Eldorado Gold Corporation

for standing by this is the conference operator welcome to the Eldorado Gold Corporation second quarter 2020 conference call as a reminder all participants are in listen-only mode and the conference is being recorded after the presentation there'll 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 and zero. I would now like to turn the conference over to Peter Lekic, Manager, Investor Relations. Please go ahead.

Thank you, operator. And thank you, ladies and gentlemen, for taking the time to dial into our conference call today. On the line today are George Burns, President and CEO, Bill Yee, Executive Vice President and CFO, Joe Dick, Executive Vice President and COO, and Jason Cho, Executive Vice President and Chief Strategy Officer. Our release yesterday details our 2020 second quarter financial and operating results. This should be read in conjunction with our second quarter financial statements and management discussion and analysis, both of which are available on our website. They have also been filed on CDAR and EDGAR. All dollar figures discussed today are in U.S. dollars unless otherwise stated. We will be speaking to the slides that accompany this webcast. You can download a copy of these slides from our website. Before we begin, I would like to remind you that any projections included in our discussion today are likely to involve risks, which are detailed in our 2019 AIF and in the cautionary note on slide one. I will now turn the call over to George.

Thanks, Peter, and good morning, everyone. Here's the outline for today's call. I'll give an overview of Q2 along with some comments, then I'll pass it to Phil to go through the financials. Joe will follow by reviewing operational performance and then we'll open it up for questions. I'm excited to be reporting an outstanding second quarter both operationally and financially. We continue to make progress in delivering value for our stakeholders as demonstrated by our strong quarterly production and maintaining guidance despite COVID-19 operational challenges. The operations performed exceptionally, and I'm proud of the agility of our teams to adapt to our new normal. I'm especially pleased to report we delivered a significant increase in cash flow this quarter and improved our financial position. We've elected to issue a redemption notice of $58.6 million under the equity clawback provision of our senior secured notes. Repayment of these notes will help lower interest expense and average cost of capital. Another highlight this quarter includes beginning construction of the decline at Lamoc. As a reminder, this will connect the Triangle underground mine to the Sigma mill via three kilometer tunnel. This gives us a number of benefits, including eliminating surface ore haulage, reduced road traffic and lower carbon footprint, enabling lower cost underground exploration for our mock plug for and parallel deposits and increase safety by providing a secondary means of egress. Over to Greece, where we've resumed negotiations with the Greek government on an updated investment agreement. As mentioned last quarter, COVID-19 had diverted both our own and the Greek government's attention However, we are back now in discussion. Perhaps a little background may be helpful here. Eldorado's existing agreement is nearly 15 years old and is no longer fit for purpose. It was negotiated back in 2006 by a previous owner under vastly different economic and technological conditions. A modernized investment agreement with appropriate investor protections will offer significant economic and environmental benefits to Greece. Our investment in Greece will not only benefit El Dorado shareholders, but also the Greek state and local communities through providing jobs in construction and operations, increasing foreign direct investment in Greece, using best available technologies like dry stack tailings, and other CSR projects. Greece's prosperity was once built on mining. Mining could again become a key sustainable industry and source of wealth for Greece while using best available technologies to protect the environment. We remain committed to acting in good faith in discussions with the Greek government to find a mutually agreeable path forward. Also in Greece, we saw movement on drilling permits for Mavis Petros during the quarter. which we see as another positive indicator. And lastly, we completed a purchase of 5% of Hellas Gold shares that were owned by Elactor. Eldorado is now 100% shareholder of Hellas Gold. This gives us full ownership of the Cassandra assets and more flexibility for joint venture partnerships. Greece continues to represent a fantastic growth opportunity for Eldorado, that we believe is not currently reflected in our evaluation. Scurries and Paramahill are world class assets that will add significant value for our investors, local communities and the Greek state. I'll stop there. Over to you, Phil.

