Eldorado Gold Reports First Quarter 2024 Financial and Operational Results; Steady Start to 2024
NEWS RELEASE
TSX: ELD NYSE: EGO April 25, 2024
Eldorado Gold Reports First Quarter 2024 Financial and Operational Results;
Steady Start to 2024
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 2024. For further information please see the
Company’s Consolidated Financial Statements and Management’s Discussion and Analysis ("MD&A") filed on
SEDAR+ at www.sedarplus.ca under the Company’s profile.
First Quarter 2024 Highlights
Operations
• Gold production: 117,111 ounces in line with expectations for the quarter. Production increased 5% from Q1
2023, reflecting higher gold production at most sites, notably an increase in production of 12% at Lamaque
and 14% at Olympias.
• Gold sales: 116,008 ounces at an average realized gold price per ounce sold (1) of $2,086. Gold sales
increased 6% from Q1 2023 primarily as a result of increases in production at Lamaque and Olympias.
• Production costs: $123.0 million in Q1 2024 compared to $109.7 million in Q1 2023. The increase was due
to higher sales volumes and slightly higher cash costs in the quarter. The increase in sales volumes
accounted for roughly half of the increase to production costs. The remainder relates to higher royalty
expense and increases in labour costs, due to headcount, and fuel prices.
• Total cash costs (1): $922 per ounce sold in Q1 2024 . Costs increased from $857 per ounce sold in Q1
2023, primarily due to increases in labour costs and consumables such as fuel, as well as higher royalty
expenses.
• All-in sustaining costs ("AISC") (1): $1,262 per ounce sold in Q1 2024. Costs increased from $1,207 in Q1
2023, primarily reflecting the higher total cash costs per ounce sold in Q1 2024, and higher sustaining capital
expenditures.
• Total capital expenditures: $122.0 million in Q1 2024, including $52.5 million of growth capital(1) invested at
Skouries with activity focused on major earthworks and infrastructure construction. Growth capital at the
operating mines totalled $32.7 million and was primarily related to Kisladag for continued waste stripping,
construction of the North Heap Leach Pad and related infrastructure.
• Production and cost outlook: The Company is maintaining its 2024 annual production guidance of
505,000 to 555,000 ounces of gold. Production continues to be weighted to the second half of the year. Total
cash costs (1) for the full year are expected to be between $840 to $940 per ounce sold and an average
AISC(1) of $1,190 to $1,290 per ounce sold.
Financial
• Revenue: $258.0 million in Q1 2024 , an increase of 13% from revenue of $227.8 million in Q1 2023 ,
primarily due to higher sales volumes, and higher average realized gold price.
(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, 2024 MD&A.
• Net cash generated from operating activities of continuing operations: $95.3 million in Q1 2024 , an
increase from $41.0 million in Q1 2023 , primarily as a result of higher gold sales volumes and higher
average realized gold price.
• Cash flow from operating activities before changes in working capital (2): $108.3 million in Q1 2024, an
increase of 16% over Q1 2023 , primarily as a result of higher gold sales volumes and higher average
realized gold price.
• Cash, cash equivalents and term deposits: $514.7 million as at March 31, 2024 . Cash decreased by
$25.7 million in Q1 2024 over Q4 2023 primarily as a result of temporary working capital movements,
combined with continued investment in growth capital.
• Net earnings attributable to shareholders from continuing operations: Q1 2024 net earnings
attributable to shareholders of the Company was $35.2 million or $0.17 earnings per share. Increased net
earnings in Q1 2024, compared to Q1 2023, is primarily attributable to increased sales volumes and higher
average realized gold price.
• Adjusted net earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") (2):
$120.6 million compared to $100.6 million in Q1 2023. The increase was driven by increased gold production
and gold sales and higher average realized gold price.
