Eldorado Gold Corp Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : I have 3 questions. I guess 2, I can give to Phil, and then the last one for you, George. Phil, maybe can we start? I know that we have reconfirmed the guidance for production, all-in sustaining costs and cash costs. Can we talk about the capital? You did mention that capital is going to be higher in Q3. Can you kind of review what the capital spend is for this year and sort of how it goes into Q3, Q4?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. Can you remind me your capital guidance for this year on sustaining and development?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. So I got these correctly. Did you say $105 million to $125 million for sustaining capital?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : And then for development capital, did you say $101 million to $145 million?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And then just the key items on the development capital, just remind me that I mean Lamaque is in there?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. Well, it hasn't changed from the beginning of the year, We'll check on the press release, just to make sure we're going with that. And maybe what I can then lead on to, Phil, is just talk a little bit about your capital allocation and maybe George wants to jump in. I noticed that you use proceeds from your ETM to buy back your senior secured notes. How should we think about all of this free cash flow and other sorts of cash that you're gaining in terms of allocation to the pipeline priority and other sources of the -- where do you stand on a dividend, maybe would be another question? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JULY 31, 2020 / 3:30PM, ELD.TO - Q2 2020 Eldorado Gold Corp Earnings Call

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay, sorry, would I just add that the ATM and how you're using that, we should kind of think about it in that way in terms of helping you with your debt? Is that a good way to think of it?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay, perfect.

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And just so that I understand all of your big capital needs, and maybe George, this comes to you and your conversations that you're having with the Greek government. But just so that I have the capital correct, I think we had talked lastly that Skouries would require another $700 million to complete or thereabouts. And I think Perama Hill was in the $200 million or $250 million area. And then it appears Lamaque, we've got the $25 million for the decline, which is being done, the $50 million in terms of increasing the throughput to 5,000 tonnes a day. And then we've got the underground crushing and conveyor, et cetera. Should I look at that like in the $100 million to $150 million total of -- excluding development capital, is that a fair way of looking at that one?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Yes. So that comes to about $150 million. All right. So we've got Skouries is about $700 million and then Perama Hill at $200 million, and then this one spread over 5 years at about $150 million. Would that be fair on the capital for these projects?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And I think the Olympias expansion was under $50 million, right?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. So maybe then just if I could, my final question was really about where are we now? We've come back to the table with the Greek government, maybe just a bit of flavor of where we are on these conversations and what are the focus.

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Yes. It looks like the permitting, you've got those additional permits for drilling. How is the investment part of it coming? I know we had talked originally about updating that portion and having an arbitration clause in there and other aspects that you've talked about on conference calls. How are we proceeding on that route? Is it slower than--?

Question: Tanya M. Jakusconek - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. All right. Well, good luck with that, George. And thanks a lot, everyone.

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : A quick sort of single one for me. I was looking back at the notes from the site tour last year. And I guess there was a couple of interim resource updates we were expecting for Lamaque midyear or later in the year. And obviously, there's been success with the exploration front with Ormaque and then also impact from drilling just given COVID. In terms of, I guess, which components of the resource are going to be included in the next resource update, and just to clarify, that's one. Could you review which the vein sets are going to be incorporated, and I guess, what the time lines for that are?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Okay. And then, I guess, C6, C7, some of the deeper sets, C10, is there any chance that we'll see those maybe an inferred category there?