Thank you, George. Good morning, everyone. On slide five, we provide an overview of Eldorado's financial results for the second quarter of 2020. As George stated earlier, we are very pleased with our financial results for the quarter. The headline for this quarter is our strong free cash flow generation of 63.4 million in Q2 of 2020 versus 4.8 million in Q2 of 2019 and 7.2 million in Q1 of 2020. This increase is due to increased production, higher sales and higher gold prices. Eldorado generated 255.9 million in total metal revenue in the quarter. This includes 232.9 million in gold revenue and represents an increase of 55% over the comparative quarter in 2019. The increased revenue resulted from higher gold sales volumes of 134,960 ounces compared to 113,685 ounces in the second quarter of 2019 and 116,219 ounces in the first quarter of 2020. The increase was also the result of higher average realized gold price of $1,726 an ounce in the second quarter of 2020, compared to $1,321 per ounce in the comparative quarter in 2019. The company reported net earnings to shareholders in the second quarter of 45.6 million, or 27 cents per share. After adjustments, primarily to remove the non-cash revaluation of a derivative related to our debt, and the non-cash loss on foreign exchange due to translation of deferred tax balances. Adjusted net earnings for the second quarter were $43.8 million or $0.26 earnings per share. This was a significant improvement over the second quarter of 2019's adjusted net loss of $3.5 million or $0.02 loss per share, and over the first quarter of 2020's adjusted net earnings of $12.5 million or $0.08 earnings per share. Like a lot of our metrics this quarter, the increased net earnings and adjusted net earnings reflect higher gold prices and higher gold sales relative to Q2 of 2019. EBITDA for the quarter was 131.8 million and after removing certain non-cash items, adjusted EBITDA was 135.8 million. This was a material improvement over EBITDA of 74.5 million and adjusted EBITDA of 66.8 million in the second quarter of 2019. Depreciation and amortization increased to 58.3 million in the second quarter and 41.2 million in the comparative quarter in 2019. Again, reflecting higher production and higher sales volumes in Q2 of 2020. Finance costs were 6.5 million in the second quarter of 2020 compared to 16.8 million for the comparative quarter in 2019. The decrease was due to lower interest and financing costs in Q2 of 2020 and a non-cash gain on the revaluation of the derivative related to our debt. Income tax expense for Q2 2020 amounted to 23.7 million for the quarter compared to 8 million in the comparative period of 2019. The significant increase was a result of higher sales volumes in Q2 2020, leading to higher income tax on operations in Turkey and higher provincial mining duties for our Lamarck operation in Quebec. We finished the quarter with approximately $440 million in cash, cash equivalents and term deposits, and approximately $35 million available under the revolving credit facility. Our liquidity position is very strong, and we have been clear that paying down debt is a priority for the company. As George mentioned, we have elected to partially redeem the 9.5% secured notes under the equity clawback provision in the bond indenture. This allows us to use the net cash proceeds from equity raised in the past 120 days to redeem 58.6 million of senior secured notes in late August. These notes carry a 9.5% coupon, so this redemption will lower our interest expense going forward. Under the terms of the indenture, the redemption price for the redeemed notes is 109.5% of the aggregate principal amount plus accrued and unpaid interest up to the redemption date. These costs will be incurred in Q3 of 2020. It is also worth noting that we expect Q3 2020 free cash flow to be impacted by the premium and interest paid on the redemption, as well as the timing of certain cash tax payments and the timing of capital expenditures. Moving on to slide six, we have provided four graphs that I think really capture the turnaround that we're seeing in our financial performance over the past year. You will recall in April of last year, Lamarck commenced commercial operations. In June 2019, we completed the refinancing of the outstanding debt. Earlier this year, we announced the mine life extension at Kisledag to 15 years, and we have steadily increased production at Olympus over the past few quarters. All of these factors have contributed to the strong performance reflected in these graphs. Adjusted EBITDA, as shown in the top left graph, has increased quarter over quarter in the past year. This is reflective of our operational improvements and supported by a high gold price. In Q2 2020, Eldorado reported 99.6 million in net cash generated from operating activities, 63.4 million in free cash flow, and 43.8 million in adjusted net earnings. All three of these metrics reflect significant increases over the previous four quarters, and were driven by strong production and a higher realized gold price in Q2 of 2020. Thank you, everyone. I'll conclude on that positive note, and we'll now turn it over to Joe.

