Eldorado Gold - Q4 2025

Transcript

Operator (participant)

Thank you for standing by. This is the conference operator. Welcome to the Eldorado Gold Fourth Quarter 2025 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 signal 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 (VP, Investor Relations, Communications, and External Affairs)

Thank you, operator, and good morning, everyone. I'd like to welcome you to our conference call to discuss our fourth quarter and year-end 2025 results, in addition to details of our 2026 guidance and overview of our three-year production outlook. Before we begin, I'd 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 George Burns, Chief Executive Officer, Christian Milau, President, Paul Ferneyhough, Executive Vice President and Chief Financial Officer, and Simon Hille, Executive Vice President, Operations and Technical Services.

Louw Smith, Executive Vice President, Greece, is at site today and not able to join the call, so Simon Hille will speak on his behalf for Skouries and Olympias. Our releases yesterday detail our fourth quarter and year-end 2025 financial and operating results, as well as our 2026 guidance and three-year production outlook. They should be read in conjunction with our year-end 2025 financial statements and management's discussion and analysis, both of which are available on our website. They've also both been filed on SEDAR+ and EDGAR. All dollar figures discussed today are U.S. dollars, unless otherwise stated. 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 George.

George Burns (CEO)

Thanks, Lynette, and good morning, everyone. I'll begin with an overview of our fourth quarter and full year 2025 results and highlights, and then provide an update on construction and the timeline at Skouries. I'll then hand the call over to Paul to review the financials and then to Simon with an update on projects and operations. Following that, Christian will provide an update on our 2026 guidance and three-year production outlook before I conclude with some closing remarks. It's been a busy start to the year. We've continued to execute on a clear value creation strategy, achieving the high end of 2025 production guidance, launching a quarterly dividend to formalize a capital return framework, and advancing a disciplined exploration program that reinforces the company's discovery strategy.

The announced acquisition of Foran Mining further strengthens the company's long-term growth pipeline, adding a high-quality Canadian copper gold development asset and enhancing portfolio diversification with a focus on per-share value creation and sustainable free cash flow growth. Turning to slide four and our fourth quarter and full-year highlights. 2025 was a year of strong execution and meaningful progress across our portfolio. We delivered safe gold production at the upper end of our guidance, finishing the year with 488,268 oz. This performance was supported by another strong year at Lamaque Complex, steady contributions from Kışladağ and Efemçukuru, and a solid finish at the Olympias mine, bringing it back on track.

Solid operating execution, combined with a favorable gold price environment, drove strong financial results, including $1.8 billion in revenue, $743 million in operating cash flow, and $316 million in free cash flow, excluding Skouries investment. In Greece, we are reaching a key inflection point. The first production from Skouries later this year, together with the Olympias expansion and ongoing advancement of the Perama Hill project, Greece is set to deliver meaningful growth. This momentum is complemented by the continued long life potential at the Lamaque Complex, supported by production from the Triangle deposit, development from the Ormaque deposit, and a robust exploration pipeline, and by our Turkish operations, which remain a stable cash-generating foundation for the company.

Turning to slide five, in the fourth quarter, our lost time injury frequency rate was 0.55, an improvement from the LTIFR of 1.02 in the fourth quarter of 2024. While there is always room for improvement, this safety performance also comes during the peak of our construction activities at Skouries. We continue to implement multi-year programs to support continuous improvement in workplace safety, supporting our vision of everyone going home healthy and safe every day. During the quarter, we achieved safe production of 123,416 gold ounces at $1,894 all in sustaining costs per ounce sold. Simon will speak further to each of the assets' performance later in the call.

With a strong balance sheet, we are well positioned to advance our growth pipeline while maintaining flexibility to return capital to shareholders. As previously announced, we were active on our share repurchase through the NCIB program, and we repurchased approximately $204 million of shares during 2025. Additionally, we announced in January the initiation of a quarterly dividend program, which commences in the first quarter of 2026. Coupled together, these mark an important milestone in delivering value to our shareholder and reflect the company's strong financial position and confidence in executing our growth strategy. At Skouries, first concentrate production has been modestly delayed and is now expected early in the third quarter of 2026, with commercial production anticipated in the fourth quarter. This timing adjustment is expected to increase construction capital by approximately $50 million.

