Operator: Thank you for standing by. This is the conference operator. Welcome to the Eldorado Gold Third Quarter 2026 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 one on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I would now like to turn the conference over to Lynette Gould, Vice President, Investor Relations, Communications, and External Affairs. Please go ahead, Ms. Gould.
Lynette Gould: Thank you, operator, and good morning, everyone. I would like to welcome you to our conference call to discuss our Q3 2026 results. 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 Christian Milau, President and Chief Executive Officer, Paul Ferneyhough, Executive Vice President, Strategy and Chief Financial Officer, and Simon Hille, Executive Vice President and Chief Operating Officer. Our release yesterday detailed our Q3 2026 financial and operating results.
Lynette Gould: The release should be read in conjunction with our Q3 2026 financial statements and management's discussions and analysis, both of which are available on our website and have been filed on SEDAR+ and EDGAR. All dollar figures discussed today are USD, unless otherwise stated. For clarity, we have rounded certain figures for the purposes of this conference call. 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 which time we will invite analysts to queue for questions. I will now turn the call over to Christian.
Christian Milau: Thanks, Lynette, and good morning. I will begin with an overview of the Q3 and an update on Skouries. As I begin my first quarterly call as CEO, my focus is on building on Eldorado's high-quality, long-life asset base and the investments already made while improving execution consistency, enhancing capital discipline, and converting those investments into stronger cash flow and per share value. With two new operations advancing through commissioning and ramp-up, together with significant exploration potential across the portfolio, you should expect us to set clear expectations, report transparently on our progress, and be disciplined in how we allocate capital and deliver our long-term plan. I cannot emphasize enough that our focus is on creating sustainable long-term value. We are making decisions with that objective in mind while remaining disciplined on near-term execution, capital allocation, and returns.
Christian Milau: An important part of that discipline is how we approach project development and execution. With our recently hired and enhanced projects team embedded across the business, we have strengthened our approach to project governance. Going forward, we do not expect to undertake any significant capital project without the projects team involved from the outset, bringing greater discipline and consistency to project evaluation, planning, execution, and oversight. The Skouries inauguration earlier this month was a proud moment for our team, and the positive response from government representatives, including Prime Minister Mitsotakis, local communities, and other stakeholders, reinforced the significance of this project for Greece and the region. In addition, Skouries was designated a strategic project by the European Commission, and in the next week or so, we expect to be transporting our first batch of European-produced concentrate to a European smelter just a few hours from Skouries.
Christian Milau: This is a key milestone for the team. Earlier in September, analysts and investors visited the site and saw firsthand the progress achieved as the operation advances through ramp-up. This week we announced our first filtered tails, which was a critical milestone allowing the process plant to operate continuously and to start the ramp-up towards commercial production during this quarter. This is an exciting time for Skouries and all our partners and stakeholders. I also want to thank George for his leadership over the past nine years and for the strong foundation he helped build. I am pleased that he will remain an important shareholder, supporter, and board member. Turning to the quarter, the quarter marked an important step forward for Eldorado. Skouries produced first copper gold concentrate, and McIlvenna Bay continued to ramp up following first copper and zinc concentrate.
Christian Milau: We expect both operations to achieve commercial production in late Q4. At Skouries, the ramp-up has taken longer and cost more than we expected, and it is important that we acknowledge that directly. Our immediate priority is to safely complete the remaining commissioning work, achieve commercial production, and establish stable, predictable operating performance. We are building strong momentum toward that goal and are encouraged by the progress we are seeing. Based on our year-to-date performance, we have revised our 2026 production guidance. For our operating assets, excluding Skouries and McIlvenna Bay, we now expect gold production of 410,000 to 430,000 ounces. Strong performance at Lamaque is partially offsetting lower expected production at Kışladağ and Olympias, with the Olympias expansion now expected to begin ramping up in Q1 2027.
Christian Milau: At Skouries, we now expect 2026 production of 10,000 to 35,000 ounces of gold and 5 to 15 million pounds of copper, reflecting the slower than expected ramp-up. The revision reflects the timing of the ramp-up and does not change our current expectations for Skouries' long-term design capacity. Based on the progress we are seeing and our current ramp-up plans, we remain comfortable with our expectations for Skouries in 2027. Importantly, the momentum we have built over the last few days with the tailings filter presses and the process plant now operational, we remain focused on maintaining that momentum through the remainder of the ramp-up. More broadly, despite the changes we are making to our 2026 guidance today, we remain comfortable with our overall outlook for 2027.
Christian Milau: We expect to enter the year with Skouries and McIlvenna Bay advancing through ramp-up, the Olympias expansion coming online, and the benefits of the work underway at Kışladağ beginning to contribute. Turning more specifically to Skouries on slide 5, first production of the copper gold concentrate was achieved on 8 September. The process plant is substantially complete and operating as expected as part of the ramp-up. The optimization and performance testing continuing across the circuit. One milestone we are particularly excited about is the start of the two filter presses at Skouries, which we announced on Monday, and we continue to press tails successfully on a consistent basis this week. If you have not yet watched the video that accompanied the release, I strongly encourage you to do so.
Christian Milau: It's impressive to see the sheer scale of the filter presses in operation, the filter cake discharging onto the conveyors, and the material moving out to the tailings management facility. It's a great visual representation of the progress being made at Skouries. Those 2 filter presses enable continuous plant operation, which is an important step forward. We require 4 operating filter presses to support commercial production, and commissioning of the remaining units is progressing well, with the additional units expected to come online in November and likely within the next couple of weeks. The site was successfully energized on 28 September, completing the connection to grid power. All temporary generators have now been demobilized, providing the reliable long-term power infrastructure needed for commissioning and ramp-up.