Thanks, Phil, and good morning, everyone. Here's a quick summary of our quarterly operating results. We produced 137,000 782 ounces of gold in the order at cash operating costs of $550 per ounce sold, and all in sustaining costs of $859 per ounce sold. So a great quarter and in line with our expectations. Looking forward, we are maintaining our 2020 guidance. As a reminder, this is 520 to 550,000 ounces of gold at all in sustaining costs of $800 and 50 to $950 per ounce. Last quarter, we talked a bit about a reduced workforce due to some workers being considered high risk for COVID-19. We're now back to normal workforce levels as we found ways for them to work safely. We continue to monitor our safety protocols and find new and innovative ways to keep people healthy. And that's a good segue to the next slide. Here I want to highlight a contact tracing and tracking system we've implemented at Lamarck and will be implementing in Greece and Turkey as well. Contact tracing has become an essential tool to identify and isolate people who may have been exposed to the coronavirus and mitigating potential impacts quickly for the benefit of our people and our business. Our solution builds on existing hardware and software systems at sites using ID cards. At Lamarck, each employee and contractor wears a silicone bracelet, as you can see in the picture, that they use to tap in and out at various entry points in the mill and surface buildings. The card reader records their employee or contractor number, which allows us to identify anyone who may have been exposed to a potential positive case and complete the investigative process within a couple of hours. The solution is cost effective. easy to implement, protects the privacy, and was quickly deployed at Lamarck. The system is unique to our knowledge, and we will continue to work closely with public health authorities as we look to improve and build on this innovative approach. Here on slide nine, we have some further color on the quarter at each of our assets. At Kisladot, production was 20% higher than Q1 due to increased tons of stacked ore at higher grade during the quarter. Solution inventories began to reduce with the drier weather during the latter half of the quarter. We expect these factors to continue to support higher production levels over the remainder of the year. Work is continuing on the installation of the HPGR with delivery scheduled for the first half of 2021. We expect this to be online in the second half of 2021. And as a reminder for everyone, this will improve heap leach recovery. At Lamarck, gold production met expectations for the quarter, despite a temporary suspension of operations in late March to mid-April to comply with Quebec government mandated restrictions to address the COVID-19 pandemic in the process. The big news this quarter was the commencement of the decline at Lamarck. As we've mentioned previously, we're currently evaluating an underground crushing and conveying system, as well as a mill expansion. An update outlining the path forward at Lamac is expected in Q4 of this year, along with our updated reserves. As we've always said, our long-term goal at Lamac is to increase production at the Sigma mill to its ultimate nameplate capacity of 5,000 tons per day. We will continue to evaluate other deposits in our land package such as ORMAC in pursuit of this goal. FM TrueCrew continues to be a consistent performer. The column flotation project remains on schedule for later this year and will result in improved concentrate grade and quality to lower transportation costs and concentrate treatment charges. Moving over to Greece, At Olympias, I'm pleased to report another quarter of improved production. In fact, we saw 2700 ounce increase over Q1 2020 and our highest ever quarterly gold production. This is a result of ongoing underground development, improvements to the pace backfill system, and greater collaboration among our employees resulting in improved productivity. This quarter marks the third consecutive period of decreasing all in sustaining costs at Olympias. Base metal prices remain low and treatment charges high. However, improved efficiencies are leading to lower costs, and we will continue to drive operational improvements at Olympias. Just a quick note on Scourias. As the asset protection works continue, the picture here shows concrete being placed in June. We had planned to install the mill building, and we'll review that work as we continue to monitor the COVID-19 situation. With that, I'll turn it over to George for closing remarks.

Thanks, Joe. Before wrapping up, I want to welcome Judith Moseley to our Board of Directors. Judith will join us effective September 1st. Her skills in metals and mining banking sector are complementary to those of our existing board members, and we look forward to her insights. This timing is consistent with our ongoing board succession plan. I also wish to welcome Sam Houston as our VP Capital Projects and Engineering. Sam joined us in Q1 2020 and is responsible for strategic oversight of our capital projects. Sam has extensive experience in global mega projects from across diverse sectors, including mining, oil and gas and infrastructure. In conclusion, I want to emphasize the turnaround that Phil mentioned earlier. I believe that the groundwork laid throughout 2019 continues to pay off. Quesada is back on track. Olympias is showing signs of consistent improvement. Lamarck is firing on all cylinders. And FM Chukwu continues with reliable, steady performance. This is reflected in our strong share price appreciation over the past 12 months. With our solid operating performance, several potential catalysts in Greece and Quebec, a balance sheet that supports near-term growth, and our energy and drive to execute, we are well positioned for a period of sustained value creation. When combined with record gold prices, Eldorado offers a compelling value proposition. Thank you, everyone. I will now turn it over to the operator for questions.

Thank you. We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. We will pause for a moment as callers join the queue. Our first question comes from Cosmos Chu of CIBC. Please go ahead.

