Eldorado Gold Reports First Quarter 2023 Financial and Operational Results; Steady Start to 2023
NEWS RELEASE TSX: ELD NYSE: EGO April 27, 2023
Eldorado Gold Reports First Quarter 2023 Financial and Operational Results; Steady Start to 2023
VANCOUVER, BC - Eldorado Gold Corporation (“Eldorado”, "Eldorado Gold" or “the Company”) today reports the Company’s financial and operational results for the first quarter of 2023. For further information please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis ("MD&A") filed on SEDAR at www.sedar.com under the Company’s profile.
First Quarter 2023 Highlights Operations
- Q1 gold production: 112,533 ounces in line with expectations for the quarter. Production increased 21% from Q1 2022, this increase reflected higher gold production at most sites, notably an increase of 25% at Kisladag.
- Q1 gold sales: 109,817 ounces at an average realized gold price per ounce sold(1) of $1,932. Gold sales increased 16% from Q1 2022 as a result of increases in production at Kisladag, Lamaque, and Olympias.
•
| Cash operating costs(1): $766 per ounce sold in Q1 | 2023. Costs | decreased | from |
| 2022, primarily due to higher gold production in the quarter. |
- All-in sustaining costs ("AISC")(1): $1,184 per ounce sold in Q1 2023. Costs decreased from $1,346 in Q1 2022, primarily reflecting the lower cash operating costs per ounce sold in Q1 2023, combined with lower royalty expense.
•
| Total capital expenditures: $83.4 million | in Q1 2 | 023, including $31.4 million of growth capital(1) invested | at | |||
|---|---|---|---|---|---|---|
| Skouries with activity focused on mobilization, procurement and advancement of contracts. Growth capital at | ||||||
| the operating mines totalled | $24.1 million | and was primarily related to Kisladag for waste stripping, | ||||
| construction of the North leach pad and stacking and agglomeration enhancements which are expected to | ||||||
| drive stronger recoveries and productivity improvements resulting | in higher stacking rates over the remainder |
of 2023.
- Production outlook: We are maintaining our 2023 annual guidance of 475,000 – 515,000 ounces of gold. First quarter production was in-line with our 2023 annual guidance and higher production is expected in the second half of the year.
Financial
- Cash flow from operating activities before changes in working capital(1): $94.5 million in Q1 2023, an increase of 91% over Q1 2022, primarily as a result of higher gold production and sales volumes.
- Cash, cash equivalents and term deposits: $262.3 million, as at March 31, 2023. Cash decreased by $52.5 million in Q1 2023 over Q4 2022 primarily as a result of temporary working capital movements, combined with continued investment in growth capital.
(1) These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosures for non-IFRS financial measures and ratios
- Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA")(2): $102.5 million compared to $61.7 million in Q1 2022. The increase was driven by increased gold production and gold sales, coupled with lower operating costs.
- Net earnings: Q1 2023 net earnings attributable to shareholders of the Company was $21.3 million or $0.12 earnings per share. Increased net income in Q1 2023, compared to Q1 2022, is primarily attributable to increased sales volumes.
- Adjusted net earnings(2): $20.5 million net earnings, or $0.11 earnings per share in Q1 2023 compared to adjusted net loss of $19.3 million ($0.11 loss per share) in Q1 2022. Adjusted net earnings in Q1 2023 removed, among other things, a one-time current tax expense related to the tax law change to fund earthquake relief efforts in Turkiye, a non-cash recovery of deferred tax due to foreign exchange translation and a non-cash gain on the revaluation of the derivative related to redemption options in the debt.
- Free cash flow(2): Negative $34.4 million in Q1 2023, primarily due to temporary working capital movements, combined with continued investment in growth capital.
- Financial outlook: 2023 guidance for average cash operating costs per ounce sold of $760 to $860 and AISC per ounce sold of $1,190 to $1,290 is maintained.
Corporate
•
| Completed Skouries Project Financing Facility: | On April 5, 2023, we satisfied all precedent conditions | ||
|---|---|---|---|
| and closed the | €680.4 million | project financing facility ("Term Facility") for the development of the Skouries | |
| project, with an initial drawdown of €32.3 million completed in mid-April 2023. |
- Hedging Program: In accordance with the Term Facility, we entered into a secured hedging program in April 2023 including: gold and copper commodity swap contracts for settlement on July 7, 2026; foreign exchange contracts to fix the U.S. dollar to Euro exchange rate; and an interest rate swap covering 70% of the variable interest rate exposure under the Term Facility.
