Eldorado Gold Corporation (EGO) Q4 2022 Earnings Call Transcript

Eldorado Gold Corporation (NYSE:EGO) Q4 2022 Results Conference Call February 24, 2023 11:30 AM ET

Company Participants

Lisa Wilkinson - Vice President, Investor Relations

George Burns - President and Chief Executive Officer

Phil Yee - Executive Vice President and Chief Financial Officer

Simon Hille - Senior Vice President, Technical Services and Operations

Conference Call Participants

Kerry Smith - Haywood Securities

Tanya Jakusconek - Scotiabank

Mike Parkin - National Bank

Operator

Thank you for opinionated by. This is nan convention operator. Welcome to nan Eldorado Gold Fourth Quarter and Year End 2022 Financial and Operational Results Conference Call. As a reminder, each participants are successful listen-only mode and nan convention is being recorded. After nan presentation, location will beryllium an opportunity to inquire questions [Operator Instructions].

I would now for illustration to move nan convention complete to Lisa Wilkinson, Vice President, Investor Relations. Please spell ahead.

Lisa Wilkinson

Thank you, operator, and bully morning, everyone. I'd for illustration to invited you to our 4th fourth and twelvemonth extremity 2022 results convention call. Before we begin, I would for illustration to punctual you that, we will beryllium making forward-looking statements and referring to non-IFRS measures during nan call. Please mention to nan cautionary statements included successful nan position and nan disclosure connected non-IFRS measures successful our management's chat and study arsenic good arsenic good arsenic nan consequence factors group retired successful our yearly accusation form. Joining maine connected nan telephone today, we person George Burns, President and Chief Executive Officer; Phil Yee, Executive Vice President and Chief Financial Officer; and Simon Hille, Senior Vice President, Technical Services and Operations. Other members of nan elder activity squad will besides beryllium disposable for nan Q&A session. Our merchandise yesterday specifications our 4th fourth and twelvemonth extremity 2022 financial and operating results. This should beryllium publication successful conjunction pinch our 4th fourth and twelvemonth extremity financial statements and management's chat and analysis, some of which are disposable on our Web site. They person besides been revenge connected SEDAR and EDGAR. All dollar figures discussed coming are US dollars unless different stated. We will beryllium speaking to nan slides that travel this webcast. You tin download a transcript from our Web site. After nan prepared remarks, we will unfastened nan telephone for Q&A. At this time, we would induce analysts to queue for questions.

I will now move nan telephone complete to George.

George Burns

Thanks, Lisa, and bully morning, everyone. Here is nan outline for today's call. I'll supply a little overview of Q4 results and highlights earlier passing it to Phil to spell done nan financials and Simon to reappraisal our operational performance. Then we will unfastened nan telephone to questions from analysts. In ray of nan devastating earthquakes that took spot successful Turkey and Syria astatine nan opening of February and earlier this week, I connected behalf of nan Eldorado squad would for illustration to widen our condolences to those impacted by nan disaster. In nan contiguous play pursuing nan first earthquakes, our excavation rescue teams from Efemçukuru and Kisladag mobilized to nan impacted area. A number of these squad members are highly trained successful underground excavation rescue, a overmuch needed accomplishment for earthquake rescue and betterment efforts. The teams were capable to prevention respective lives and retrieve victims truthful they could beryllium returned to their families to beryllium grieved for. Additionally, Tüprag, Eldorado's Turkey subsidiary donated blankets, raincoats and different basal supplies to support those successful nan earthquake affected regions. Working pinch our colleagues successful Turkey, we will proceed to supply assistance and assistance to support nan alleviation efforts arsenic needed successful nan days, weeks and months ahead. Fortunately, our operations are located complete 1,000 kilometers distant and were not impacted by nan earthquakes. We will proceed to measure nan business and our apical privilege arsenic ever is to guarantee nan continuing information and good being of our squad members. I would for illustration to convey our full squad successful Turkey for responding truthful quickly and compassionately to this tragedy. These efforts person been an inspiration for each of us.