Hi. Thanks, George, Phil, and Joe. First off, congratulations on a very strong Q2. Maybe my first question is on the MAC. You know, good to see that you're ramping up well after the Quebec mandated shutdown. As Joe, you know, as you mentioned, you know, the ultimate capacity is 5,000 tons per day potentially. Could you remind us, like, if I look back historically, did the mill ever do, you know, 5,000 tons per day with the old timers? And what do they need? Like, what would you need to do to that mill to get it up to that main plate capacity? Because if I remember correctly, when I was on site, there were some, you know, idle leach tanks, you know, certainly there was some rot mills that were idle as well. Would you need to bring those back? And is that what you need to get it up to 5,000 tons per day potentially?

Well, I'll answer and then maybe ask George for a little help. I think the first thing we need is the resource on which to build that, and that is ongoing through exploration, as I mentioned, both within the land package and this decline figures considerably into that. predominantly, you know, I think it would be a grind addition would be number one, and then certainly downstream would be additional retention at those rates. But, you know, George, do you have a better flavor for the requirements in the middle of 5,000?

Yeah, I mean, the plant did historically do 5,000 tons a day, and it was back in the era where there was an open pit to supplement underground ore. And it had a sag mill in the circuit at that time. Prior operators sold that sag mill. So as Joe said, we need additional grinding capacity to push the plant to that level. And that's part of the engineering work that's happening this year we completed in second half. You know, and then I think Joe hit the nail on the head, the big issue is really not the plant, it's get the grinding in there and then and then retrofit more of the tanks, more of the leach tanks. So, and, you know, we've guided an estimate of around $50 million to be able to do the upgrades to the plant to get to that 5,000 ton a day level. And we're looking at alternatives to scale it up incrementally rather than in one push. So that works ongoing. And then, you know, in terms of where the feed would come from, that's really the strategic work that continues with Peter and our exploration group. You know, for Triangle itself, we've got a permit now to 2650 tons per day. And we're already executing a ramp up in development and production from underground. And that's going to support ramping the production up from the original maiden reserve and mine plan of 130,000 tons a day up to 150,000 tons a day over the next couple of years. And beyond that, as we continue to convert resources to reserves at depth, we'll continue to assess what the ultimate potential is for Triangle itself. Then in parallel with that, we're continuing to explore on our MOC. We've got parallel and plug for all offering opportunities for additional feed to the plant. And then, you know, if you think about this property package, you know, nearly 10 million ounces produced with two underground mines, one of which is trying as a lookalike to those two historic mines. So when you think about after decades of mining, a new discovery of a lookalike deposit occurred. So we think that potential still exists on the property. We have some very good exploration targets that we're working on and And so that offers the opportunity, we continue to look around, around our existing property for other opportunities that could be used to ramp up production to that potential 5,000 ton a day.

And, you know, thanks for a very thorough answer here. And then on that, you know, as you talked about studies coming out in Q4, you know, underground crushing potential, conveyor system potential, along with resources and meal expansion. Should we expect, you know, how does 4MAC, you know, kind of fit in? Because I think you mentioned that as well, and that's one of your new targets that you've targeted high grade. How does that fit in? Should we expect a resource coming out with along with that Q4 study? And then could you remind me in terms of, you know, historically, what was the conversion rate from, say, resources into reserves?

Tonight, I'll start with that first, the inferred resource to reserve conversions been around 80-85%. So a pretty good rate. And we think that that sort of conversion rate will continue as we continue to drill deeper. And then in terms of our mock itself, we're still in sort of trying to define the limits of this new exploration discovery. So it's step out drilling primarily. And I'd say the resource modeling, our geologists continue to look at it. It's a bit different than most of the mining that's happened in the district. These are flatter flying veins, and they're fairly high grade relative to the current reserve. So I can't give you a clear indication of when we'll have the first resource yet. In terms of the way this will unfold, hopefully this year, We'll kind of define the overall size of the deposit and begin to do some more detailed drilling to support the modeling efforts. And then the decline really factors into this. Once we get this decline done, we'll be able to do drilling from underground to kind of accelerate our understanding of the deposit and eventually hopefully convert it to reserves. we're optimistic about all that. And maybe one more key thing is, you know, as I mentioned, this is a flat or lying ore body. Maybe Joe can talk a little bit about the test mining that's underway that potentially could be deployed in this type of deposit.