The delay rate relates to primarily required replacement of the cyclone feed pump, variable frequency drive capacitors in the process plant due to moisture damage that occurred while in storage. Secondarily, our power line connection delays resulting from a slower than expected approval of the detailed engineering and delayed ramp-up of the subcontractor. Prior to commissioning, final electrical regulatory authority approval requires completion of inspection and energization protocols. Importantly, the project is mitigation measures well underway, and Skouries remains a multi-decade, high-quality asset expected to generate meaningful cash flow in the second half of 2026 and beyond. Wrap up of first production towards commercial production is expected to accelerate, as the project team will continue to complete additional areas as we advance toward first production.

We see the impact of the delay as minimal when looking at the long life nature of the asset, and we are confident in the delivery of this multi-decade mine. With that, I'll turn the call over to Paul for a review of our financial results.

Paul Ferneyhough (EVP and CFO)

Thank you, George, and good morning, everyone. Turning to slide seven, I'll summarize our fourth quarter and full year 2025 financial results. Consistent and reliable operational performance through the fourth quarter enabled us to deliver results at the high end of our tightened production guidance, while operating costs for both the quarter and the full year remained within expectations. Strong gold prices contributed positively to operating cash flow, further supporting the execution of our strategic and operational investments. Net earnings attributable to shareholders from continuing operations were $252 million, or $1.26 per share in the fourth quarter. For the full year, net earnings attributable to shareholders totaled $520 million, or $2.56 per share.

Net earnings increased both for the full year and the fourth quarter compared to the prior year periods, driven by higher revenue, partially offset by increased production costs, including higher royalties and losses on derivative instruments. After adjusting for one-time non-recurring items, adjusted net earnings for the quarter were $126 million or $0.63 per share. The primary adjustments in the quarter included a $104 million recovery related to the recognition of deferred tax assets and a $27 million unrealized gain on derivative instruments. For the full year, adjusted net earnings were $355 million, or $1.75 per share.

Adjustments during the year primarily included a $178 million recovery related to the recognition of deferred tax assets, a $39 million unrealized loss on derivative instruments, and a $19 million foreign exchange gain related to the translation of deferred tax balances. Free cash flow in the fourth quarter was negative $55 million or positive $109 million when excluding capital investment in the Skouries project. For the full year, free cash flow was -$233 million, or +$316 million when excluding Skouries. Cash flow generated by operating activities before changes in working capital totaled $752 million for the year, compared to $636 million in the prior year.

The increase was primarily driven by higher revenue, which rose to $1.8 billion in 2025, supported by higher average realized gold prices, partially offset by lower production volumes during the year compared to 2024. Production costs for the full year increased to $678 million from $564 million in 2024, primarily due to higher royalties, which accounted for approximately 40% of the year-over-year increase. Royalty expense totaled $124 million, up from just over $79 million in 2024. The balance of the increase reflects labor cost inflation across the operations, notably in Turkey, where local inflation continues to outpace devaluation of the local currency, the strengthening euro impacting Olympias, and increases at Lamaque related to labor and contractor costs required to support the Triangle Mine as it operates at greater depths.

Fourth quarter total cash costs of $1,295 per ounce sold were at the lower end of our tightened guidance range, and $1,176 per ounce sold for the full year. The year-over-year increase was primarily driven by higher royalty expenses, driven by regulatory change in Türkiye, and by the stronger gold price environment and overall lower gold volume sold. Higher total cash costs resulted in increased all-in sustaining costs for both the quarter and the full year. AISC in the fourth quarter was $1,894 per ounce sold, and $1,664 per ounce sold for the full year. Year-over-year comparisons were also impacted by higher sustaining capital expenditures in 2025.

Growth capital investments at our operating mines totaled $74 million in the fourth quarter and $218 million for the full year. At Skouries, growth capital investment totaled $475 million for the year, including $137 million in the fourth quarter. Accelerated operational capital at Skouries amounted to $35 million in Q4 and $86 million for the full year. Current tax expense was $85 million in the fourth quarter and $229 million for the full year. This full year, $115 million increase compared to 2024, was driven by improved profitability across all jurisdictions.