We faced operational challenges successful early 2022. However, done diligence and resilience, we improved operational capacity continuously complete nan year. Fourth 4th accumulation was beardown crossed each assets, which resulted successful 2nd half accumulation being 20% higher than first half. Our afloat twelvemonth accumulation of almost 454,000 ounces was 1% beneath nan bottommost extremity of our guidance range. In conjunction pinch our financial merchandise yesterday, we published our 2023 guidance and 5 twelvemonth outlook. We person introduced Skouries into our longer word outlook pinch commercialized accumulation expected by nan extremity of 2025. We are forecasting golden accumulation to beryllium betwixt 675,000 and 735,000 ounces by 2027, representing a 55% summation complete 5 years. Simon will speak to nan operations and our guidance successful much item later successful nan call. Now rubbing connected cost. We proceed to look inflationary unit akin to nan wider market. Throughout 2022, we knowledgeable value increases for commodities and consumables, including energy successful Turkiye and Greece and substance and reagents astatine Kisladag. As a result, our afloat twelvemonth 2022 rate operating costs and full rate costs were supra our consolidated guidance, while our each successful sustaining costs was wrong guidance, driven by our disciplined guidance of sustaining capital. Phil will touch connected our costs successful much item later successful nan call.

Shifting to Skouries. In December, we announced nan milestone news regarding nan Greek slope financing and conditional committee support for nan afloat restart of nan project. The task level financing covers €680 cardinal aliases 80% of nan expected backing required to complete nan task astatine competitory liking rates. The remaining 20% of nan task backing will beryllium afloat funded by Eldorado. The financing is taxable to customary closing conditions, which are expected to beryllium completed successful nan first quarter. The Skouries financing announced, we person delivered connected our multi-year strategy successful Greece, including nan support to deploy barren stack tailings, nan amended finance agreement, finance successful early useful building and finally, a afloat funded financing package that allows america to displacement into task execution and execute commercialized accumulation by nan extremity of 2025. On nan sustainability front, successful nan 4th quarter, we completed our first ever integrated SIMS compliance audit astatine Lamaque. As portion of this world process, a delegation of auditors, including colleagues from our operations successful Greece and Turkiye, reviewed Lamaque's capacity is group retired successful our soul standards referred to arsenic nan authorities and expertise integrated guidance system. PWC provided constricted assurance against each nan Mining Association of Canada's towards sustainable mining protocols and tract compliance against nan World Gold Council's responsible golden mining principles. The completion of nan audit is simply a awesome milestone for Lamaque and Eldorado, arsenic we travel towards afloat implementation of SIMS and starring ESG capacity against our peers.

I'll extremity location and move things complete to Phil for a reappraisal of nan financial results.

Phil Yee

Thank you, George. Good morning, everyone. Slide 6 provides a summary of our 4th fourth and afloat twelvemonth financial results. Eldorado reported nett net attributable to shareholders of $42 cardinal aliases $0.23 per stock successful nan 4th fourth and nett nonaccomplishment of $49 cardinal aliases nonaccomplishment of $0.27 per stock for nan afloat year. After adjusting for 1 clip non-recurring items, including deferred taxation disbursal related to overseas speech translator and constitute down of assets, adjusted nett net was $26 cardinal aliases $0.14 per stock successful nan 4th fourth and $10 cardinal aliases 0.05 per stock for nan afloat year. Free rate travel successful nan 4th was $11 million, chiefly owed to higher sales. Cash operating costs averaged $741 per ounce sold successful nan 4th fourth and $788 per ounce sold for nan afloat year, which was 5% supra nan 2022 guidance range, chiefly driven by value increases for commodities and consumables. All successful sustaining costs averaged $1,246 per ounce sold successful nan 4th fourth and $1,276 per ounce sold for nan afloat year, which was successful statement pinch nan guidance range. In 2023, our consolidated rate operating costs guidance of $760 to $860 per ounce sold and all-in sustaining costs guidance is $1,190 to $1,290 per ounce sold, which reflects ongoing inflationary pressures related to cardinal consumables, specified arsenic cyanide, electricity, diesel, explosives, cement and labor.