• Adjusted net earnings (2): $55.2 million net earnings, or $0.27 earnings per share in Q1 2024 compared to
adjusted net earnings of $16.7 million ( $0.09 earnings per share) in Q1 2023 . Adjustments in Q1 2024
include a $5.3 million loss on foreign exchange due to the translation of deferred tax balances net of Turkiye
inflation accounting, a $16.9 million unrealized loss on derivative instruments and a $2.1 million gain on the
non-cash revaluation of the derivative related to redemption options in our senior notes.
• Free cash flow(2): Negative $30.9 million in Q1 2024, primarily due to temporary working capital movements,
combined with continued investment in growth capital. Free cash flow excluding capital expenditures at
Skouries(2) was $33.7 million.
• Project Facility: Drawdowns on the Skouries Term Facility during Q1 2024 totalled €14.1 million ( $15.3
million).
Corporate
"Across our global portfolio, our operations continued to perform in-line with our expectations during the first quarter,
and generated free cash flow of $33.7 million excluding Skouries capital spend ,” said George Burns, Eldorado
Gold’s President and Chief Executive Officer. "Coming off a strong fourth quarter we anticipated lower production in
the first quarter with winter conditions affecting the leach kinetics at Kisladag and ore grade variability across the
portfolio. Consolidated gold production continues to be weighted to the second half of 2024," added Burns.
"We reached a significant milestone on March 31, 2024 as we celebrated our fifth anniversary of achieving
commercial production at our Lamaque Complex in Quebec. Since completing construction on time and on budget
we have produced 848,014 ounces of gold which exceeded our initial expectations for gold production by 32%
compared to the initial pre-feasibility study of 644,100 ounces. With the inaugural reserve expected at Ormaque
later this year we look forward to continued success at the Lamaque Complex."
Skouries Highlights
Growth capital invested totalled $52.5 million in Q1 2024. At March 31, 2024, the growth capital invested towards
the overall capital estimate of $920 million totalled $237 million.
In 2024, the capital spend is expected to be between $375 and $425 million.
As at March 31, 2024:
• The current Phase 2 of the project was 43% complete and the entire project was 73% complete, when
including the first phase of construction;
• Detailed engineering, since project restart, was 67% complete and procurement was substantially complete;
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(2) 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, 2024 MD&A.
• Project execution and ramp-up continued for major earthworks with work progressing on water
management ponds, as well as the low-grade ore stockpile;
• Mobilized contractors and commenced work on the tailings filtration infrastructure earthworks and pilings,
with the earthworks expected to be substantially completed in Q2 2024. Piling for the filter plant building is
over 30% complete;
• Progress advanced on the foundation construction of the primary crusher, with the upper portion of the
north retaining wall completed and work progressing on the south, with the crusher building earthworks
advancing as planned; and
• As previously noted, the upgrade of the underground power supply to 690V and the ventilation upgrade are
both completed.
Milestones in 2024 include:
Procurement and Engineering
• Substantial completion of procurement and engineering
Process Plant
• Construction of the control room and electrical room building - commenced in Q1 2024
• Construction of the tailings thickeners - commenced in Q1 2024
Tailings Filter Facility
• Awarding of the filter facility construction contract
• Preassembly of the filter press plates and frames - commenced in Q1 2024
• Completion of the structural steel
Integrated Extractive Waste Management Facility ("IEWMF")
• Completion of the coffer dam
Underground
• Awarding of the underground development and test stoping contract
• Completion of approximately 2,200 metres of underground development
Construction Progress
Work continues to ramp up on construction of major earthworks structures including the haul roads, IEWMF
construction, low-grade stockpile, water management, process facilities, crusher and filter buildings. In addition,
work will focus on the underground development to support test stope mining in 2025. Mechanical, piping and
electrical installations will also progress in all process and infrastructure areas.
On the critical path is the filter plant building which continues to advance, with the piling work having commenced in
Q1 2024. The filter plant construction contract is on track to be awarded in Q2 2024, which will include the building
structure, assembly of equipment within the building, including air compressors, conveyors, filter presses and other
ancillary equipment and piping and electrical work. The filter press plates arrived on site in Q1 2024 and
preassembly has now commenced, with the frames for the filter press plates already fabricated and expected to
ship in Q2 2024.