Christian Milau: Mining activities in both the open pit and underground continue to perform well, with a significant stockpile of both open pit and underground ore, providing substantial feed availability as the plant ramps up. Underground development is advancing according to plan, with 2,100 meters completed during the quarter and the east ramp breakthrough achieved. Following first concentrate and the revised timing of commercial production, estimated total project capital for Skouries is approximately $1.425 billion, an increase that consists of $65 million of project capital and $45 million of previously guided growth capital that had been expected following commercial production but is now expected to be incurred prior to commercial production and is therefore reported as project capital. To reiterate, this $45 million of capital is not new, it's just reclassified from the operating period to the capital period before commercial production.
Christian Milau: The actual increase of $65 million primarily reflects higher contractor workforce requirements, extended use of temporary power, additional owners costs, and other execution-related costs associated with the longer commissioning period. We also expect accelerated operational capital of $390 million, an increase that consists of $95 million of additional operational costs and $35 million of previously guided sustaining capital that had been expected following commercial production. It is now expected to be incurred and capitalized during the pre-commercial production period, and is therefore reported as accelerated operating capital. Again, this $35 million of capital is not new and just reclassified from the operating period to the capital period before commercial production. The actual increase of $95 million primarily reflects activities that support continued growth of the ore stockpiles ahead of our first production, further advancement of the underground mine, and advancing the site general earthworks.
Christian Milau: We have also taken a cautious and prudent approach by separately identifying up to an additional $30 million contingency that may be incurred depending on the exact timing of commercial production. The classification of these expenditures will depend on when commercial production is achieved, with amounts potentially reflected in project capital, AOC, sustaining capital, or growth capital. Given the positive momentum we have seen over the past week, we certainly do not expect to use this contingency. However, in the interest of being prudent and transparent, we believe it is appropriate to include it in our estimates at this stage. Based on our current cost and schedule assumptions, the project remains fully funded. With that, I'll turn it over to Paul to review the financial results.
Paul Ferneyhough: Thank you, Christian, and good morning, everyone. Turning to slide 6, our Q3 financial results benefited from higher realized gold prices while we continued to invest significantly in driving Skouries and McIlvenna Bay towards commercial production. During the quarter, we produced 106,000 ounces of gold and sold 107,000 ounces. Lamaque delivered another strong quarter, benefiting from higher throughput grade and recoveries, including the contribution from Ormaque. This helped partially offset lower production at Kışladağ and Efemçukuru. Revenue increased 18% year-over-year to $512 million, supported by an average realized gold price of $4,326 per ounce in the quarter, compared with $3,527 per ounce in the Q3 of 2025. The benefit from higher realized prices more than offset the impact of lower gold sales volumes. Production costs were $200 million, compared with $164 million in the prior year quarter.
Paul Ferneyhough: The increase primarily reflected higher royalties, higher costs at Lamaque and Olympias, and the inclusion of pre-commercial production costs at McIlvenna Bay. Total cash costs averaged $1,415 per ounce sold, while AISC averaged $2,050 per ounce sold. The year-over-year increases primarily reflected higher production costs, lower gold sales volumes, and higher sustaining capital. These impacts were partially offset by increased by-product credits. Depreciation and amortization was $59 million, compared with $63 million in the prior year quarter, primarily reflecting lower production at Kışladağ. We also recorded a $4 million foreign exchange gain, primarily reflecting movements in the euro on euro-denominated debt and payables in Greece. Other income was approximately $6 million, and finance costs were approximately $14 million, with the increase in finance costs reflecting higher interest and financing costs on cumulative debt and changes in the fair value of redemption option derivatives.
Paul Ferneyhough: Income tax expense was $92 million, including $62 million of current tax expense and $30 million of deferred tax expense. Overall, net earnings attributable to shareholders from continuing operations were $118 million or $0.45 per share, compared with $56 million or $0.28 per share in the Q3 of 2025. Adjusted net earnings were $127 million or $0.49 per share, compared with $82 million or $0.41 per share a year ago. Overall, higher realized gold prices provided a meaningful benefit during the quarter, partially offsetting the impact of lower sales volumes and continued investment in our growth projects. Turning to Slide 7. Our balance sheet and liquidity remain important priorities as we complete the investment programs at Skouries and McIlvenna Bay.
Paul Ferneyhough: In August, we increased our revolving credit facility from $450 million to $600 million, extended its maturity to 1 March 2029, and improved our financial flexibility through enhanced pricing and beneficial covenant terms. At quarter end, we had approximately $397 million of cash and cash equivalents and $275 million of availability under the credit facility, providing total liquidity of $672 million. We also held $72 million of restricted cash in the Skouries debt service reserve account, which has been funded ahead of declaring project completion. Turning to cash flow. Net cash generated from operating activities was $135 million in the quarter. Importantly, cash flow from operating activities before changes in working capital was $249 million, compared with $184 million in the prior year quarter. Consolidated free cash flow was negative $191 million, reflecting the significant level of investment in Skouries and McIlvenna Bay as both operations advanced towards commercial production.
Paul Ferneyhough: For additional context, the established operating portfolio generated $98 million of free cash flow before the investment in Skouries and McIlvenna Bay during the quarter. This compared with $77 million in the prior year period. This provides clear visibility into the cash generated by the established operating portfolio while we complete this significant phase of growth investment. During the quarter, cash CapEx were approximately $206 million at Skouries and $69 million at McIlvenna Bay, underscoring the significant level of investment reflected in the consolidated free cash flow. Looking ahead, our capital allocation priorities remain disciplined. First, completing the commissioning and ramp-up to commercial production levels of Skouries and McIlvenna Bay remain our immediate capital priority. Second, we will maintain balance sheet strength and financial flexibility as these two assets transition from investment towards material cash generation.
