance upwards.
Total cash costs are now expected to be between 1175 and 1,250 per ounce sold. And all in sustaining costs are expected to be between 1600 and 1675 per ounce sold.
These increases were primarily driven by 1 record high gold prices and recently enacted higher royalty rates in Turkey, a driving higher royalty, expense and second
Lower than expected performance at Olympius has resulted in lower byproduct sales, higher processing costs, with production expected to be at the lower end of the guidance range.
Additionally, our for 2025, we also expect sustaining Capital costs to be at the higher end of our 145 to 170 million. Guidance range in line with previous 2025 guidance, operations. Growth capital is expected to be between 245 and 270 million.
Lastly, It's Curious project capital investment for 2025 has been revised upward to between 440 and 470 million. As a result of the acceleration of work originally planned, for 2026 across several non-critical, path, areas, and proactive de-risking efforts.
The estimated overall project capital remains unchanged at $1.06.
We are on track with accelerated operational capital and are maintaining our guidance of $80 million to $100 million for 2025.
Turning the slide 5 in the third quarter for last time. Injury frequency rate was 1.21 in increase from the ltifr of 1.100 in the third quarter of 2024.
We recognize there was always room for improvement and remain committed to continually strengthening our safety performance.
Throughout 2025 for advancing health and safety initiatives. These efforts are reinforced by the multi-year rollout of our courageous safety leadership program launched earlier this year.
On sustainability, our team in Quebec recently welcomed a delegation of external and internal verifiers to complete a verification against the standards of.
1, our sustainability integrated management system to the mining. Association of Canada's towards sustainable mining initiative and 3. The world gold council's, responsible gold. Mining principles.
The objective of the integrated verification was to demonstrate our commitment to health and safety social, and environment performance.
While the reports are in the process of being finalized, we are encouraged by the preliminary results and look forward to sharing our performance when they become available.
During the quarter, we continue to execute on our share repurchase program buying back and canceling approximately 3 million shares for a total of 75 79 million.
For the 9 months. Ended September 30th, 2025 repurchases have been approximately 5 million shares for a total of 123 million.
The program, reflects our continued commitment to discipline Capital, allocation, and returning value to our shareholders.
With that, I'll turn the call over to Christian to say a few words.
Thanks George and good morning everyone.
Very excited to be joining you today in my new role at El Dorado. I only recently joined the company in September and I am pleased with the organization's strong culture, talented people, and high-quality asset base, which includes operations and projects in attractive mining jurisdictions with long average mine lives and significant prospectivity throughout the portfolio.
I've recently I've already spent considerable time with our leadership teams through initial budget, strategy meetings.
These sessions have given me a strong sense of the ambition opportunities and discipline that will guide the company during the next phase of the strategy.
As well as the strong alignment around delivering sustainable value to all stakeholders.
What stood out most to me is the depth of talent and capacity across the organization and the clear commitment to safety operational. On the ESG Excellence as well as discipline Capital allocation, my focus in the months ahead will be on supporting our teams as we advance our near-term, priorities and on ensuring that we've positioned, we're positioned to deliver our long-term strategies as we go through the school's.
Having just returned from our sites in turkey and with visits, planned to Greece and Quebec in the coming months. I'll have the have had the opportunity to see all the mines, firsthand the visit so far. Stood out to me with the excellent commitment and pride on display. It's been impressive to witness the energy and collaborations of our teams on the ground. And I look forward to continuing to engage with more of our sites, communities, and investors and months ahead.
With that, I'll now hand over to Paul to walk through the financial results.
thank you, Christian, moving to slide 6, our third quarter results, reflect consistent, operational performance and are aligned with our Titan full year production guidance,
Robust gold prices. Have contributed positively to cash flow from our operations further supporting our capacity to execute our strategic and operational investments in the coming months.
In Q3 belorado reported net earnings from continuing operations of 57 million.
Equivalent to $0.28 per share.
Excluding 1-time, non-recurring items, adjusted, net earnings were 82 million or 41 cents per share for the quarter. The principal adjusting item was a 22 million unrealized loss on derivative instruments primarily due to Gold commodity swaps.
Free cash flow for the quarter registered at a negative $87 million. However, underlying free cash flow, excluding capital investments in the scariest project, amounted to a positive $77 million. Turning to our producing assets, cash flow from operating activities before changes in working capital totaled $184 million during the quarter.
