Eldorado Gold Reports Q1 2021 Financial and Operational Results
NEWS RELEASE
TSX: ELD NYSE: EGO April 29, 2021
Eldorado Gold Reports Q1 2021 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 2021.
First Quarter 2021 and Subsequent Period Highlights
• Q1 2021 production on plan and in line with 2021 annual guidance: Gold production totalled 111,742
ounces in Q1 2021 , in-line with 2021 annual guidance and a decrease of 4% from Q1 2020 production of
115,950 ounces. Eldorado is maintaining its annual guidance of 430,000 - 460,000 ounces of gold at an all-in
sustaining cost of $920-$1,150 per ounce sold.
• Amended Investment Agreement ratified: In March 2021, our Amended Investment Agreement
("Agreement") with the Hellenic Republic was ratified by the Greek parliament and published in the Greek
Government Gazette, officially becoming law. The Agreement provides a mutually beneficial and modernized
legal and financial framework to allow for investment in the Skouries project and the Olympias and Stratoni
mines.
• Approval for use of dry stack tailings at Skouries: In April 2021, the Greek Ministry of Energy and
Environment approved a modification to the Kassandra Mines Environmental Impact Assessment ("EIA") to
allow for the use of dry stack tailings disposal at the Skouries project, which is expected to provide a number of
environmental benefits.
• Planned increase in unit costs due to lower grades: Q1 2021 cash operating costs of $641 per ounce sold
(Q1 2020: $627) and all-in sustaining costs ("AISC") of $986 per ounce sold (Q1 2020: $952) were both
negatively impacted by planned lower grades at Kisladag and Lamaque.
• Continued free cash flow: Net cash from operating activities of $90.9 million in Q1 2021 (Q1 2020: $53.3
million) benefited from a higher average realized gold price. Free cash flow of $24.6 million in Q1 2021 (Q1
2020: $7.2 million) also benefited from timing of capital expenditure.
• Continued strong financial liquidity: The Company currently has $533.8 million of cash, cash equivalents
and term deposits and $99.6 million available under its revolving credit facility.
• Increased EBITDA: Q1 2021 EBITDA was $105.3 million (Q1 2020: $84.7 million ) and Q1 2021 adjusted
EBITDA was $108.0 million (Q1 2020: $90.0 million). Adjustments in both periods included, among other things,
share based compensation and losses on asset disposals.
• Net earnings and adjusted net earnings attributable to shareholders: Q1 2021 net earnings attributable to
shareholders of the Company was $8.3 million or $0.05 per share (Q1 2020: net loss attributable to
shareholders of the Company of $4.9 million , or $0.03 loss per share). Adjusted net earnings attributable to
shareholders of the Company in Q1 2021 was $21.0 million, or $0.12 per share ( Q1 2020: $12.5 million, or
$0.08 per share).
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• Measures remain in place to manage the impact of the novel coronavirus ("COVID-19") pandemic: The
Company's mines remain fully operational and isolated cases of COVID-19 have been successfully managed.
Preventing the spread of COVID-19, ensuring safe working environments across Eldorado's global sites, and
preparedness should an outbreak occur, remain priorities.
“Our mine teams delivered first quarter gold production in line with the forecast plan that supports our 2021
guidance and represents a good start to the year," said George Burns, President and CEO. "This result was
accomplished in spite of a resurgence of COVID-19 in the countries in which we operate and is a testament to the
commitment and care of our teams around the world."
"Our focus ahead is on maintaining this positive momentum by delivering on key initiatives in a transformational
year for Eldorado. In Quebec, the closing of the QMX acquisition and an intensive exploration and development
program underway at Lamaque is paving the way for a significantly enhanced production profile at our Canadian
flagship operation. In Turkey, we continue to successfully advance key capital investments that will position Kisladag
for sustained excellence going forward. In Greece, the new investment agreement governing the operation and
development of the Kassandra mines, together with the recent approval for the use of dry stack tailings, has
energized our teams at Olympias, Stratoni and Skouries."
Consolidated Financial and Operational Highlights
3 months ended March 31,
2021 2020
Revenue $224.6 $204.7
Gold revenue $195.7 $183.7
Gold produced (oz) 111,742 115,950
Gold sold (oz) 113,594 116,219
Average realized gold price ($/oz sold) (4) $1,723 $1,580
Cash operating costs ($/oz sold) (1,4) 641 627
Total cash costs ($/oz sold) (1,4) 687 678
All-in sustaining costs ($/oz sold) (1,4) 986 952
Net earnings (loss) for the period (2) 8.3 (4.9)
Net earnings (loss) earnings per share – basic ($/share) (2) 0.05 (0.03)
Adjusted net earnings (loss) (2,3,4) 21.0 12.5
Adjusted net earnings (loss) per share ($/share) (2,3,4) 0.12 0.08
Cash flow from operating activities before changes in working capital (4) 78.7 69.4
Free cash flow (4) 24.6 7.2
Cash, cash equivalents and term deposits $533.8 $363.6
(1) By-product revenues are off-set against cash operating costs.
