Eldorado Gold(EGO) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2024, net earnings attributable to shareholders from continuing operations were $108 million or$0.53 per share, while for the full year, net earnings were $301 million or$1.48 per share, reflecting an increase due to higher gold prices and sales volumes [21][22] - Adjusted net earnings for Q4 were $128 million or$0.62 per share, with full-year adjusted net earnings at $321 million or$1.57 per share, impacted by foreign exchange losses and unrealized gains on derivatives [22][23] - Free cash flow in Q4 was $75 million, totaling$176 million excluding capital investment in the Skouries project, while for the full year, free cash flow was $7 million or$342 million excluding Skouries capex [23][24] - Total cash costs for Q4 were $944 per ounce sold, with all-in sustaining costs (AISC) at$1,226 per ounce sold; for the full year, total cash costs were $940 per ounce sold and AISC was$1,285 per ounce sold [25] Business Line Data and Key Metrics Changes - At the Lamaque Complex, record production of 196,538 ounces was achieved, contributing to a total gold production of 520,293 ounces for the year, a 7% increase from 2023 [7][9] - Olympias produced 15,923 ounces in Q4, with total cash costs of $1,463 per ounce sold, lower production attributed to planned equipment downtime and lower gold grades [41] - Klada had a strong quarter with production of 56,483 ounces and total cash costs of$978 per ounce sold, benefiting from the operation of the new North ADR facility [43] - Efemcukuru produced 19,451 ounces at total cash costs of $76 per ounce sold, achieving annual production guidance for the tenth consecutive year [46] Market Data and Key Metrics Changes - Average realized gold prices increased from$1,944 per ounce to $2,405 per ounce, significantly impacting revenue and cash flow [24] - The company reported a total liquidity of$1.1 billion at year-end, including $857 million in cash and cash equivalents [30] Company Strategy and Development Direction - The company is focused on advancing the Skouries project, with a revised capital cost of$1.06 billion and expected first gold production in Q1 2026 [33] - Continued investment in high-return growth projects is emphasized, with a commitment to maintaining a strong financial position while advancing construction [31][50] - The company aims to optimize operations across its assets, with a disciplined approach to capital management and cost control in a high gold price environment [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets and emphasized the importance of safety and operational efficiency [12][50] - The company is optimistic about the future of the Lamaque Complex, with ongoing drilling and resource conversion efforts [78][79] - Management acknowledged challenges in the labor market but reported progress in recruitment efforts for the Skouries project [56][60] Other Important Information - The company received a silver award at the 2024 European Mine Safety Awards for its innovative training program [14] - An amended technical report for the Lamaque Complex was filed, removing a preliminary economic assessment due to regulatory feedback [16][17] Q&A Session Summary Question: Update on Skouries labor market and hiring needs - Management reported good progress towards a target workforce of 1,300, focusing on concrete workers and actively recruiting both locally and outside Greece [56][58] Question: Clarification on the removal of the preliminary assessment in the technical report - Management explained that the British Columbia Securities Commission required the removal of the PEA due to the use of technical parameters that should not have been applied to inferred resources [71][72]