Eldorado Gold Announces €680 Million Project Financing and Board Approval for the Skouries Project
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NEWS RELEASE
TSX: ELD NYSE: EGO December 15, 2022
Eldorado Gold Announces €680 Million Project Financing and
Board Approval for the Skouries Project
VANCOUVER, BC – Eldorado Gold Corporation (“Eldorado” or the “Company”) is pleased to announce
that its wholly-owned subsidiary, Hellas Gold Single Member S.A. (“Hellas”) has entered into a €680 million
project financing facility (the “Term Facility”) for the development of the Skouries Project in Northern Greece
(“Skouries” or the “Project”) with National Bank of Greece S.A. (“National Bank of Greece”) and Piraeus Bank
S.A. (“Piraeus Bank”) as lead arrangers. Consistent with the Company’s previous disclosure, the Term Facility
will provide 80% of the expected future funding required to complete the Project, which is approximately half-
built. The Term Facility is non-recourse to Eldorado and the collateral securing the Term Facility cover s the
Skouries Project and the Hellas operating assets. The remaining 20% of Project funding is expected to be fully
covered by Eldorado’s existing cash and future cash flow from operations. Until such further equity is fully
invested, Eldorado’s investment undertaking for the Project will be fully backstopped by a letter of credit from
the Company’s Revolving Credit Facility. Drawdown on the Term Facility is subject to customary closing
conditions. The Company expects such conditions to be satisfied and the initial drawdown to occur in the first
quarter of 2023.
The Company is also pleased to announce that its Board of Directors (the “Board”) has approved, conditional
upon the initial drawdown of the Term Facility, the investment decision and full re-start of construction at
Skouries. The Company will host a conference call on Thursday, December 15, 2022, at 11:30 am ET (8:30
am PT). The call details are at the end of this news release.
“Skouries represents the next phase of growth at Eldorado, generating significant value for all of our
stakeholders with robust project economics and providing many benefits to the local communities and
economy in Greece,” said Steve Reid, Chair of the Board . “Havin g had the opportunity to tour Skouries
recently, Eldorado’s board and the leadership team are excited to be resuming construction and bringing this
world-class asset into production. On behalf of the Board , I want to congratulate the team on this important
milestone.”
“We are proud to be announcing the signing of this financing and the restart of construction at Skouries,” said
George Burns, President and CEO of Eldorado Gold. “The participation of Greek lenders in the Project
provides aligned strategic partners as we advance Skouries towards commercial production. The Term Facility
covers 80% of the expected remaining future funding required to complete the Project. The Company is able
to fund the remaining 20% from its current balance sheet, future cash flow from existing operations and will
receive a credit for its actual expenditures during the pre -construction phase in 2022, all of which fully
addresses the Project funding requirement.”
“Our focus now shifts to project execution, with first production expected in the second half of 2025, followed
by a ramp-up as we optimize facilities,” continued Burns. “Once in production, Skouries will have a significant
impact on Eldorado’s total gold production and cash cost profile and will diversify our business through revenue
from copper. On behalf of the Eldorado and Hellas team s, I want to thank our local partners and workforce,
the Aristotle Municipality, the Greek government, and National Bank of Greece and Piraeus Bank, for their
support of the Project. We look forward to working with them and developing a world-class mine in the region
adhering to best-in-class sustainability standards.”
Highlights of the Term Facility:
• Borrower: Hellas Gold Single Member S.A., a 100%-owned subsidiary of Eldorado.
• Mandated Lead Arrangers: National Bank of Greece and Piraeus Bank (the “Lenders”)
• Term Facility Amount: €680 million, consisting of:
o €480 million commercial loan;
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o €100 million of initial funding from the Greek Recovery and Resilience Facility (“RRF”);
o €100 million commercial bridge loan that is expected to be replaced by an additional RRF loan in
2023.
• Interest Rate:
o Commercial loans: Variable interest rate of 5.4% (comprised of six-months EURIBOR plus a fixed
margin) until Project completion, and then 5.2% (comprised of six-months EURIBOR plus a fixed
margin) following Project completion, with 70% of the variable rate exposure to be hedged via an
interest rate swap for the term of the facility.
o Initial RRF loan: Fixed interest rate of 3.04% for the term of the facility.
o Additional RRF loan: Fixed interest rate to be set at issuance on replacement of bridge facility.