•
| Appointed Vice-President, Investor Relations | : On April 5, 2023, Lynette Gould was appointed as Vice- | |
| Pres | ident, Investor Relations. |
- Modified Environmental Impact Assessment ("EIA") Approval: On April 27, 2023, the modification to the Kassandra Mines EIA was approved by the Ministry of Environment and Energy, allowing the expansion of the Olympias processing facility to 650 ktpa and improvements to the Stratoni port.
"Operations across our global portfolio improved significantly compared to the first quarter of 2022, with gold production 21% higher than the same period last year,” said George Burns, Eldorado’s President and Chief Executive Officer. "Across the portfolio, the operations performed largely in line with our expectations, and are on track to deliver 475,000 to 515,000 ounces of gold in 2023, aligned with our guidance. Consolidated gold production is weighted to the second half of 2023, with stronger production in the quarters ahead," added Burns.
"On April 5, 2023, we announced the closing of the Skouries project financing facility. This strategic facility funds 80% of the remaining capital required to complete construction of this transformational asset. Once in production, Skouries is expected to produce, on average 140,000 ounces of gold and 67 million pounds of copper annually, delivering a meaningful impact on Eldorado's consolidated production profile, and decreasing average AISC and operating costs on a per ounce basis. Skouries, once in production, alongside Eldorado's existing operating portfolio, is expected to generate strong cash flow, further strengthening our financial position, and will help establish an exciting future for growth and value creation for our stakeholders, including contributing to the global supply of critical minerals," continued Burns.
"As we look ahead to the balance of 2023, the installation of a fine ore agglomeration drum at Kisladag has commenced commissioning and will continue to ramp up to nameplate design in the second quarter, which is expected to improve recoveries and offer potential upside, increasing the production rate through better materials handling on the conveying system at the operation. In Greece, at Olympias, we look to continue the positive operating momentum of the first quarter into the rest of the year. Several key initiatives are underway including the implementation of bulk emulsion and ventilation on demand, designed to improve safety performance and efficiency, aligned with our 2023 guidance and continued transformation objectives," added George. "At both Lamaque and
(2) These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosures for non-IFRS financial measures and ratios Efemcukuru, we are excited to continue our robust exploration programs aimed at increasing the reserve base, and ultimately extending life of mine."
Consolidated Financial and Operational Highlights
| 3 months ended March 31, | |
|---|---|
| 2023 | 2022 |
| Revenue | $229.4 | $194.7 |
| Gold produced (oz) | 112,533 | 93,209 |
| Gold sold (oz) | 109,817 | 94,472 |
| Average realized gold price ($/oz sold)(2) | $1,932 | $1,889 |
| Production costs | 109.9 | 104.6 |
| Cash operating costs ($/oz sold)(2,3) | 766 | 835 |
| Total cash costs ($/oz sold)(2,3) | 845 | 941 |
| All-in sustaining costs ($/oz sold)(2,3) | 1,184 | 1,346 |
| Net earnings (loss) for the period(1) | 21.3 | (317.6) |
| Net earnings (loss) per share – basic ($/share)(1) | 0.12 | (1.74) |
| Net earnings (loss) per share – diluted ($/share)(1) | 0.12 | (1.74) |
| Net earnings (loss) for the period continuing operations(1,4) | 21.4 | (39.7) |
| Net earnings (loss) per share continuing operations – basic ($/share)(1,4) | 0.12 | (0.22) |
| Net earnings (loss) per share continuing operations – diluted ($/share)(1,4) | 0.12 | (0.22) |
| Adjusted net earnings (loss) continuing operations - basic(1,2,4) | 20.5 | (19.3) |
| Adjusted net earnings (loss) per share continuing operations ($/share)(1,2,4) | 0.11 | (0.11) |
| Net cash generated from operating activities(4) | 41.0 | 35.3 |
| Cash flow from operating activities before changes in working capital(2,4) | 94.5 | 49.4 |
| Free cash flow(2,4) | (34.4) | (26.8) |
| Cash, cash equivalents and term deposits | 262.3 | 434.7 |
| Total assets | 4,503.0 | 4,510.4 |
| Debt | 493.4 | 482.8 |
(1) Attributable to shareholders of the Company.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' of our MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
(3) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(4) Amounts presented for 2023 and 2022 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed consolidated interim financial statements for the three months ended March 31, 2023.
