Eldorado Gold Reports Q2 2022 Financial and Operational Results; Updates Full-Year Consolidated Cost Guidance
NEWS RELEASE
TSX: ELD NYSE: EGO July 28, 2022
Eldorado Gold Reports Q2 2022 Financial and Operational
Results; Updates Full-Year Consolidated Cost Guidance
VANCOUVER, BC - Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s
financial and operational results for the second 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.
Second Quarter 2022 Highlights
Operations
• Gold production: 113,462 ounces, an increase of 22% from Q1 2022 production, driven by strong
production and mine development at Lamaque.
• Gold sales: 107,631 ounces at an average realized gold price per ounce sold1 of $1,849.
• Production costs: $109.3 million.
• Cash operating costs1: $789 per ounce sold. Costs were primarily driven by lower gold production and an
increase in the price of certain commodities and consumables required for safe operations, however the
price increases were partly offset by the weakening of local currencies in which costs are incurred,
particularly the Turkish Lira and Euro.
• All-in sustaining costs ("AISC")1: $1,270 per ounce sold, driven by higher cash operating costs per ounce
sold and sustaining capital expenditures.
• Total capital expenditures: $83.2 million, including $32.3 million of sustaining capital 1, primarily focused
on underground development and construction at Lamaque. Growth capital 1 of $26.4 million focused on
waste stripping at Kisladag and construction of the first phase of the North leach pad to support the mine life
extension. $9.1 million of capital expenditures spent at Skouries include advancing site access, completing
building enclosures, and geotechnical and drilling activities.
• Skouries growth capital: As a bridge to the completion of a financing package, an additional $30 to $40
million of growth capital will be allocated to the project. Total growth capital at Skouries is now expected to
be $60 to $80 million in 2022.
• 2022 outlook: We expect production to be second-half weighted and maintain our 2022 production
guidance of 460,000 to 490, 000 ounces and are tracking toward the lower end of the range as a result of
production challenges in Q1 2022. We are updating our 2022 guidance for consolidated cash operating
costs1 to $700 to $750 per ounce sold, total cash costs 1 to $790 to $840 per ounce sold and AISC 1 to
$1,180 to $1,280 per ounce sold.
Financial
• Cash flow from operating activities before changes in working capital1: $48.3 million.
• Cash, cash equivalents and term deposits: $370.0 million, as at June 30, 2022.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"): $89.1 million.
• Adjusted EBITDA1: $87.6 million.
• Net loss: $22.7 million, or a loss of $0.12 per share.
1
1 These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure 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 June 30, 2022 MD&A.
• Adjusted net earnings 2: $13.8 million net earnings, or $0.08 earnings per share. Adjusted net earnings
removed a $23.3 million loss on foreign exchange due to translation of deferred tax balances, and a $14.4
million loss on the non-cash revaluation of the derivative related to redemption options in our debt.
• Free cash flow2: Negative $62.8 million, primarily due to lower gold production and sales, annual royalty
payments and mine standby costs.
“We had a steady operational quarter, driven by solid production and higher grades at Lamaque and consistent
operations at Efemcukuru," said George Burns, Eldorado's President and Chief Executive Officer. "Olympias saw
meaningful improvements in the second quarter. At Kisladag, the team focused on increasing the tonnes placed on
the pad, which sets up strong third quarter production. We remain confident in our ability to deliver consolidated
production guidance of 460,000 to 490,000 ounces and expect to end the year in the lower end of the range," added
Burns. "In addition, we revised our 2022 consolidated cost guidance to reflect lower than expected gold production
in the first half of the year, continued inflationary pressures, and additional costs associated with the VAT import
charge on Olympias gold concentrate shipments into China."
"Considerable progress was made at Skouries during the quarter, with activity focused on execution readiness and
critical path activities in engineering, procurement and site enabling works. We look forward to updating the market
as we continue to work towards financing and Board approval for the restart of construction at Skouries," continued
Burns.
"Additionally, during the quarter we published our 10th annual Sustainability Report. I'm proud of the global team for
the progress we've made on our goals and initiatives. Specifically, we have exceeded gender parity on our Board,
and demonstrated leadership in regard to local employment and procurement."
2
2 These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure 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 June 30, 2022 MD&A.