• Term: 3 years availability, 7 years repayment.
• Cost Overrun Facility: Although not expected to be necessary, the project financing includes, in addition
to the Term Facility, a Contingent Overrun Facility for an additional 10% of capital costs , funded by the
Lenders and Hellas in the same proportion as the Term Facility.
• Hedging: Hellas will hedge limited volumes of gold and copper production to manage downside
commodity price exposure and support minimum debt service coverage ratios. It is expected that hedging
will be limited to not more than 50% of the first year of commercial production and this will be reviewed at
least annually. In addition, Hellas will hedge a portion of its foreign exchange exposure (Euro/US dollar).
Terms of the hedging program will be confirmed at initial drawdown.
• Repayment: Semi-annual instalments over seven years, commencing on June 30, 2026, with a weighted
average life to maturity of approximately eight years.
Focused on Execution
Eldorado remains confident in the capital cost estimate of $845 million (1) to bring the Skouries project into
commercial production, which is derived from the “Technical Report, Skouries Project, Greece” prepared for
Eldorado with an effective date of January 22, 2022 (the “Feasibility Study” or “FS”), and believes it is well -
positioned to execute. The Project is approximately half built, with most major processing equipment already
purchased and installed or in storage.
(1) All financial figures are in U.S. dollars unless otherwise stated.
In 2022, Project activity was focused on steel erection and enclosure of the processing facilities, which is now
largely complete, as well as execution readiness and critical path activities. In 2023, Project activities will
focus on finalizing detailed engineering , which is 42% complete and forecasted to be 70 -75% complete for
full construction mobilization in the second half of 2023 , release of remaining procurement packages, and
community engagement . Additionally, Eldorado has built a highly capable owners’ team that is based at
Skouries, and the Engineering, Procurement and Construction Management contractor has been
progressively mobilizing.
The Company has confidence in the level of expertise and availability of the construction workforce in the
Halkidiki region and Greece. Since the Project was placed on care & maintenance in November 2017, t he
Company has continued to engage with local communities and key stakeholders and is committed to
continuing this open dialogue for the life of the mine.
Project Capital Cost and Schedule
Eldorado remains confident in the project schedule and capital cost estimate, based on several factors:
• The filter press, a long-lead item for tailings dewatering, was ordered in the second quarter of 2022,
with cost and delivery schedules in line with the FS assumptions; and the labour productivity for the
steel erection and enclosure of the processing facility has been consistent with the FS assumptions.
• Labour account s for approximately half of the capital cost estimate . A readily avail able Greek
workforce and stable labour rates remain consistent with the FS capital cost assumptions.
• In 2022, construction activities at the nearby Olympias dry-stack tailings management facility, which
is of a similar design in similar topography, support the FS assumptions made for the Skouries dry-
stack tailings facility construction.
• Overall, commodity price assumptions , including copper, steel , and cement, remain in line with the
FS.
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• Approximately 80% of the capital cost estimate is in Euros, which has weakened since the FS
assumptions.
• The Project will benefit from early-works activities completed throughout 2022, and is on track to
deliver in line with the three-year construction and commissioning schedule.
Project Economics(1)
The Skouries Project has robust economics, with a 19% after-tax Internal Rate of Return (“IRR”) and $1.3
billion after-tax Net Present Value (“NPV5%”) (5%), based on long-term prices of $1,500 per ounce
(“oz”) gold and $3.85 per pound copper. The Project is expected to produce 2.9 million ounces of gold
over the 20-year life of mine, with average annual production of 140,000 oz of gold and 67 million pounds of
copper (approximately 312,000 oz gold equivalent), with exploration potentially extending mine life. The
Project is expected to generate, on average, $215 million of free cash flow(2) per year for the first five years.
Overall, the Skouries Project has the potential to increase Eldorado’s production profile and lower Eldorado’s
cash cost per ounce.
(1) Project economics are based on the “Technical Report, Skouries Project, Greece” prepared for Eldorado with an
effective date of January 22, 2022.
(2) These financial measures or ratios are non -IFRS financial measures or ratios. See the section “Non-IFRS
Measures” below.
