Eldorado Gold Provides Update on Tax Impacts in Turkiye Related to the Weakening Lira
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NEWS RELEASE
TSX: ELD NYSE: EGO October 13, 2023
Eldorado Gold Provides Update on Tax Impacts in Turkiye Related to the
Weakening Lira
VANCOUVER, BC – Eldorado Gold Corporation (“Eldorado” or the “Company”) today provides the
following updates on the tax impacts in Turkiye related to the weakening of the Turkish Lira.
The Company’s profits from mining operations in Turkiye are taxed at the enacted rate and the resulting
current income tax expense can be further increased or reduced by other items.
In the third quarter, the Company expects the Turkish current income tax expense on mining profits, at an
enacted rate of 25 %, to be decreased by up to $ 3 million. The expected decrease is primarily due to
reductions from the investment tax credit relating to Kisladag and Efemcukuru , increased depreciation
impact of revaluated fixed assets and certain legislated discounts to the enacted rate , partly offset by
increases due to the weakening of the Lira in the quarter and the resulting generation of taxable unrealized
foreign exchange gains.
As disclosed in the second quarter, the enacted rate change is applicable retroactively to profits earned in
the first and second quarters . As a result, an incremental current tax charge of approximately $6.2 million
will be recognized in the three and nine months ended September 30, 2023.
Additionally, the enacted rate change will result in an approximate $19 to $20 million deferred tax expense
for the three and nine months ended September 30, 2023.
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: EL D) and the New
York Stock Exchange (NYSE: EGO).
Contact
Investor Relations
Lynette Gould, VP, Investor Relations
647.271.2827 or 1.888.353.8166
Media
Chad Pederson, Director, Communications
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236 885 6251 or 1 888 353 8166
Cautionary Note about 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 “anticipates”,
“believes”, “budget”, “continue”, “estimates”, “expects”, “forecasts”, “guidance”, “intends”, “pl ans”, “projected” or “scheduled” or the
negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”,
“might” or “will” be taken, occur or be achieved.
Forward-looking statements or information contained in this release include, but are not limited to, statements or information with
respect to the expected tax expense in Turkiye and the expected cause thereof . Forward-looking statements and forward -looking
information by their nature are based on assumptions and involve known and unknown risks, market 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
weakening of the Turkish Lira and the resulting generation of taxable unrealized foreign exchange gains in Turkiye. In addition, except
where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at
the time of this 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 pr ove
incorrect, actual results may vary materially from those described in forward -looking statements or information. These risks,
uncertainties and other factors include, among others: inability to assess taxes in Turkiye or depreciation expenses; as well as those
risk factors discussed in the sections titled “Forward -looking information and risks” and “Risk factors in our business” i n 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 incor porated 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 accurate, 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 bu siness
contained in the Company’s reports filed with the securities regulatory authorities in Canada and the U.S.