Eldorado Gold Corporation Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Operational Results: Achieved safe production of 133,769 gold ounces in Q2. The Lamaque Complex and K?lada? exceeded quarterly expectations, and Skouries began open pit mining of its first oxide ore.
• Safety: The lost time injury frequency rate (LTIFR) was 0.95 in Q2 2025, up from 0.40 in Q2 2024. The company remains committed to enhancing safety performance via the Courageous Safety Leadership program.
• Sustainability: Issued the annual sustainability report. Global sites received awards, including Québec and Greece. Eldorado Gold was recognized as one of Canada's best companies.
• NCIB: The normal course issuer bid (NCIB) was expanded, with over 28 million shares repurchased at a cost of $58 million year-to-date. The Board reapproved and expanded the NCIB scope to include the NYSE.
• Skouries Progress: Phase 2 construction was 70% complete, with labor ramp-up and productivity at or better than assumptions. Q2 capital investment at Skouries aligned with expectations, de-risking the schedule.

Segment Performance

• Lamaque Complex: Produced 50,640 gold ounces in the second quarter with a total cash cost of $721 per ounce sold.
• K?lada?: Generated 46,058 gold ounces, with total cash costs at $1,133 per ounce sold. Cumulatively, Türkiye operations have produced over 5 million gold ounces.
• Efemçukuru: Yielded 21,093 gold ounces, with total cash costs of $1,335 per ounce sold.
• Olympias: Produced 15,978 gold ounces, with total cash costs of $1,578 per ounce sold. The mill expansion to 650,000 tonnes per annum is now expected to conclude by mid-2026.
• Skouries: Phase 2 construction was 70% complete at the end of Q2. First copper-gold concentrate production is anticipated in Q1 2026, with commercial production expected in mid-2026. Q2 capital investment at Skouries totaled $117 million.

Guidance

• Production: On track to produce 460,000-500,000 gold ounces in 2025, with the first half performance indicating a midpoint delivery.
• Skouries: Anticipates first copper-gold concentrate production in Q1 2026 and commercial production in mid-2026. Project capital guidance for the full year is $400 million to $450 million.
• Olympias: Mill expansion to 650,000 tonnes per annum is expected to finish by mid-2026.

Risks

• Safety: The increase in LTIFR highlights the need for continuous safety improvement.
• Project Delays: Potential delays in drilling and metallurgical testing could affect the geometallurgical study for K?lada?.
• Currency Exchange: Fluctuations in the euro vs USD may impact project costs and financials.
• Operational Bottlenecks: Wear on the HPGR at K?lada? and the need for de-bottlenecking measures pose operational challenges.

Question and Answer

Q: On CapEx spend at Skouries in Q2.

A: George Raymond Burns states that Q3 will see a ramp-up in activity, followed by a ramp-down in Q4 and Q1 as commissioning of the facility begins.

Q: Critical path at Skouries.

A: Louw Smith explains the filtered tailings plant is the critical path due to extensive geotechnical work and foundation requirements.

Q: Balance sheet and term loan drawdown.

A: Paul Ferneyhough notes the use of favorable interest rates on the project finance facility and leveraging the undervalued share price for the NCIB.

Q: K?lada? HPGR circuit and wear components.

A: Simon Oswald Hille explains the plan to close the HPGR with a screen and agglomeration drums to address wear and operational bottlenecks.

Q: Skouries workforce and productivity.

A: George Raymond Burns mentions trades are in good shape, productivity is positive, and non-critical path work is being ramped down to decompress commissioning.

Q: Skouries commercial production definition.

A: Paul Ferneyhough states commercial production is when throughput exceeds 70% and recoveries are at expected levels.

Q: Skouries equity investments.

A: George Raymond Burns says work is ongoing for divestiture of Romanian assets, with toeholds in Probe and Amex expected to be held.

Q: NCIB repurchases.

A: Paul Ferneyhough explains the NCIB program allows repurchasing up to 5% of share capital, done opportunistically based on fair value.

Q: K?lada? Q3/Q4 production guidance.

A: Simon Oswald Hille indicates second half production is expected to be at the lower end of the range due to lower grades stacking.

Q: Year-end reserve update.

A: George Raymond Burns says reserves will be updated in Q4, expecting a slight increase in the gold price assumption.