Paul Ferneyhough: Third, as the new operations stabilize and free cash flow improves, we will evaluate the appropriate balance amongst debt reduction, reinvestment, and shareholder returns, including the size of our quarterly dividend and potential share repurchases. With that, I will turn it over to Simon for an operational update.
Simon Hille: Thank you, Paul. Starting at McIlvenna Bay on Slide 8. The total project capital cost estimate from 1 June 2024 to commercial production is now expected to be $975 million, an increase of approximately $23 million, following a slower-than-expected ramp-up towards commercial production, which is expected in late Q4. For 2026, growth capital post commercial production is expected to be approximately $15 million, and sustaining capital post commercial production is expected to be $10 million. The full process plant is operational, with average throughput in the 70% range. We have focused on improved availability and operational consistency. The remaining ramp-up activities are focused primarily on solid-liquid separation in the pyrite and tailings thickeners, reagent control, and improving filtration rates and filter availability. Beyond the ramp-up, we continue to advance exploration opportunities to unlock additional value for McIlvenna Bay and broader district.
Simon Hille: We remain on track to include an inaugural inferred mineral resource for Tesla in our annual mineral reserve and mineral resource update in Q4. Given the exciting prospectivity at the Tesla deposit, we are undertaking additional work before updating the McIlvenna Bay technical report. This includes evaluating shaft location, material handling options for both deposits, and planning resource conversion drilling along with mill expansion study already underway. We expect to update the technical report once the work has advanced. Moving to Slide 9 and the Lamaque Complex. The team delivered another strong quarter, producing 52,748 ounces of gold, supported by strong mill performance, higher head grade and recoveries, including positive contribution from Ormaque. Ormaque is becoming an increasingly important source of high-grade ore for Lamaque. Cost performance remained strong, with total cash costs of $897 per ounce sold and AISC of $1,436 per ounce sold.
Simon Hille: The latter reflecting the earlier transition of Ormaque underground development from growth capital to sustaining capital. Moving to slide 10 at Kışladağ. Production totaled 22,713 ounces of gold, reflecting lower-grade ore stacked, which is associated with mine sequencing as the operation continued to accelerate waste removal from phase 6 and the western area. Completion of necessary bench cleanup progressed more slowly than planned during the quarter, delaying access to higher-grade material, which was realized in September. The higher-grade material is now being stacked on the Northeast leach pad. However, given the approximate 300-day leach cycle, the associated production benefit is expected towards the end of Q4 and into 2027. All-in sustaining costs were $2,832 per ounce sold, reflecting mine sequencing and the associated lower production, higher cash costs, and higher sustaining costs. The accelerated waste stripping is expected to improve access and operating flexibility going forward.
Simon Hille: We are also continuing to advance initiatives including the whole ore agglomeration circuit, which remains on track with commissioning and ramp-up expected in the H1 of 2027. These initiatives are expected to support improved operational consistency and long-term performance. Moving to slide 11 at Efemçukuru. The operation produced 17,073 ounces of gold. All-in sustaining costs were $2,313 per ounce sold, reflecting lower ounces sold and slightly higher total cash costs and sustaining capital expenditures. Efemçukuru continues to be a consistent contributor to the portfolio. While the grades were lower in the quarter, the team continued to deliver strong throughput and advanced development work in the Kokarpinar deposit to support the mine life extension. Moving to slide 12 at Olympias. We produced 13,430 ounces of gold. Lower gold grades were partially offset by higher mill throughput, while stable ore blend and stronger flotation performance supported improved metal recoveries.
Simon Hille: Quarterly gold production was impacted by a decision to stockpile material with elevated lead and zinc content that was originally expected to be processed at the end of Q3. This material is expected to be introduced through the controlled blending program during Q4 to maintain stable plant performance and to optimize recoveries. All-in sustaining costs were $2,067 per ounce sold, supported by higher by-product credits. Completion of the 650,000 ton per annum expansion is ongoing, with the final circuit trains planned for Q1 of 2027 and ramp up to nameplate capacity anticipated in the H1 of 2027. Across the portfolio, our focus remains on safe, disciplined execution while advancing the operational improvements and growth initiatives that support Eldorado's next phase of production and cash flow. With that, I'll turn the call over to Christian for closing remarks.
Christian Milau: Thanks, Simon. Q3 was an important quarter for Eldorado. Skouries has achieved first concentrate, McIlvenna Bay continued its ramp up, and our established operations generated meaningful production in a strong gold price environment. We've also just returned from McIlvenna Bay, where we visited the site alongside our board of directors. Seeing the operation firsthand reinforced the quality of this long-term asset. There is meaningful expansion potential in the next few years and exceptional exploration potential over the long term. I want to acknowledge the hard work of the team advancing the ramp-up. As I begin as CEO, my approach is straightforward: set clear expectations, report transparently on progress, and respond quickly when results differ from plan. I'm confident in the quality of the mines and exploration properties across the portfolio and in the cash flow potential of the investments we have made.
Christian Milau: Our focus now is on executing the remaining ramp-ups and translating that potential into stronger, sustainable cash generation and per share value starting in 2027. Beyond the near-term ramp-ups, we have substantial opportunity within the portfolio. Our job is not to chase growth for growth's sake. It is to maximize the value of the assets we already own, invest where returns justify it, strengthen the balance sheet, and grow per share value. Realizing that potential requires disciplined execution as we ramp up our growth projects through mid-2027. That is where our focus will remain. Thank you for your support and time today. I will now turn the call back to the operator for questions from our analysts.
Operator: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. Our first question is from Cosmos Chiu with CIBC. Please go ahead.
