Eldorado Gold Corporation (NYSE:EGO) Q3 2023 Earnings Call Transcript

Carey MacRury: And maybe just a follow-up on Kisladag. Obviously, the operation is still working through the rain event from May, June. I’m just wondering how you’re seeing production sort of heading into Q4 here. Are you starting to see an uptick and that sort of that impact wear off?

Joe Dick: Yes. We are seeing — now that we’re sort of beyond the Q2, Q3 sort of challenges, as you’re able to see when we’re out in the field, things are sort of lining up fairly nicely. Irrigation rate and flows are up where we expect them to be, and now we’re working hard to draw down on that inventory created over that period.

Operator: [Operator Instructions] Our next question comes from Kerry Smith of Haywood Securities. Please go ahead.

Kerry Smith: Joe, for Skouries, getting the detailed engineering done is pretty critical to keeping the timetable. Is there any risk that transferring that engineering group from Vancouver to Greece is going to cause any kind of delays, or are you pretty confident that that shouldn’t be the case?

Joe Dick: We’re pretty confident that should not be the case and we’re working in good cooperation with Fluor in oversight of that engineering. So essentially, we’re still running the engineering schedule in concert with them, but we’re doing it from site rather than afar. So in a lot of ways, it helps us in order to be — get time zones and other things out of that. And we paid real close attention to critical path engineering and around filters and other things so that we don’t put schedule at risk over engineering. And we’ve had good agreement with all of our vendors on production of vendor drawings and such. So, we’re feeling pretty good about it as a benefit in shortening timelines for turnaround on key information and the like, being with the whole team consolidated in Greece now.

George Burns: Kerry, I’d say there’s one additional benefit to moving some of this engineering in country early, and that is, you always have to run the filter of taking those engineering drawings and data and localizing it to regulations. And so, by doing that at an earlier phase, we eliminate some duplicate work, it’s a bit more efficient. And we’ve got confidence in the capability of these firms within Greece to be able to do this work. So, I think there’s some net benefits here, and we haven’t really put any risk to the project from that decision.

Kerry Smith: Are all the long lead items now ordered? I assume they are and some are delivered to site, or what is the status of all the long lead items?

Joe Dick: Kerry, this is Joe. So, there are no long lead items remaining on critical path. We’re just cleaning up bulk items for procurement. The last major piece of equipment I did mentioned earlier was the filters. And the filters are packaged and in shipment, and receipts are started for site assembly. But it’ll be — all of that will be on-site end of ‘24, early ‘25. So, no concerns on schedule and at this — due to equipment. And all of the work on existing equipment that was installed and reviewed has also been completed. And any kind of requirements for, modifications, other things due to standby time have been accounted for as well. So feeling really good about lead times.

Kerry Smith: And just maybe one last question on Skouries. Are you seeing any issues in terms of hiring steel trades and labors as you ramp up to the 900 people on-site by the end of the year? And the second part to that is, are the productivities that you’re seeing so far from the contractors at or better than what you’d budgeted?

Joe Dick: So, to take the first part of the question, as availability to workforce, there have been no issues to date for contractors managing to mobilize and bring skilled workers on-site, so pleased with that. And as far as productivities on — there’s not a lot of data points out there, but the work performed last year around the mill building cladding cranes and the rest of it was at expectation or kind of at feasibility levels. And the work ongoing to date has been similar. But I think that remains a watch point for us going forward. But so far, Kerry, we’re pretty pleased with productivities and how they match up with feasibility.