Deferred tax was a $118 million recovery in the fourth quarter and a $207 million recovery for the full year, primarily related to the recognition of deferred tax assets in Canada and Greece. Turning to slide eight. Our balance sheet remains strong and provides the flexibility to support growth initiatives while returning capital to shareholders. Total liquidity was approximately $976 million at the year-end, positioning us well to complete construction at Skouries, support ramp up, and continue disciplined capital allocation, including to our recently announced dividend program and ongoing NCIB repurchases. During the fourth quarter, we purchased and canceled approximately $80 million of Eldorado shares under the NCIB. Following our additional investment in Amex, announced in December, our year-end cash balance was $869 million.

Before turning the call over to Simon, I'd like to take this opportunity to announce that commercial terms for the Skouries concentrate offtake arrangements have been agreed, and contracts are being finalized ahead of execution. These contracts cover approximately 80% of planned copper concentrate production over the next two-three years, at terms significantly better than those assumed in the Skouries 2022 technical study. With that, I'll hand the call over to Simon, who will provide an update on our operations, beginning with Greece.

Simon Hille (EVP of Technical Services and Operations)

Thanks, Paul, and good morning, everyone. Let's begin with slide nine, which highlights the progress at our Skouries copper-gold project. As George outlined, we have adjusted the timing of our Skouries project. However, I want you to be very clear, the project continues to make strong progress and execution on the site remains solid. As of the end of 2025, overall construction has reached 90%, and our focus is firmly on delivering safe and high-quality startup. The open pit is operating ahead of plan. Substantial ore stockpiles have been established, and growth control drilling is substantially complete from phase one, which has confirmed the first three years of production. While the timing has shifted modestly, the fundamentals of the project are unchanged and the team is executing with discipline as we move in towards the first production. Turning to slide 10.

Photos here and on the following slides illustrate the advancement of the work underway. Work in the process plant remains focused on mechanical, piping, cable tray, and electrical installations in preparation for first ore. As mentioned, recent inspections have identified the need to replace the cyclone feed pump variable speed drive capacitors in the process plant, which experienced moisture damage during storage. We have ordered and expect to install temporary replacement equipment in Q2, with permanent equipment in Q3. The prefabricated electrical distribution room for the compressors has been installed, with cable and terminations progressing. The reagent areas are advancing in line with the commissioning plan. Moving to slide 11. Two of the three tailings thickeners are mechanically complete, with electrical cabling and instrumentation installation underway. The third thickener, not required for startup, is in progress in line with the plan.

Water testing is complete, piping installation is advancing, and the support infrastructure, including pump house and flocculent building, is moving forward. Slide 12 focuses on filtered tailings plant, which remains on the critical path, with electrical installation and commissioning being the final step. The prefabricated electrical room was installed and electrical work is advancing. We're also making steady progress on the tailings handling infrastructure, including the stacking conveyance system. The accessibility and productivities of the tailings infrastructure have been mildly affected by recent rainfalls above the historic levels. However, these are short-term challenges that the team is actively managing. As seen on slide 13, construction of the crusher building is advancing well. Concrete work is complete. The crusher is mechanically installed. The electrical work is underway. Conveyors to the coarse stockpile and the process plant are in place. The stockpile dome assembly is progressing.

The installation of the prefabricated electrical distribution room was completed, and electrical cable installation and terminations are in progress. Moving to slide 14, Olympias. Fourth quarter gold production was 18,476.73 oz, and all-in sustaining costs were $1,676 per ounce sold. Progress continued on the planned 650,000-tonne-per-annum expansion during the quarter. All of the major equipment, including the SAG mill, flotation cells, thickener, cyclones, and E-room, have been delivered and installed. Installation has commenced. We expect progressive commissioning and ramp up in the second half of 2026. Turning to Türkiye on slide 15. Kışladağ production totaled 41,140 oz, with all-in sustaining costs of $1,933 per ounce sold.