Consolidated Financial and Operational Highlights
3 months ended June 30, 6 months ended June 30,
Continuing operations (5) 2022 2021 2022 2021
Revenue $213.4 $233.2 $408.1 $457.8
Gold produced (oz) 113,462 116,066 206,671 227,808
Gold sold (oz) 107,631 114,140 202,103 227,734
Average realized gold price ($/oz sold) (2) $1,849 $1,840 $1,868 $1,786
Production costs 109.3 112.8 213.9 221.4
Cash operating costs ($/oz sold) (2,3) 789 645 810 643
Total cash costs ($/oz sold) (2,3) 879 746 908 716
All-in sustaining costs ($/oz sold) (2,3) 1,270 1,074 1,306 1,030
Net (loss) earnings for the period (1) (22.7) 31.0 (339.5) 45.4
Net (loss) earnings per share – basic ($/share) (1) (0.12) 0.17 (1.85) 0.25
Adjusted net earnings (loss) (1,2) 13.8 29.1 (5.1) 54.3
Adjusted net earnings (loss) per share ($/share) (1,2) 0.08 0.16 (0.03) 0.30
Net cash generated from operating activities (4) 26.9 49.0 62.2 148.1
Cash flow from operating activities before changes in working capital (2,4) 48.3 75.9 98.1 157.0
Free cash flow (2,4) (62.8) (23.7) (89.6) 9.7
Cash, cash equivalents and term deposits $370.0 $410.7 $370.0 $410.7
(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) 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.
(5) Amounts presented are from continuing operations only. The Brazil segment is presented as a discontinued operation in 2021. See Note 17 of our
condensed consolidated interim financial statements for the three and six months ended June 30, 2022.
Total revenue was $213.4 million in Q2 2022, a decrease of 8% from $233.2 million in Q2 2021 and an increase of
10% from $194.7 million in Q1 2022. Total revenue was $408.1 million in the six months ended June 30, 2022 , a
decrease from $457.8 million in the six months ended June 30, 2021 . The decreases in both three and six-month
periods were due to lower sales volumes and were partially offset by higher average metal prices.
Production costs decreased to $109.3 million in Q2 2022 from $112.8 million in Q2 2021 and to $213.9 million in the
six months ended June 30, 2022 from $221.4 million in the six months ended June 30, 2021 . Decreases in both
periods were primarily due to the suspension of operations at Stratoni at the end of 2021. Production costs at
Stratoni totalled $13.7 million in Q2 2021 and $29.0 million in the six months ended June 30, 2021 . These
decreases were partly offset by increases in certain production costs in Q2 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 at operations in Greece and Turkiye, and fuel and reagents at Kisladag.
Cash operating costs in Q2 2022 averaged $789 per ounce sold, an increase from $645 in Q2 2021, and cash
operating costs per ounce sold averaged $810 in the six months ended June 30, 2022, an increase from $643 in the
six months ended June 30, 2021 . Increases in both three and six-month periods were primarily due to lower
production, lower silver and base metal sales which reduce cash operating costs as by-product credits, and lower-
grade ore mined and processed at Kisladag, resulting in fewer ounces produced and sold.
AISC per ounce sold averaged $1,270 in Q2 2022, an increase from $1,074 in Q2 2021, and AISC per ounce sold
averaged $1,306 in the six months ended June 30, 2022, an increase from $1,030 in the six months ended June 30,
2021. Increases in both three and six-month periods primarily reflect the increases in cash operating costs per
ounce sold, combined with higher sustaining capital expenditures.
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We reported net loss attributable to shareholders from continuing operations of $22.7 million ($0.12 loss per share)
in Q2 2022 compared to net earnings of $31.0 million ($0.17 per share) in Q2 2021 and net loss of $339.5 million
($1.85 loss per share) in the six months ended June 30, 2022 compared to net earnings of $45.4 million ($0.25 per
share) in the six months ended June 30, 2021. The net loss in the six months ended June 30, 2022 was primarily
due to the impairment of the Certej project, a non-core gold asset, the write-down of decommissioned equipment at
Kisladag, lower sales volumes, higher mine standby costs and higher income tax expense.