Our corporate gold price collars will continue to settle monthly through the year end, with approximately 50,000 oz outstanding for the fourth quarter and an upper limit of $2,667 per ounce.
Following the expiration of these collars. We will be fully exposed to Market gold prices with only minimal hedging. Derivatives remaining tied to the scariest project financing facility.
Production costs for the quarter. Reached 164 million representing a 23 million increase over Q3 2024.
1/3 of this increase is attributable to higher royalties while the remainder stems from the rising labor costs in Turkey, where inflation continues to supply, local currency and devaluation. And at the Mac where additional labor and contractor expenses, were encouraged due to the plan, deepening of the triangle mine.
In Q3, total cash costs were $1,195 per ounce sold and all-in sustaining costs were $1,679 per ounce sold.
Gross Capital Investments that are operating mines, total 58 million for the quarter.
A Tesla dag. These expenditures include in planned waste stripping and Equipment costs related to construction of the north Heap leech pads. Second phase
At the Lac Complex, investments focused on the Oracle development, as well as the construction of the North Basin Water Management Systems facility and initial procurement for the recently approved paste plant.
Progress continued at SkyUs, including facility and process construction, as well as early mining activities in both the open pit and underground areas.
Throughout the quarter, approximately $138 million was invested in the project, supplemented by an additional $18 million in accelerated operational capital for the self-performance of open-pit mining operations.
Current tax expense for Q3 was $52 million, reflecting a $13 million increase from the prior year period.
Attributed to improved profitability in Canada and turkey. A
Deferred tax expense to 2 million. Compared with a recovery of 11 million in Q3 2024. This included a million dollar expense related related to net movements against the US dollar mainly driven by the Lyra and Euro partially offset by the reversal of temporary differences.
Advancing to slide 7. Our balance sheet remains robust. Providing the flexibility needed to support growth initiatives and return Capital to shareholders.
With liquidity totaling approximately 1.1 billion dollars, we continue to be well positioned to invest in our cash generating assets.
Advanced curiosity towards completion and creating additional value through disciplined capital allocation and the NCIP program.
Earlier this month, with curious production coming ever closer, several staff members attended LME Week in London, the foremost annual event for the global metals community.
Regarding the sale of our high-quality clean copper-gold concentrate from Curious.
As a result, we anticipate finalizing initial multi-year off-tank contracts by year-end.
With this overview concluded, I will now hand the call over to low who will present the highlights of our Greek assets.
Thanks Paul and good morning everyone.
Let's begin with slide 8 which highlights the progress at our scooters, Copic on Project.
As of the end of Q3 overall progress on Phase 2 Construction in 73% and 86% when including Phase 1.
We remain on track to achieve first copper gold concentrate production towards the end of the first quarter of 2026 with commercial production, expected in mid 2026.
We now have approximately 2,000 Personnel on site, including 236 members of the scooters operational team. This strong Workforce has enabled us to deal with several areas early, our skilled labor ramp up began with concrete subtle and mechanical trades and is now transitioning to electrical piping and control systems.
Well, we've exceeded our labor targets. Our focus remains on aligning skilled resources with active work fronts to support our execution plan.
From a productivity standpoint, construction performance continues to track at or slightly above planned across the site.
On the bottom of slide 8, you'll see a photo of the open pit.
This week, our fourth crew started operating.
Enabling the transition to a 24/7 rotation.
At the end of October, we had stockpiled approximately 531,000 tons from the open pit and an additional approximately 93,000 tons from the underground, containing an estimated 21,000 oz of gold and 5.5 million tons of copper.
Positioning us, well, as we prepare for commissioning and additional concentrate production.
Turning to slide 9.
The photos here. And on the following slides illustrate, the steady advancement of work underway.
Infrastructure around the process plant continues to progress.
Final foundations for support buildings were completed and early October and structural mechanical piping and electrical work. Our ongoing across the key areas, including the substation line, plan flotation blowers compressors, and gooey area.
The Control building structure is complete, with electrical installations underway on the first two levels.
We have completed pre-commissioning after the concentrate filter, presses, and water testing of the flotation cells and tanks.
Reparation for pre-commissioning; the Pebble Crusher is in progress.
Moving to slide 10.
Hope you guys continue on the thickness. Water testing of the first two thicknesses is complete, and piping installations have commenced following the completion of the pipe rack installations.
Slightly 11 focuses.
On the filter tailings, plant the remaining on the critical path.
