Eldorado Gold Reports Q3 2021 Financial and Operational Results
NEWS RELEASE
TSX: ELD NYSE: EGO October 28, 2021
Eldorado Gold Reports Q3 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 third quarter of 2021.
• Quarterly production exceeds expectations; increasing full year 2021 annual guidance: Gold production
totalled 125,459 ounces in Q3 2021, a decrease of 8% from Q3 2020 production of 136,922 ounces driven by a
planned shift to lower-grade ore at Kisladag. Gold production in the quarter increased 8% over Q2 2021. As a
result of strong production in the first nine months of 2021, primarily due to operational improvements at
Kisladag, Eldorado is increasing its 2021 annual production guidance by approximately 6% to 460,000-480,000
ounces of gold.
• Free cash flow (4): Free cash flow from continuing operations of $29.7 million in Q3 2021 decreased from free
cash flow from continuing operations of $114.7 million in Q3 2020 (2,3) primarily as a result of planned lower
production, lower gold prices and planned increased growth and sustaining capital spending. An increase from
negative free cash flow of $23.7 million in Q2 2021 (2,3) was primarily due to free cash flow being negatively
impacted in the second quarter by the timing of tax and annual royalty payments. We expect free cash flow
generation to continue in Q4 2021.
• All-in sustaining costs (4): Q3 2021 all-in sustaining costs of $1,133 per ounce of gold sold in the quarter
increased from Q3 2020 ($918 per ounce sold) as a result of planned lower production in the quarter, higher
cash operating costs per ounce and increased sustaining capital expenditure. All-in sustaining costs per ounce
of gold sold increased in the quarter from Q2 2021 ($1,074 per ounce sold) as a result of increased sustaining
capital expenditure. We are maintaining our 2021 annual guidance with all-in-sustaining costs of $920 - $1,150
per ounce sold.
• Net earnings and adjusted net earnings attributable to shareholders (4): Net earnings from continuing
operations attributable to shareholders of the Company in Q3 2021 were $8.5 million, or $0.05 per share ( Q3
2020: net earnings of $46.0 million or $0.26 per share, Q2 2021: net earnings of $31.0 million or $0.17 per
share)(1,3). Adjusted net earnings attributable to shareholders of the Company from continuing operations in Q3
2021 were $39.9 million, or $0.22 per share (Q3 2020: adjusted net earnings of $63.6 million or $0.37 earnings
per share, Q2 2021: adjusted net earnings of $29.1 million or $0.16 per share) (1,3). Material adjustments in Q3
2021 included $31.1 million of finance costs relating to the Company's debt refinancing in the quarter.
• EBITDA: Q3 2021 EBITDA from continuing operations was $106.6 million (Q3 2020: $161.0 million, Q2 2021:
$106.9 million) (3) and Q3 2021 adjusted EBITDA from continuing operations (4) was $108.1 million ( Q3 2020 :
$164.5 million, Q2 2021: $101.7 million)(3).
• Capital spending: Capital expenditures totalled $64.4 million in Q3 2021 (Q3 2020: $50.4 million, Q2 2021:
$71.6 million)(3), reflecting a planned increase and following reduced spending in the prior year due to the novel
coronavirus ("COVID-19") pandemic. Capital allocation is following a rigorous process to ensure discipline and
control at all operations.
◦ At Kisladag, $17.7 million investment in the quarter related to waste stripping, construction of the north
leach pad to support the mine life extension and installation of a high-pressure grinding roll ("HPGR")
circuit, which is expected to improve heap leach recovery with commissioning now in progress and
expected to complete in November 2021.
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◦ At Lamaque, $10.1 million investment in the quarter related primarily to the decline connecting the
Triangle underground mine with the Sigma mill, which is expected to reduce operating costs, reduce
greenhouse gas emissions, and provide access for underground drill platforms for Ormaque, Plug 4,
and other exploration targets in the prospective corridor. Investment in the quarter also included raising
the embankment at the Sigma tailing storage facility.
• Financial position: As at September 30, 2021, the Company had $439.3 million of cash and cash equivalents
and $250 million undrawn and available under its revolving credit facility.