Adjusted net earnings were $13.8 million ($0.08 per share) in Q2 2022 compared to $29.1 million ($0.16 per share)
in Q2 2021. Adjusted net earnings in Q2 2022 removed a $23.3 million loss on foreign exchange due to translation
of deferred tax balances, a $14.4 million loss on the non-cash revaluation of the derivative related to redemption
options in our debt and included a $1.2 million partial reversal of Stratoni equipment write-downs.
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Quarterly Operations Update
3 months ended June 30, 6 months ended June 30,
2022 2021 2022 2021
Consolidated
Ounces produced 113,462 116,066 206,671 227,808
Ounces sold 107,631 114,140 202,103 227,734
Production costs (1) $109.3 $112.8 $213.9 $221.4
Cash operating costs ($/oz sold) (2,3) $789 $645 $810 $643
All-in sustaining costs ($/oz sold) (2,3) $1,270 $1,074 $1,306 $1,030
Sustaining capital expenditures (3) $32.3 $24.2 $56.8 $44.7
Kisladag
Ounces produced 27,973 44,016 57,753 90,188
Ounces sold 26,881 44,049 56,659 91,555
Production costs $25.1 $28.6 $55.2 $54.9
Cash operating costs ($/oz sold) (2,3) $798 $529 $831 $510
All-in sustaining costs ($/oz sold) (2,3) $1,090 $728 $1,087 $665
Sustaining capital expenditures (3) $4.3 $3.7 $6.8 $6.5
Lamaque
Ounces produced 46,917 35,643 80,294 64,478
Ounces sold 45,655 34,677 79,780 63,755
Production costs $31.5 $24.0 $58.7 $47.0
Cash operating costs ($/oz sold) (2,3) $657 $658 $703 $704
All-in sustaining costs ($/oz sold) (2,3) $985 $1,065 $1,069 $1,109
Sustaining capital expenditures (3) $13.5 $11.0 $26.5 $20.3
Efemcukuru
Ounces produced 22,793 23,473 43,849 46,771
Ounces sold 23,428 23,006 44,810 47,136
Production costs $20.6 $17.9 $37.5 $32.5
Cash operating costs ($/oz sold) (2,3) $706 $525 $678 $525
All-in sustaining costs ($/oz sold) (2,3) $1,180 $917 $1,093 $802
Sustaining capital expenditures (3) $5.9 $3.8 $9.4 $6.3
Olympias
Ounces produced 15,779 12,934 24,775 26,371
Ounces sold 11,667 12,409 20,854 25,288
Production costs $32.1 $28.5 $62.4 $57.9
Cash operating costs ($/oz sold) (2,3) $1,446 $1,237 $1,447 $1,190
All-in sustaining costs ($/oz sold) (2,3) $2,346 $1,893 $2,369 $1,845
Sustaining capital expenditures (3) $8.5 $5.7 $14.1 $11.5
(1) Includes production costs of Stratoni (base metals production) in 2021 (Q2 2021: $13.7 million, YTD 2021: $29.0 million). Operations at Stratoni were
suspended at the end of 2021.
(2) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(3) 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.
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Kisladag
Kisladag produced 27,973 ounces of gold in Q2 2022, a decrease of 36% from 44,016 ounces in Q2 2021. The
expected decrease in production was due to lower tonnes placed on the heap leach pad in the first quarter due to
COVID-19 related absenteeism, severe weather and a government-mandated power outage. Average grade of
0.76 grams per tonne in Q2 2022 decreased slightly from 0.81 grams per tonne in Q2 2021 but increased from 0.61
grams per tonne in Q1 2022.
Ore tonnes placed on the heap leach pad in Q2 2022 increased 40% from Q1 2022 as production ramped up in the
quarter following snowfall and prolonged freezing temperatures in Q1 2022 that impacted the ore conveyance and
stacking system, reducing productivity. However, tonnes placed in the quarter were lower than in Q2 2021 due to
continued optimization of the high-pressure grinding roll circuit ("HPGR") and debottlenecking of the belt
agglomeration circuit. The HPGR is performing to plan with recovery rates as expected. Increased tonnes placed on
the heap leach pad in Q2 2022 are expected to positively impact gold production in the second half of 2022.