As of the end of October, structural steel installation at the front of the tailings building is approximately 92% complete.
The time-lapse video showcasing this progress is linked for reference.
Mechanical work progressed with the assembly of the filter presses, with 4 complete at the end of the third quarter. The remaining 1 is planned for completion in November, with each press equipped with 98 plates.
The compressor building steel structure is 98% complete, and all six compressors and all receivers have been installed.
As seen on slide 12, the construction of the building structure is progressing.
Concrete workers reached the final elevation above the foundation. With the final wall lifts advancing, the primary crusher is assembled in position, and workers are underway on the cable tray and internal structural steel stairways and platforms.
Conveyor foundations between the primary crusher and the process plant, including the course or stockpile, are now complete.
Conveyor reassembly and support stealing. Installation is well underway.
Has been installed with pre-assembly continuing on the remaining two feeders.
Moving to Olympus on slide 14.
Third quarter gold production was 13,597 ounces, and total cash costs were $1,869 per pound.
Production was impacted by flotation, Stoke, and circuit stability issues earlier in the year, which led to a modification of the pace. We adjusted the backfill blend to eliminate viscosity modifiers in the backfill.
While plant operations recovered substantially in Q2, affected stockpiles continued to be processed in the third quarter, despite efforts to minimize negative impacts in the processing circuit. Ongoing processes faced a chemistry of challenges that further reduced metal recovery during the quarter, while mitigation measures were underway, resulting in modest negative impacts on the middle. Recovery may assist as we continue processing material from affected backfield stocks and stop PS.
Focus continued on the plan and expansion to 650,000 tons per UNAM.
During the quarter, the early works were advancing, and demolition activities were underway within the concentrator.
All of the major equipment, including the Vertigo flotation cells, thickness cyclones, and earum, have been delivered. We expect progressive commissioning and ramp-up in the second half of 2026. We remain committed to driving transformation at Olympus. A comprehensive program is now underway to modernize and optimize the process plant and surrounding infrastructure. Alongside a leadership and skills development program, we are strengthening capabilities across all levels of the organization.
I'll stop there and hand it over to Simon to discuss the students and Canadian operations.
Thanks standing in Turkey a and flight 15. You should have our production total, 37,184 Oz with total cash cost of 1,399 per ounce sold.
The decrease in production during the quarter compared to Q2 2025 was primarily due to lower tons of mined material, as a result of lower-than-planned equipment availability and the resulting short-term resequencing of the mine plan.
Fewer times placed on the pad and lower grades from prior periods.
Along with the placement of or on the test pad to support the whole lot of Omer study.
The decision has been made to proceed with the whole lower obligation and the capital costs of approximately $35 million, reinforcing our commitment to enhancing permeability, improving leach kinetics, and shortening the lead cycle.
Over the life of the mine, we expect operating and capital cost savings driven by a shortened life cycle. Specifically, the shorter life cycle is anticipated to reduce sustaining capital expenditures through lower consumer law requirements, such as liners and associated pipelines.
Installation of the e-commerce and drums is expected in 2027.
With long lead items expected to be ordered in Q4 of 2025.
We made a strategic decision to decouple the whole order of operation from the HBG screen, reflecting our continued focus on capital discipline.
To support future optimization, geometrical studies will continue in order to characterize future mining phases and will evaluate the benefits of additional screening for the HPGR.
Case studies are expected in the first half of 2026.
On slide 16 at FF2, crew.
Third quarter gold production was 17,586 oz at total cash costs of $1,522 per ounce sold.
Gold production, throughput, and average gold grade were in line with the plan for the quarter.
And now, moving to Lac the Lac, complex on slide 17.
Delivered production of 46,823 oz at a total cash cost of $767 for our salt.
Third quarter production was positively impacted by higher throughput driven by Pro processing. The remaining portion of the second format box sample.
The higher-grade ore was treated in a blend with triangle ore and performed very well.
I would also like to congratulate our team at Lemax for hosting nearly 30 Quebec members of Parliament of Canada during the quarter.
Showcased our commitment to innovation, operational excellence, and sustainability leadership. And with that, I'll turn back to George for his closing remarks.
Thanks, team, for concluding today's call. I'm pleased to announce that yesterday we finalized the sale of the remaining gold project, Certes.
This transaction marks the end of a lengthy process aimed at divesting non-core assets within the portfolio. I look forward to monitoring the progress of the project, given our retained equity and royalty.