On the growth initiatives, the long lead procurement for the whole agglomeration circuit is underway, with installation targeted for 2027. The new secondary crusher has been ordered, with delivery expected in the second half of 2026, and the geometallurgical study to assess future screening needs to remain on track for completion in the second half of 2026. On slide 16, Efemçukuru, fourth quarter gold production was 14,496 oz at all-in sustaining costs of $2,536 per ounce sold. Compared to Q3 of 2025, gold production was lower due to lower grade and recovery, despite high mill throughput. Now moving to Lamaque.

On slide 17, Lamaque delivered production of 49,307 oz at all-in sustaining costs of $1,392 per ounce sold for the fourth quarter. During the year, the second Ormaque bulk sample was processed, and this higher grade ore was treated in a blend with the Triangle ore and performed very well. We look forward to advancing Ormaque into production later this year. With that, I'll turn the call over to Christian for an overview of what's ahead.

Christian Milau (President)

Thanks, Simon, and good morning. Turning to our 2026 guidance three-year outlook, Eldorado enters the year from a position of strength. Skouries exciting value proposition is unchanged. It's a high quality, long life asset that will generate strong cash flow for decades. As it advances towards production, Skouries will be transformational, resetting our production profile and cost base well into the next decade. Slide 18 outlines our consolidated 2026 guidance and three-year pro-growth profile. From our existing portfolio, we expect production to increase by approximately 40% from 2025 in 2027 versus 2025, supported by a solid base of relatively lower cost operations. The addition of Skouries further accelerates this growth, enhancing scale, margins, and long-term cash flow generation.

For 2026, we expect total gold production to be between 490,000 and 590,000 oz, with copper production of between 20 and 40 million pounds. On a consolidated basis, all-in sustaining costs are expected to be between $1,670 and $1,870 on a per ounce of gold sold basis. Growth capital and operations is expected to be between $375 and $405 million, and sustaining capital is expected to be between $140 and $165 million for the year. As previously announced, we've increased our planned exploration investment for 2026 by 60% compared to 2025.

We expect to spend between $75-$85 million during the year, focused on resource conversion drilling at Lamaque and Efemçukuru, resource growth and discovery programs in Québec, Türkiye and Greece. All-in sustaining costs at Skouries are expected to be between -$100 and +$200 per ounce of gold on a net-of-byproduct basis. Over the life of mine, Skouries is expected to be a low to negative all-in sustaining cost mine, given spot and higher copper prices in the current market and forecast by market commentators. As a result, Skouries will have the potential to transform Eldorado into one of the highest free cash flow yielding companies in the sector for 2027 onwards, with free cash flow yield estimated by some groups of over 20% based on their gold and copper price forecasts.

Given we anticipate Skouries first production in early Q3, 2026, commercial production in Q4, we have provided cost guidance for our current operations. Following commercial production at Skouries, we expect to issue updated consolidated cost guidance later in the year. On slide number 19, we provided the mine-by-mine 2026 detailed production guidance. At the Lamaque Complex for 2026, production is expected to be between 185,000 and 200,000 oz, reflecting the start-up of Ormaque. Our focus remains on advancing Ormaque development and continuing resource conversion drilling at both Triangle and Ormaque. In Türkiye, at Kışladağ, we expect 2026 production of 105,000-130,000 oz. Expected production compared to the previously guided range has been impacted by a high waste stripping year, coupled with longer than planned leach cycles and lower grade stacked.

The higher metal price environment has opened up a significant opportunity for the Kışladağ open pit to allow us to evaluate the opportunity to move from a $1,700 to a $2,100 pit shell, which is expected to unlock the western area of the pit support resource expansion. To facilitate this opportunity and assist in resolving ongoing geotechnical challenges in the open pit, we expect to increase waste stripping in 2026 by 6-8 million tons. The mine optimization plan is expected to be beneficial in the long term by improved balancing of ore and waste movement, supporting consistent year-over-year performance. At Efemçukuru, we expect production of 70,000-80,000 oz in 2026. Costs are expected to be higher this year due to increased labor, electricity, and royalty expenses.