In statement pinch commitments nether our corporate bargaining statement successful Turkiye, labour costs accrued successful January 2023 to support our workforce pinch a rising costs of surviving related to precocious ostentation rates. Labor costs successful Turkey are based successful lira, which has remained unchangeable successful caller months. As a result, costs increases successful section rate are not expected to beryllium offset by rate movements arsenic they person successful nan past. Capital expenditures connected a rate ground were $81 cardinal successful nan 4th fourth and $290 cardinal for nan afloat year, which included continued finance successful maturation projects astatine Kisladag and early useful astatine Skouries. Income taxation betterment is $24 cardinal successful nan 4th fourth and $61 cardinal for nan afloat year. Current taxation was little successful 2022 compared to 2021 owed to little income volumes, partially offset by little finance taxation credits. Turning to Slide 7. At 4th end, we had unrestricted cash, rate equivalents and word deposits of $315 million, up somewhat from past quarter. We proceed to attraction connected maintaining a coagulated financial position, which provides elasticity to unlock worth crossed our business.

With that, I'll now move it complete to Simon to spell done nan operational highlights.

Simon Hille

Thanks, Phil, and bully morning. I'd for illustration to commencement pinch a wellness and information highlight. Recently, Eldorado's Quebec exploration squad received Safe Day Every Day Gold award, nan top number for nan top number of activity hours without a reportable wounded among Canadian exploration groups from nan Association for Mineral Exploration and Prospectors and Developers Association of Canada. I'm very proud of nan squad for this nickname arsenic it demonstrates nan beardown information culture. Now moving to our operating results. We produced 128,453 ounces of golden successful nan 4th fourth pinch nan rate operating costs of $741 per ounce sold. Full twelvemonth 2022 golden accumulation was 453,916 ounces, which was conscionable beneath nan bottommost extremity of guidance range, driven by little accumulation astatine Kisladag and Olympias. Looking up to 2023, our consolidated golden accumulation guidance is forecasted to beryllium 475,000 to 515,000 ounces, down somewhat from our antecedently published 2023 guidance, which takes into relationship modifications to nan accumulation scheme and [indiscernible] [highest] turnover expected astatine Lamaque, arsenic good arsenic an assumed slower ramp up astatine Kisladag pinch nan commissioning of nan last agglomeration drum successful nan first half of nan year.

Slide 9 looks astatine our operations successful much detail. Starting astatine Turkiye. At Kisladag, 4th fourth accumulation was 40,307 ounces and rate operating costs was $709 per ounce sold. In nan 4th quarter, 8 larger precocious capacity conveyors were installed, which has improved worldly handling and connected loop agglomeration. As we mentioned past quarter, successful conjunction pinch nan North heap leach pad, we person besides purchased an agglomeration drum, which will dainty a last divided for each nan HPGR products to amended quality, consistency and permeability connected nan pad. We are assured that we will person nan agglomeration drum commissioned successful nan first half of 2023 arsenic nan instrumentality is connected tract and building is progressing well. With this investment, stacking is expected to proceed connected nan existing leach pad until mid-2023,at which clip stacking activity is expected to commence connected nan caller North heap leach pad. Looking up to 2023, Kisladag's accumulation guidance is betwixt 160,000 to 170,000 ounces of gold. To execute this, Kisladag is expected to excavation and spot connected leach astir 12.5 cardinal to 13 cardinal tons of ore astatine an mean people of 0.7 to 0.75 grams per ton. At Efemçukuru, 4th fourth golden accumulation was 21,362 ounces, rate operating costs of $738 per ounce sold. Gold production, throughput and mean golden people astatine Efemçukuru were successful statement pinch nan scheme for nan 4th fourth and nan afloat year. For nan twelvemonth ahead, Efemçukuru's accumulation guidance is forecasted to beryllium 80,000 to 90,000 ounces of gold. The tract is expected to process astir 530,000 to 550,000 ounces of ore astatine an mean golden people of 5.5 to 6 grams per ton.

And now moving to Lamaque. Fourth 4th golden accumulation was 51,349 ounces, a 20% summation complete past quarter, driven by higher people and expanding throughput capacity astatine nan mill. Cash operating costs was $541 per ounce sold. Resource conversion drilling from nan Ormaque exploration drift will proceed successful 2023, targeting nan precocious 2 thirds of nan Ormaque deposit. Results of conversion drilling up to mid 2023 will beryllium incorporated successful our mineral assets and mineral reserve update astatine nan extremity of nan year. In 2023, Lamaque's accumulation guidance is 170,000 to 180,000 ounces of golden and this is based connected mining and processing 860,000 to 870,000 tons of ore astatine an mean golden people of 6.25 to 6.75 grams per ton. Finally, moving to Greece. At Olympias, 4th fourth results was 15,435 ounces and nan rate operating costs was $1,325 per ounce sold. Overall, 2022 accumulation for Olympias was beneath scheme owed to little than expected tons processed and nan readiness of ore stopes. We proceed to instrumentality an operating initiatives designed to amended productivity. Next year, Olympias accumulation guidance is 60,000 to 75,000 ounces of golden and nan tract is expected to excavation astir 460,000 to 490,000 tons of ore astatine an mean people of 7.5 to 8.5 grams per ton.