Gold prices have remained strong, so we've seen some sharp swings lately.
Through this environment, we remain strongly committed to disciplined cost management to protect and expand our margins.
Capital allocation continues to be a key priority for returning capital to shareholders through an enhanced share buyback program, while at the same time advancing high-return growth initiatives across our global portfolio.
This positions us for sustained growth, margin expansion, and the driving of enhanced shareholder value as we enter the next phase of Eldorado's transformation.
Thank you for your time, and we'll now turn it over to the operator for questions from our analysts.
We will now begin the question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys to enjoy your question. Please press star, then 2.
The first question comes from Kosmosu, with CIBC.
Please go ahead.
Hi. Thanks, George and team. And welcome, Christian.
Uh, maybe my first question is on a transaction that happened earlier today: Press NEOS buying Pro Gold, with the support of Eldorado Gold.
Um, I guess my question is: has George always had this as the desired outcome for that investment? And I guess, on a broader scale, you know, MMA's heating up in the sector. How do you see Eldorado positioned?
Sure, on Probe. I mean, we took a toe hold in Probe a number of years back.
With a view that it was a property package that could have potential sub, supplemental, or to feed our really, um, permitted meal capacity that exceeds our current run rate. And so, you know, our hope was that they would discover some high-grade, uh, high value.
Uh, underground opportunities that subsequently could be part of the Lima complex.
We're in the how that has evolved as they discovered a large, low-grade open-pit opportunity.
And as we assess that opportunity, it really didn't stack up with our other capital allocation opportunities.
And so, when we heard, uh, this week that Fris had made an offer, it didn't fit our strategic initiatives going forward. And so, we did, uh, agree to sign on to support that acquisition.
On the bigger, broader M&A.
Opportunities ahead. I mean, an elder Auto. Our our focus is head down deliver the high value project scurries. Olympus expansion and other Investments across the portfolio. That's our priority. Um, you know, as as we come out of uh, delivering scurries in the first half of next year and we're going to be positioned.
To continue to invest within the portfolio, but look for other opportunities externally. So I think we're in a great position in a great market. Um, but for now let's head down and focus on what we're doing.
Perfect. Thanks, George. Maybe switching gears a little bit to scariest. Uh, certainly uh, sounds good to hear that. Um, you know, it is on time.
Uh, for first concentrate in Q1 2026. Uh, as you have mentioned, you know the filtered tailings plant is on the critical path.
Uh, loaded a good job in terms of summarizing it, but is there anything else that's on the critical path? That's number one.
And number 2, it is a fairly tight schedule, you know, delivering first concentrate by Q1 2026, and it kind of straddles your holiday season.
Uh, I know there's been some changes in the schedule in terms of...
Uh, workers taking time off during the holiday season. Does it really go kind of dead in Greece during those months or during those weeks? And how should we look at it in terms of kind of like looking at the risk on the timeline for delivery by Q1 2026?
Uh, thanks for the question, Cosmos. Yeah, so for the critical path, you know, the dry stack filter plant, given the short or the small footprint that we're dealing with, there is the key focus for us. Obviously, everything in front of that.
have to be done and constructed on time to be able to put
Or through that filter facility. But I just tell there, there's nothing at this point that we're worried about. Now looking forward, you get the nail on the head; it's the transition to get the additional trades on piping, the electrical and control system that are critical to delivering everything ahead of the dry stack filter plan.
I tell you, we have good visibility on that. Um, the transition is evolving weak over a week month, over a month and we'll continue right up to the first quarter and then they'll be a dramatic drop off in construction workers and a huge focus on preparing for commissioning. Um, so we're feeling good about that transition. Uh, we've got visibility on the required workers over the next 5 months. Say um, and as we say, we're on track to deliver.
first concentrated at the end of the first quarter,
Great.
And maybe just 1 last question on the Tisa quickly. Um, the whole a glamour project. Um could you maybe remind us what's the potential impact here on on recovery on throughput and is it really just overall you know, kind of
Potentially having less wear and tear on the HPGR longer term. Is that what we're trying to do here?
I think customer Simon. Hi, Simon.
The um the Halo gum ration, the purpose of that is is primarily to uh enhance uh permeability in the leech pad. Uh, so that we get um,
A good, uh, contact with the, uh, lexion and the uh, all particles.
and so,
where we see the best benefit there is, uh, as we, we've reported previously, we've got a very long lead cycle. A lead cycle, currently is sort of around 300 days on average with the enhanced uh, permeability that comes with the whole of operation.