Finally, in Greece, at Olympias, production is expected to be between 70-80,000 oz, reflecting the ramp-up of the 650,000-ton plant in the second half of the year. Our focus will be on executing the plan, managing feed blends, and supporting stable flotation performance. Higher gold production and improved payability terms are expected to support lower unit costs, though quarterly variability will continue due to timing of byproduct shipments. With a portfolio we're generally genuinely excited about a clear path to cash, cash flow inflection, we believe we're well positioned to create long-term sustainable value. And I'll now turn it back to George for concluding remarks.

George Burns (CEO)

Thanks, team. Our 2025 performance reflects the dedication and capability of our employees and contractors across the organization. I want to thank our teams for their ongoing commitment to responsible production, safety, operational excellence, and collaboration. As we look ahead to 2026, our focus remains on safely delivering Skouries, strengthening our operating foundation, and continuing to create long-term value for our shareholders. Before we conclude, I want to briefly revisit the announcement we made almost three weeks ago regarding the combination of Eldorado and Foran. Together, we bring two high-quality assets entering into production in 2026, in addition to four operating mines that support near-term growth and long-term value creation. The combination enhances free cash flow potential, strengthens our production base, improves our cost profile while maintaining a strong balance sheet to fund growth, advance exploration, and return capital.

It also adds meaningful copper exposure alongside long life gold production, creating a more balanced and resilient portfolio. Overall, this creates a compelling platform for growth and operational excellence that will drive sector-leading cash flow per share. We're confident in the opportunities ahead. Thank you for your time today. I'll now turn the call back to the operator for questions from our analysts.

Operator (participant)

Thank you. 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're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two. The first question comes from Cosmos Chiu with CIBC. Please go ahead.

Cosmos Chiu (Managing Director and Director of Precious Metals Equity Research)

Thanks, George and team. Maybe my first question is on Kışladağ. As you mentioned, in the three-year outlook, 2026 guidance is lower than what it was before, and I think you explained why part of it, you know, lower grade, higher strip. But how about 2027? I noticed that, 2027, your three-year outlook is also lower than what you have previously disclosed. So, you know, the reasons in 2026, are they also sliding into 2027?

Simon Hille (EVP of Technical Services and Operations)

Hi, Cosmos, this is Simon.

Cosmos Chiu (Managing Director and Director of Precious Metals Equity Research)

Hi, Simon.

Simon Hille (EVP of Technical Services and Operations)

Thanks for the question. So yeah, as we explained, we are looking to open up the western area. I think that's going to provide us with a new ore source, and we're quite excited to what that could do for us by adding some more mine lives into Kışladağ. So that's you know, one of the positives coming out of the extra stripping required this year. As we look forward into sort of 2027 and beyond, we are probably setting up the mine to be in that range that we've sort of 150,000-160,000 oz on a steady year-on-year basis.

However, there will be focus on making those profitable ounces through cost initiatives and other things. But that's sort of the outlook for right now. We don't see it really spiking any given year.

Cosmos Chiu (Managing Director and Director of Precious Metals Equity Research)

So I guess to confirm, it sounds like 2027 numbers that you've given today, 140,000-160,000 oz, has incorporated some of the potential impact from a, you know, increase from a $1,700 an ounce to a $2,100 an ounce pit shell. Is that what I'm getting?

Simon Hille (EVP of Technical Services and Operations)

Yeah, I think it's fair to say that.

Cosmos Chiu (Managing Director and Director of Precious Metals Equity Research)

Okay. And then, so in terms of the stripping, then, the 6-8 million tons of pre-strip in 2026, is that gonna stay high then, potentially, if you move to a $2,100 an ounce pit shell? I'm just trying to figure out if that's a good, sustainable number of, you know, tonnage to move, to think of-

Simon Hille (EVP of Technical Services and Operations)

Yes.

Cosmos Chiu (Managing Director and Director of Precious Metals Equity Research)

as we continue on a go.

Simon Hille (EVP of Technical Services and Operations)

So maybe... Yeah, that, that's a good, a good question. To clarify, you know, we, we typically move, you know, roughly around 20 million tons of waste every year. And so, you know, that's been driving our, it's split in across our growth and, and sustaining capital. Beyond, for 2026, what we're flagging is an increase, an extra increase on top of that, of roughly around 6-8 million tons. The extent of that moving forward, will be, I think, fairly modest. This year is probably where we're trying to open up the area. And the $2,100 shell, was, I think, all a part, always a part of our, long-term plan with the, metal prices moving in the, in the direction they have.