I'll extremity location and manus backmost to George for closing remarks.

George Burns

Thanks, team. We person an breathtaking twelvemonth up of us. We are focused connected delivering our operational guidance and transitioning to task execution astatine Skouries. Our privilege is to proceed to instrumentality our maturation strategy pinch accumulation expected to scope betwixt 675,000 and 735,000 ounces of golden by 2027, which will position america good to maximize worth for each stakeholders. Thank you for your time.

I will now move it complete to nan usability for questions from our analysts.

Question-and-Answer Session

Operator

[Operator Instructions] Now our first mobility comes from Kerry Smith of Haywood Securities.

Kerry Smith

Congratulations connected a bully quarter, guys. For Skouries, my first mobility is you person $240 cardinal to $260 cardinal of CapEx this year, and could you conscionable possibly benignant of springiness maine a unsmooth thought arsenic to what nan CapEx mightiness beryllium for illustration for 2024 and 2025 to decorativeness retired that project? Just nan spend.

George Burns

Yes, adjacent twelvemonth we expect nan superior costs to ramp up supra that $250 cardinal mediate constituent of guidance and past driblet down successful nan last year. We'll evidently person immoderate gross coming in, successful nan 2nd half of 2025 arsenic we do nan commissioning.

Kerry Smith

So, if I was to presume $300 cardinal for adjacent twelvemonth and past I conjecture we presume US$750 cardinal successful full conscionable half nan quality successful 2025. Would that beryllium reasonable then, George?

George Burns

That's reasonable, Kerry.

Kerry Smith

And conscionable connected nan €680 cardinal indebtedness package that you've beautiful overmuch sewage finalized, and you dream to person it each signed up and done present by nan extremity of nan quarter, really will nan barren down schedule work? Can you, Phil, possibly conscionable punctual maine really that schedule will work, for illustration really you person to walk equity arsenic you walk nan indebtedness aliases whether you tin walk truthful overmuch indebtedness earlier you person to money immoderate much equity? Just really it will work.

George Burns

Maybe, I'll reply precocious level and Phil tin jump in. So nan measurement it works, Kerry, is it's an 80/20 divided betwixt ourselves and nan task financing. We've pre-funded nan portion of nan superior required to scope commercialized accumulation from nan investments we did past twelvemonth that were portion of nan feasibility study. So we're a spot up of nan game. And truthful nan banks person to play drawback up astatine a 4:1 ratio connected nan costs we completed past year. So there’s €120 cardinal of slope based pre-funding, €30 cardinal basically. And truthful we don't expect to walk thing disconnected our equilibrium expanse erstwhile we do first tie down successful nan first 4th till Q3 of this year.

Kerry Smith

So successful Q3 is erstwhile you deliberation you'll commencement participating successful position of backing then?

George Burns

Yes. I mean, we're still funding, we are ramping up nan building activities. In fact, this week we poured actual for nan first clip connected this restart. So yes, we're continuing to money successful Q1. Once first drawdown happens, we expect nan backing to travel from nan banking syndicate until nan 3rd 4th of nan year, and past we'll beryllium astatine a 80/20 backing complaint aft that.

Kerry Smith

And conscionable connected Kisladag pinch nan drum agglomerator, what benignant of betterment are you expecting erstwhile that agglomerator is up and operational?

