Third Quarter 2026 Results Conference Call - ELDORADO GOLD CORP

Financial Performance:

• Q3 2026 revenue increased 18% YoY to $512 million, driven by a higher realized gold price of $4,326/oz (vs. $3,527/oz in Q3 2025).
• Net earnings from continuing operations were $118 million (45 cents/share) compared to $56 million (28 cents/share) in the prior year; Adjusted net earnings were $127 million (49 cents/share).
• Total cash costs averaged $1,415/oz sold, while AISC averaged $2,050/oz sold, impacted by higher royalties, LeMac costs, and pre-commercial production expenses.
• Operating cash flow was $135 million; consolidated free cash flow was negative $191 million due to heavy investment in Scourios and McElvenna Bay ramp-ups.
• The established operating portfolio generated $98 million in free cash flow before growth investments.
• Balance sheet includes $397 million in cash and cash equivalents, $275 million available under an upsized $600 million revolving credit facility, and $72 million in restricted debt service reserve cash.
• Total debt stands at approximately $1.6 billion, with a plan to refinance higher-cost Foran acquisition debt in 2027.

Guidance and Future Outlook:

• 2026 Production Guidance Revised: Operating assets (excluding Scourios and McIlvenna Bay) now expect 410,000–430,000 oz gold; Scourios 2026 production revised to 10,000–35,000 oz gold and 5–15 million lbs copper due to ramp-up delays.
• 2027 Outlook Maintained: Management remains comfortable with 2027 production expectations (150,000–180,000 oz gold for the portfolio and 50–70 million lbs copper for Scourios) despite 2026 delays, citing high-grade stockpiles to buffer Q1 ramp-ups.
• Cash Flow Inflection: Anticipated in the first half of 2027, potentially earlier, with a focus on capital allocation toward shareholder returns (dividends and buybacks) post-stabilization.
• Capital Spending: Sustaining CapEx for 2026 raised to $170–190 million; 2027 sustaining CapEx expected to roughly double current levels to support increased capacity and new operations.
• Shareholder Returns: Priority to shift to buybacks and dividends in 2027, with no major expansion construction projects expected to start in 2027 (earliest 2028).

Business Segments and Product Lines:

• Scourios (Greece): First copper-gold concentrate achieved in Q3; two filter presses operational with two more expected in November. Total project capital estimated at $1.425 billion ($160M additional cost vs. prior guidance), fully funded. Commercial production targeted late Q4 2026.
• McIlvenna Bay (Canada): Ramp-up ongoing; commercial production expected late Q4 2026. Total project capital revised to $975 million ($23M increase). Focus on resolving solid-liquid separation challenges; technical report update expected Q1 2027.
• Lamac Complex (Turkey): Strong Q3 performance (52,748 oz gold) with costs of $897/oz (cash) and $1,436/oz (AISC); ORMAC underground ore contributing to higher grades.
• Kisladag (Turkey): Produced 22,713 oz gold; lower grades due to mine sequencing and waste removal delays. Whole ore agglomeration circuit on track for H1 2027 commissioning.
• Olympias (Greece): Produced 13,430 oz gold; 650k tonne expansion completion planned for Q1 2027 with ramp-up expected H1 2027.
• FM Chukaru (Turkey): Produced 17,073 oz gold; consistent contributor with ongoing development at Co-Carpenter for mine life extension.

Market and Competitive Landscape:

• Commodity Prices: Higher realized gold prices significantly boosted Q3 revenue, offsetting volume declines.
• Strategic Designation: Scourios designated a strategic project by the European Commission; first European-produced concentrate shipments expected imminently to a local smelter.
• Market Conditions: Described as a "seller's market," allowing for flexible off-take agreements without penalties for delivery timing.
• Competition: In Canada (McIlvenna Bay), increased competition for labor due to new permits and responsible resource development initiatives.

Risks and Challenges:

• Ramp-up Delays: Scourios and McIlvenna Bay ramp-ups have taken longer and cost more than anticipated, though 2027 guidance remains intact.
• Cost Escalation: Project capital for Scourios increased by $65M and $95M for accelerated operating capital due to extended commissioning, higher labor requirements, and temporary power costs.
• Inflation and Currency: Turkey faces 20–30% inflation and currency devaluation risks (Lira), impacting ~40% of business costs; diesel prices (up 20–25%) are a concern for open-pit mining.
• Operational Risks: Specific challenges in solid-liquid separation and filtration at McIlvenna Bay; lower grade ore and leach cycle constraints at Kisladag.
• Labor Turnover: Higher turnover observed at McIlvenna Bay (fly-in/fly-out) compared to other sites.

Management Commentary and Tone:

• Leadership: New CEO Christian Malau emphasizes "disciplined execution," "transparency," and "capital discipline" to maximize value from existing assets rather than chasing growth for growth's sake.
• Confidence: Management expresses strong confidence in the long-term value of the portfolio and the quality of assets, despite short-term ramp-up hiccups.
• Communication Style: Focus on clear expectations and rapid response to variances; acknowledged the Scourios delay directly and transparently.
• Capital Allocation: Priorities are ramp-up completion, balance sheet strength, then shareholder returns (dividends/buybacks) and exploration.

Analyst Questions and Answers:

• Scourios Commercial Production: Confirmed that four filter presses are required for nameplate capacity; two are operating with two more coming online in November. Off-take contracts cover 2.5 years with no penalties for delays.
• Capital Costs: Clarified that $160M is new capital outlay for Scourios ($65M project + $95M operating) and $23M for McIlvenna Bay, totaling $183M new spend for these projects.
• 2027 Production Guidance: Confirmed 2027 guidance assumes a one-year ramp-up; high-grade stockpiles at Scourios will help maintain volumes despite Q1 ramp-up.
• Inflation: Expecting 3–5% inflation in Greece and Canada, but significant volatility in Turkey (Lira/Inflation) remains a key variable.
• Shareholder Returns: Buybacks viewed as the best capital allocation at current share prices; dividends to increase as cash flow stabilizes in H1 2027.
• McIlvenna Bay Tech Update: Technical report update expected Q1 2027 following completion of studies on shaft location and mill expansion.

Other Key Points:

• Leadership Transition: Christian Malau assumes the CEO role, succeeded George by remaining on the board; George is thanked for the foundation built over nine years.
• Project Governance: Enhanced projects team now embedded to ensure discipline in project evaluation and oversight for all future significant capital projects.
• Exploration: Up to $100M planned for exploration in 2027, focusing on high-return projects within the portfolio.
• Scourios Milestones: Filter presses successfully producing transportable and stackable tailings; grid power connection completed, removing temporary generators.
• Olympias Expansion: 650k tonne expansion will ramp up H1 2027, contributing to the portfolio's increased production base.