Eldorado Gold Reports First Quarter 2022 Financial and Operational Results
NEWS RELEASE TSX: ELD NYSE: EGO April 28, 2022
Eldorado Gold Reports First Quarter 2022 Financial and Operational Results
VANCOUVER, BC - Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the first quarter of 2022. 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 2022 Highlights Operations
- Q1 gold production: 93,209 ounces in Q1 2022. Production was heavily impacted in the earlier part of the quarter by COVID-related absenteeism, weather related challenges and power outages at our operations. In the latter part of the quarter, most operations returned to planned levels of tonnage, grades and production.
- Q1 gold sales: 94,472 ounces at an average realized gold price per ounce sold (1) of $1,889 in Q1 2022.
- Cash operating costs(1): $835 per ounce sold in Q1 2022. The increase in cost was primarily driven by lower overall gold production and an increase in the price of certain commodities and consumables.
- All-in sustaining costs ("AISC")(1): $1,347 per ounce sold in Q1 2022.
- Total capital expenditures: $60.8 million in Q1 2022, including $5.6 million of growth capital(1) spent at Skouries with activity focused on cladding of the process plant, commencement of basic engineering, and continued preservation of site facilities and equipment. Growth capital of $23.7 million in Q1 2022 focused on waste stripping at Kisladag and construction of the North leach pad.
- Production outlook: We are maintaining our 2022 annual guidance of 460,000 – 490,000 ounces of gold production.
Financial
- Cash flow from operating activities before changes in working capital(1): $49.7 million in Q1 2022.
- Cash, cash equivalents and term deposits: $434.7 million, as at March 31, 2022.
- Adjusted EBITDA(1): $62.1 million in Q1 2022.
- Net loss: Q1 2022 net loss attributable to shareholders of the Company was $316.8 million or $1.74 loss per share. Lower net income in Q1 2022 is primarily attributable to an impairment of $365.4 million ($345.4 million, net of deferred tax) of the Certej project, a non-core asset, and a write-down of $19.8 million ($15.4 million, net of deferred tax) relating to decommissioned equipment at Kisladag.
- Adjusted net loss(1): $19.0 million net loss, or $0.10 loss per share in Q1 2022. Adjusted net loss in Q1 2022 removes, among other things, the non-cash impairment charge related to the Certej project and the non-cash write-down of decommissioned equipment at Kisladag.
- Free cash flow(1): Negative $26.8 million in Q1 2022, primarily due to lower gold production and sales.
- Financial outlook: Cash operating costs and AISC were higher in Q1 2022 due to operational challenges that resulted in lower gold ounces produced and sold. In light of significant volatility in prices for electricity, fuel, reagents and other consumables required for our operations, we are monitoring the impact on expected full year operating and capital costs and will provide an update next quarter.
(1) These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's March 31, 2022 MD&A.
Other
- Strengthened union agreements: In January 2022, we completed a two-year collective bargaining agreement with our labour union in Turkey. Adjustments were incorporated in light of continued high consumer inflation rates to support our workforce with rising costs of food and electricity. In April 2022, we also completed a two-year collective bargaining agreement with our labour unions in Greece. The agreement incorporates technology and flexibility to support the achievement of productivity and efficiency targets.
"Our global operations were met with significant challenges in the first quarter,” said George Burns, Eldorado’s President and Chief Executive Officer. "Severe weather in Turkey and Greece, a government-mandated power outage in Turkey, and COVID-related absenteeism across all sites impacted our production. As we previously indicated, production in 2022 is expected to be heavily weighted to the second half of the year. Despite the headwinds, we have seen operations improve towards the end of the quarter and are maintaining our consolidated full-year guidance of 460,000 to 490,000 ounces of gold," added Burns.
“During the quarter, we made meaningful progress at Skouries, our development project in Greece, with activity focused on cladding of the process plant, commencement of basic engineering, and continued preservation of site facilities and equipment. At Kisladag, the ramp-up of the newly installed HPGR is continuing, and agglomeration optimization continues to show improvements. At Lamaque, an exploration drift is currently being developed from the Triangle-Sigma decline to provide drilling platforms for resource conversion of the Ormaque deposit beginning in the second quarter."
"Our focus ahead is on maintaining positive momentum by delivering on key initiatives including a financing package for Skouries. Financing discussions continue to advance, and we are evaluating all available options including, joint venture equity partners, project and debt financing through EU and Greek lenders as well as the EU Recovery and Resilience Fund, and metal streams. Subject to financing and Board approval, target restart of construction at Skouries is in the second half of 2022."