Thanks, George. You know, I think we mentioned it before. We do have a Minrail test going on at Lamarck that, you know, we kind of did the investigative work and, you know, you know, movement of the equipment to Lamarck late in 2019 and then in 2020 began the setup of it. So we have installed VIN rail. We have driven, you know, 50 plus meters using the equipment and have, you know, kind of set it up nicely for a test. It works well in that, you know, those flatter lying or veins, you know, roughly in that, um, you know, 20 to 40% or 20 to 40 degree dip angles. Um, you know, it's a, it's a bit like a horizontal, um, or semi horizontal Alamak and, uh, with, you know, attachments that work off the front for drilling, um, scraping, um, or, or slushing type, um, or recovery. And so we'll be providing more information as Q3 goes on, and we kind of test the economics of it and, you know, what kind of resource we'll need to make it economic. You know, so far, though, I can say that it, you know, from a very favorable point of view, the safety aspects of the Minrail are quite good and, you know, keeps us from, you exposing ourselves to any unsupported ground, I think. So, you know, we're optimistic and more information to come as the quarter moves along.

Of course. No, just to confirm, I guess, George or maybe Joe, you don't really need a resource on ORMAC to make a decision on this underground crushing conveyor system or mill expansion, do you?

No, I mean, our studies this year are really based on triangle. And obviously, anything we add to that will be a supplementary benefit.

And one last question, if I may, turning to Kistadon quickly here. I think in a previous conference call, we talked about the fact that, you know, I think stripping at that point in time was a bit slower. And if it continued to be slow into the summer months, it could have longer term impact. in terms of, you know, the 15-year sort of mine plan or the near term, you know, of the 15-year mine plan? I just want to know, you know, you did about $7 million in stripping in Q2. Is the mining rate and stripping at Kistadug where you want it to be to prepare you for that 15-year mine plan?

So, presently, we're back to very close to, you know, budget levels for stripping. And, you know, we'll close that gap completely in Q3. You know, as we've looked at, you know, the different pit options going forward, we don't see that the short-term stripping deficit in Q2 is going to impact us this year or in the five-year plan, and then for that matter, even life of mine. You know, it's slightly different scheduling, but we see no impacts at this point.

Great, that's great to hear. Congrats again on a very good Q2 and have a good long weekend, everyone.

Thank you. Thanks, Cosmos.

Our next question comes from Kerry Smith of Haywood Securities. Please go ahead.

Thanks, operator. George, great quarter. I think that you guys are definitely moving this company in the right direction, so congratulations. So just a couple of things. One, the the mill upgrade study that you're doing in Q4, that will be for the 5,000 ton a day rate, I think, correct?

Yeah, it's 5,000, but we're looking at other incremental opportunities. So, it potentially is a staged approach as we continue to, you know, expand reserves and find additional feed for the plant.

Right. Okay. Gotcha. And then the second question on the Parama Hill study that you're working on that you talked about releasing in Q4. Is that timing Q4 as well?

Yeah, it's also tracking for the fourth quarter.

And what are you doing there? Just updating the old engineering? Are you updating the mine plan or just really trying to wrap some new economics around that project?

There's a bit of a redesign happening so that the pit looks to be a bit bigger. We've kind of re-optimize the location of the plant infrastructure. So I'd say some modest improvements and basically updating it for current environmental standards, being prepared then to submit the revised EIA.

Okay, gotcha. And then just maybe the last question, if I could. What is your current thinking on TZs? Are you thinking to maybe update the economics that you did in the feasibility? Obviously, the economics would look significantly better today versus the economics that you had back when you did that study.

I mean, the study is pretty fresh. So really, it is higher metal prices and FX rate changes that impact valuation. And obviously, those are numbers we have and are articulating with prospective acquirers.

Okay. And are you still thinking to try and sell that property? Is that still your plan?

Well, the way I characterize it is both our remaining and Brazilian assets are viewed to be non-core, and if we found a reasonable offer, that's in line with strengthening our balance sheet in support of our focus on growth elsewhere.

Okay. I got it. That's great. Thanks very much, and congratulations again.

Thanks, Gary.

Our next question comes from Tanya Jakuskonik of Scotiabank. Please go ahead.

Good morning, gentlemen. Can you hear me?

You can.