Total revenue was $229.4 million in Q1 2023, an increase of 18% from total revenue of $194.7 million in Q1 2022. The increase was primarily driven by higher sales volumes in Q1 2023.
Production costs increased to $109.9 million in Q1 2023 from $104.6 million in Q1 2022 primarily due to increased production and sales volumes in the quarter. Production costs include royalty expense which decreased to $8.7 million in Q1 2023 from $10.1 million in Q1 2022, despite higher sales volumes. This was due to a $1.9 million reversal of accrued 2022 royalty expense following adjustments in the quarter.
Cash operating costs in Q1 2023 averaged $766 per ounce sold, a decrease from $835 per ounce sold in Q1 2022, primarily due to higher gold production in the quarter. AISC per ounce sold decreased to $1,184 in Q1 2023 from $1,346 in Q1 2022, primarily reflecting the lower cash operating costs per ounce sold in Q1 2023, combined with lower royalty expense.
We reported net earnings attributable to shareholders from continuing operations of $21.3 million ($0.12 earnings per share) in Q1 2023, compared to a net loss of $317.6 million ($1.74 loss per share) in Q1 2022. Higher net income in Q1 2023 is primarily attributable to increased sales volumes, a $277.9 million net loss from discontinued operations attributable to shareholders recognized in Q1 2022 and a $16.0 million net write-down of assets at Kisladag in Q1 2022.
Adjusted net earnings was $20.5 million ($0.11 earnings per share) in Q1 2023, compared to adjusted net loss of $19.3 million ($0.11 loss per share) in Q1 2022. Adjusted net earnings in Q1 2023 removed, among other things, the $4.3 million current tax expense related to the tax law change to fund earthquake relief efforts in Turkiye, a $3.5 million non-cash recovery of deferred tax due to foreign exchange translation, and a $1.1 million non-cash gain on the revaluation of the derivative related to redemption options in our debt.
Quarterly Operations Update
Gold Operations
| 3 months ended March 31, | |
| 2023 2022 | |
| Total |
| Ounces produced | 112,533 | 93,209 |
| Ounces sold | 109,817 | 94,472 |
| Production costs | $109.9 | $104.6 |
| Cash operating costs ($/oz sold)(1,2) | $766 | $835 |
| All-in sustaining costs ($/oz sold)(1,2) | $1,184 | $1,346 |
| Sustaining capital expenditures(2) | $24.8 | $24.5 |
Kisladag
| Ounces produced | 37,160 | 29,779 |
| Ounces sold | 37,393 | 29,778 |
| Production costs | $30.5 | $30.1 |
| Cash operating costs ($/oz sold)(1,2) | $708 | $861 |
| All-in sustaining costs ($/oz sold)(1,2) | $875 | $1,084 |
| Sustaining capital expenditures(2) | $2.2 | $2.5 |
Lamaque
| Ounces produced | 37,884 | 33,377 |
| Ounces sold | 38,643 | 34,125 |
| Production costs | $29.2 | $27.2 |
| Cash operating costs ($/oz sold)(1,2) | $721 | $763 |
| All-in sustaining costs ($/oz sold)(1,2) | $1,217 | $1,182 |
| Sustaining capital expenditures(2) | $17.8 | $13.0 |
Efemcukuru
| Ounces produced | 19,928 | 21,057 |
| Ounces sold | 19,751 | 21,382 |
| Production costs | $17.7 | $17.0 |
| Cash operating costs ($/oz sold)(1,2) | $869 | $648 |
| All-in sustaining costs ($/oz sold)(1,2) | $1,094 | $999 |
| Sustaining capital expenditures(2) | $2.2 | $3.5 |
Olympias
| Ounces produced | 17,561 | 8,996 |
| Ounces sold | 14,030 | 9,187 |
| Production costs | $32.5 | $30.2 |
| Cash operating costs ($/oz sold)(1,2) | $898 | $1,449 |
| All-in sustaining costs ($/oz sold)(1,2) | $1,355 | $2,399 |
| Sustaining capital expenditures(2) | $2.5 | $5.6 |
(1) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' of our MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
Kisladag
Kisladag produced 37,160 ounces of gold in Q1 2023, a 25% increase from 29,779 ounces in Q1 2022. The increase was primarily due to production in Q1 2022 being impacted by lower tonnage placed on the heap leach pad in late 2021 during the commissioning of the HPGR, combined with material handling challenges in that quarter. Average grade increased to 0.70 grams per tonne in Q1 2023 from 0.61 grams per tonne in Q1 2022.