• Refinancing completed: In August 2021, t he Company completed its offering of $500 million aggregate
principal amount of 6.25% senior unsecured notes due 2029 (the "senior notes") and on October 15, 2021
entered into a $250 million amended and restated senior secured credit facility ("Fourth ARCA"). Eldorado used,
in part, the net proceeds from the offering of the senior notes to redeem the outstanding $234 million 9.5%
senior secured second lien notes due June 2024, and to repay all amounts outstanding under its prior term loan
and revolving credit facility. The issuance of the senior notes and entering into of the Fourth ARCA provides
Eldorado greater financial flexibility to pursue a broader range of financing alternatives for the development of
the Kassandra assets in Greece.
• Sale of Tocantinzinho Project: On October 27, 2021, the Company completed a sale of the Tocantinzinho
Project, a non-core gold asset. Eldorado received $20 million in cash consideration and 46,926,372 common
shares of G Mining Ventures Corp ('GMIN'). Deferred cash consideration of $60 million is payable on the first
anniversary of commercial production of the Project, with an option to defer 50% of the consideration at a cost
of $5 million. The project has been presented as a discontinued operation following the sale and a net loss of
$60.8 million reflects a reduction of fair value to the amount of upfront cash and share consideration, less
estimated costs of disposal.
• Suspension of Mining at Stratoni: On October 15, 2021, we announced that operations at Stratoni will be
suspended in Q4 2021. The mine will be placed on care and maintenance while exploration drilling continues
with the goal of expanding reserves and resources. We will evaluate resuming operations subject to exploration
success and positive results of further technical and economic review.
• Measures remain in place to manage the impact of the 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.
(1) 2020 and YTD 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. See Note 2(c) of our Unaudited Condensed Consolidated Interim
Financial Statements.
(2) 2020 and YTD 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. See Note 3(c) of our Unaudited Condensed Consolidated Interim Financial Statements.
(3) From Q3 2021, the Brazil Segment is presented as a discontinued operation. See Note 5 of our Unaudited Condensed Consolidated Interim Financial
Statements. Amounts presented are from continuing operations only.
(4) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS Measures' for explanations and discussion of
these non-IFRS financial measures or ratios in the September 30, 2021 MD&A.
“In the third quarter of 2021, the Company recorded strong, safe operational performance led by higher production
at Kisladag, resulting in a solid quarter of cash flow generation,” said George Burns, President and CEO. “To reflect
the strong production in the first nine months of the year, we increased our 2021 production guidance by
approximately 6% to 460,000 to 480,000 ounces. Our organic growth projects at existing operations remain on track
with the Kisladag HPGR and Lamaque decline projects expected to be completed in the fourth quarter, allowing us
to realize the benefits of these projects early next year."
"We continue to move forward with de-risking the Skouries project. We refinanced our senior notes at 6.25% and
executed a $250 million amended and restated senior secured credit facility. We have structured both the senior
notes and the credit facility to provide Eldorado greater financial flexibility to pursue a broader range of funding
alternatives for the development of the Kassandra assets in Greece."
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"With operational results outperforming our expectation in the first three quarters of 2021, our financing position
remaining solid, and numerous upcoming catalysts expected in the fourth quarter, Eldorado remains well-positioned
to provide additional growth and value creation in the future."
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Consolidated Financial and Operational Highlights
3 months ended September 30, 9 months ended September 30,
Continuing operations(7), except where noted 2021 2020 2021 2020
Revenue $238.4 $287.6 $696.3 $748.2
Gold revenue $221.5 $264.3 $626.6 $684.7
Gold produced (oz) 125,459 136,922 353,268 390,654
Gold sold (oz) 125,189 137,704 352,923 388,883
Average realized gold price ($/oz sold) (1) $1,769 $1,919 $1,775 $1,761
Cash operating costs ($/oz sold) (1,2) 646 537 644 568
Total cash costs ($/oz sold) (1,2) 743 664 726 651
All-in sustaining costs ($/oz sold) (1,2) 1,133 918 1,066 908
Net (loss) earnings for the period (3,5) 8.5 46.0 53.9 101.2
Net (loss) earnings per share – basic ($/share) (3,5) 0.05 0.26 0.30 0.60
Adjusted net earnings (loss) (1,3,4,5) 39.9 63.6 94.2 127.9
Adjusted net earnings (loss) per share ($/share) (1,3,4,5) 0.22 0.37 0.52 0.75
Cash flow from operating activities before changes in working capital (1,6) 101.0 135.1 258.1 326.3
Free cash flow (1,6) 29.7 114.7 39.3 205.4
Cash, cash equivalents and term deposits $439.3 $504.4 $439.3 $504.4
(1) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS Measures' for explanations and discussion of
these non-IFRS financial measures or ratios in the September 30, 2021 MD&A.