Consolidated Financial and Operational Highlights
3 months ended March 31,
| Continuing Operations(6) | 2022 | 2021 |
| Revenue | $194.7 | $224.6 |
| Gold produced (oz) | 93,209 | 111,742 |
| Gold sold (oz) | 94,472 | 113,594 |
| Average realized gold price ($/oz sold)(2) | $1,889 | $1,732 |
| Production costs | $104.6 | $108.6 |
| Cash operating costs ($/oz sold)(2,3) | $835 | $641 |
| Total cash costs ($/oz sold)(2,3) | $941 | $687 |
| All-in sustaining costs ($/oz sold)(2,3) | $1,347 | $986 |
| Net (loss) earnings for the period(1,4) | ($316.8) | $14.3 |
| Net (loss) earnings per share – basic ($/share)(1,4) | ($1.74) | $0.08 |
| Adjusted net (loss) earnings(1,2,4) | ($19.0) | $25.2 |
| Adjusted net (loss) earnings per share ($/share)(1,2,4) | ($0.10) | $0.14 |
| Net cash generated from operating activities(5) | $35.2 | $99.1 |
| Cash flow from operating activities before changes in working capital(2,5) | $49.7 | $81.2 |
| Free cash flow(2,5) | ($26.8) | $33.4 |
| Cash, cash equivalents and term deposits | $434.7 | $533.8 |
(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' in the Company's MD&A for explanations and discussion of these non-IFRS financial measures and ratios.
(3) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(4) Q1 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation..
(5) Q1 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity.
(6) The Brazil segment is presented as a discontinued operation in 2021. See Note 17 of our condensed consolidated interim financial statements. Amounts presented are from continuing operations only.
Total revenue was $194.7 million in Q1 2022, a decrease of 13% from total revenue of $224.6 million in Q1 2021. The decrease was primarily driven by lower sales volumes in Q1 2022, and was partly offset by higher average metal prices.
Production costs decreased to $104.6 million in Q1 2022 from $108.6 million in Q1 2021 primarily due the suspension of operations at Stratoni at the end of 2021. Production costs at Stratoni totalled $15.3 million in Q1 2021. This decrease was partly offset by increases in certain production costs in Q1 2022 as a result of supply concerns caused by financial and trade sanctions against Russia, and ongoing supply chain challenges due to COVID-19. Cost increases primarily impacted electricity, fuel and reagents.
Cash operating costs in Q1 2022 averaged $835 per ounce sold, an increase from $641 per ounce sold in Q1 2021. The increase was primarily due to lower production in the quarter, combined with an increase in certain production costs. AISC per ounce sold increased to $1,347 in Q1 2022, from $986 in Q1 2021, primarily due to the increase in cash operating costs per ounce sold, combined with higher royalty expense.
We reported net loss attributable to shareholders from continuing operations of $316.8 million ($1.74 loss per share) in Q1 2022, compared to net earnings of $14.3 million ($0.08 earnings per share) in Q1 2021. Lower net income in Q1 2022 is primarily attributable to the impairment of the Certej project, a non-core gold asset, and the write-down of decommissioned equipment at Kisladag.
Adjusted net loss was $19.0 million ($0.10 loss per share) in Q1 2022, compared to adjusted net earnings of $25.2 million ($0.14 earnings per share) in Q1 2021. Adjusted net loss in Q1 2022 removed the $365.4 million ($278.0 million attributable to shareholders and net of deferred tax) non-cash impairment of Certej, the $19.8 million ($15.4 million net of deferred tax) non-cash write-down of decommissioned equipment at Kisladag, $12.4 million loss on foreign exchange due to translation of deferred tax balances, a $7.0 million gain on the noncash revaluation of the derivative related to redemption options in our debt and a $1.0 million deferred tax recovery relating to the impact of tax rate changes in Turkey.