Tonnes placed on the heap leach pad in the quarter benefited from the installation in late 2022 of eight larger, higher-capacity conveyors, improving material handling capacity and belt agglomeration. The installation of a fine ore agglomeration drum at Kisladag has commenced commissioning and will continue to ramp up in Q2 2023. The fine ore agglomeration drum is expected to improve materials handling on the conveying system, increasing recoveries and production rates. Tonnes placed on the heap leach pad in Q1 2022 were reduced by snowfall and prolonged freezing temperatures that impacted the ore conveyance and stacking system, reducing productivity.
Revenue increased to $72.1 million in Q1 2023 from $56.6 million in Q1 2022, reflecting increased gold ounces sold in the quarter and to a lesser extent, an increase in the average realized gold price.
Production costs increased to $30.5 million in Q1 2023 from $30.1 million in Q1 2022. The slight increase was due to higher gold sales in the quarter, mostly offset by a decrease in cash operating costs per ounce sold to $708 in Q1 2023 from $861 in Q1 2022. Cash operating costs per ounce sold in Q1 2022 were negatively impacted by reduced production in late 2021 and early 2022.
AISC per ounce sold decreased to $875 in Q1 2023 from $1,084 in Q1 2022, primarily due to the decrease in cash operating costs per ounce sold.
Sustaining capital expenditures of $2.2 million in Q1 2023 primarily included equipment rebuilds. Growth capital expenditures of $18.6 million in Q1 2023 included waste stripping to support the mine life extension, stacking system and agglomeration enhancements, and continued construction of the first phase of the North heap leach pad, on which stacking is expected to commence in the second half of 2023.
For 2023, production guidance at Kisladag is 160,000 to 170,000 ounces of gold. Production is expected to improve over the course of the second quarter as we realize full effectiveness from the upgraded materials handling equipment. Our optimization efforts are expected to drive increased stacking rates in the second half of the year.
Lamaque
Lamaque produced 37,884 ounces of gold in Q1 2023, a 14% increase from 33,377 ounces in Q1 2022 and primarily due to an increase in average grade. Average grade increased to 6.06 grams per tonne in Q1 2023 from 5.27 grams per tonne in Q1 2022. As expected, gold production was reduced in the quarter, as compared to Q4 2022, due to stope access and mine sequencing.
Revenue increased to $73.6 million in Q1 2023 from $64.9 million in Q1 2022 primarily due to higher production and sales in the quarter.
Production costs increased slightly to $29.2 million in Q1 2023 from $27.2 million in Q1 2022. The increase in average grade resulted in a decrease in cash operating costs per ounce sold to $721 in Q1 2023 from $763 in Q1 2022.
AISC per ounce sold increased to $1,217 in Q1 2023 from $1,182 in Q1 2022, primarily due to an increase in sustaining capital expenditure and partly offset by the decrease in cash operating costs per ounce sold.
Sustaining capital expenditure increased to $17.8 million in Q1 2023 from $13.0 million in Q1 2022 primarily due to increased underground development, combined with equipment rebuilds. Sustaining capital expenditure is expected to increase in Q2 and Q3 2023 as the seasonal tailings facility expansion is completed. Growth capital expenditures of $2.7 million in Q1 2023 was primarily related to resource conversion drilling at Ormaque.
In 2023, production guidance at Lamaque is 170,000 to 180,000 ounces of gold. For the second quarter, processing rates will increase slightly, coupled with slightly higher grades. Production for the second half of the year is expected to be stronger than the first half with throughput stable and averaging approximately 2,400 tonnes per day.
Efemcukuru
Efemcukuru produced 19,928 payable ounces of gold in Q1 2023, a 5% decrease from 21,057 payable ounces in Q1 2022. The slight decrease was due to a planned decrease in grade to 5.45 grams per tonne in Q1 2023 from 5.95 grams per tonne in Q1 2022, and was partly offset by higher throughput during the quarter.