Cosmos Chiu (Managing Director and Director of Precious Metals Equity Research)

Great. Thanks, Simon. And that's maybe just another question, switching gears a little bit. George, as you mentioned, it's been almost three weeks now since you announced the acquisition for Foran Mining. You've had a lot, you know, chance to talk to a lot of investors and shareholders of both companies. How has the reception been so far?

George Burns (CEO)

Thanks, Cosmo. Yeah, you know, we're out explaining to both sets of investors why this transaction is really a 1 + 1 = 3 transaction. And I think our shareholders are listening to the benefits that flow to both sets of shareholders. In the case of Eldorado, you know, that this is a compelling opportunity to have a multi-decade life asset with massive exploration upside. We also, with our balance sheet, know we can lower the cost of capital relative to a development company. And then accelerate investment in things like a lead circuit and doubling the capacity of the plant much faster than the street is assuming. So, you know, we're selling the benefits, compelling benefits to our shareholders, and, you know, it's gonna be up to them in a shareholder vote in the not-too-distant future. So we remain optimistic.

Cosmos Chiu (Managing Director and Director of Precious Metals Equity Research)

Understood. Great. Thanks, George and team. Those are all the questions I have. Thanks a lot.

Operator (participant)

Once again, if you have a question, please press star, then One. The next question comes from Tanya Jakusconek with Scotiabank. Please go ahead.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Good morning, everyone. Can you hear me?

George Burns (CEO)

Yes.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Okay, perfect.

George Burns (CEO)

Good morning.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Morning. I don't know, George, if you wanna take this, or maybe Simon wants to take this. I just wanna circle back to Skouries. With this delay that we've had, does this give us any, you know, I'm assuming it gives you a little bit more breathing room on the tailings. Maybe just review, you know, the tailings. And you mentioned weather, Simon. You know, are we getting drier weather? Does this help us a little bit on the tailings side, is what I'm asking, this additional time?

George Burns (CEO)

Yes. Yeah, it's George. So, yeah, a couple of things I'd point out. So this three-four-month delay in getting to first concentrate does give us some breathing room in really two areas. The plan all along on the plant construction was to get two filters up and running and begin the ramp up. With this delay, we're gonna be able to get more of that equipment finalized before first concentrate. So, you know, we'll, we'll have more than two filters at startup. We'll have a number of other equipment required for ramp up, complete before we start. So that's a positive. And yeah, I mean, we've seen heavy rains in the Mediterranean, both in Greece and in Turkey. Some record rainfalls are hitting the area, so it's a nuisance when you're out trying to do earthworks, open-pit mining.

But these haven't caused any significant delays in the construction. It's just, you know, we're being transparent about those issues. So for sure, the delay in startup will advance all of our earthworks and put us in a better position for a solid ramp-up in the second half.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

I mean, you're gonna have a very, very big... Well, I'm gonna say big, but you're gonna have a nice stockpile ready to feed that mill. And I think Simon mentioned we've done the drilling for three years of mining, detail drilling in the pit. So we've defined for three years with a nice stockpile. Is that safe to assume that I'm understanding it correctly?

George Burns (CEO)

You are. We're gonna be in a fantastic position to feed the mill. We're at more than 1.5 million tons today on the ground stockpile, and with this three-month delay, that stockpile is gonna grow even further. So the beauty in all this, we're gonna have more ore than we're gonna process this year. We're gonna be able to select the higher grade, more valuable ores to feed the plant. So yeah, we're in a great position from a mining perspective, great position from a ore body quality perspective. We've got three years of the open pit infill drills confirming the grades and recovery, and the underground's been unfolding very positively. We're 900 meters ahead on development. We're gonna do four test stopes this year rather than two.