Operations Update
Gold Operations
3 months ended March 31,
2022 2021
Total
| Ounces produced | 93,209 | 111,742 |
| Ounces sold | 94,472 | 113,594 |
| Production costs | $104.6 | $108.6 |
| Cash operating costs ($/oz sold)(1,2) | $835 | $641 |
| All-in sustaining costs ($/oz sold)(1,2) | $1,347 | $986 |
| Sustaining capital expenditures(2) | $24.5 | $20.5 |
Kisladag
| Ounces produced | 29,779 | 46,172 |
| Ounces sold | 29,778 | 47,507 |
| Production costs | $30.1 | $26.3 |
| Cash operating costs ($/oz sold)(1,2) | $861 | $492 |
| All-in sustaining costs ($/oz sold)(1,2) | $1,084 | $607 |
| Sustaining capital expenditures(2) | $2.5 | $2.8 |
Lamaque
| Ounces produced | 33,377 | 28,835 |
| Ounces sold | 34,125 | 29,078 |
| Production costs | $27.2 | $23.0 |
| Cash operating costs ($/oz sold)(1,2) | $763 | $759 |
| All-in sustaining costs ($/oz sold)(1,2) | $1,182 | $1,162 |
| Sustaining capital expenditures(2) | $13.0 | $9.3 |
Efemcukuru
| Ounces produced | 21,057 | 23,298 |
| Ounces sold | 21,382 | 24,130 |
| Production costs | $17.0 | $14.6 |
| Cash operating costs ($/oz sold)(1,2) | $648 | $525 |
| All-in sustaining costs ($/oz sold)(1,2) | $999 | $693 |
| Sustaining capital expenditures(2) | $3.5 | $2.6 |
Olympias
| Ounces produced | 8,996 | 13,437 |
| Ounces sold | 9,187 | 12,879 |
| Production costs | $30.2 | $29.4 |
| Cash operating costs ($/oz sold)(1,2) | $1,449 | $1,145 |
| All-in sustaining costs ($/oz sold)(1,2) | $2,399 | $1,799 |
| Sustaining capital expenditures(2) | $5.6 | $5.8 |
(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' in the Company's MD&A for explanations and discussion of these non-IFRS financial measures and ratios.
Kisladag
Kisladag produced 29,779 ounces of gold in Q1 2022, a 36% decrease from 46,172 ounces in Q1 2021. The decrease was primarily due to COVID-19 related absenteeism, severe weather and an approximate three-day government-mandated power outage. The decrease was also the result of lower tonnage placed on the heap leach pad in Q4 2021 during the commissioning of the high-pressure grinding rolls circuit ("HPGR"). Average grade declined to 0.61 grams per tonne in Q1 2022 from 0.77 grams per tonne in Q1 2021.
Tonnes placed on the heap leach pad in Q1 2022 were lower than planned, primarily due to snowfall and prolonged freezing temperatures that impacted the ore conveyance and stacking system, reducing productivity in the quarter. Tonnes placed on the pad and production ramped up in March and optimization of the agglomeration circuit continued. The HPGR is performing to plan, with recovery rates as expected. Lower tonnes placed on the heap leach pad in Q1 2022 are expected to negatively impact gold production in Q2 2022.
Revenue decreased to $56.6 million in Q1 2022 from $85.7 million in Q1 2021, reflecting lower sales in the quarter and partly offset by an increase in the average realized gold price.
Production costs increased to $30.1 million in Q1 2022 from $26.3 million in Q1 2021 primarily due to cost increases in labour, reagents, electricity and fuel. These increases, combined with lower production in the quarter, resulted in a significant increase in cash operating costs per ounce sold to $861 in Q1 2022 from $492 in Q1 2021.
AISC per ounce sold increased to $1,084 in Q1 2022 from $607 in Q1 2021, primarily due to the increase in cash operating costs per ounce sold, combined with an increase in royalty expense. The increase in royalty expense to $3.7 million in Q1 2022 from $2.1 million in Q1 2021 was primarily due to a $2.8 million reversal of expense recorded in Q1 2021 following an amendment of retroactive gold royalty rates, and to a lesser extent, due to higher gold royalty rates in Q1 2022 in line with higher gold prices in the quarter.
Sustaining capital expenditures(1) of $2.5 million in Q1 2022 primarily included equipment rebuilds and processing improvements. Growth capital expenditures of $20.0 million in Q1 2022 included waste stripping to support the mine life extension, and construction of the first phase of the North heap leach pad. Severe weather in the quarter resulted in some delays in construction of the North heap leach pad and it is expected to be available for stacking in late 2022.
Lamaque
Lamaque produced 33,377 ounces of gold in Q1 2022, a 16% increase from 28,835 ounces in Q1 2021 and primarily due to higher throughput in the quarter. COVID-19 related absenteeism led to a reduction in workforce hours in January and February. This delayed the underground development of high-grade stopes, which led to lower than planned gold grades in the quarter. Mine development increased in March and gold grade and tonnage returned to planned levels. Average grade increased slightly to 5.27 grams per tonne in Q1 2022 from 5.17 grams per tonne in Q1 2021. Full-year gold production at Lamaque is expected to be in line with guidance.