Revenue decreased to $40.7 million in Q1 2023 compared to $41.3 million in Q1 2022. The slight decrease was due to lower payable gold ounces sold, partly offset by an increased average realized gold price during the quarter.
Higher tonnes processed and lower grade also resulted in an increase in production costs to $17.7 million in Q1 2023 from $17.0 million in Q1 2022. Additionally, lower gold production and sales resulted in an increase in cash operating costs per ounce sold to $869 in Q1 2023, from $648 in Q1 2022.
AISC per ounce sold increased to $1,094 in Q1 2023 from $999 in Q1 2022, primarily due to the increase in cash operating costs per ounce sold, partly offset by a decrease in sustaining capital expenditure and a decrease in royalty expense due to a $1.0 million reversal of accrued 2022 royalty expense following adjustments in the quarter.
Sustaining capital expenditures of $2.2 million in Q1 2023 primarily included underground development and equipment rebuilds. Growth capital expenditures of $1.9 million includes resource conversion drilling at Kokarpinar.
For 2023, production guidance at Efemcukuru is forecast to be 80,000 to 90,000 ounces of gold. Production in the second quarter is expected to be consistent with the first quarter with the second half slightly higher as grades improve.
Olympias
Olympias produced 17,561 ounces of gold in Q1 2023, a 95% increase from 8,996 ounces in Q1 2022. The significant increase reflected increased processing volumes combined with increased average gold grade in the quarter. Lead, silver and zinc production also increased in Q1 2023 as compared to Q1 2022, due to increased processing volumes and higher average grades. In Q1 2022, gold production at Olympias was negatively impacted by COVID-19 related absenteeism and weather-related power outages.
Revenue increased to $43.0 million in Q1 2023 compared to $31.2 million in Q1 2022 primarily as a result of higher sales volumes. Inclement weather at the end of March delayed the shipment of approximately 2,000 ounces of gold. The shipments were completed in early April and the gold ounces sold and related revenue will be recognized in Q2 2023.
Increased production in the quarter resulted in an increase in production costs to $32.5 million in Q1 2023 from $30.2 million in Q1 2022 and a decrease in cash operating costs per ounce sold to $898 in Q1 2023 from $1,449 in Q1 2022. Electricity prices continued to benefit from state subsidies introduced in 2022 and on average remained in line with Q4 2022 levels.
AISC per ounce sold decreased to $1,355 in Q1 2023 from $2,399 in Q1 2022 primarily due to the decrease in cash operating costs per ounce sold, combined with a decrease in sustaining capital expenditure in the quarter and a decrease in royalty expense, in line with lower average lead and zinc prices in the quarter. Sustaining capital expenditures of $2.5 million in Q1 2023 primarily included underground development and tailings facility construction.
This year, production guidance at Olympias is 60,000 to 75,000 ounces of gold. Gold production is expected to be relatively consistent quarter over quarter.
For further information on the Company's operating results for the first quarter of 2023, please see the Company’s MD&A filed on SEDAR at www.sedar.com under the Company’s profile.
Conference Call
A conference call to discuss the details of the Company’s First Quarter 2023 Results will be held by senior management on Friday, April 28, 2023 at 11:30 AM ET (8:30 AM PT). The call will be webcast and can be accessed at Eldorado Gold’s website: www.eldoradogold.com or via this link: https://services.choruscall.ca/links/ eldoradogold2023q1.html.
Conference Call Details Replay (available until June 1, 2023)
Date: April 28, 2023 Vancouver: +1 604 638 9010 Time: 11:30 am ET (8:30 am PT) Toll Free: +1 800 319 6413 Dial in: +1 604 638 5340 Access code: 0052 Toll free: +1 800 319 4610
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada, Greece, and Romania. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Contacts
Investor Relations
Lynette Gould, VP Investor Relations 647.271.2827 or 1.888.353.8166 [email protected]
Media
Louise McMahon, Director Communications & Public Affairs 604.757.5573 or 1.888.353.8166 [email protected]
Non-IFRS and Other Financial Measures and Ratios
Certain non-IFRS financial measures and ratios are included in this press release, including cash operating costs and cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, sustaining and growth capital, average realized gold price per ounce sold, adjusted net earnings/(loss) attributable to shareholders, adjusted net earnings/(loss) per share attributable to shareholders, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), free cash flow, working capital and cash flow from operating activities before changes in working capital.