Cosmos Chiu: Great. Thanks, Christian and team. My first question is on Skouries, and great to see that you have got the two first filter presses now in place. Is that what we need to monitor in terms of the pathway to commercial production, getting the filter presses up to four filter presses? Or is there other stuff that we should be monitoring as well?
Simon Hille: Hi, Cosmos. It is Simon.
Cosmos Chiu: Hi, Simon.
Simon Hille: Thanks for the question. When we think about the operation at Skouries, two filters, when we are operating in porphyry ore types, so the long-term ore type, the sulfide that we are producing there. Generally, to get to full nameplate, we probably need four filters operating. Through commissioning, our plan always is to start at about 50% and then ramp through to that 100% mark. With four filters, we generally, when we think about filtration, we like four operating and one spare. So our target is to get to five available. Right now, we have two operating. As we recorded, we have two more coming online in the next week to 2 weeks, and then we will be really available to ramp the mill up to support that.
Simon Hille: That is really the last milestone, if you want to think about it in terms of our ability to get to full production. There is nothing else holding us back of significance.
Paul Ferneyhough: Cosmos, it is Paul.
Cosmos Chiu: Hi, Paul.
Paul Ferneyhough: Of course, once Simon and the team have finished producing concentrate, we've got to get it to market, which is where we actually get our cash. What I can tell you is you should be looking out for confirmation of our first deliveries. We're anticipating those to go to a European smelter just a few hours away. That'll be the next big phase. What I can also confirm is, we have got contracts in place for offtake that covers basically the bulk of the next 2.5 years. So once the facilities are humming along, we're going to be able to move that concentrate to our offtake partners, and all the logistics for that are in place and ready to go.
Cosmos Chiu: Great. Maybe switching gears to MacBay, and kind of same type of question. Reading through your MD&A, it sounds like the key here is getting availability up at the process plant, either be equipment or instrumentation or whatnot. Is that sort of like the critical path to commercial production? Again, is there something else that we should be aware of?
Simon Hille: Hi, Cosmos. Me again. I think you've kind of articulated it fairly well. It's really about, we have had some challenges at the back end of the plant, not really the front end of the plant, predominantly, where our solid-liquid separation in the thickening and filtration units has had some ramp-up challenges. We think we've got a good line of sight on the root causes of what was holding us back there now, and we're at the right side of that moving forward. So we anticipate that we'll be able to achieve our commercial production in this Q4.
Cosmos Chiu: Great. You had mentioned it, kind of touched on it previously, talking about the different studies in place, the silver-lead circuit, and potential for a mill expansion at McIlvenna Bay. That could culminate into an updated technical report for McIlvenna Bay. You stopped short in terms of potentially providing a timeline in terms of when that study might come out. Could you maybe give us a bit more granularity in terms of timing and when we can expect some of these potential projects and upside potential to be quantified in some type of technical report?
Simon Hille: Yeah. Excellent question, and I'm happy to talk to this one. It's pretty exciting for us. There's so many things, opportunities that we see at McIlvenna Bay. We want to make sure that we have good clarity on our vision going forward and that we wrap in all the strategic aspects. We will probably be able to provide, I guess, more detail in our sort of guidance at the beginning of the year as to the timing of the studies. There is quite a few moving pieces. As you mentioned, we have the silver-lead circuit already underway and, in terms of study, an expansion to 7,000 tons today running concurrently.
Simon Hille: We have materials handling study and shaft location, trying to adjust for the magnitude of the deposit that we see at Tesla, which coming out at the end of Q4 as some exciting news coming forward. We're working towards pulling all those pieces together into a strategic plan, then make sure that when we talk to the market and yourselves, that we have really a good clean line of sight of what all those elements and value aspects are going to bring to the table. So, probably Q1, with our guidance, we'll be able to give more timing detail.
Christian Milau: Cosmos, I'm just going to add that, certainly in 2027, we're focused on starting shareholder returns in a material way and taking a bit of a breather, so you shouldn't expect construction of any kind of expansion or anything during 2027. It's more of a taking a breather year, looking at our capital allocation, shareholder returns, and starting to generate and turn into a cash flow or hit our cash flow inflection point, which is still on track for the early part of 2027. So we're excited about that. There's a bit of fatigue with projects, I know, right now, and we have a number of them underway, but we are so close to the finish line. It's a very exciting period right now.
Cosmos Chiu: That is good to hear. Maybe one last question, and I guess since I have you here, Christian. Bigger picture, as you mentioned, the commercial production at Skouries is slightly delayed and the commercial production at McIlvenna Bay is slightly delayed, but that is 2026. You touched on it in terms of potential impact into 2027, but could you maybe make a broader comment in terms of some of these issues or delays, are they more encapsulated in 2026? Is there any kind of potential impact into what we can expect in terms of production into 2027? Could you, maybe Christian, make a comment?
Christian Milau: Yeah, sure. Thanks, Cosmos, and you are absolutely correct. I did allude to that in the comments, and we do not expect that impact on 2027 production. Really, this Q4 is the heavy lifting, and we are really pleased with how Skouries is going, even over the last few weeks since you visited site or since the analysts visited site. I think 2027 is not impacted by this. We think that we have got a reasonable expectation, and we have given good guidance for next year, and we are comfortable with that.
Cosmos Chiu: Great. Thanks, Christian, Simon, Paul, and team for answering all my questions. That is all I have. Thank you.
Christian Milau: Thanks, Cosmos.
Operator: The next question is from Tanya Jakusconek with Scotiabank. Please go ahead.
