ELD.TO · 2022-04-28 12:00:00

Eldorado Gold Reports First Quarter 2022 Financial and Operational Results

Production Results Financials

NEWS RELEASE

TSX: ELD NYSE: EGO April 28, 2022

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 non-

cash 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]

← Back to feed