Revenue increased to $64.9 million in Q1 2022 from $52.0 million in Q1 2021 due to higher production in the quarter, combined with a higher average realized gold price.
Production costs increased to $27.2 million in Q1 2022 from $23.0 million in Q1 2021, primarily due to higher production in the quarter. Cost increases for consumables were partly offset by a slightly weaker Canadian dollar during the quarter. Cash operating costs per ounce sold increased to $763 in Q1 2022 from $759 in Q1 2021, primarily reflecting higher production.
AISC per ounce sold increased to $1,182 in Q1 2022 from $1,162 in Q1 2021, primarily due to an increase in sustaining capital expenditure. Sustaining capital expenditure of $13.0 million in Q1 2022 primarily included underground development and construction. Growth capital expenditure of $1.8 million in Q1 2022 was primarily construction of underground infrastructure.
(1) These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's March 31, 2022 MD&A.
Efemcukuru
Efemcukuru produced 21,057 payable ounces of gold in Q1 2022, a 10% decrease from 23,298 payable ounces in Q1 2021. The decrease was due to a planned decrease in grade to 5.95 grams per tonne in Q1 2022 from 6.67 grams per tonne in Q1 2021, and was partly offset by higher throughput during the quarter despite experiencing COVID-19 related absenteeism.
Revenue increased to $41.3 million in Q1 2022 compared to $39.8 million in Q1 2021. The increase was due to a higher average realized gold price during Q1 2022, partly offset by lower payable gold ounces sold.
Production costs increased to $17.0 million in Q1 2022 from $14.6 million in Q1 2021 due to increased tonnes processed, combined with cost increases in labour, electricity and consumables. These increases, combined with lower production in the quarter, resulted in an increase in cash operating costs per ounce sold to $648 in Q1 2022, from $525 in Q1 2021.
AISC per ounce sold increased to $999 in Q1 2022 from $693 in Q1 2021, primarily due to the increase in cash operating costs per ounce sold, combined with an increase in royalty expense. The increase in royalty expense to $3.1 million in Q1 2022 from $0.8 million in Q1 2021 was primarily due to a $1.7 million reversal of expense recorded in Q1 2021 following an amendment of retroactive gold royalty rates, and to a lesser extent, due to higher gold royalty rates in Q1 2022 in line with higher gold prices in the quarter.
Sustaining capital expenditures of $3.5 million in Q1 2022 was primarily underground development and growth capital expenditures of $0.4 million includes resource conversion drilling at Kokarpinar.
Olympias
Olympias produced 8,996 ounces of gold in Q1 2022, a 33% decrease from 13,437 ounces in Q1 2021. The decrease reflected lower processing volumes and lower gold grade in the quarter. Lead and zinc production were lower in Q1 2022 as compared to Q1 2021, also due to lower processing volumes while silver ounces produced were slightly higher due to higher grade. In January and February, gold production at Olympias was impacted by COVID-19 related absenteeism. Additionally, operations were impacted for approximately six days in January due to snowfall in the region which resulted in an approximate four-day power outage. Operations resumed mining to plan in March and achieved planned tonnage and grades for the month. Initiatives are in place to continue ramping up mine production tonnage, control the grades and maximize plant throughput for the remainder of the year. Plant throughput in Q2 2022 is expected to be impacted by planned processing tie-ins to improve water treatment plant efficiency and capacity.
Revenue decreased to $31.2 million in Q1 2022 compared to $33.4 million in Q1 2021 primarily as a result of lower sales volumes. Gold revenue was impacted during the quarter by the 13% VAT import charge levied on customers importing Olympias gold concentrate into China. This import charge, effective since October 1, 2021, reduces revenue by a corresponding amount. China was the primary destination of Olympias gold concentrate in Q1 2022, as shipments to Russia were halted as a result of the Russia-Ukraine conflict. We continue to explore other markets. These decreases were partly offset by an increase in the average realized gold price in the quarter. Silver and base metal revenue increased to $16.2 million in Q1 2022 from $12.9 million in Q1 2021, primarily due to strong metal prices in the quarter.