Revenue decreased to $51.0 million in Q2 2022 from $80.7 million in Q2 2021, reflecting lower sales in the quarter
and partly offset by an increase in the average realized gold price.
Production costs decreased to $25.1 million in Q2 2022 from $28.6 million in Q2 2021 primarily due to a reduction in
consumables used in line with lower production and efficiencies from the HPGR circuit, and weakening of the
Turkish Lira. These savings were partly offset by price increases in labour, reagents, electricity, and fuel. Lower
production, combined with lower grade, resulted in an increase in cash operating costs per ounce sold to $798 in
Q2 2022 from $529 in Q2 2021.
AISC per ounce sold increased to $1,090 in Q2 2022 from $728 in Q2 2021 primarily due to the increase in cash
operating costs per ounce sold.
Sustaining capital expenditures of $4.3 million in Q2 2022 and $6.8 million in the six months ended June 30, 2022
primarily included equipment rebuilds and processing improvements.
Growth capital expenditures of $23.7 million in Q2 2022 and $43.7 million in the six months ended June 30, 2022
included waste stripping to support the mine life extension and construction of the first phase of the North heap
leach pad.
In conjunction with the North heap leach pad, we are investing in additional higher-capacity mobile conveyors which
are expected to enhance materials handling capabilities in the belt agglomeration circuit and increase throughput.
Installation is expected to be complete in late 2022. We are also installing an agglomeration drum, expected to be
commissioned in the first half of 2023, which is expected to improve the quality, consistency and permeability of the
agglomeration process. With these investments, stacking is expected to continue on the existing heap leach pad
until mid-2023, at which time stacking is expected to commence on the North heap leach pad.
Lamaque
Lamaque produced 46,917 ounces of gold in Q2 2022, an increase of 32% from 35,643 ounces in Q2 2021 due to
strong throughput and higher grade. The expected increase in production from Q1 2022 also resulted from higher
throughput combined with the development of higher-grade stopes following delays in the first quarter due to
COVID-19 related absenteeism. Average grade increased to 6.63 grams per tonne in Q2 2022 from 5.98 grams per
tonne in Q2 2021 and from 5.27 grams per tonne in Q1 2022.
Revenue increased to $85.0 million in Q2 2022 from $63.5 million in Q2 2021 due to higher production in the
quarter, combined with a higher average realized gold price.
Production costs increased to $31.5 million in Q2 2022 from $24.0 million in Q2 2021, primarily due to higher
production in the quarter. Cash operating costs per ounce sold remained consistent at $657 in Q2 2022 from $658
in Q2 2021, due to higher production and cost savings from a weaker Canadian dollar being partly offset by cost
increases for consumables.
AISC per ounce sold decreased to $985 in Q2 2022 from $1,065 in Q2 2021 primarily due to higher gold production
in the quarter, partly offset by a modest increase in sustaining capital expenditure.
Sustaining capital expenditures of $13.5 million in Q2 2022 and $26.5 million in the six months ended June 30, 2022
primarily included underground development and construction. Growth capital expenditures of $0.9 million in Q2
2022 and $2.7 million in the six months ended June 30, 2022 was primarily construction of underground
infrastructure.
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Efemcukuru
Efemcukuru produced 22,793 payable ounces of gold in Q2 2022, a 3% decrease from 23,473 payable ounces in
Q2 2021. The decrease was due to a planned decrease in grade to 5.96 grams per tonne in Q2 2022 from 6.60
grams per tonne in Q2 2021, and was partly offset by higher throughput in the quarter.
Revenue decreased to $41.4 million in Q2 2022 from $45.0 million in Q2 2021. The decrease was primarily due to a
lower average realized gold price during Q2 2022 as a result of downward revaluations of provisional pricing in the
quarter in line with movements in the gold price.
Production costs increased to $20.6 million in Q2 2022 from $17.9 million in Q2 2021 primarily due to increased
tonnes processed, combined with cost increases in electricity, and consumables. The increase in production costs,
combined with lower production in the quarter, resulted in an increase in cash operating costs per ounce sold to
$706 in Q2 2022 from $525 in Q2 2021.
AISC per ounce sold increased to $1,180 in Q2 2022 from $917 in Q2 2021, primarily due to the increase in cash
operating costs per ounce sold combined with higher sustaining capital expenditure.