Project Sensitivities (1)
Base Case Assumptions (2) Spot Price
(as of December 13, 2022)
Gold Price ($/oz) 1,500 1,800
Copper Price ($/lb) 3.85 3.80
After-Tax IRR 19.0% 21.9%
Payback (years) 3.7 3.5
NPV5% $1.3 billion $1.6 billion
Cash Operating Costs ($/oz) (3) (365) (341)
All-in Sustaining Costs ($/oz) (3) (6) 65
(1) Economics are shown on an unlevered basis and do not include the impact of the Term Facility.
(2) Base case development assumptions are based on the “Technical Report, Skouries Project, Greece” prepared
for Eldorado with an effective date of January 22, 2022.
(3) These financial measures or ratios are non -IFRS financial measures or ratios. See the section “Non-IFRS
Measures” below.
Social Benefit
The development of the Project, part of the Kassandra Mines Complex in the Halkidiki region will provide long-
term value for both the national and local economies.
Where possible, Hellas prioritizes hiring local employees and working with local suppliers. During peak
construction, the Project is expected to employ an additional 800 people and, once in production, Skouries will
create over 25 years of steady and well -paid employment with 1,400 long-term jobs expected to be filled by
members of the local community.
Over the life of the Kassandra Mines, it is estimated that 5,000 direct and indirect jobs will be created and more
than $2 billion in revenue will be contributed to the Greek State from income taxes, social contributions and
royalties over the life of mine . Eldorado expects to provide employees with enhanced skills through the
development of an innovative Technical Training Center. In addition, $80 million will be committed to Corporate
Social Responsibility programs, including community, cultural, social, and environmental investments.
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About Skouries
Skouries is located within the Halkidiki Peninsula of Northern Greece. It is a gold-copper porphyry deposit to
be mined using a combination of conventional open pit and underground mining techniques. Based on the
Feasibility Study, Skouries is expected to produce, on average, 140,000 ounces of gold and 67 million pounds
of copper annually over its initial 20-year mine life. For more information about the Project, and details of the
Feasibility Study, please refer to the news release dated December 15, 2021 or the Technical Report dated
January 22, 2022, both of which are available on the Eldorado Gold website or under the Company’s name
on SEDAR at www.sedar.com.
Conference Call Details
Eldorado will host a conference call to discuss the Skouries project financing and re-start of construction on
Thursday, December 15 at 11:30 am ET (8:30 am PT). A video will be played during the webcast therefore
we encourage participants to join via the webcast. The video and a replay of the webcast will be available on
Eldorado’s website following the event.
The call will be webcast and can be accessed at Eldorado ’s website: www.eldoradogold.com, or via:
https://services.choruscall.ca/links/eldoradogold202212.html
Conference Call Details Replay (available until January 19, 2023)
Date: December 15, 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: 9684
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 and Greece. 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).
Qualified Person
Except as otherwise noted, Simon Hille, FAusIMM, Senior Vice President, Technical Services, is the Qualified
Person under NI 43-101 responsible for preparing and supervising the preparation of the scientific or technical
information contained in this press release and verifying the technical data disclosed in this document relating
to our operating mines and development projects.
Non-IFRS Measures
Certain non-IFRS measures, including cash costs and all-in sustaining cost ("AISC") are included in this press
release. The Company believes that these measures, in addition to conventional measures prepared in
accordance with International Financial Reporting Standards ( “IFRS”), provide investors an improved ability
to evaluate the underlying performance of the Company. Please see the September 30, 202 2 MD&A for
explanations and discussion of these non-IFRS measures. The non-IFRS measures are intended to provide
additional information and should not be con sidered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to other issuers.
Cash Costs
Cash operating costs and cash operating costs per ounce sold are non -IFRS financial measures and ratios.
In the gold mining industry, these metrics are common performance measures but do not have any
standardized meaning under IFRS. We follow the recommendations of the Gold Institute Production Cost
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Standard. The Gold Institute, which ceased operations in 2002, was a non -regulatory body and represented
a global group of producers of gold and gold products. The production cost standard developed by the Gold
Institute remains the generally accepted standard of reporting cash operating costs of production by gold
mining companies. Cash operating costs include mine site operating costs such as mining, processing and
administration, but exclude royalty expenses, depreciation a nd depletion, share based payment expenses
and reclamation costs. Revenue from sales of by -products including silver, lead and zinc reduce cash
operating costs. Cash operating costs per ounce sold is based on ounces sold and is calculated by dividing
cash operating costs by volume of gold ounces sold. We disclose cash operating costs and cash operating
costs per ounce sold as we believe the measures provide valuable assistance to investors and analysts in
evaluating the Company's operational performance and ability to generate cash flow. The most directly
comparable measure prepared in accordance with IFRS is production costs. Cash operating costs and cash
operating costs per ounce of gold sold should not be considered in isolation or as a substitute for mea sures
prepared in accordance with IFRS.