Work for the mill/flotation building is in progress with commissioning work on overhead cranes, installation of
construction lighting and scaffolding, and the commencement of structural steel work. Commissioning of the
overhead cranes continues with two of the three major cranes commissioned with the third to be commissioned in
April 2024. Construction lighting, scaffolding and steel are progressing according to plan and mobilization of
mechanical, piping and electrical work is in progress.
By the end of 2024, the Company expects to have completed the IEWMF coffer dam and significantly advanced the
IEWMF earthworks, water management facilities, process plant and filter plant.
With 12 company-owned Cat 745 trucks now onsite and operational, we expect the remaining seven to be delivered
through the end of Q2 2024. During construction, these trucks are used as part of an integrated fleet with the
earthwork's construction contractor for construction of the water management ponds one and two, low-grade ore
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stockpile, IEWMF and facilities. These trucks will continue to be used once Skouries is in operation to build the
IEWMF lifts that will be required for stacking of produced dry tailings.
Underground Development
The upgrade of the underground power supply from 400V to 690V has been completed. The ventilation upgrade is
also complete, and the new contact water pumping system will be fully operational in 2024.
The first phase of underground development continues to advance the West Decline and access to the test stopes
with a local contractor. In February 2024, first ore was intersected in the top access area to the test stopes. The
second underground development contract is expected to be awarded as planned in Q2 2024. This contract
includes the test stope work as well as additional development and services work to support the development of the
underground mine. The Company expects to complete approximately 2,200 metres of underground development by
the end of 2024.
Engineering
Following the transition of engineering to Greece at the end of 2023, it is currently 67% complete as at the end of
Q1 2024 and remains on track for substantial completion in Q3 2024. Detailed engineering work continues to
advance in all areas. The release of structural steel for fabrication is nearing completion with approximately 35% of
the total steel fabricated to date.
Procurement
At the end o f Q1 2024, procurement is substantially complete, with all long lead items procured and the focus
shifting to managing fabrication and deliveries.
Operational Readiness
An experienced commissioning, operational readiness and operations leadership team has been recruited to ensure
that a capable organization is in place to commission, ramp up and operate. The team is currently developing an
integrated commissioning strategy and schedule, and the commissioning execution plan. The Skouries operations
team now consists of 95 personnel on board; this includes 84 in leadership roles, sustainability, operations, and
support services, and 11 embedded in the construction projects teams of open pit mining, underground mining and
dry stack tailings construction. Recruitment activities are on track with the Operational workforce plan.
A training centre at the Mavres Petres site has been set up to train the incoming workforce. Under the leadership of
our Global Training Director and GM Greece, Operational Readiness, the program we will be implementing is
framed on the Australian Competency Based Training and Assessment approach. It provides industry focused,
comprehensive theoretical and hands-on practical training. Trainees are assessed on both theoretical and practical
knowledge before being qualified to work independently in the mine. The training program is consistent with and
compliments the applicable standards outlined in the Greek Mining Code and Labor Legislation.
Workforce
In addition to the Operational Readiness team, as at March 31, 2024, there were over 600 personnel on site which
is expected to ramp up to 1,300 during 2024.
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Consolidated Financial and Operational Highlights
3 months ended March 31,
2024 2023
Revenue $258.0 $227.8
Gold produced (oz) 117,111 111,509
Gold sold (oz) 116,008 109,817
Average realized gold price ($/oz sold) (2) $2,086 $1,932
Production costs 123.0 109.7
Total cash costs ($/oz sold) (2,3) 922 857
All-in sustaining costs ($/oz sold) (2,3) 1,262 1,207
Net earnings for the period (1) 33.6 19.3
Net earnings per share – basic ($/share) (1) 0.17 0.10
Net earnings per share – diluted ($/share) (1) 0.16 0.10
Net earnings for the period continuing operations (1,4) 35.2 19.4
Net earnings per share continuing operations – basic ($/share) (1,4) 0.17 0.11
Net earnings per share continuing operations – diluted ($/share) (1,4) 0.17 0.10
Adjusted net earnings continuing operations - basic (1,2,4) 55.2 16.7
Adjusted net earnings per share continuing operations ($/share) (1,2,4) 0.27 0.09
Net cash generated from operating activities (4) 95.3 41.0
Cash flow from operating activities before changes in working capital (2,4) 108.3 93.2
Free cash flow (2,4) (30.9) (34.4)
Free cash flow excluding Skouries (2,4) 33.7 (19.2)
Cash, cash equivalents and term deposits 514.7 262.3
Total assets 5,065.5 4,501.0
Debt 643.8 493.4
(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 total cash costs.