Please see the March 31, 2023 MD&A for explanations and discussion of these non-IFRS and other financial measures and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios prepared in accordance with International Financial Reporting Standards (“IFRS”), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS and other financial measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these and other financial measures and ratios have been incorporated by reference and can be found in the section 'Non-IFRS and Other Financial Measures and Ratios' in the March 31, 2023 MD&A available on SEDAR at www.sedar.com and on the Company's website under the 'Investors' section.
Reconciliation of Production Costs to Cash Operating Costs and Cash Operating Costs per ounce sold:
| Q1 2023 Q1 2022 | |
| Production costs By-product credits (1) Royalty expense (2) Concentrate deductions (3) | $109.9 $104.6 |
| (20.3) (18.2) (8.7) (10.1) 3.1 2.6 | |
| Cash operating costs Gold ounces sold | $84.1 $78.9 |
| 109,817 94,472 | |
| Cash operating cost per ounce sold | $766 $835 |
(1) Revenue from silver, lead and zinc sales.
(2) Included in production costs.
(3) Included in revenue.
Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended March 31, 2023:
| Direct mining costs | By-product credits | Refining and selling costs | Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | ||
|---|---|---|---|---|---|---|---|---|
| Kisladag $30.1 ($0.8) $0.2 ($2.9) Lamaque 29.7 (0.4) 0.1 (1.5) Efemcukuru 15.2 (0.9) 3.1 (0.2) Olympias 26.9 (18.1) 5.7 (1.9) | $26.5 | 37,393 38,643 19,751 14,030 | $708 | |||||
| 27.8 17.2 12.6 | 721 869 898 | |||||||
| Total consolidated $102.0 ($20.3) $9.0 ($6.6) | $84.1 | 109,817 | $766 |
(1) Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended March 31, 2022:
| Direct mining costs | By-product credits | Refining and selling costs | Inventory change (1) | Cash operating costs | Gold oz sold | Cash operating cost/oz sold | |
|---|---|---|---|---|---|---|---|
| $25.7 | 29,778 34,125 21,382 9,187 | $861 | |||||
| 26.1 13.9 13.3 | 763 648 1,449 | ||||||
| $78.9 | 94,472 | $835 |
(1) Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Cash Operating Costs to Total Cash Costs and Total Cash Costs per ounce sold:
| Q1 2023 Q1 2022 | |
| Cash operating costs Royalty expense (1) | $84.1 $78.9 |
| 8.7 10.1 | |
| Total cash costs Gold ounces sold | $92.7 $88.9 |
| 109,817 94,472 | |
| Total cash costs per ounce sold | $845 $941 |
(1) Included in production costs.
Reconciliation of Total Cash Costs to All-in Sustaining Costs and All-in Sustaining Costs per ounce sold:
| Q1 2023 Q1 2022 | ||
|---|---|---|
| Total cash costs Corporate and allocated G&A Exploration and evaluation costs Reclamation costs and amortization Sustaining capital expenditure | $92.7 $88.9 | |
| 9.8 11.4 0.3 0.7 2.3 1.7 24.8 24.5 | ||
| AISC Gold ounces sold | $130.1 | $127.2 |
| 109,817 94,472 | ||
| AISC per ounce sold | $1,184 | $1,346 |
Reconciliation of general and administrative expenses included in All-in Sustaining Costs:
| Q1 2023 Q1 2022 | |
| General and administrative expenses (from consolidated statement of operations) Add: Share-based payments expense Employee benefit plan expense from corporate and operating gold mines Less: General and administrative expenses related to non-gold mines and in-country offices Depreciation in G&A Business development Development projects | $10.6 $8.0 |
| 0.9 3.7 1.5 1.8 | |
| (0.4) (0.2) (0.8) (0.4) (1.9) (0.5) (0.2) (1.1) | |
| Adjusted corporate general and administrative expenses Regional general and administrative costs allocated to gold mines | $9.7 $11.2 |
| 0.1 0.2 | |
| Corporate and allocated general and administrative expenses per AISC | $9.8 $11.4 |
Reconciliation of exploration costs included in All-in Sustaining Costs:
| Q1 2023 Q1 2022 | |
| Exploration and evaluation expense (from consolidated statement of operations)(1) Add: Capitalized exploration cost related to operating gold mines Less: Exploration and evaluation expenses related to non-gold mines and other sites | $5.8 $5.0 |
| 0.3 0.7 | |
| (5.8) (5.0) | |
| Exploration costs per AISC | $0.3 $0.7 |
(1) Amounts presented for 2023 and 2022 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed consolidated interim financial statements for the three months ended March 31, 2023.