Sustaining capital expenditures of $5.9 million in Q2 2022 and $9.4 million in the six months ended June 30, 2022
was primarily underground development and equipment rebuilds. Growth capital expenditures of $0.5 million in the
six months ended June 30, 2022 included resource conversion drilling at Kokarpinar.
Olympias
Olympias produced 15,779 ounces of gold in Q2 2022 , a 22% increase from 12,934 ounces in Q2 2021 and
primarily reflected higher average gold grade, despite slightly lower processing volumes. Lead, silver and zinc
production also increased in Q2 2022 as compared to Q2 2021 as a result of higher average grades.
Transformation initiatives continued to show positive results as the mine continues to ramp up productivity.
Processing volumes increased in the latter part of Q2 2022 as a result of processing ore stockpiles following lower
processing volumes in the first quarter due to COVID-19 related absenteeism and power outages related to heavy
snowfall in the region in January 202 2. Water treatment plant improvements continued in the quarter with minimal
impact on throughput.
Revenue increased to $36.3 million in Q2 2022 from $34.1 million in Q2 2021 primarily as a result of higher gold
prices in the quarter, despite lower sales volumes due to timing of concentrate shipments. Gold revenue was also
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 Q2 2022 as planned shipments to
Russia were halted earlier in the year as a result of sanctions imposed on Russia due to the Russia-Ukraine war.
Revenue from lead-silver concentrate sales increased in the quarter and revenue from zinc concentrate sales
decreased in the quarter, in both cases due to timing of bulk shipments.
Production costs increased to $32.1 million in Q2 2022 from $28.5 million in Q2 2021 reflecting price increases in
electricity, fuel, and other consumables. Cash operating costs per ounce sold increased to $1,446 in Q2 2022 from
$1,237 in Q2 2021, primarily a result of lower throughput, certain production cost increases and the 13% VAT import
charge which is included in cash operating costs. These increases were partly offset by higher gold grade and
higher revenue from silver and base metal sales, which reduce cash operating costs as by-product credits.
Electricity prices in the quarter remained above Q1 2021 levels but reduced from Q1 2022 due to subsidies that
lowered the effective average price.
AISC per ounce sold increased to $2,346 in Q2 2022 from $1,893 in Q2 2021 primarily due to the increase in cash
operating costs per ounce sold, combined with an increase in sustaining capital expenditure.
Sustaining capital expenditures of $8.5 million in Q2 2022 and $14.1 million in the six months ended June 30, 2022
primarily included underground development and expansion of tailings facilities. Growth capital expenditures of $1.7
million in Q2 2022 and $3.1 million in the six months ended June 30, 2022 was primarily underground development.
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Corporate Updates
In July 2022, we completed the acquisition of 32.5 million common shares of G Mining Ventures Corp. ("GMIN") for
cash consideration of CDN $26.0 million ($20.0 million). Upon closing, we owned approximately 19.0% of GMIN
common shares outstanding, continuing our interest in the Tocantinzinho gold project in Brazil. The second tranche
of the GMIN private placement is expected to close in Q3 2022, after which our ownership is expected to decrease
to approximately 17.7% of GMIN common shares outstanding.
Simon Hille has been promoted to the role of Senior Vice President, Technical Services effective May 2022. Simon
joined Eldorado in November 2020 as Vice President, Technical Services. He is responsible for technical projects
and fostering innovation throughout the Company. Simon has over 30 years of experience in gold and base metals
specializing in leading high-performance, cross-functional technical and operational teams to maximize value from
complex ore bodies. He has a BSc in Extractive Metallurgy from Curtin University’s Western Australian School of
Mines and is a Fellow of Australasian Institute of Mining & Metallurgy (FAusIMM).
For further information on the Company's operating results for the second 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 Second Quarter 2022 Results will be held by senior
management on Friday, July 29, 2022 at 11:30 AM ET (8:30 AM PT). The call will be webcast and can be accessed
at Eldorado’s website: www.eldoradogold.com or via this link: https://services.choruscall.ca/links/
eldoradogold2022q2.html.
Conference Call Details Replay (available until Sept. 2, 2022)
Date: July 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: 9051
Toll free: 1 800 319 4610
About Eldorado
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye,
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).
Contact
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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