Eldorado Gold Corporation (NYSE:EGO) Q3 2018 Earnings Conference Call Transcript
Oct 26, 2018 • 11:30 am ET
Good morning. My name is James, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Eldorado Gold Corporation 2018 Q3 Results Conference Call. All lines have been placed on mute to prevent any background noise and after the speakers remarks there will be a question and answer session. (Operator Instructions)
I'd now like to turn the call over to your host, Peter Lekich, please go ahead.
Thank you, operator, thank you, ladies and gentlemen, for taking the time to dial in to our Q3 2018 financial and operating results conference call. With me in Vancouver this morning are, George Burns, President and CEO; Phil Yee, EVP and CFO; Paul Skayman, COO; and Peter Lewis, VP Exploration.
Again, this quarter, we will be speaking to slides that accompany this webcast. You can also find a copy of these slides on our website.
(Forward-Looking Cautionary Statements)
We had two releases that went out yesterday, one detailing our exploration highlights for the year so far and the other being our quarterly results. Our Q3 operating and financial results released should be right in conjunction with our Q3 financial statements and management's discussion and analysis, which are both available on our website and have been filed on SEDAR and EDGAR. Lastly, all dollar figures discussed today are in US dollars unless otherwise stated.
I will now turn the call over to George.
George Raymond Burns
Thanks, Peter and good morning, everyone. First off, I'd like to welcome Phil Yee to our team. Phil has been with us for about a month and is getting up to speed very quickly. You will hear from Phil in a moment, but I'll start with a quick overview of Q3, then I'll pass the baton over to Phil for a review of our financial results and some comments on capital considerations. Paul will follow with an update on operations and development, and Peter will then say a few words on exploration.
Starting with the highlights on slide three, gold production exceeded expectations this quarter, driven by better-than-expected recoveries from the Kisladag heap leach pad. We're again increasing our 2018 production guidance to 345,000 ounces to 350,000 ounces of gold, up from 330,000 ounces to 340,000 ounces of gold. With cash operating costs higher this quarter due to lower sales volumes at Olympias, and higher C1 cost at Kisladag, due to an accounting method change that increased non-cash cost, our full year cost guidance of $600 per ounce to $650 per ounce is now marginally higher than original guidance.
At Lamaque, I'm pleased to report that the project is progressing on schedule and budget. We have already commissioned the crusher and have started wet commissioning of the plant. The team there has been working extremely hard to keep the project on track to reach commercial production in early 2019. Our continued exploration success at Lamaque confirms our convictions of long-term potential of this asset.
Recent drill results show excellent mineralization at depth in the