(2) By-product revenues are off-set against cash operating costs.
(3) Attributable to shareholders of the Company.
(4) See reconciliation of net earnings (loss) to adjusted net earnings (loss), a non-IFRS financial measure, in the section 'Non-IFRS Measures' in the
September 30, 2021 MD&A.
(5) 2020 and YTD 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. See Note 2(c) of our Unaudited Condensed Consolidated
Interim Financial Statements.
(6) 2020 and YTD 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. See Note 3(c) of our Unaudited Condensed Consolidated Interim Financial Statements.
(7) From Q3 2021, the Brazil Segment is presented as a discontinued operation. See Note 5 of our Unaudited Condensed Consolidated Interim Financial
Statements. Amounts presented are from continuing operations only.
Gold production of 125,459 ounces decreased 8% from last year’s third quarter production of 136,922 ounces. Gold
sales in Q3 2021 totalled 125,189 ounces, a decrease of 9% from 137,704 ounces sold in Q3 2020 and an increase
from Q2 2021 of 114,140 ounces. The lower sales volume compared with the prior year primarily reflects decreases
in production at Kisladag and Olympias.
Total revenue was $238.4 million in Q3 2021 , a decrease of 17% from $287.6 million in Q3 2020 and a slight
increase from Q2 2021 of $233.2 million. Total revenue was $696.3 million in the nine months ended September 30,
2021, a decrease of 7% from total revenue of $748.2 million in the nine months ended September 30, 2020 . The
decreases in both three and nine-month periods were primarily due to lower sales volumes.
Cash operating costs in Q3 2021 averaged $646 per ounce sold, an increase from $537 per ounce in Q3 2020, and
cash operating costs per ounce sold averaged $644 in the nine months ended September 30, 2021 , an increase
from $568 per ounce in the nine months ended September 30, 2020 . Increases in both the three and nine-month
periods were primarily due to lower-grade ore mined and processed at Kisladag and Lamaque, resulting in fewer
ounces produced and sold. The increase in cash operating costs per ounce sold in Q3 2021 was also due to
increased refining costs associated with sales of gold slag in the quarter. These increases were partially offset by a
reduction in cash operating costs per ounce sold at Olympias, and to a lesser extent Efemcukuru. The improvement
in cash operating costs per ounce sold at Olympias in Q3 2021 was primarily a result of higher grades, combined
with higher silver and base metal sales, which reduce cash operating costs as by-product credits.
We reported net earnings attributable to shareholders from continuing operations of $8.5 million ($0.05 per share) in
Q3 2021, compared to net earnings of $46.0 million ($0.26 per share) in Q3 2020 and net earnings of $53.9 million
($0.30 per share) in the nine months ended September 30, 2021 compared to net earnings of $101.2 million ($0.60
earnings per share) in the nine months ended September 30, 2020 . The decreases in both periods reflect lower
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production and sales volumes and higher finance costs related to the debt refinancing in the quarter. These
decreases were partially offset by lower income tax expense.
Adjusted net earnings from continuing operations were $39.9 million ( $0.22 per share) in Q3 2021 compared to
adjusted net earnings of $63.6 million ($0.37 per share) in Q3 2020. Adjusted net earnings in Q3 2021 removes,
among other things, $31.1 million of finance costs relating to the debt refinancing in the quarter including a $21.4
million redemption premium and $9.7 million of unamortized costs related to the debt redeemed that were expensed
in the quarter.