George Burns

So Kerry, what's included successful our guidance correct now is still a 56% betterment that was justified arsenic portion of nan superior finance for HPGR. This year, nan first 4th was beautiful challenging for us. We had an abnormally acold wintertime but we besides recovered nan request to adhd cement arsenic a binder to get bully permeability done that finer ore that came retired of nan HPGR. And truthful those challenges is really why we didn't deed our guidance past year. And arsenic you saw each quarter, we ramped up nan tonnage and began to woody pinch nan reality of agglomerating cement connected nan conveyor belt. So we are back, I'd say, astatine nan tally complaint we had connected a tonnage ground anterior to cement agglomeration. What nan [Indiscernible] [fine ore] drum does for us, it makes it a amended agglomerate product. We are going to beryllium agglomerating nan fines successful nan crushing circuit and that will beryllium mixed pinch nan coarser material. And truthful nan cement won't beryllium added connected conveyor belts, it will beryllium added successful nan crushing facility. We deliberation that's going to springiness america immoderate further alleviation connected nan conveyance strategy itself. Now successful position of what yet betterment ends up, we are beautiful optimistic we're going to hit nan 56%, but we haven't publically put a number connected it. Bottom statement is, we cognize we get amended permeability done nan pad and that has a beautiful affirmative effect connected lead rhythm time. And ultimately, we deliberation we tin further optimize really good nan HPGR crushes nan ore pinch a amended agglomerate and that could lead to amended recoveries. So we are not putting a pin connected what we deliberation that upside is, but we are believing this twelvemonth we will beryllium capable to really benignant that retired pinch last agglomeration commissioning being completed mid-year. We will person astir six months to understand nan benefits we are getting retired of that, that optimization betwixt crushing finer, maintaining bully permeability done agglomeration. So beautiful optimistic we tin hit nan 56%, but we haven't included that upside successful guidance and it's really excessively early to pin a number connected it.

Kerry Smith

And what is nan size of nan fraction coming retired of nan 3rd shape of crushing, like, really good is fine, and what percent is that [Multiple Speakers] I was conscionable going to opportunity astatine what percent of nan full tons of nan pad really is going to spell done nan drum agglomerator from nan fines circuit to beryllium agglomerated?

Simon Hille

We’re astir apt readying astir 30% of nan tonnage to spell done nan last agglomeration, and it perchance has precocious capacity than that. But nan scheme astatine this infinitesimal is to return that 30% provender rate. To nan size of nan articles, nan reply is astir apt little than 1 mill connected average, that's what we are benignant of classifying arsenic fine.

George Burns

And conscionable a small colour astir it. We’re really trying to get nan fines to instrumentality together successful benignant of valves to create that permeability and let oxygen to get into nan pad. You want a small spot of people to get successful location pinch it to springiness nan halfway of those agglomerate valves to person thing to build upon. But basically, we're trying to get nan finer worldly pinch a spot of people into that drum to make a bully agglomerate and to return unit disconnected nan transportation points betwixt nan grasshopper conveyors, which is wherever we're doing nan mixing currently.

Kerry Smith

Yes, almost seems for illustration possibly nan mill would've [indiscernible] nan measurement to go, and you're getting beautiful good location now.

George Burns

Yes, Kerry, hindsight's ever 2020. If you'll recall, nan mill script was $0.5 cardinal superior upfront. So astatine a precocious metallic price, nan mill's a amended answer. But based connected decisions we had astatine nan time, we made nan correct determination pinch heap leaching.

Kerry Smith

And conscionable past question, if I could. Just erstwhile would Ormaque beryllium incorporated into nan excavation plan, erstwhile will we person a reserve there, erstwhile will nan drilling beryllium to nan level wherever we tin get a reserve? Is that nan extremity of this twelvemonth past George?

George Burns

So we're doing nan infill drilling arsenic we speak. We're making bully advancement connected that. And we request an capable magnitude of conversion to beryllium capable to telephone it a reserve. I'd opportunity we're connected way pinch getting that done extremity of nan year, early adjacent year. And we'll do a method study erstwhile that's each completed. In position of nan timing for bringing connected Ormaque, I mean, that we request a caller trade-off studies to opportunity what's nan champion solution here? You tin make arguments correct now connected some sides. If you bring Ormaque successful early, you really person 2 mining fronts and arsenic we get deeper successful Triangle that would beryllium a positive. Of people if we do that, we request to put immoderate superior successful upfront to put successful ventilation and group up for scope. So we'll beryllium doing a waste and acquisition disconnected study arsenic we complete nan ore reserves to find what nan optimum life of excavation script is for Triangle and Ormaque.

Kerry Smith

And that trade-off study won't hap until you've sewage nan infill drilling done. So that would beryllium a 2024 arena then, I gues, to do nan trade-off studies?