Tanya Jakusconek: Oh, great. Good morning, everybody. Thank you so much for taking my questions. Maybe I will go to Paul since I was a bit confused last night with all of these new capital numbers provided. I just wanted to reconfirm my understanding, and if that is correct. Paul, when I think about Skouries, the additional capital, not movement from one category to another, but additional monies that have to go out the door for Skouries is really the $65 million plus the $95 million, which is $160 million. Is that a correct way of looking at it?
Paul Ferneyhough: Tanya, yes, that is exactly correct.
Tanya Jakusconek: Okay. For McIlvenna Bay, it is $23 million. The total of $183 million is the additional capital, new, that has to go out the door for these two projects.
Paul Ferneyhough: Yeah, that would be the absolute increase, yeah. Obviously, as we pointed out, we are not going to be incurring certain growth and sustaining capital. But as far as the absolutes, yes, you have got the figures exactly correct.
Tanya Jakusconek: And then in the operating mines, there was about a $55 million increase between sustaining and development, so a total 55. So I should be thinking that $237 million is the total additional capital for all development and operating mines. Is that a correct way of understanding it?
Paul Ferneyhough: Yeah, I think you have picked up the right figures from the forecast to the end of the year.
Tanya Jakusconek: Okay. Thank you for that. As I said, it was a bit confusing for me with all of the movements in different categories. I wanted to come back to the 2027 guidance, because I am trying to reconcile three mines, and maybe someone can help me. I do not know if that is Simon. But I am going to start with Kışladağ. Given all of the slower recovery, now we have access, Simon, to the higher-grade ore, so the 300-day leach cycle. We had a guidance of 140,000 to 160,000 ounces for 2027. And that is up from the 105,000 to 130,000, which had been the previous guidance. How should we be thinking about 2027? Do we actually have that higher grade coming through and the leach cycle to stabilize and maintain that 140,000 to 160,000?
Simon Hille: Thanks for the question, Tanya. As we look forward into 2027, obviously, we are in the process of doing our detailed budgets towards the back end of this year, and we will have more accurate guidance coming forward. As we had previously discussed, 2026 was always a cutback year for us in the open pit where we are going to be in lower grade. The intention of that is to ensure that we can set the mine up for the next several years at a steady production rate. We see that range that we have previously guided, getting back into that as our normal cadence for Kışladağ going forward. We have the benefit of the whole ore agglomeration circuit, which will improve that leach cycle, which has been obviously a critical constraint to the operation being commissioned through the end of Q2.
Simon Hille: By H2 of next year, we are really excited to see how that performs. As we have talked previously, permeability and leach rate are intimately linked, and we expect that to have a direct impact on the speed at which we can, that leach cycle days is into production. We are quite excited by that. We think we are through the most difficult part of the transition for Kışladağ now.
Tanya Jakusconek: Okay. Thank you for that. The two mines that are ramping up, which one is Olympias and the second is Skouries. I think the guidance for 2027 of the 150,000 ounces to 180,000 ounces and the 50 million pounds to 70 million pounds of copper for 2027 assumes a one-year full guidance of normalized ramp up like it was a steady state. My understanding for Skouries is that we are not going to get to steady state until mid-2027. Can someone explain to me how that 150,000 ounces to 180,000 ounces and that 50 million pounds to 70 million pounds is going to pan out? What adjustments should we be thinking?
Simon Hille: Again, we will give more accurate guidance in the beginning of the year as we always do, Tanya. However, we have a couple of levers that we are going to evaluate through the budgeting period. While we are saying that we will be ramping up to full production in H1 of 2027, we do have the benefit of 5 million tons in front of the mill today, in terms of being able to now pick and choose grade. That grade that we have stacked is quite a bit higher than the life of mine grade. We do think that we should be able to maintain those ranges that we have previously forecasted. The exact details, we are working through right now.
Christian Milau: Tanya, it is Christian here. I think we did take into consideration that there is a H1 of the year we are ramping towards that full throughput when we put out the 150,000 to 180,000. So that was already factored in. I think when we come out with our guidance, we may have to indicate a little more H1 versus H2 or something, but, comfortable with the full year for sure.
Tanya Jakusconek: Okay. The better grade from the stockpile can give us some buffer for 2027. Then the 2028, that has had all sorts of step up. I am just wondering if I move the 2027 number into 2028, just because of the delay. I guess we will see a more of an update. I think you are putting out a new, are you putting out a new study on Skouries that we will be able to reconcile some of these numbers?
Simon Hille: That is correct, Tanya. We plan to have one out by the end of Q1 to update our current position and the value of the stockpiles and the detail inside of that.
Tanya Jakusconek: Okay. Then Olympias, similar thing, we are ramping up in the H1 of 2027. So maybe the 75,000 to 90,000 ounces in 2027 needs to be shaved a little bit unless you had factored in a ramp up in those 2027 estimates.
Simon Hille: Yeah, you're probably correct there that that's going to be a little softer because of the ramp up in the H1. We don't have the exact numbers today, but we'll come out with that in early Q1 to give you better guidance. But it would probably at the lower end of that range right now.
Tanya Jakusconek: Okay. Thank you, Simon. That's very helpful. Maybe if I could talk about just costing as I think about your cost base going into 2027. Can you maybe share, besides diesel that we all know and fuel that's higher, can you maybe share what you're seeing on your input costs for inflation? I think your inflation assumption, I'm trying to see where you guys were for inflation. About 6% in your 2026 numbers and, just on inflation, what you're seeing overall, like you're thinking about for 2027, especially for labor and consumables within your cost structure.
Paul Ferneyhough: Tanya, it's Paul. The big swing there really comes from Türkiye and, what goes on both in the political situation, the management of the economy there, and how it impacts our lira costs, which is about 40% of our business there. They're coming out of a period of hyperinflation, which means they're down to 20% to 25%. Then how that plays against the government's control or allowance of devaluation of the currency there. So we're still paying attention to that. I expect a bit more devaluation in the lira next year than we've seen this year. Currently, the government there is forecasting inflation in the 20% to 30% range. So we'll have to see as we get closer to the year-end and understand when we'll next potentially see elections in Türkiye and how that plays out.