We expect that to, we expect to see that reduced to 200 days. That provides us with, um, the primary benefit of obviously, um,
getting, um, our returns faster in terms of metal recovery. Uh, but also, uh, less infrastructure requirements, uh, in the longer term because we need less footprint in order to, um, to lead the the tons in the plant. So, at the moment,
We're not um, planning any um, enhanced recovery in the model.
But, uh, faster, kinetics, uh, generally are a positive sign for that in the long term.
Yeah, thanks, Simon. I forgot it. That's, uh, the leech cycle is that long at 300 days, so 200 days certainly gives it, uh, you know, much needed benefits. So great. Uh, thanks, uh, everyone. Um, those are all the questions I have. Happy Halloween, and, uh, thanks once again.
Thank you.
The next question comes from Tanya jakis connect with kosha bank. Please go ahead.
Oh, great. Good morning, everybody. And thank you so much for taking my three questions and welcome Christian on board. Um, so maybe George, can I start with you? I just saw on the stories. Um, can I just review with you? We've got that end of Q1 for the concentrate. Um,
First Step, uh, gold.
A poor. We are then going commercial by mid 2026. Can you remind me again? What your definition for commercial production is so that we can monitor the correct, you know, 60% of the male or whatever. However, you're going to Define it so we can model that. And then, can you remind me from commercial, when do we actually get to steady state?
And what do we need to get there? So that's my first question.
Yeah, thanks for the question, Tanya. Um, on the commercial production.
We're expecting to be at 80% of design nameplate throughput.
Uh, at that point and then expect to get the the rest to 100% by the end of the year.
Um,
So that's the key criteria. Um, we're feeling comfortable with that given that it's a single flotation circuit. You know, Olympus is much more complex with three concentrates.
and we've got
Already. Uh, some of our operators from Olympus are currently going through training at that particular facility, and I think we're in good shape to deliver that ramp-up.
um,
Okay. Sorry, is 80% of designed cake capacity for commercial use over 30 days?
I believe that's correct.
Okay. And then from midyear, you expect six months, really, of ramp-up to get to nameplate by the end of 2026? Is that what I heard? Is that correct? That's correct. That's what we're assuming.
Okay.
And then sorry. And, and with that, um, you know, the old technical report and I say old because it is quite outdated. When are we going to have a better understanding? Obviously, as soon as you operate, you have a better understanding on operating costs, but when is the market going to be, given an update on costing, um, for this operation both on on the, you know, the operating and and sort of the capital sustaining cost.
Yeah. So we'll be updating the market and our 2026 guidance in q1 and with that will include the remaining Capital spend and the uh operating cost post commercial production. So that'll be the first window just just to reference back to the technical study. So I mean we we completed that technical study it.
Just prior to getting the financing in place and then initiating construction, we only have a state of how the construction has been. But again, we'll be updating that as we work our way through next year and get the actual results that can then be built into an updated technical study.
Okay, so we would do. So you are expecting to give us an updated, technical study in 2026.
No, I’d say we’re going to collect the data from 2026, and that will inform the timing and results in an updated study.
So, we haven't received the data on that; we're waiting for the results.
Okay, all right. Um, and then just, secondly, as we come towards your end, I know in December you'll be releasing your reserves and resources. We're literally a month away, or thereabouts, for your reserves and resources. Can you talk to me about how you were thinking about cut-off grades? What were you thinking about inflation on your costs? You know, gold price inputs?
And how do these reserves look and resources?
Yeah, so I mean, the first thing on the metal prices. So, we're, we're in the process of determining where to land on, um, updating our reserve price assumptions. You know, we use a lookbook on metal prices, as well as, uh, staying consistent with our peer group. So, we're expecting a modest increase in metal prices. In our focus is to keep our reserve price conservative, and we have very strong margins to drive profitability in the company. So I just tell you, we'll be consistent with the peers of modest increase in middle price assumptions. And you know, we do all this in the fourth quarter at El Dorado.
So that we have the latest and greatest information to support our budget for next year and our guidance that will set in the first quarter. So, in terms of inflation,
Uh, cutoff grades. I mean, we're working through all those as we speak, and we use actual data and project through our life-of-mine studies that are done during the summer to set those.