(2) Attributable to shareholders of the Company.
(3) See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
(4) These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
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Total revenue was $224.6 million in Q1 2021, an increase of 10% from total revenue of $204.7 million in Q1 2020.
The increase was primarily due to higher average realized gold prices.
Cash operating costs in Q1 2021 averaged $641 per ounce sold, an increase from $627 per ounce sold in Q1 2020.
The increase was primarily due to cash operating costs per ounce sold at Kisladag being negatively impacted by
mining and processing lower-grade ore in the quarter, resulting in fewer ounces produced. Cash operating costs per
ounce sold at Lamaque were also negatively impacted by lower average grades, combined with strengthening of
the Canadian dollar in the quarter as compared to Q1 2020. These increases were partially offset by reductions in
cash operating costs per ounce sold at Kisladag and Efemcukuru in Q1 2021 as a result of the weakening of the
Turkish Lira from Q1 2020 and a change in the structure of concentrate contracts whereby lower payable ounces
are offset by the elimination of treatment charges and other deductions.
Total cash costs per ounce sold and AISC per ounce sold both benefited in Q1 2021 from a recent announcement in
Turkey whereby the incremental 25% increase to gold royalty rates originally announced on September 4, 2020 was
amended to be effective from the announcement date only, and is no longer retroactive to January 1, 2020. As a
result of this announcement, $4.5 million of accrued royalty expense was reversed in Q1 2021.
We reported net earnings attributable to shareholders of $8.3 million ( $0.05 earnings per share) in Q1 2021 ,
compared to a net loss of $4.9 million ($0.03 loss per share) in Q1 2020. Higher net income in Q1 2021 is primarily
attributable to higher average realized gold prices, lower finance costs and a higher gain on foreign exchange.
Adjusted net earnings were $21.0 million ($0.12 per share) in Q1 2021, compared to adjusted net earnings of $12.5
million ($0.08 earnings per share) in Q1 2020. Higher adjusted net earnings in Q1 2021 removed a $12.0 million
loss on foreign exchange due to translation of deferred tax balances and a $0.7 million loss on the non-cash
revaluation of the derivative related to redemption options in our debt.
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Operations Update
Gold Operations
3 months ended March 31,
2021 2020
Total
Ounces produced 111,742 115,950
Ounces sold 113,594 116,219
Cash operating costs ($/oz sold) (1,2) $641 $627
All-in sustaining costs ($/oz sold) (1,2) $986 $952
Sustaining capital expenditures (2) $20.5 $19.4
Kisladag
Ounces produced 46,172 50,176
Ounces sold 47,507 51,600
Cash operating costs ($/oz sold) (1,2) $492 $451
All-in sustaining costs ($/oz sold) (1,2) $607 $578
Sustaining capital expenditures (2) $2.8 $3.0
Lamaque
Ounces produced 28,835 27,353
Ounces sold 29,078 26,728
Cash operating costs ($/oz sold) (1,2) $759 $641
All-in sustaining costs ($/oz sold) (1,2) $1,162 $1,042
Sustaining capital expenditures (2) $9.3 $8.3
Efemcukuru
Ounces produced 23,298 23,239
Ounces sold 24,130 23,221
Cash operating costs ($/oz sold) (1,2) $525 $642
All-in sustaining costs ($/oz sold) (1,2) $693 $864
Sustaining capital expenditures (2) $2.6 $3.1
Olympias
Ounces produced 13,437 15,182
Ounces sold 12,879 14,670
Cash operating costs ($/oz sold) (1,2) $1,145 $1,196
All-in sustaining costs ($/oz sold) (1,2) $1,799 $1,646
Sustaining capital expenditures (2) $5.8 $5.0
(1) By-product revenues are off-set against cash operating costs.
(2) These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
Gold production of 111,742 ounces decreased from 115,950 ounces in the first quarter of 2020. Gold sales in Q1
2021 totalled 113,594 ounces, a slight decrease of 2% from 116,219 ounces in Q1 2020. The slightly lower sales
volume compared to the prior year primarily reflected decreases in production at Kisladag and Olympias.
For further information on the Company's operating results for the first quarter of 2021, please see the Company’s
Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.
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Conference Call
A conference call to discuss the details of the Company’s Q1 2021 results will be held by senior management on
Friday, April 30, 2021 at 8:30 AM PT (11:30 AM ET). The call will be webcast and can be accessed at Eldorado
Gold’s website: www.eldoradogold.com and via this link: http://services.choruscall.ca/links/
eldoradogold20210430.html
Conference Call Details Replay (available until June 4, 2021)
Date: April 30, 2021 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: 6634
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, Romania, and Brazil. 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
Jeff Wilhoit, Interim Head of Investor Relations
604.376.1548 or 1.888.353.8166 [email protected]
Media
Louise Burgess, Director Communications & Government Relations
604.616.2296 or 1.888.353.8166 [email protected]
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Non-IFRS Measures
Certain non-IFRS measures are included in this press release, including average realized gold price per ounce sold, 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, adjusted net earnings/(loss), adjusted net earnings/(loss) per share, working capital, cash flow from operations before changes in non-cash
working capital, earnings before interest, taxes and depreciation and amortization ("EBITDA") and adjusted earnings before interest, taxes and
depreciation and amortization ("Adjusted EBITDA"), free cash flow and sustaining capital. Please see the March 31, 2021 MD&A for explanations
and discussion of these non-IFRS measures. 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. The non-IFRS measures are intended to provide additional information and should not be considered 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.