Paul Ferneyhough: Across the Greek operations, inflation is in a much more reasonable place and I'm expecting next year, overall maybe 3% to 5%. We will be looking at employee wages there as well, as we think about the next set of collective bargaining agreements. But I'm not expecting any massive surprises there in that part of the world. In Canada, I think it will just be along the lines of what we see across the country as a whole. So again, 3% to 5% range. Then ultimately, depending on whether or not we see any significant movements between the Canadian and the US dollar as we report those Canadian-based costs in our figures there. So, I don't see any big changes. As far as input costs are concerned, diesel has been the one that's seen the biggest change this year.
Paul Ferneyhough: That impacts this year, in particular Kışladağ, where we have seen diesel go up something in the sort of 20% to 25% range, following on from the conflict in the Gulf there. Diesel will be an important component of Skouries next year, of course, with our open pit mining. We are going to be paying close attention to what goes on with the diesel price through the back end of this year and make sure that we include clear guidance on that as we provide our guidance early next year under our usual timetable.
Tanya Jakusconek: Okay. Are you seeing much in terms of turnover at all? It is about 7% for you guys. Are you seeing any of that in the tight labor market?
Paul Ferneyhough: I would say turnover for us is in those areas where we are competing against other key players. In Greece, we do not really suffer from that. We are the only metal miner there. In Türkiye, I think we compete very well and our staff live close to our mines, and so it is a big deal for them to up their lives and move to another operator. The big area where we have to watch, is in obviously Lamaque, where we have got other operators in and around our facilities. I think historically we have been very good in terms of holding on to our excellent operating team there. Turnover has been 3% to 5%. It is a little bit different in McIlvenna Bay. It is a fly in, fly out operation for a large amount of the staff.
Paul Ferneyhough: They do not have that hook where their families are living a short distance away from where they are working. It is much easier for people to move between different fly in, fly out sites. We are paying close attention to remaining competitive in terms of our remuneration packages, but also building the Eldorado culture there, the way we operate, the way that we connect with our staff, our focus on safety, our focus on sustainability and the environment. In the end those are almost the biggest hooks, as long as you are paying competitively. Yes, we see higher turnover there. That is not unexpected for a fly in, fly out operation.
Christian Milau: It is in a Canadian market that has been heating up a bit with a lot of the new permits, I think the support from both Minister Hodgson and Prime Minister Carney, pushing for a lot more responsible resource development in the country. It is a positive thing, but it does put a bit of pressure on labor.
Tanya Jakusconek: Christian, if I could have a final question on the shareholder return. What do you need to see to really be aggressive on your shareholder return? Do you need your assets to announce commercial production? Do you need to see that inflection point in free cash flow? That would be later in H1 2027. Then how would you prioritize share buyback versus increase in dividends? How do you look at all of that?
Christian Milau: Well, I certainly hope that we outperform that expectation and that we will be hitting free cash flow positive sooner, certainly early in 2027. If we are even lucky, it could be late 2026. That will give us a chance, certainly with our guidance to come out, or with our capital markets day in Q1 or so, with a bit more clarity on that. But definitely at these price levels for our shares, we need to be looking at buying back more shares, continuing our dividend, and we will evaluate whether we want to increase that in the short term, but certainly in the longer term, we need to look at our dividend.
Christian Milau: But at this time, I suspect looking at our shares, they are going to be one of the best allocations of capital within our portfolio because, we think they are trading too cheaply right now, and it has still got a bit of that development overhang in them, and so we are pretty excited. I think the first part of 2027, we will be hitting that cash flow inflection, and so I think we can give some pretty good guidance early-ish in the new year.
Tanya Jakusconek: Okay. Thank you so much for taking all my questions, and good luck.
Christian Milau: Thanks, Jenny.
Operator: The next question is from Ralph Profiti with Stifel Financial. Please go ahead.
Ralph Profiti: Yeah, thanks operator, and good morning. Thanks for taking my questions. I have just two follow-ups. Firstly, is the early data that you are getting on the filter presses at Skouries meeting specifications, right? With regards to things like cycle times, moisture content, drainage. It was not clear to me whether or not we are at the point where the entire system, meaning press conveyance and deposition, is operating as a single continuous unit now. Is that a prerequisite for commercial production?
Simon Hille: Thanks, Ralph. It is Simon. Excellent question. We are actually pretty excited to how well the filters have been ramping up. In terms of cycle times, our target is, let us say roughly 4 cycles per hour, and we are within that window per filter, and we are within that window already, which is quite remarkable for a ramp-up and a filter of this size. For me, that is a great sign. In terms of the moisture content, we are in the range, expected range, with obviously some tweaks to go. But definitely what we call transportable and stackable moisture range right now. That also is an excellent sign that these filters were the right choice for us in this application. In terms of the conveyance and stacking system, yes, you are right.
Simon Hille: All of those elements are now operating, which is why we were so very excited to show that with the video online to show end-to-end that now, from crusher through to stacking in the tailings storage facility, we have all of those pieces operational, which allows us to continue to operate. Moving forward, there is not anything fundamental in that system that is now not operating or not operational.
Ralph Profiti: Okay, great. That is helpful, Simon. Thank you. As a follow-up, it also was not clear to me whether McIlvenna Bay solid, liquid separation issues are to deal with control systems or is this a physical recalibration of things like reagents? I was just wondering which one it is of the two. Are you able to quantify some of the data that you are getting on the potential that this is having to recoveries?