Assumptions: So, it's a work in progress. I would tell you we're not expecting any radical change in any of those inputs. Um, modest increase in rental price assumption.
Okay. And and then and you know, in do you expect to replace? Do you think your reserves this year?
Yeah, I mean, we haven't finished the work. We're feeling good about it. Uh, stay tuned. We're not far away from.
releasing that information.
And then, I guess my final question.
Christian.
On board, Christian. And you've mentioned in your opening remarks that you're looking forward to the next phase of the strategy and you visited all of the operations. So, maybe you can share with us, as you look at the company, what are your top priorities for the next 12 months?
Yeah. Thanks, DE. And actually, just to clarify, I haven't visited them all yet. I said that in the next month, I'll visit COBc and Greece. I'm sort of following along with the pre-planned visits in our budget strategy cycle here. Um, but I've been really impressed with what I've seen so far. Um, obviously, seeing a lot of minds around the world are the ones in Turkey that I got to visit last week or the week before. Very impressive in terms of an ESG approach, in terms of how they operate, the longevity of some of the team, and just the skill and experience and reputation in the industry. Um, in terms of priorities, really, for me right now, it's really getting an opportunity to settle in. Um, for me, when I came in, I was looking at the culture and how I could slot into a team, and really the transition with George. I think this is a wonderful period of time for me to just get caught up without the pressure of having that quick change that you see in our industry. It happens quite often, uh, overnight. And, um, get up to speed with the budgets. We're going through that next phase of strategy for the five years coming. Uh, you know, one squeeze up and...
And I think critical to us will be that Postgres cash flow inflection points and how to allocate the capital. So, in our sort of 2030 strategy planning, that'll be something we're going to be looking at very closely. I don't have any answers for you today specifically because I think we're going through that process. But, you know, it's a wonderful time to be joining a group like this where, for me, the culture fit was really good.
The team is diverse and deep, and I think the spread of assets is wonderful. The exploration of side and the long line lives already in the portfolio is really exciting. There are growth projects in here that are very manageable from our own cash flow. So, it's about building all those into the next phase of the strategy. It's sort of in flux and turns to cash flow generation from pure spending and building crews over the last couple of years.
Okay. So I guess what I'm hearing from you and maybe I don't want to, you know, have my own assumptions that maybe you can tell me if this is correct. So you've you've taken a look at the team, the culture you're happy with that, you're uh looking to get stories behind and producing so that we can then number 2, look at Capital allocation whether that's continued. Share buyback. Dividends etc. Etc, for return to shareholders. Maybe you can talk about the portfolio itself like, what is pamama stand in here? Um, any of the other assets, the probe is non-core, anything else that you see non-core other assets that you want to push through, um, you know, further in the the Allure.
Strategy.
That's a for some questions, actually.
Um, I think at this stage, when I looked at it, you know,
exploration and just continuing to extend and Advance my life as critical. And now there's an opportunity with these kind of gold prices and this environment and again my superficial or really look is there's real opportunity to spend some money and focus on that. There's a great team here. I think that has plans and excitement around our current assets and in the countries that we currently operate. So I think that'll be 1 of the key elements and parameter Hill. I mean, literally going through that phase of I think getting eia updated and submitted. So, you know, assuming there's a permit over the next year or so, it would be nice to put that into the plans. I don't think we're quite ready to actually build the timing in yet, um, but I think there's been a good job done in Greece to build the sort of social license and the acceptance of the relationships. And when you look at squares at Olympus, uh, there's a really nice platform. So I think Parham could come in afterwards, but I can't commit to timing at this stage, obviously. And um, as George alluded to, I think there are these opportunities which Simon was saying in Turkey a to continue to improve and hand.
and,
Develop the operations that are already underway and are performing well, and in Quebec as well. There are expiration opportunities, with good results coming out of the Warmack underground, and there is an ability to expand that plant if there’s enough wherewithal. So, all those things could be part of the plan. But, you know, timing and specific commitments, I think, are a little bit early on.
That, but that's a good part. Good place to park some of the capital of the time, I think.
Okay. Okay. Look forward to working with you.
Next time.
The next question comes from Don DeMarco with National Bank Financial. Please go ahead.
Thank you, operator. And, uh, good morning, good afternoon, George, and uh, or good morning or good afternoon, George and Christian.
That they may persist for some time.