George Burns

Correct. That's correct.

Operator

Our adjacent mobility comes from Tanya Jakusconek of Scotiabank.

Tanya Jakusconek

Thank you very overmuch for nan capital, but you answered for Kerry pinch respect to Skouries, and really that's going to cookware retired complete nan adjacent fewer years. What I besides wanted to inquire is really should we beryllium reasoning astir nan sustaining superior going done arsenic we spell to that 700,000 ounces per annum complaint by 2027? If I do a speedy calc correct now, it looks for illustration you're paying astir $250 an ounce connected sustaining capital. Seems a spot debased comparative to immoderate of nan different companies that are coming successful astatine 350 to 400. Just wondering really I should spot that going forward?

George Burns

Well, I mean, erstwhile you look astatine nan existing portfolio connected sustaining capital, I think, nan tally complaint connected sustaining is going to continue. So if you're talking astir complete nan 5 twelvemonth guidance, it's really bringing successful Skouries. And for Skouries, nan copper byproduct gross is going to salary each nan sustaining and operating costs. So we extremity up pinch a somewhat antagonistic ASIC. In position of nan sustaining superior number, I don't person that number correct astatine nan extremity of my fingertips. But I deliberation I tin astir apt reply that earlier this telephone is over. I’ll get personification to propulsion nan number.

Tanya Jakusconek

And conscionable besides my different mobility has to do with, conscionable really do you spot nan twelvemonth play out? You’ve sewage -- obviously, you person fixed immoderate guidance that 2nd half is going to beryllium stronger pinch nan Kisladag having a stronger performance. What astir Lamaque? Because Lamaque past twelvemonth was had higher people successful nan first portion of nan twelvemonth and past little grade. Just wonderment really Lamaque plays retired this year?

George Burns

So for Lamaque, it’s, again, this twelvemonth going to person a spot of a stronger 2nd half than first half driven by grade, astir apt not arsenic important arsenic it was past twelvemonth for sure. And past nan first portion of nan question?

Tanya Jakusconek

It was conscionable -- it was really that's panning out. So if I deliberation astir your accumulation floor plan during nan year, would it beryllium for illustration a 45 first half, 55 second, would that beryllium a reasonable presumption fixed Lamaque and Kisladag some 2nd half?

George Burns

Yes, that's a bully assumption. And conscionable to follow-up connected Kisladag, really what's driving Kisladag, we are doing a necktie successful to that HPGR, we are doing a rebuild connected nan HPGR for nan first time. So we person tied that shutdown to get each that activity done astatine connected time. So we are going to beryllium down for a number of days during that necktie in. And past -- and we are expecting immoderate amended capacity successful nan 2nd half, I conjecture that conscionable from a people betterment perspective.

Tanya Jakusconek

And past my different mobility has to do really pinch Olympias, and conscionable nan description permit. I'm conscionable going to effort and understand what going connected there? And successful your 5 twelvemonth guidance, what person you assumed for that? Because we person continued to hold for this permit. I deliberation it was 2022, now it's 2023, successful position of really do we woody pinch nan ore. So I conscionable benignant of wondered what you person successful your forecasts and wherever are we connected your reasoning there, and nan permit?

George Burns

So a mates of components to that question. First, I would opportunity permitting itself. So this is simply a modification to nan EIA that we are seeking and that process requires nationalist consultation. After nan nationalist consultation successful Greece, location are a batch of departments wrong authorities that past reappraisal nan consultation and look astatine each nan biology issues that request to beryllium addressed. We are beautiful good done -- we’re done pinch nan consultation, we're beautiful good done nan remark play from nan various departments, and we are successful nan stages now of finalizing nan archive itself that will beryllium nan power archive for our Kassandra operations. Now nan important alteration present is nan expertise to summation capacity successful nan mill and to beryllium capable to move much tons retired of nan underground. So obviously, noise, vibration, h2o quality, aerial value are each things that are modeled and monitored. So I would show you that process has taken longer than we would person liked, but assured we’ll get that licence this year. It's not connected nan captious way for nan ramp up of Olympias. So connected your question, nan 5 twelvemonth guidance that we person this twelvemonth and we had past twelvemonth assumes we get nan EIA, assumes we make immoderate insignificant superior investments to let higher throughput done nan plant. There's a spot of superior connected nan Stratoni portion included and a spot of superior connected nan underground to support nan ramp up.