Production costs increased slightly to $30.2 million in Q1 2022 from $29.4 million in Q1 2021. Consistent costs in the quarter reflected price increases in electricity, fuel and other consumables, offset by reduced consumption as a result of lower production. These price increases, combined with lower production in the quarter, resulted in an increase in cash operating costs per ounce sold to $1,449 in Q1 2022 from $1,145 in Q1 2021. This increase was partly offset by a higher proportion of silver and base metal revenue in the quarter, which reduce cash operating costs as by-product credits.
AISC per ounce sold increased to $2,399 in Q1 2022 from $1,799 in Q1 2021 primarily due to the increase in cash operating costs per ounce sold, combined with an increase in royalty expense. Royalty expense increased to $2.5 million in Q1 2022 from $1.7 million in Q1 2021 as result of higher metal prices in the quarter. Sustaining capital expenditure of $5.6 million in Q1 2022 primarily included underground development, and resulted in a $155 increase in AISC per ounce sold due to lower gold production in the quarter.
For further information on the Company's operating results for the first quarter of 2022, 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 2022 Results will be held by senior management on Friday, April 29, 2022 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/ eldoradogold20220429.html
Conference Call Details Replay (available until June 3, 2022)
Date: April 29, 2022 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: 8618 Toll free: +1 800 319 4610
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, 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
Lisa Wilkinson, VP Investor Relations 604.757.2237 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, 2022 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, 2022 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 2022 Q1 2021 | ||
|---|---|---|
| Production costs (1) Stratoni production costs (2) | $104.6 $108.6 | |
| — | (15.3) | |
| Production costs – excluding Stratoni By-product credits Royalty expense | 104.6 93.3 (15.6) (15.2) (10.1) (5.2) | |
| Cash operating costs Gold ounces sold | $78.9 $72.9 94,472 113,594 | |
| Cash operating cost per ounce sold | $835 $641 |
(1) Includes inventory write-downs.
(2) Base metals production, presented for Q1 2021. Operations at Stratoni were suspended at the end of 2021.
Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended March 31, 2022:
| Direct Refining Cash Cash mining By-product and selling Inventory operating operating costs credits costs change (1) costs Gold oz sold cost/oz sold | |||
|---|---|---|---|
| Kisladag $21.2 ($0.7) $0.6 $4.6 Lamaque 26.5 (0.3) 0.1 (0.1) Efemcukuru 12.5 — 1.5 (0.2) Olympias 25.9 (14.5) 3.5 (1.7) | $25.7 | 29,778 34,125 21,382 9,187 | $861 |
| 26.1 | 763 648 1,449 | ||
| 13.9 13.3 | |||
| Total consolidated $86.2 ($15.6) $5.6 $2.6 | $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 and Cash Operating Cost per ounce sold, by asset, for the three months ended March 31, 2021:
| Direct Refining Cash Cash mining By-product and selling Inventory operating operating costs credits costs change (1) costs Gold oz sold cost/oz sold | |||
|---|---|---|---|
| Kisladag $23.4 ($0.8) $0.1 $0.6 Lamaque 23.2 (0.4) 0.1 (0.8) Efemcukuru 12.1 (1.1) 1.2 0.4 Olympias 22.7 (12.9) 3.6 1.4 | $23.4 22.1 12.7 14.7 | 47,507 29,078 24,130 12,879 | $492 759 525 1,145 |
| Total consolidated $81.4 ($15.2) $5.0 $1.7 | $72.9 | 113,594 | $641 |
(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 2022 Q1 2021 | |
| Cash operating costs Royalties | $78.9 $72.9 10.1 5.2 |
| Total cash costs Gold ounces sold | $88.9 $78.0 94,472 113,594 |
| Total cash costs per ounce sold | $941 $687 |
Reconciliation of Total Cash Costs to All-in Sustaining Costs and All-in Sustaining Costs per ounce sold:
| Q1 2022 Q1 2021 | |
| Total cash costs Corporate and allocated G&A Exploration and evaluation costs Reclamation costs and amortization Sustaining capital expenditure | $88.9 $78.0 11.5 9.6 0.7 2.6 1.7 1.4 24.5 20.5 |
| AISC Gold ounces sold | $127.3 $112.0 94,472 113,594 |