Um, and then concurrently, you've got this expansion underway. Does that expansion perhaps, uh,
Complicate things with regard to resolving the challenges in the flotation circuit. And maybe, if you could, just give a little bit more detail on when you think you might see a rebound in recoveries.
Well, I think maybe starting on the recoveries, I mean, we've seen a rebound just in the last two months. So when we're successful at managing the feed into the plant and not getting a slug of this viscosity modifier in the plant, we're seeing a good recovery. So it's been good the last two months.
But if we get a slug of this material in, um, it messes up the processed water, and it takes time to clean it up. So we end up blowing throughput. We end up getting lower recovery, and that's the reality. Looking backwards, as low mentioned.
You know, this is a cut and fill mining uh method underground and so these we put this viscosity modifier in the cemented back, filling stoves but between 2 3 of last year and 21 of this year when we we we realized we had this problem. So as we my next to all those Stokes during that period, we have the risk of getting that viscosity modifier into that fresh oil.
And that residual risk will remain until the second quarter of next year.
Obviously, our mind operators and our plant operators are managing the blends day-to-day, shift by shift.
have a design to take the
The higher risk, uh, stockpile, or they'll be coming out of the underground.
Um, and process it before it goes into the plant. So there were crushing and screening, um, and taking the coarse material that won't have.
A significant amount of that modifier in it goes into the mill. For the fine material, we're looking at permitting and the ability to wash it.
And remove that most of that viscosity modifier. So later on that could be put in the plant. So these are the things that we're doing and you know, it is fair to say there's some risk remaining in the Q2 but I'd say we're getting better at managing it. We're trying to be as uh proactive as we can to not have another significant upset but yeah that's low said the risk will remain.
Um, in terms of the expansion, really there's no connection between this problem and the expansion. We're basically, um, having to move some of the infrastructure, like piping and cable trays, to make room for the equipment that we're installing. So that work is in progress.
Um, you know, we'll get that construction completed. Uh, next year, it'll be a staged approach. Um.
Some of the equipment will get stalled earlier in the year; that will help.
Improve the performance of the mill. The throughput won't happen until we get the grinding mill in, and that happens, uh, in the second half. So, you know, we're expecting some really exciting results that come out of Olympus.
Once we get this expansion completed, that's no longer the bottleneck. It'll be back on the underground mount mine ramp-up, and you know, as we've talked over the last two years, we've done a really good job of evaluating the underground. So, we get this mill expansion, production goes up, and margins expand.
And we get this viscosity modifier behind us, the Olympus will be a key contributor to cash flow.
Okay.
Thank you for that answer.
Um, and then on to something else. With the guidance adjustment that we saw with Q3, costs are higher. But, of course, some of the drivers of those costs are outside of your control, such as the turkey royalty rates and so on. Could you just give us maybe a rough percentage of...
Looking at the delta in that cost increase, how much was within your control and how much was not?
Hi, it's Paul here. So I think I I heard you you were breaking up a little bit but um the questions around are increasing uh our guidance for all in sustaining cost.
Um, we're now assuming an average price to the end of the year of 1000, an ounce. And at that level we continue to see increased um, royalties both from the absolute cost. But also the increase in the Slate of royalties that we saw in Turkey a early in the year and that's responsible for around 50% of the increase. And then the second 50% is really just a reflection of uh, Olympia's performance with those recovery issues and lower volume, and that has pushed up our, uh, per ounce costs. So it's 50/50 between them. We're not actually seeing any uh, real inflation in costs, uh, in terms of versus our guidance for the year outside of that.
Okay, thank you for that. And then, just as a, a final question, uh, also in Q3, we saw a, a big increase in your share, BuyBacks, uh, a quarter of a quarter. So, I just was wondering, um,
Uh, you know, going forward, do you expect to maintain the level of buybacks in Q3?
Or maybe ease a bit, increase a bit, just kind of to get your sense at this point. Um, and then also while on the topic of capital allocation, maybe even any additional color on a dividend or the timing of a dividend, as I know Christian brought that up in his response to Tanya. Thank you.
Yeah, sure. So as far as the share buybacks are concerned, we signaled that, uh, quarter ends at Q2 that we had extended our NCIB program for another 12 months, uh, with a maximum repurchase of 5% of our outstanding share capital. We do intend to be opportunistic around that. We think our shares are incredibly good value at the current level, um, but really, it's when there are opportunities in the market or if we're underperforming, then we will, uh, actually use the NCIB program to purchase those shares.