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 "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" 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
Company’s 2021 annual guidance, benefits of the Agreement; the impact of COVID on operations; the benefits of using dry stack tailings; the
advancement of technical work and receipt of approvals at Skouries; our expectation as to our future financial and operating performance,
including expectations around generating free cash flow; working capital requirements; debt repayment obligations; use of proceeds from
financing activities; expected metallurgical recoveries and improved concentrate grade and quality; gold price outlook and the global concentrate
market; risk factors affecting our business; our strategy, plans and goals, including our proposed exploration, development, construction,
permitting and operating plans and priorities and related timelines; and schedules and results of litigation and arbitration proceedings.
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: our preliminary gold
production and our guidance, timing of construction; benefits of improvements; how the world-wide economic and social impact of COVID-19 is
managed and the duration and extent of the COVID-19 pandemic; timing and cost of 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 costs, expenses and working capital requirements; production, mineral reserves and resources and metallurgical recoveries; the
impact of acquisitions, dispositions, suspensions or delays on our business; and the ability to achieve our goals. In particular, 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 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: inability to meet production guidance, the benefits of using dry stack tailings; the advancement of technical work and
receipt of approvals at Skouries; global outbreaks of infectious diseases, including COVID-19; timing and cost of construction, and the associated
benefits; recoveries of gold and other metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits;
gold and other commodity price volatility; information technology systems risks; continued softening of the global concentrate market; risks
regarding potential and pending litigation and arbitration proceedings relating to our business, properties and operations; expected impact on
reserves and the carrying value; the updating of the reserve and resource models and life of mine plans; mining operational and development
risk; financing risks; foreign country operational risks; risks of sovereign investment; regulatory risks and liabilities including environmental
regulatory restrictions and liability; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical
testing and recoveries; additional funding requirements; currency fluctuations; community and non-governmental organization actions;
speculative nature of gold exploration; dilution; share price volatility and the price of our common shares; competition; loss of key employees; and
defective title to mineral claims or properties, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and
"Risk factors in our business" in the Company's 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 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 the Company’s 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.
Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are unfamiliar with the
Company and is not a substitute for reading the Company’s financial statements and related MD&A available on our website and on SEDAR and
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EDGAR under our Company name. The reader is directed to carefully review such document for a full understanding of the financial information
summarized herein.
Except as otherwise noted, scientific and technical information contained in this press release was reviewed and approved by Simon Hille,
FAusIMM, Vice President, Technical Services, and a "qualified person" under NI 43-101.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too
speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves
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As at Note March 31, 2021 December 31, 2020
ASSETS
Current assets
Cash and cash equivalents $ 530,903 $ 451,962
Term deposits 2,904 59,034
Accounts receivable and other 4 69,186 73,216
Inventories 5 170,523 176,271
Current portion of employee benefit plan assets 5,816 5,749
779,332 766,232
Restricted cash 2,170 2,097
Other assets 29,998 39,562
Property, plant and equipment 4,004,550 3,998,493
Goodwill 92,591 92,591
$ 4,908,641 $ 4,898,975
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 172,877 $ 179,372
Current portion of lease liabilities 11,412 11,297
Current portion of debt 6 55,567 66,667
Current portion of asset retirement obligations 4,701 4,701
244,557 262,037
Debt 6 435,966 434,465
Lease liabilities 13,956 14,659
Employee benefit plan obligations 21,364 21,974
Asset retirement obligations 106,692 106,677
Deferred income tax liabilities 405,215 402,713
1,227,750 1,242,525
Equity
Share capital 10 3,157,117 3,144,644
Treasury stock (10,879) (11,452)
Contributed surplus 2,639,067 2,638,008
Accumulated other comprehensive loss (30,456) (30,297)
Deficit (2,117,060) (2,125,326)
Total equity attributable to shareholders of the Company 3,637,789 3,615,577
Attributable to non-controlling interests 43,102 40,873
3,680,891 3,656,450
$ 4,908,641 $ 4,898,975
Subsequent events (Note 17)
Approved on behalf of the Board of Directors
(Signed) John Webster Director (Signed) George Burns Director
Date of approval: April 29, 2021
Eldorado Gold Corporation
Condensed Consolidated Interim Statements of Financial Position
As at March 31, 2021 and December 31, 2020
(Unaudited – in thousands of U.S. dollars)
Please see the Condensed Consolidated Interim Financial Statements dated March 31, 2021 for notes to the accounts.
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