Okay, perfect. Morning. I have three questions. I guess two 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 we kind of review what the capital spend is for this year and sort of how it goes into Q3, Q4?

Sure, Tanya. So I think the capital in Q2 was just slightly higher lower than what we spent in Q1. And I think in terms of overall, below the rate, if you spread it out for the whole year, but I think we're still on schedule for our guidance for the year, which would indicate a higher rate of capital spending in the second half. It all comes down to timing as well. You know, there's certain projects that have perhaps been slightly impacted by, you know, for example, COVID at Lamarck with the three-week shutdown in March and April. But we continue to move ahead, and I think we're confident that our guidance on the capital will remain for this year.

Okay. Can you remind me your capital guidance for this year on sustaining and development?

Sorry, I'm just trying to pull up the number here, so one sec here. So, guidance for sustaining CAPEX.

I have the number, maybe I can help you out a bit. Sure, sure. Thanks, Joe. So it's 101 to 145 on development capital and 105 to 125 on growth or sustaining, excuse me.

Okay, so I got these correctly. Did you say 105 to 125 for sustaining capital?

Correct.

And then for development capital, did you say 101 to 145? Correct.

Okay.

And then just the key items on the development capital, just remind me. Does that mean LAMAC is in there?

LAMAC is in there, KISLA. And those are the two primary ones.

Okay. Well, if it hasn't changed from the beginning of the year, we'll check on the press release to just 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. Notice that you use proceeds from your ETM to buy back your senior secured notes. How should we think about all of this, you know, free cash flow and other sorts of cash that you're gaining in terms of allocation to, you know, the pipeline priority and other sources of – where do you stand on a dividend maybe would be another question.

Sure. I think, you know, overall our capital requirements for, you know, for the year and going forward, you know, averaging about – I think as Joe mentioned, just around $100 million for sustaining. And our growth capital requirements, you know, limited to prescripting at Kissadag, which is around $260 million over five years. The HPGR project at Kissadag, which is about, you know, $36 million, which is manageable. And then we have the decline project at Lamarck that was recently announced. you know, that's about 20, 20, 25 million, most of that will be funded through flow through financing. So that won't impact our liquidity as much. So I think a lot of our capital moving forward, Tonya's is quite manageable. Our focus still, you know, still focused on delivering the balance sheet is, you know, in terms of what makes sense, we do, you know, in terms of the equity clawback on the senior notes, that is our highest cost debt. It has a 9.5% coupon. So the focus, you know, the opportunity with the provision of the indenture and the proceeds from the ATM allow us to do that. And I think going forward, you know, we still have uncertainty in terms of future potential impacts of COVID. So we want to maintain strong liquidity in our balance sheet in light of that. So And if commodity prices continue to be high, we will generate significant additional free cash flow and we will assess our use of those funds at that time. Specifically on your question on perhaps a dividend, I think we're focused on getting our debt dealt with first, and we also have opportunities internally to grow our portfolio. So that all is taken into consideration. You know, we will continue to look at that as we move forward.

Okay, and should I... Sorry, would I just add that the ATMs 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?

Well, I think the way the... the way the equity clawback provision for the indentures worked is the window is only 120 days leading up to the redemption date. So, you know, we, we, we managed to raise a sizable portion of the ATM and Q2 and it fit that 120 day window. So that's how that fit together. Okay. So it's all like, we can just, you know, Take additional ATM and increase that amount. It is limited to the 120-day window.

It's capped at $105 million. So we can retire a little over a third of the entire original high-yield debt, and obviously we made one big step Q2 down that direction.

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 have talked, lastly, that SCORES would require another $700 million to complete or thereabouts. And I think Paramahale was in the $200 or $250 million area. And then up here is LAMAC. We've got the $25 million for the decline, which is being done, the $50 million. in terms of, you know, increasing the throughput to 5,000 tons a day, and then we've got the underground, you know, crushing and conveyor, et cetera. Should I look at that, like, in the 100 to 150 million total as a, you know, excluding development capital? Is that a fair way of looking at that one?

