Eldorado Gold Corporation (NYSE:EGO) Q3 2019 Earnings Conference Call - Final Transcript
Nov 01, 2019 • 11:30 am ET
Thank you for standing by. This is the conference operator. Welcome to the Eldorado Gold Corporation Third Quarter 2019 Results Conference Call.[Operator Instructions] I would now like to turn the conference over to Mr. Peter Lekich, Manager, Investor Relations. Please go ahead, Mr. Lekich.
Thank you, operator and thank you ladies and gentlemen for taking the time to dial into our conference call today. With me in Vancouver this morning are George Burns, President and CEO; Phil Yee, Executive Vice President and CFO; Paul Skayman, Executive Vice President and COO; and Jason Cho, Executive Vice President and Chief Strategy Officer. Our release yesterday details our 2019 third quarter financial and operational results. This should be read in conjunction with our third quarter financial statements and management's discussion and analysis, both of which are available on our website. They've also been filed on SEDAR and EDGAR. All dollar figures discussed today are in US 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 2018 AIF, and in the cautionary note on Slide 1.
I will now turn the call over to George.
Thanks, Peter, and good morning everyone. Here is the format for today's call. I will give an overview of the quarter's highlights along with some comments, then I'll pass it over to Phil to go through the financials and Paul will follow by reviewing operations. Then we'll open it up for questions.
Over to Q3 highlights on the next slide. It was a solid quarter, overall, both operationally and financially. Consolidated gold production and costs came in on plan and we reiterated our 2019 guidance of 390,000 ounces to 420,000 ounces of gold at cash costs of $550 per ounce to $600 per ounce. Revenues were up in Q3, driven by another great quarter at Lamaque, increased production at both Kisladag and Efemcukuru and a higher gold price.
Our operating cash flow was almost 3 times [Phonetic] higher than Q3 last year, and I'm pleased to report a second consecutive quarter of free cash flow, resulting from higher sales volumes. This quarter, Kisladag saw the benefit of ore stacked earlier this year with production beginning to increase after ongoing longer lead cycles. Also, positive recent test results confirmed recoveries from leaching deeper material over 250-day cycles, supporting an extension of mine life beyond our current three-year guidance. As such, we took the decision to begin waste stripping to support such an extension. The team began this work in October. Test work is still ongoing to determine the ultimate heap leach recovery and the extent of the mine life extension. We expect to announce this in Q1, 2020. It was a busy cycle at Lamaque, who had a second successful operating quarter. Resource expansion drilling in the