Reconciliation of reclamation costs and amortization included in All-in Sustaining Costs:
| Q1 2023 Q1 2022 | |
| Asset retirement obligation accretion (from notes to the consolidated financial statements) Add: Depreciation related to asset retirement obligation assets Less: Asset retirement obligation accretion related to non-gold mines and other sites | $1.1 $0.5 |
| 1.4 1.2 | |
| (0.2) (0.1) | |
| Reclamation costs and amortization per AISC | $2.3 $1.7 |
Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the three months ended March 31, 2023:
| Corporate Cash Total & Reclamation Total operating Royalty cash allocated Exploration costs and Sustaining Total Gold oz AISC/ costs expense costs G&A costs amortization capex AISC sold oz sold | ||||||
|---|---|---|---|---|---|---|
| Kisladag $26.5 $3.2 | $29.7 | $— $— $0.8 $2.2 | $32.7 | 37,393 | $875 | |
| Lamaque 27.8 0.9 | 28.8 | — 0.3 0.1 17.8 | 47.0 | 38,643 | 1,217 | |
| Efemcukuru 17.2 1.3 | 18.5 | 0.1 — 0.8 2.2 | 21.6 | 19,751 | 1,094 | |
| Olympias 12.6 3.2 | 15.8 | — — 0.6 2.5 | 19.0 | 14,030 | 1,355 | |
| Corporate (1) — — | — | 9.7 — — — | 9.7 | — | 88 | |
| Total $84.1 $8.7 consolidated | $92.7 | $9.8 $0.3 $2.3 $24.8 | $130.1 | 109,817 | $1,184 |
(1) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.
Reconciliation of All-in Sustaining Costs and All-in Sustaining Costs per ounce sold, by operating asset and corporate office, for the three months ended March 31, 2022:
| Cash Total operating Royalty cash costs expense costs | Corporate & allocated G&A | Exploration costs | Reclamation costs and amortization | Total Sustaining Total Gold oz AISC/ capex AISC sold oz sold | |||||
|---|---|---|---|---|---|---|---|---|---|
| Kisladag $25.7 $3.7 | $29.3 | $— $— $0.4 $2.5 | $32.3 | 29,778 | $1,084 | ||||
| Lamaque 26.1 0.8 | 26.9 | — 0.3 0.1 13.0 | 40.3 | 34,125 | 1,182 | ||||
| Efemcukuru 13.9 3.1 | 16.9 | 0.2 0.1 0.6 3.5 | 21.4 | 21,382 | 999 | ||||
| Olympias 13.3 2.5 | 15.8 | — 0.2 0.4 5.6 | 22.0 | 9,187 | 2,399 | ||||
| Corporate (1) — — | — | 11.2 — — — | 11.2 | — | 119 | ||||
| Total $78.9 $10.1 consolidated | $88.9 | $11.4 $0.7 $1.7 $24.5 | $127.2 | 94,472 | $1,346 |
(1) Excludes general and administrative expenses related to business development activities and projects. Includes share based payments expense and defined benefit pension plan expense. AISC per ounce sold has been calculated using total consolidated gold ounces sold.
Reconciliation of Sustaining and Growth Capital
| Q1 2023 Q1 2022 | ||
|---|---|---|
| Additions to property, plant and equipment (1) (from segment note in the consolidated financial statements) Growth and development project capital expenditure - gold mines Growth and development project capital expenditure - other (2) Sustaining capital expenditure equipment leases (3) Corporate Leases | $83.4 $60.8 | |
| (24.1) (27.4) | ||
| (34.9) (8.8) | ||
| 0.4 — — (0.1) | ||
| Sustaining capital expenditure at operating gold mines | $24.8 | $24.5 |
(1) Amounts presented for 2023 and 2022 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed consolidated interim financial statements for the three months ended March 31, 2023.
(2) Includes capital expenditures relating to Skouries, Stratoni and other projects, excluding non-cash sustaining lease additions.
(3) Sustaining lease principal and interest payments, net of non-cash lease additions.