Eldorado Gold Corporation (NYSE:EGO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 11:30 am ET

Previous

Eldorado Gold Corporation (NYSE:EGO) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Welcome to the Eldorado Gold Corporation Second Quarter 2020 Conference Call.

[Operator Instructions]

I would now like to turn the conference over to Peter Lekich, Manager Investor Relations. Please go ahead.

Executive
Peter Lekich

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, Phil 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's discussion and analysis, both of which are available on our website. They have 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 2019 AIF and in the cautionary note on Slide 1.

I will now turn the call over to George.

Executive
George Burns

Thanks, Peter, and good morning everyone.

Here is 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 Lamaque. 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 Ormaque Plug 4 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