| AISC per ounce sold | $1,347 $986 |
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:
| Corporate Cash Total & Reclamation Total operating cash allocated Exploration costs and Sustaining Total Gold oz AISC/ costs Royalties costs G&A costs amortization 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) — — | — | 11.3 — — — | 11.3 | — | 120 |
| Total $78.9 $10.1 consolidated | $88.9 | $11.5 $0.7 $1.7 $24.5 | $127.3 | 94,472 | $1,347 |
(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, 2021:
| Corporate Total Cash Total & Reclamation operating cash allocated Exploration costs and Sustaining Total Gold oz AISC/ costs Royalties costs G&A costs amortization capex AISC sold oz sold | |||||
|---|---|---|---|---|---|
| Kisladag $23.4 $2.1 | $25.5 | $— $— $0.5 $2.8 | $28.8 | 47,507 | $607 |
| Lamaque 22.1 0.5 | 22.6 | — 1.7 0.2 9.3 | 33.8 | 29,078 | 1,162 |
| Efemcukuru 12.7 0.8 | 13.5 | — 0.4 0.2 2.6 | 16.7 | 24,130 | 693 |
| Olympias 14.7 1.7 | 16.4 | — 0.4 0.5 5.8 | 23.2 | 12,879 | 1,799 |
| Corporate (1) — — | — | 9.5 — — — | 9.5 | — | 84 |
| Total $72.9 $5.2 consolidated | $78.0 | $9.6 $2.6 $1.4 $20.5 | $112.0 | 113,594 | $986 |
(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 general and administrative expenses included in All-in Sustaining Costs:
| Q1 2022 Q1 2021 | |
| 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 | $8.3 $10.1 3.7 1.8 1.8 0.7 (0.2) (0.2) (0.6) (0.6) (0.5) (1.7) (1.1) (0.7) |
| Adjusted corporate general and administrative expenses Regional general and administrative costs allocated to gold mines | $11.3 $9.5 0.2 0.1 |
| Corporate and allocated general and administrative expenses per AISC | $11.5 $9.6 |
Reconciliation of exploration costs included in All-in Sustaining Costs:
| Q1 2022 Q1 2021 | |
| 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 | $5.9 $4.0 0.7 1.7 (5.9) (3.2) |
| Exploration costs per AISC | $0.7 $2.6 |
(1) The Brazil segment is presented as a discontinued operation in 2021. See Note 17 of our condensed consolidated interim financial statements. Amounts presented are from continuing operations only.
Reconciliation of reclamation costs and amortization included in All-in Sustaining Costs:
Q1 2022 Q1 2021
Asset retirement obligation accretion (from notes to the consolidated financial statements) $0.6 $0.4
Add:
Depreciation related to asset retirement obligation assets 1.2 1.1
Less:
Asset retirement obligation accretion related to non-gold mines and other sites (0.1) (0.1)
Reclamation costs and amortization per AISC $1.7 $1.4
Reconciliation of Sustaining and Growth Capital
| Q1 2022 Q1 2021 | ||
|---|---|---|
| Additions to property, plant and equipment (1) (from segment note in the consolidated financial statements) Growth and development project capital expenditure (1) Capitalized evaluation expenditure Sustaining capital expenditure Stratoni (2) Sustaining capital expenditure equipment leases (3) Corporate Leases | $60.8 $59.4 (31.9) (34.8) | |
| (4.3) (1.8) | ||
| — | (1.5) | |
| — (0.7) (0.1) — | ||
| Sustaining capital expenditure at operating gold mines | $24.5 $20.5 |
(1) The Brazil segment is presented as a discontinued operation in 2021. See Note 17 of our condensed consolidated interim financial statements. Amounts presented are from continuing operations only.
(2) Base metals production, presented for Q1 2021. Operations at Stratoni were suspended at the end of 2021.
(3) Sustaining lease principal and interest payments, net of non-cash lease additions..
Average realized gold price per ounce sold is reconciled for the periods presented as follows:
For the three months ended March 31, 2022:
| Average realized Concentrate Less non-gold gold price per Revenue deductions (1) revenue Gold revenue Gold oz sold ounce sold | |
|---|---|
| Kisladag $56.6 $— ($0.7) $55.9 29,778 Lamaque 64.9 — (0.3) 64.6 34,125 Efemcukuru 41.3 0.9 (0.9) 41.3 21,382 Olympias 31.2 1.8 (16.2) 16.7 9,187 Stratoni 0.6 — (0.6) — N/A | $1,876 |
| 1,893 | |
| 1,931 1,817 N/A | |
| Total consolidated $194.7 $2.6 ($18.9) $178.4 94,472 | $1,889 |
(1) Treatment charges, refining charges, penalties and other costs deducted from proceeds from gold concentrate sales.