And the two test stopes that we've completed mining, the other one's roughly half completed. Fragmentation was excellent. The cavity's holding up. It's increased our confidence to go to larger stopes this year. So, the four stopes we're gonna mine this year are around 97,000 tons, compared to the two last year were just over 60,000 tons. So we're in a great shape for mining. This delay does allow us to have the plant more ready for a faster ramp up and, you know, it's unfortunate we had a, an issue with one of the key pieces of equipment, but, I think we're in good shape for a strong year.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

George, I'm assuming that, you know, with these, with the issues on the cyclone feed pump, all other areas have been checked, like, we're not, you know, checks have been done-

George Burns (CEO)

Yeah.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

This is the only damage. There's nothing else we checked?

George Burns (CEO)

Yeah, I mean, that's a great question. To put it in context, for this concentrator, there's four-- over 4,000 pieces of electrical and mechanical equipment. There are 891 motors, and there are 190 variable frequency drives. And so, yeah, all of this stuff has been inspected. Unfortunately, with the cyclone feed pump, Let me back up. All the electrical equipment had been stored since 2017 in warehouses that were constructed in the first phase of construction. I think that's a testament to the original design of this. That often doesn't happen at the beginning. So when we went into care and maintenance in 2017, the electrical equipment was stored under cover.

What we have found as we put this VFD into the motor control center just days ago, there was some, some signs of some moisture damage on this particular unit. And as a result, we got the manufacturer involved, opened up the capacitors and found this damage, and we've remarkably been able to find the quickest solution is to repurchase new capacitors. The repairs were gonna take longer, and essentially that's our critical path now to start up. So to answer your question, all of that equipment had been stored other than this one piece. These capacitors were marked cyclone feed pumps on the craning, and we now believe these were stored outside for a while and then later brought into the warehouse.

So unfortunately, we were just in the phase of installing these, brought them into the MCC, noticed a bit of moisture damage on the outside of the gear and got the manufacturer there to open up this electrical equipment and found the damage. No other equipment had any of those indications, and all the additional variable frequency drives have been checked and confirmed to be okay, so we think we're out of the woods on any repeats to this unfortunate issue.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Yeah. Sounds like the manufacturer is working with you, and I think Simon said they've already been ordered, and I think we're expecting them on site soon.

George Burns (CEO)

Yeah, so the replacement new capacitors have been ordered. The rebuild of the damaged capacitors will come in Q3. So our best estimate from, you know, accelerating the manufacturing and shipment to site is, we'll be ready to run in three-four months from our late Q1 original date.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Okay. And then just maybe just turning to the power line connection. So, I'm assuming the subcontractor is there now, ready to, you know, working away, and the critical path there is just getting that approval from the regulators. Is that how I should think about this power line? There's nothing else that needs to be done.

George Burns (CEO)

Yeah, I mean, we wanted to just point this out, being transparent, and we've talked all along that the dry stack tailings facility was the critical path and that the power line and substation were not too far behind it. We did have some slippage in the detailed engineering, and just to describe this part of the infrastructure, it won't be owned by Eldorado. This is being constructed for our project, but it'll be owned by the regulatory authority in Greece, and so it involves 11 power transmission poles and associated line, and then this main substation. So the engineering took a bit longer. The subcontractor that's constructing it wanted full sign-off before they started the work, and we saw some slippage there, but we've mitigated that. And with this delay now on the capacitors, we'll have this energized and ready ahead of time.

But we did want to point out that we're not also in control of the inspection. So once the construction's complete, the regulator will come out and inspect all of that infrastructure that will be handed over to them, and they'll make the final determination when it's ready to flip the switches and energize our plant. And, you know, we've got temporary generators on site that we can do our commissioning on all areas of the plant, with the exception of our grinding mill. So we have to have this power for that final commissioning and then start up. So at this point, it's not the critical path, it's actually the capacitors. We just wanted to highlight there was a bit of slippage, and we're focused on mitigating that.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Okay. So, just so that I know, when is that gonna be ready, the power plant?

George Burns (CEO)

We expect the power plant in late Q2, and then shortly after that, the capacitor is up and running for the cyclone feed pumps.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Okay. Okay, good luck with all of that. I'll be asking this again on the Q1 call, so, we'll-

George Burns (CEO)

I'm sure you will. Thank you.

Tanya Jakusconek (Managing Director and Senior Equity Analyst)

Yeah. All right. I'll let someone else ask questions. Thank you.

Operator (participant)

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.