Eldorado Gold Corporation (NYSE:EGO) Q2 2023 Earnings Call Transcript

I haven’t been on many projects where the plant is in this position at this time. We’ll have it early and actually have it available for commissioning, well, in advance of startup, which is not common. That gives me great relief. Secondly, as we think about the insulation that we have from the inflationary pressures, what we see — we’re going to experience some of that, but we feel pretty good about where we sit, having delivered the project reasonably in line with the feasibility study, estimate project to date. So all things good, normal conditions for projects exist. And you’ll hear more when we complete the update of estimate, following about the movement of the project from today at about 30% committed to about 60% to 70% committed end of the quarter.

Does that help, Cosmos?

Cosmos Chiu: Yes. That helps perfectly, Joe. And maybe one last question. Overall, weather related issues in Q2 looking at full year guidance and looking at what you’ve done so far in the first half. Clearly you will need to increase production at Kışladağ and also Lamaque to hit your guidance for the year. But maybe focusing on Kışladağ, sounds like heavy rainfall did not impact stacking, but impacting of each kinetics. It sounds like some of that lower grade solution still needs to be extracted in Q3. I’m just wondering, in terms of we know that, H2 is going to be better than H1. The weather-related issues is that I’m still going to impact Q3. And in terms of the improvement, is it going to be qQ4 better than sort of Q3. At this point in time, we’re not sure.

Joe Dick: We’re expecting Q3 to be stronger than we would have thought of three months ago. And it’s simply because that excess solution. We expect to be processed during Q3. So. And when you look at Kışladağ, overall the way, I put it is, we delivered the projects, the system, as you said, the placements are at design already. And we just commissioned the North Leach pad in early July. So we’re in a really good position to put the tons up there. And we’re in a good position to get that diluted solution through the plant in Q3. But I say it all that in the context, we got another unexpected rain event when things happen, but that’s not likely to happen. We’re expecting a very strong second half of Kışladağ. And at Lamaque, I mean, it was already second half loaded, just sequencing and grades.

What happened in q2 with the wildfires, and as Simon pointed out, we lost quite a few shifts in June. We’ve got a solid plan. We’ve got higher grade stopes coming. We expect to deliver a strong second half. So I’d say we’re in a really good position right now to deliver the guidance. And the last piece of the puzzle you didn’t mention it was Olympias. But again, delay in high-grade access to stopes, both gold grades, and particularly silver. Those stopes are coming out in the next quarter, we had a second half planned to be stronger supporting with all this capital that we’ve invested, and we believe we’re in a good position to deliver our guidance for the year.

Operator: Our next question comes from Mike Parkin of National Bank. Please go ahead.

Mike Parkin: Hey, guys, thanks for taking my questions. Most of it’s been answered. But just circling back in Kışladağ, you’ve got the new pad, is that solution of a new pad report to a different pond that was versus the pond that was diluted with the rainfall?

Simon Hille: Hi, Mike. It’s Simon here. That’s correct. So the collection system for the South Heap Leap pad is separate from the North Heap Leach pad. So any of the stacking and solution that will put through on the northeast leach pad will be isolated from the south. And so that won’t be diluted in any way from the rainfall events. So that is certainly well picked up.