The captious way connected making each this hap is really getting nan tons retired of nan underground. And past year, we made bully progress. In nan 4th quarter, we had our highest tons retired of nan underground. Now erstwhile you look astatine our capacity astatine Olympias, from a costs perspective, it wasn't a bully quarter. And nan situation we have, Tanya, is that we're successful a process. We sewage to trim nan costs and thrust nan denominator up astatine nan aforesaid time. On nan costs front, 1 of nan awesome drivers is nan number of group we have. And we shutdown nan Stratoni Mavres Petres operations past year, it was our non-core guidelines metallic mine, deficiency of reserves, aged equipment. We came to nan conclusion that it wasn't going to beryllium profitable successful this existent environment, and we unopen it down. We did not laic disconnected nan workforce. We've had reductions past year. But we're carrying a larger workforce than we request to tally Olympias. And so, our costs haven't travel down moreover though we are making advancement connected productivity and efficiencies.

This twelvemonth is nan twelvemonth it’s going to change. And it's because, arsenic we ramp up nan Skouries operation, we're going to beryllium creating important jobs during nan building phase. And arsenic we move into production, we'll beryllium adding jobs from an operating perspective. And so, we've made nan determination to cushion nan rustle connected nan workforce and let them -- let these caller jobs to beryllium created, let group to move retired of nan redundant jobs, into building jobs and yet into caller operating jobs. So we're carrying a higher load connected labor. We are improving nan productivities and efficiencies. And this year, arsenic you spot from nan guidance, we're expecting higher accumulation and we're expecting those costs to travel down materially from what they were past year. Once we ramp up accumulation station nan licence and station delivering connected productivities and efficiencies to support this nominal superior finance past you'll spot different footwear up successful some accumulation arsenic indicated successful nan 5 twelvemonth scheme but much importantly, driving those portion costs down and creating margins and profitability.

Tanya Jakusconek

If I retrieve correctly, and punctual maine if I'm wrong. But I thought for illustration nan description itself was going to costs successful benignant of for illustration nan $60 cardinal scope aliases thereabout conscionable for nan -- is that still a number that I should beryllium using?

George Burns

Yes 650, is still nan number. And from a existent position 400…

Tanya Jakusconek

I was talking astir nan CapEx.

George Burns

I thought you were talking production. Could you repetition nan question?

Tanya Jakusconek

Yes, it was conscionable connected nan description , erstwhile you said there's immoderate monies that person to get to do each of that too nan underground, which I'll leave. But everything other connected nan infrastructure, I deliberation getting to that 650 tons for illustration that was going to costs astir $60 million. Is that still…

George Burns

Yes, that number has travel down a bit. We're successful nan scope of $35 cardinal to $40 cardinal successful nan logic for nan drop, we person had occurrence successful debottlenecking nan works this twelvemonth without important capital. So -- and looking astatine that success, we person taken down that description number to betwixt $35 cardinal and $40 million.

Tanya Jakusconek

And past conscionable successful your 5 twelvemonth scheme conscionable to decorativeness off, erstwhile you person assumed you get your EIA this twelvemonth and past erstwhile are you going to nan expanded rate?

George Burns

In 2025, we are assuming we are astatine nan expanded rate.

Tanya Jakusconek

And fixed we are having each of -- immoderate activity of group from Stratoni and from Olympias going to Skouries. What would beryllium nan holding costs we should deliberation astir done nan income connection for Stratoni this year?

George Burns

Phil’s grabbing nan correct number…

Tanya Jakusconek

And past I'll time off it [Multiple Speakers] truthful if I could get nan holding costs and sustaining superior that would beryllium awesome.

Phil Yee

I deliberation arsenic George outlined, Tanya, we do expect to spot nan holding costs nether study until Skouries restarts construction. So successful nan agelong term, we are anticipating existent attraction costs for Mavres Petres-Stratoni to beryllium successful nan scope of $2.5 cardinal to $3.5 cardinal a year.

Tanya Jakusconek

And truthful thing connected nan sustaining you tin thief maine pinch longer word aliases should I usage that 250, aliases possibly $150 cardinal per year?

Phil Yee

On nan sustaining CapEx?