It is. I mean, the way we look at Lamarck, you know, we're committed to the decline. It brings the benefits advantages we discussed on this call. You've got the 50 million to get to 5000 tons a day. But to be realistic, it's probably going to be a staged approach to further expansion that will unfold as we are successful in exploration. So that timing, I think is going to be spread out a bit. The underground crusher and conveyors around another 25 million. And I think we'll have some clear insight by the end of this year, when's the right time to make that investment. And that might come sooner rather than later. And then the last opportunity is around tailings. You know, we're a company that deploys dry stack tailings pretty universally with the exception of Lamarck. And we've been working on permitting and engineering studies on how to bring that asset in line with the rest of our assets. And a big paste backfill plant is – is the likely scenario where we'd put much of the tailings underground as backfill. That'll help us as we get deeper with higher quality backfill. And then any excess potentially would be put as cemented backfill in the old Sigma pit. So those studies are continuing. And that one's not urgent. We have plenty of capacity in the existing dam, which has been buttressed with an enormous amount of waste rock. But that's probably an opportunity down the road a ways, and it's also in that $50 million range. So if you add all that up, it's not going to come as one bullet. It's going to be spread over, say, the next five years. But that's strategically what we're thinking at this point.

Yeah, so that comes to about $150 million. All right, so we've got Scorys about 700 and then Paramahill at 200, and then this one, you know, spread over five years at about 150. Would that be fair on capital for these projects?

That's correct. But, again, you know, we're focused on bringing in joint venture partners to fund the Scorys and the Olympias expansion. So, you know, that won't need to necessarily come off our balance sheet and having a strong balance sheet positions as well for those negotiations and making the right strategic decisions for our investors.

Okay, and I think the Olympia expansion was under $50 million, right?

Yeah, we're estimating $50 million on that, and that engineering work's ongoing this year as well.

Okay, so maybe then just if I could, my final question was really about, you know, where are we now? We've come back to the table with the Greek government, maybe just a bit of flavor of, you know, where we are on these conversations and what are the focus?

Well, again, I'd say there's good alignment. You know, obviously, for us, getting these high-quality assets built and generating enormous free cash flow is strategically important to us. I'd say for Greece, given every – every country around the world is dealing with economic impacts from COVID. And there's no end in sight from from that being eliminated. So, you know, I think the opportunity is ripe for for both the government and us to hammer out a mutually beneficial agreement and to get these investments moving. So I just described, we've got good progress going on the permitting back at the table. And and I think it's a good environment to get it done.

Yeah, it looks like the permitting, you know, you've got those additional permits for drilling. How is the investment part of it coming? I know we had talked originally about, you know, 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?

I don't want to get in any details. You know, obviously there was a bit of a slowdown during the During Q2, we were heavily focused on protecting our people and the health of our business, and the Greek state, like every jurisdiction, was focused on, you know, ensuring they could control COVID spread as best they could. So, you know, we didn't get a lot done in Q2, but all I can tell you is we're back at the table, and I think both sides are committed to get this done.

Okay. All right. Well, good luck with that, George, and thanks a lot, everyone.

Thank you.

Our next question comes from Josh Wilson of RBC Capital Markets. Please go ahead.

Thanks. 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 LAMAC. mid-year, later in the year, and obviously, you know, there's been success with the expiration front with their MAC and then also, you know, impact from, you know, 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 of the vein sets are going to be incorporated and, you know, I guess what the timelines for that are?

Sure. So we're in the middle of updating resource models and moving that through engineering and design. So we're expecting this to be another good year in conversion of inferred resources to reserves. And that work, you know, with our annual planning cycle, we get that done late in the year to support our budgeting process. So that work, we're right in the middle of all that work now, anticipated to be a solid year. And that'll offer, you know, additional reserves to support the expansion scenarios that we're looking at. So, and then, you know, in terms of where is there a good progress going to be? Well, it's the deeper parts of Triangle. So, for C4 and C5, we've been doing infill drilling to be able to do conversion and expect to have a, you know, a nice bump up this year to support the studies that are underway. And again, we're still in trying to define the size of the resource. So we're not in a state where we have a model that we're confident about. And I don't think that will happen this year. It's likely next year.

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?

Yeah, I mean, our exploration focuses on C6 and C7. So we're growing as we speak. And yeah, we'll see. We'll definitely see an increase in inferred resources in that area. Okay, great.

Thank you. Thank you, Josh.

This concludes the question and answer session. I would like to turn the conference back over to Mr. Burns for any closing remarks.

Well, a big thanks to our entire team. It was a solid quarter. We continue to build on our success from last year, and we're optimistic that we have a number of catalysts in front of us and look forward to updating everybody next call. Thank you.

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.