(4) Amounts presented for 2024 and 2023 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, 2024.
Total revenue was $258.0 million in Q1 2024, an increase of 13% from total revenue of $227.8 million in Q1 2023.
The increase was the result of higher sales volumes in Q1 2024 as well as the higher average realized gold price.
Production costs increased to $123.0 million in Q1 2024 from $109.7 million in Q1 2023 due to higher sales
volumes and slightly higher cash costs in the quarter. The increase in sales volumes accounted for roughly half of
the increase to production costs. The remainder relates to higher royalty expense and increases in labour costs,
due to headcount, and fuel prices. Production costs include royalty expense, which increased to $14.2 million in Q1
2024 from $8.7 million in Q1 2023, due to higher average realized gold prices, as well as higher sales volumes.
Total cash costs(3) in Q1 2024 averaged $922 per ounce sold, an increase from $857 per ounce sold in Q1 2023,
primarily due to higher royalty expense driven by higher gold prices, as well as smaller impacts from labour and fuel.
AISC per ounce sold (3) increased to $1,262 in Q1 2024 from $1,207 in Q1 2023, reflecting the higher total cash
costs per ounce sold in Q1 2024 combined with higher sustaining capital expenditures.
Eldorado reported net earnings attributable to shareholders from continuing operations of $35.2 million ( $0.17
earnings per share) in Q1 2024, compared to a net earnings of $19.4 million ($0.11 earnings per share) in Q1 2023.
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(3)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, 2024 MD&A.
Higher net income in Q1 2024 is primarily attributable to increased sales volumes and higher average realized gold
prices.
Adjusted net earnings(4) was $55.2 million ( $0.27 earnings per share) in Q1 2024 , compared to adjusted net
earnings of $16.7 million ($0.09 earnings per share) in Q1 2023. Adjustments in Q1 2024 include a $5.3 million loss
on foreign exchange due to the translation of deferred tax balances net of Turkiye inflation accounting, a $16.9
million unrealized loss on derivative instruments and a $2.1 million gain on the non-cash revaluation of the
derivative related to redemption options in our senior notes.
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(4) 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, 2024 MD&A.
Quarterly Operations Update
Gold Operations
3 months ended March 31,
2024 2023
Total
Ounces produced 117,111 111,509
Ounces sold 116,008 109,817
Production costs $123.0 $109.7
Total cash costs ($/oz sold) (1,2) $922 $857
All-in sustaining costs ($/oz sold) (1,2) $1,262 $1,207
Sustaining capital expenditures (2) $29.1 $26.0
Kisladag
Ounces produced 37,523 37,160
Ounces sold 36,699 37,393
Production costs $30.9 $30.5
Total cash costs ($/oz sold) (1,2) $820 $794
All-in sustaining costs ($/oz sold) (1,2) $916 $875
Sustaining capital expenditures (2) $2.2 $2.2
Lamaque
Ounces produced 42,299 37,884
Ounces sold 44,620 38,643
Production costs $35.2 $29.2
Total cash costs ($/oz sold) (1,2) $779 $744
All-in sustaining costs ($/oz sold) (1,2) $1,262 $1,217
Sustaining capital expenditures (2) $21.1 $17.8
Efemcukuru
Ounces produced 18,501 19,928
Ounces sold 18,614 19,751
Production costs $21.8 $17.7
Total cash costs ($/oz sold) (1,2) $1,154 $936
All-in sustaining costs ($/oz sold) (1,2) $1,138 $1,094
Sustaining capital expenditures (2) $2.4 $2.2
Olympias
Ounces produced 18,788 16,537
Ounces sold 16,075 14,030
Production costs $35.0 $32.3
Total cash costs ($/oz sold) (1,2) $1,287 $1,220
All-in sustaining costs ($/oz sold) (1,2) $1,527 $1,532
Sustaining capital expenditures (2) $3.5 $3.7
(1) Revenues from silver, lead and zinc sales are off-set against total cash 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.