Tanya Jakusconek

Yes.

Phil Yee

So nan sustaining CapEx, I think, for nan existent operations is astir apt beautiful accordant pinch what we person seen successful 2022. And past you adhd connected Skouries and nan sustaining CapEx for Skouries would beryllium successful statement pinch nan feasibility study. But overtime, arsenic we spell done nan 5 twelvemonth plan, you are going to spot sustaining CapEx astatine Kisladag and Lamaque to commencement to decrease.

Operator

Our adjacent mobility comes from Mike Parkin of National Bank.

Mike Parkin

Just a follow-up mobility connected Olympias. You study your tons milled for nan operation. Are you building a stockpile, because I'm conscionable noticing for illustration tons milled successful 2022 versus 2021 was reasonably level but your comments are -- you are getting amended capacity retired of nan mine?

George Burns

No, we don't person overmuch of a stockpile. Really what you looked astatine arsenic a reliable Q1 successful Olympias owed to -- well, crossed our portfolio, we were deed by COVID for nan first time. We had precocious absenteeism and each 1 of our sites were impacted. So Olympias sewage deed pinch that successful Q1. And nan amended capacity was really successful nan 2nd half astatine Olympias ramping up that tonnage. So overall, year-over-year you didn't spot overmuch improvement. But if you look astatine nan 2nd half and 4th fourth accumulation retired of Olympias comparative to anterior quarters, a important uptick.

Mike Parkin

So you could -- it's adjacent to presume what's milled is what's mined?

George Burns

There is conscionable very small capacity to stockpile worldly astatine Olympias underground astir nan surface…

Mike Parkin

And past -- truthful immoderate benignant of prime up successful accumulation year-over-year is mostly people based until we'll get this description online successful 2025, aliases are you expecting immoderate tonnage betterment year-over-year arsenic well?

George Burns

Yes. We're expecting tonnage betterment this twelvemonth complete past year. So 4th quarter, again, we had bully tons but we didn't successful nan first half. So we're expecting to get amended tonnage retired of Olympias and much consistency this twelvemonth than last.

Mike Parkin

And again successful 2024, you'd expect tonnage to beryllium up again?

George Burns

Well, it really licence dependent. So we're going to beryllium pushing that accumulation retired of nan underground arsenic difficult and accelerated arsenic we can. And erstwhile we deed nan bottleneck of nan plant, it'll beryllium that description superior required to debottleneck it. And I don't know, possibly it's adjuvant to conscionable adhd a fewer comments connected Catalyst for Olympia this year. There are a number of projects underway that will beryllium completed this year, they're going to support amended economics. So one, we've been moving pinch a transformer that is astatine its afloat capacity. We've completed building connected an upgraded transformer that will -- is suitable for nan description that's underway, but will little our portion costs for energy conscionable because we're correct astatine nan apical extremity of that aged equipment's capacity. We're waiting for turnover and necktie successful from nan nationalist grid and expect that to hap successful nan first half. Number of different projects that we've talked astir successful nan past, we're going to a mobility blasting that enables america to person longer blasts, amended productivity successful nan mining cycle. We've sewage nan permits for it. A portion of cogwheel being manufactured successful Europe is expected to beryllium deployed successful Q2, and that's going to thrust productivity and efficiencies successful drilling and blasting and a full mining cycle. So location are a number of catalysts conscionable beyond nan labour that I mentioned earlier that are going to thrust amended capacity retired of Olympias. And conscionable statement that this has gone slower than we would've liked, and I cognize this is an opportunity for america to summation a bunch of credibility to get Olympias into a profitable criteria. Maybe 1 past remark and it is simply a beautiful important bottleneck correct now arsenic ventilation. We are successful nan mediate of constructing immoderate caller ventilation fans connected aboveground that'll make a worldly alteration successful airflow, let america to beryllium mining much faces underground, unfastened up successful parallel areas to beryllium mining. So location are a number of projects underway that are going to thief our squad and state to amended their capacity and past getting nan afloat clip balanced workforce accordant pinch Olympias being profitable, expect that to hap arsenic good successful nan first half of this year.

Operator

[Operator Instructions] That is each nan clip we person for today. And this concludes nan question-and-answer session, arsenic good arsenic today's convention call. You whitethorn disconnect your lines. Thank you for participating, and person a pleasant day.