AISC
AISC and AISC per ounce sold are non -IFRS financial measures and ratios. These financial measures and
ratios are intended to assist readers in evaluating the total costs of producing gold from current operations .
While there is no standardized meaning across the industry for this measure, our definition conforms to the
definition of AISC set out by the World Gold Council and the updated guidance note dated November 14,
2018. We define AISC as the sum of total cas h costs (as defined and calculated above), sustaining capital
expenditure relating to current operations (including capitalized stripping and underground mine
development), sustaining leases (cash basis), sustaining exploration and evaluation cost related to current
operations (including sustaining capitalized evaluation costs), reclamation cost accretion and amortization
related to current gold operations and corporate and allocated general and administrative expenses.
Corporate and allocated general and administrative expenses include general and administrative expenses,
share-based payments and defined benefit pension plan expense. Corporate and allocated general and
administrative expenses do not include non-cash depreciation. As this measure seeks to re flect the full cost
of gold production from current operations, growth capital and reclamation cost accretion not related to
operating gold mines are excluded. Certain other cash expenditures, including tax payments, financing
charges (including capitalize d interest), except for financing charges related to leasing arrangements, and
costs related to business combinations, asset acquisitions and asset disposals are also excluded. AISC per
ounce sold is based on ounces sold and is calculated by dividing AISC by volume of gold ounces sold.
Free Cash Flow
Free cash flow is a non-IFRS financial measure. Free cash flow is a useful indicator of our ability to operate
without reliance on additional borrowing or usage of existing cash. Defined as net cash generated from (used
in) operating activities of continuing operations, less net cash used in investing activities of continuing
operations before increases or decreases in cash from the following items that are not considered
representative of our ability to generat e cash: term deposits, restricted cash, cash used for acquisitions or
disposals of mineral properties, marketable securities and non-recurring asset sales.
Contacts
Investor Relations
Lisa Wilkinson, VP, Investor Relations
604 757 2237 or 1 888 353 8166
Media
Louise McMahon, Director Communications & Public Affairs
604 757 5573 or 1 888 353 8166
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Forward-looking Statements and Information
Certain of the statements made and information provided in this press release are forward -looking statements or
information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws. Often, these forward -looking statements and forward-looking information can be identified by
the use of words such as “believes”, “budgets”, “commitment”, “confident”, “estimates”, “expects”, “forecasts”, “intends”,
“plans”, “potential”, “prospective”, or “schedule” or the negatives thereof or variations of such words and phrases or
statements that certain actions, events or results “can”, “could”, “likely”, “may”, “might”, “w ill” or “would” be taken, occur
or be achieved.
Forward-looking statements or information contained in this press release include, but are not limited to, statements or
information with respect to: the total funding requirements for the Skouries Project; the Company’s ability to participate
in the RRF and the extent and timing of proceeds received therefrom; the drawdown of the proceeds of the Term Facility,
including the timing thereof; the impact of the Term Facility and funding of Skouries on the Compan y’s operations,
infrastructure, opportunities, financial condition, access to capital and overall strategy; the Company’s ability to fund the
remaining 20% funding commitment; the Company’s ability to successfully advance Skouries and achieve the results
provided for in the Feasibility Study; the results of the Feasibility Study, including the forecasts for the economics, life o f
mine, required capital, costs, and cash flow at Skouries; expectations regarding advancement and development of
Skouries, includi ng the ability to meet expectations and the timing thereof; expectations regarding full mobilization;
expectations regarding finalization of detailed engineering; expectations on mining operations and water management;
the social and economic impacts and benefits of the Skouries Project on the Company’s stakeholders, including in respect
of local employment and procurement and in local communities; the development of a technical training center; the timing
of production; the use and benefits of dry stack ta ilings; undertested exploration targets surrounding Skouries and
prospective satellite ore bodies; the Company’s conference call to be held on December 15, 2022; non-IFRS financial
measures and ratios; risk factors affecting our business; our expectation as to our future financial and operating
performance, including future cash flow, estimated cash costs, expected metallurgical recoveries and gold price outlook;
and our strategy, plans and goals, includ ing our proposed exploration, development, construction, permitting and
operating plans and priorities, related timelines and schedules. Forward -looking statements and forward -looking
information by their nature are based on assumptions and involve known a nd unknown risks, uncertainties and other
factors, which may cause the actual results, performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by such forward-looking statements or information.