As a good sort of working average. I I would assume over the next 3 quarters that we continue to buy an approximately the same rate, okay? Okay. Um, as, as far as, uh, Dividends are concerned, um, you know, I think we we haven't changed our messaging around this. Next year is a, uh, an inflection point for us. In terms of cash flow. Generation are curious comes into operation, uh, and that feels like a great time for us to then be, considering if it's the right moment to put in place, a sustainable dividend that, um, we can stand behind going forwards. And so I think that will be back on the agenda for us in terms of capital, allocation, as we move into, um, next year.
Okay, great. Well, that's all for me. Thank you again for taking my question and, uh, good luck with the rest of the year.
Thanks Don.
The next question comes from the lender with Bank of America. Please go ahead.
Uh, thank you very much. Operator, and good morning, George, Christian, and Paul. Thank you for today's update. If I could, um, maybe push you a bit more on 2026 in the capex outlook. So for 2025 sustaining capex, we're running at the high end of the $145 to $170 million range. When you look to next year, I mean, is that higher end of the 2025 a pretty reasonable baseline for 2026? And then, actually, you know what, I'd ask a similar question for the growth capital at the operations. I mean, is the current $245 to $270 million range a decent level heading into next year?
Well, again, we'll be updating you in the first quarter on next year's guidance. Maybe a couple of comments that might help.
You know, the Olympus expansion, that's uh, obviously underway in in Quebec. Um, you know, we've we're completing the second bulk sample, but we're in the middle of Permitting for a pace, backfield plant, an operating permit. So the timing on that is uncertain, but they'll be Capital, uh, to spend on Olympia's it when we get those permits. So stay tuned for that.
um, you know
As well, Simon's walk through the whole Oracle, and we've committed $35 million. So we got to build all that into next year's plan depending on permitting. Um, I'd say those are the moving parts. The rest of the portfolio is pretty consistent.
Um, and then on the growth capital, well,
Beyond that is Scurries. Obviously, we've kind of walked through that Q1 is the bulk of the spending next year in Scurries, and we're in commissioning in Q2. So it'll just be some residual growth capital happening there. As you look forward on Scurries, though, remember that.
Over the next 3 years, we'll be investing in that underground to to get the infrastructure in place for it to ramp up to be the sole fee to the plant, at the end of the next decade. So there's incremental growth Capital, it'll be happening over the 5 year plan. Um next year some of that capital on the interim will begin to to to be spent but the ramp up really starts happening at 27 so it's hard to to give you specific numbers. Uh next year hopefully I gave you a little bit of color there and you know it's not too far away from given the specific updated guidance on 26.
Yeah. Actually, that's summary was was very helpful. Um, and, and you know, I just would want to say, you know, it's, it's, it's impressive. That that score is remains on track. And if I met and just to cover off, potentiality, should there be any delay? What, what would be a rough weekly or or monthly holding cost of of just keeping that going for a slightly extended period of time?
Yeah, the way I would describe it, we're comfortable. We have all the equipment and materials there, so there's no risk on that side. We have the workforce; we're over 2,000 people at the site right now, construction and operations ramped up. So, the impact next year, if for some reason it took a little bit longer to get the first concentrate, those fixed costs.
Then we are going to spend on a monthly basis is about $1 million. So,
That’s really the impact of a delay.
Okay, a relatively small percent of the overall capex. Thanks for that. And then, if I could...
I think I've asked you this before, but I acknowledge you do not like to give guidance on gold production for on a quarterly basis. Um, just with Kesla Dad.
um, there, there's obviously a lot of variability when, when it comes to the um, the the the leeching times
Can you give us any sort of, um, directional point or, um, or hint here on Q4? Just when you consider what was stacked at the end of Q2, what was stacked in Q3? Um, and...
Yeah, I’ll just leave it there. Anything would be very helpful.
Yeah, I mean again, point you back to guidance. Although in 2023, we had some negative impacts, we're still going to hit our guidance at KISS for the year. As you say, Q4 is a little bit tough; we had a little replacements.
Precisely understanding how that's going to impact Q4 versus Q1 is difficult to say. There's a bit of art and science in heat bleaching. But all I can tell you at this point is we're comfortable we're going to be within guidance at the acidic for the year. Um, and so, for Q4, don't expect anything dramatic one way or another. It's going to be a good year to get.
A, thank you very much, guys.
Thank you.
That's all the time we have for 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.