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Kisladag
Kisladag produced 37,523 ounces of gold in Q1 2024 , a slight increase from 37,160 ounces in Q1 2023 . The
increase was primarily due to continued leaching of gold ounces from leach pads stacked in H2 2023, as well as
higher average grade of new tonnes placed in the quarter. Average grade of tonnes placed increased to 0.77 grams
per tonne in Q1 2024 from 0.70 grams per tonne in Q1 2023. In Q1 2024, there were lower tonnes placed on the
leach pad due to annual planned maintenance work in the crushing circuit.
Revenue increased to $77.1 million in Q1 2024 from $72.1 million in Q1 2023, driven by the higher average realized
gold price, partially offset by decreased gold ounces sold in the quarter.
Production costs increased to $30.9 million in Q1 2024 from $30.5 million in Q1 2023 . With gold production
relatively consistent, production costs in the quarter were impacted by higher fuel prices, which in turn was mostly
offset by lower tonnes placed on the leach pad. Royalties were also higher in the quarter due to higher average
realized gold prices. This resulted in total cash costs per ounce sold increasing to $820 in Q1 2024 from $794 in Q1
2023.
AISC per ounce sold increased to $916 in Q1 2024 from $875 in Q1 2023, primarily due to the increase in total cash
costs per ounce sold.
Sustaining capital expenditures of $2.2 million in Q1 2024 primarily included equipment rebuilds. Growth capital
investment of $25.5 million in Q1 2024 included waste stripping to support the mine life extension, continued
construction of the second phase of the North Heap Leach Pad and adsorption-desorption-regeneration plant
infrastructure, and building relocation due to pit expansion.
For 2024, production guidance at Kisladag is 180,000 to 195,000 ounces of gold. Production is expected to increase
over the course of the second quarter as we realize increased processing throughput.
Lamaque
Lamaque produced 42,299 ounces of gold in Q1 2024, a 12% increase from 37,884 ounces in Q1 2023 primarily
due to increased mill throughput as a result of increased mill utilization and access to stockpiled ore. Average grade
decreased to 5.81 grams per tonne in Q1 2024 from 6.06 grams per tonne in Q1 2023.
Revenue increased to $93.5 million in Q1 2024 from $73.6 million in Q1 2023 primarily due to higher sales volumes
but also impacted by the higher average gold price.
Production costs increased to $35.2 million in Q1 2024 from $29.2 million in Q1 2023, reflecting higher production
volumes. Total cash costs per ounce sold increased to $779 in Q1 2024 from $744 in Q1 2023 despite higher
ounces sold primarily due to additional costs incurred in labour, contractors, and equipment rentals to increase
productivity during the quarter. Total cash costs were also impacted by slightly higher royalties due to the higher
realized gold price.
AISC per ounce sold increased to $1,262 in Q1 2024 from $1,217 in Q1 2023 , primarily due to an increase in
sustaining capital expenditure and an increase in total cash costs per ounce sold.
Sustaining capital expenditure increased to $21.1 million in Q1 2024 from $17.8 million in Q1 2023 primarily due to
increased underground development, combined with equipment rebuilds. Growth capital investment of $5.1 million
in Q1 2024 were primarily related to resource conversion drilling at Ormaque.
In 2024, production guidance at Lamaque is 175,000 to 190,000 ounces of gold. Production is expected to increase
in the second quarter as we realize higher grades.
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