Simon Hille: Thanks, Ralph. To be more specific, we have had all of the above challenges that we have been working through systematically. Initially, we had a chemistry issue. We then had a process control and operational issue, all of which we have now resolved. From the solid, liquid separation in terms of the filtration, we have had some challenges with filter cloth, early failures and systematic challenges in terms of how the filter has been performing. We have recently turned the corner on getting more consistency from those units, and we think that while there is still optimization in front of us, we have a good part of that resolved now. To answer the recovery issue, this is really the back end that we have been talking about.
Simon Hille: Just to remind you that the pyrite concentrate that is produced at McIlvenna Bay is really to desulfidize the tail, and then we put that in our backfill, and that goes back into the underground stopes. The tailings that we ultimately filter and dry stack is now non-sulfide, is depleted of sulfide, and therefore non-potentially acid-generating. That is a key design and sustainability element of the McIlvenna Bay project. In terms of the front-end recoveries, in terms of the copper and the zinc recoveries, we are quite pleased with how well the flotation circuit and downstream elements have all been operating today. We do not see any impact on recoveries at all because they are somewhat different circuits. Thank you very much for the question.
Ralph Profiti: Yeah, great. I appreciate the answer. It is very helpful. Thanks to you and the team.
Simon Hille: Thanks, Ralph.
Operator: The next question is from Lawson Winder with Bank of America Securities. Please go ahead.
Lawson Winder: Yeah. Thank you very much, operator. Good morning, Christian, Paul, and Simon.
Simon Hille: Thanks.
Lawson Winder: Thanks for today's update. I just wanted to come back to Skouries. It is actually quite reassuring that you are pointing to no change to the 2027 production numbers. I wanted to ask, though, with respect to that, just two things. So one, the stockpile grew materially, which is great to see. You are at 4.8 million tons. How much of that is the friendly sulfide ore? Then how many weeks or months of sulfide ore do you have before you have to introduce the oxide ore? Then Paul, I would have a follow-up for you, which is just with the slight delay here in commercial production at both Skouries and Olympias, is there any impact or read through for the offtakes that you had so diligently signed over this year? Are there any penalties to that? Thank you.
Simon Hille: Thanks, Lawson. A good question around what is in the stockpile. Roughly, I think nearly 50% of the stockpiles are predominantly sulfide material. One of the things we probably did not talk about in this release was the open pit now is in the primary sulfide ore. So every truck and bench that we mine from the open pit really is predominantly the sulfide ore. So we can feed sulfide ore directly from the open pit into the crusher, along with supplementing that from the stockpile material. So we really do have the luxury of being able to blend that moving forward.
Simon Hille: Our plan, I think we have spoken about previously, our plan would be to blend in oxide towards the back end of this year and into 2027 in the 20% to 30% range, as we become, making sure that we maximize our extraction from those different ore types, those oxide ore types. So there is not any limitation in terms of how we see that going forward in terms of the process plant.
Paul Ferneyhough: Lawson, it is Paul. Just on the commercial terms for the offtake. It is a seller's market right now, and we have been able to negotiate into that. So we have been very careful to ensure we have got flexibility that allows us to deliver when the mine is ready. So there are no penalties. We are committed to certain volumes to certain offtakers, but that has all been negotiated as part of excellent commercial terms around treatment charges at the moment and flexibility for us to deliver over the next two and a half years, volumes that have been committed. So no, we are getting ready for our first shipments, and really looking forward to working with our offtakers as our production starts to ramp up.
Christian Milau: I was just going to add, Lawson, it is Christian, that the stockpile is over 5 million tons now. So it has continued to grow and hence, we continue to spend on accelerated operating capital because it is just beneficial to the long-term ability to feed that plant, which will be hungry next year.
Lawson Winder: Okay, great. With respect to this discussion around the free cash flow inflection we are expecting in 2027, one element of this is going to be the sustaining CapEx. With the current operations, the sustaining CapEx guidance was increased for 2026. So we are looking at $170 million to $190 million now. Prior was $140 million, $165 million.
Lawson Winder: What does that portend for the current operating assets 2027-wise? Is $170 million to $190 million a good run rate now for 2027? Then thinking of the additional sustaining CapEx that will be added from Skouries and McIlvenna Bay, typically with newer mines, you would expect sustaining CapEx to be a little less intensive. But just given some of the work that is being done at those assets, what are the expectations around sustaining CapEx for the two projects, Skouries and McIlvenna Bay? Then what are the key items that we should be considering for those assets post commercial production?
Christian Milau: Maybe I will just jump in with the first answer to that. I think you can think of it as kind of continuing on and maybe double that amount when you add the several new mines in and the upgraded sort of capacity at Olympias. So give or take, double that amount is probably a reasonable range for now, and obviously we will give more clarity when we come out in January or so with our new guidance.
Paul Ferneyhough: Yeah, just from my point of view, we are working through our budgets at the moment, and just like any company that works through their budgets, there is always challenge when the teams come back with their laundry list of requirements for the following year. So we are in the midst of discussing that with them. I would also sort of remind us that at Skouries, for example, we are also still building our paste plant, which is accelerated to support the underground development, which we are also moving forward faster than the original technical study would suggest. And we will continue to raise the embankment at the tailings storage facility, as well as complete our long-term mine water treatment plant.
Paul Ferneyhough: There is a number of activities that are going to be ongoing next year. But as Christian said, I think up to double is going to be the place it is going to be initially.
Lawson Winder: Okay. I appreciate that color. And then maybe just finally on McIlvenna Bay, you had previously noted that we should be modeling cost per ton or OpEx per ton of about $90 to $110 by the end of December. So with the update, you are still planning to get to that $90 to $110, but it was not clear to me when you expect to get there. And maybe for context, can you give us an idea of what you are expecting for an average cost OpEx per ton for Q4 2026? And then when you get to that $90 to $110 level in 2027.