We have made certain assumptions about the forward-looking statements and information, including assumptions about:
the total funding required to complete the Skouries Project; our ability to satisfy the conditions precedent to a dvances
under the Term Facility (including eligibility for, and the allocation of funding from, the RRF); our ability to meet our timing
objectives for first drawdown of funds; our ability to execute our plans relating to Skouries as set out in the Feasibi lity
Study, including the timing thereof; our ability to obtain all required approvals and permits; the assumptions provided for
in the Feasibility Study will be accurate, including cost estimates; no changes in input costs, exchange rates, development
and gold; the geopolitical, economic, permitting and legal climate that we operate in, including at Skouries; how the world-
wide economic and social impact of COVID -19 is managed and the duration and extent of the COVID -19 pandemic;
timing, cost and results of our construction and exploration; the geopolitical, economic, permitting and legal climate that
we operate in; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated
values, costs, expenses and working capital requirements; production and metallurgical recoveries; mineral reserves and
resources; and the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve
our goals. In addition, except where otherwise sta ted, we have assumed a continuation of existing business operations
on substantially the same basis as exists at the time of this press release.
Even though our management believes that the assumptions made and the expectations represented by such statements
or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to
be accurate. Many assumptions may be difficult to predict and are beyond our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in forward -looking statements or
information. These risks, uncertainties and other factors include, among others, the following: increases in financing costs
or adverse changes to the Term Facility; ability to satisfy the conditions precedent to advances under the Term Facility
(including eligibility for, and the allocation of funding from, the RRF); failure or delays to receive necessary approvals or
otherwise satisfy the conditions to the drawdown of the Term Facility; the proceeds of the Term Facility not being available
to the Company or Hellas Gold S.A.; ability to execute on plans relating to Skouries, including the timing thereof, ability
to achieve the social impacts and benefits contemplated; inability to meet production guidance; risks relating to the
ongoing COVID-19 pandemic and any future pandemic, epidemic, endemic or similar public health threats; risks relating
to our operations being located in foreign jurisdictions; community relations and social license; climate change; liquidity
and financing risks; development risks; indebtedness, including current and future operating restrictions, implica tions of
a change of control, ability to meet debt service obligations, the implications of defaulting on obligations and change in
credit ratings; environmental matters; waste disposal; the global economic environment; government regulation; reliance
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on a limited number of smelters and off -takers; commodity price risk; mineral tenure; permits; risks relating to
environmental sustainability and governance practices and performance; non -governmental organizations; corruption,
bribery and sanctions; litigatio n and contracts; information technology systems; estimation of mineral reserves and
mineral resources; production and processing estimates; credit risk; actions of activist shareholders; price volatility,
volume fluctuations and dilution risk in respect of our shares; reliance on infrastructure, commodities and consumables;
currency risk; inflation risk; interest rate risk; tax matters; dividends; financial reporting, including relating to the car rying
value of our assets and changes in reporting standards; labour, including relating to employee/union relations, employee
misconduct, key personnel, skilled workforce, expatriates and contractors; reclamation and long -term obligations;
regulated substances; necessary equipment; co-ownership of our properties; acquisitions, including integration risks, and
dispositions; the unavailability of insurance; conflicts of interest; compliance with privacy legislation; reputational issue s;
competition, as well as those risk factors discussed in the sections titled “Forwa rd-looking information and risks” and
“Risk factors in our business” in our most recent Annual Information Form & Form 40-F. The reader is directed to carefully
review the detailed risk discussion in our most recent Annual Information Form & Form 40-F filed on SEDAR and EDGAR
under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the
risks and uncertainties that affect our business and operations.
The inclusion of forward-looking statements and information is designed to help you understand management’s current
views of our near- and longer-term prospects, and it may not be appropriate for other purposes.
There can be no assurance that forward -looking statements or information will prove to be a ccurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not
expect to update forward -looking statements and information continually as conditions change and you are referred to
the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory
authorities in Canada and the United States.