Simon Hille: Thanks, Lawson. So maybe to sort of answer the first part of that question. Yeah. Again, a little similar to Skouries, we do have substantial stockpiles in front of our mill at McIlvenna Bay. We have roughly 400,000 tons, which is a substantial amount. We also have multiple stopes available underground. So as we sort of ramp up the mill and start drawing on those underground stopes and synchronizing that with paste backfill, we are not going to hit our steady state optimization point in the mine and mill combined. So, that is going to be transitioning through this quarter. In terms of when do we still think those 90 to 110 for the mine is a reasonable number from what we see, but we have not got to that confirmation point, given that we have not got to those tonnages just yet.
Simon Hille: But we should be moving through that as we move into commercial production in the coming months. In terms of how that impacts 2027, we will obviously give greater clarity on that at our guidance in January as we sort of finalize the working budgets that we have today. So I do not have any new numbers for that right now.
Christian Milau: I would probably start out at around the upper end of that range to start, and then we will try and be working down obviously into the range over the next quarter or Q2 or Q3.
Lawson Winder: Okay. That is helpful. Thank you, both. Thank you, all.
Operator: Once again, if you have a question, please press star then 1. The next question is from Harrison Reynolds with RBC. Please go ahead.
Harrison Reynolds: Hi, good morning, and I appreciate the detail provided so far on the operations. Wondering if you could characterize your current expectations for what commercial production means to you for both Skouries and McIlvenna Bay. What percentage of nameplate and for how many days? I mean, great to see the reiterated 2027 guidance and the confidence there. I am wondering if you could say when you are expecting nameplate capacity to be reached, approximately. Thank you.
Paul Ferneyhough: Harrison, Paul here. Commercial production, there is a significant amount of flexibility that management have in terms of exactly when we strike that designation. But really it reflects the fact that the assets are performing in line with management expectations, so in line with why you invested in the process plant and the mining. A couple of things. Basically, you are looking for 60% to 80% of throughput, the production of a saleable concentrate and steady operations for, let us say, somewhere between 20 to 30 days, although they are not necessarily consecutive days. But that is sort of the generally accepted definition, and that is what we are going to be looking for, both from Skouries and from McIlvenna Bay.
Harrison Reynolds: Got it. On the nameplate capacity at both of those operations, is that a mid-2027 item or when about in 2027 do you expect to be hitting nameplate capacity at both mines?
Simon Hille: Yeah, thanks, Harrison. It is Simon. We are sort of guiding on this to sort of be conservative, to be sort of by the middle of 2027, just to ensure that we do not overstate capabilities and to give the teams time to optimize the circuits that they have. But right now, we do not see anything challenging us to achieving that today.
Harrison Reynolds: Got it. If I could fit in one more. You mentioned capital returns are going to be an increasing priority in 2027. That is great to hear. Net debt is at $1.6 billion. Wondering how you are thinking about the best use of capital between buybacks, debt reduction, and the necessary reinvestment of the projects, and what you think the repayment cadence is from here.
Paul Ferneyhough: Harrison, the way I think about the debt, it sort of breaks down into three things. We have commitments, we have nice to haves, and then we have things for the future. Now, obviously, for both McIlvenna Bay and for Skouries, we have commitments under our project financing, so we are going to start making repayments under both of those agreements from the end of this year onwards. Those obviously have to be met first. Secondly, on the debt, the project financing debt that we acquired with the Foran acquisition runs at a much higher interest rate than we can obtain as a corporation.
Paul Ferneyhough: I am going to be looking to refinance that at least on a temporary basis, bearing in mind the cash flow inflection that is coming early next year so we get it closer to our sort of net level of financing, and we have opportunities to do that.
Paul Ferneyhough: Then finally, in the longer term, it is then assessing what is the right capital stack for us across our project financing, our revolving credit facilities, and our bond. That will be something that we are working on through next year. The one other thing, just before I hand you over to Christian, I think he is going to talk about the equity returns, is we have been using our revolving credit facility, recently renegotiated and upsized with better interest rates than we had before. Paying that back during next year will also be a priority as we move into the beginning of the year.
Paul Ferneyhough: Those are the sort of the ways that we are thinking about the debt.
Christian Milau: Then I think as well, the next sort of phases are we have exploration that we want to do. There is an extremely exciting portfolio that we really have not been talking about much. During that capital markets day, I think we will get a chance for Claire to actually walk through all the assets. Allocating, I do not know, call it $80 million to $100 million probably to exploration will be a critical element, and we will have high returns. Then I think, like I said earlier, projects we will take a bit of a breather on.
Christian Milau: There are no major projects that we need to start next year, expansion at Lamaque or at McIlvenna Bay or even at Perama Hill. I think 2028 is the earliest you would be starting any material spend on those actual construction projects at the earliest. So, there will be none of that in a way next year.
Christian Milau: Dividends and buybacks I think are going to be critical. At the moment, with, like I said earlier, the share price where it is and the multiples and valuation, we will be very happy to be buying our own shares. I think the return on buying our own shares will be one of the best uses of capital we will have. I think progressively over time, increasing our dividend as we move into a more steady state cash flowing period during the year, I think that will also take a bit more priority. So we are going to have lots of nice options and some good uses of that capital, but I think that priority starts to shift heavily towards shareholder returns as well next year.
Harrison Reynolds: Understood. Thank you. Appreciate the detail on the call today and looking forward to the year ahead. Thanks for taking my questions.
Christian Milau: Thanks, Harrison.
Operator: That's all the questions 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.