Gold Operations
3 months ended September 30, 9 months ended September 30,
2021 2020 2021 2020
Total
Ounces produced 125,459 136,922 353,268 390,654
Ounces sold 125,189 137,704 352,923 388,883
Cash operating costs ($/oz sold) (1,2) $646 $537 $644 $568
All-in sustaining costs ($/oz sold) (1,2) $1,133 $918 $1,066 $908
Sustaining capital expenditures (2) $34.7 $22.1 $79.3 $63.4
Kisladag
Ounces produced 51,040 59,593 141,229 169,659
Ounces sold 51,038 59,571 142,593 171,088
Cash operating costs ($/oz sold) (1,2) $612 $440 $546 $452
All-in sustaining costs ($/oz sold) (1,2) $916 $708 $755 $641
Sustaining capital expenditures (2) $8.2 $5.3 $14.7 $13.7
Lamaque
Ounces produced 37,369 39,525 101,847 99,973
Ounces sold 37,381 38,587 101,136 97,279
Cash operating costs ($/oz sold) (1,2) $646 $494 $683 $530
All-in sustaining costs ($/oz sold) (1,2) $1,130 $747 $1,117 $844
Sustaining capital expenditures (2) $13.7 $6.8 $34.0 $23.1
Efemcukuru
Ounces produced 23,305 23,892 70,076 74,007
Ounces sold 23,825 24,471 70,961 73,384
Cash operating costs ($/oz sold) (1,2) $552 $561 $534 $577
All-in sustaining costs ($/oz sold) (1,2) $911 $1,012 $839 $894
Sustaining capital expenditures (2) $5.3 $5.1 $11.7 $11.8
Olympias
Ounces produced 13,745 13,912 40,116 47,015
Ounces sold 12,945 15,075 38,233 47,132
Cash operating costs ($/oz sold) (1,2) $952 $992 $1,110 $1,056
All-in sustaining costs ($/oz sold) (1,2) $1,728 $1,450 $1,806 $1,484
Sustaining capital expenditures (2) $7.5 $4.9 $19.0 $14.8
(1) By-product revenues are off-set against cash operating costs.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the September 30, 2021 MD&A for explanations and discussion of
these non-IFRS financial measures or ratios.
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Kisladag
Kisladag produced 51,040 ounces of gold in Q3 2021 , a 14% decrease from 59,593 ounces in Q3 2020 . The
decrease was the result of a planned shift to lower-grade ore through 2021 as compared to 2020. However, gold
production was higher than expected in the quarter with several operational improvements implemented in the mine,
crushing circuit and leach pad in the first half of 2021, resulting in increased throughput. Gold production is
expected to reduce primarily in Q1 2022 as a result of the commissioning of the HPGR circuit, which will increase
recoveries once in operation.
Cash operating costs per ounce sold increased to $612 in Q3 2021 from $440 in Q3 2020 . The increase was
primarily due to lower production and sales as a result of the decrease in average grade of ore placed on the leach
pad throughout 2021 combined with increased refining costs associated with sales of gold slag in the quarter.
AISC per ounce sold increased to $916 in Q3 2021 from $708 in Q3 2020. The increase was primarily due to higher
cash operating costs per ounce sold and higher sustaining capital expenditure in the quarter. Sustaining capital
expenditure of $8.2 million in Q3 2021 primarily included process infrastructure upgrades and mine equipment
overhauls.
Growth capital expenditures were $17.7 million in Q3 2021 and $70.9 million in the nine months ended
September 30, 2021. Growth capital included continued installation works of an HPGR circuit expected to improve
heap leach recovery. Commissioning of the HPGR is progressing well and is expected to be completed in
November. Growth capital also included waste stripping and construction of the North leach pad, both to support the
mine life extension.
Lamaque
Lamaque produced 37,369 ounces of gold in Q3 2021 , a 5% decrease from 39,525 ounces in Q3 2020 and
reflecting a planned shift to lower-grade ore stopes in the quarter. Average grade was 5.99 grams per tonne in Q3
2021, an increase from 5.58 grams per tonne in the first half of 2021 but lower than 7.25 grams per tonne in Q3
2020. Tonnes processed in the quarter increased 15% from Q3 2020 as a result of increased underground
development and the ability to process higher volumes resulting from ongoing successful debottlenecking of the
mill.
Cash operating costs per ounce sold increased to $646 in Q3 2021 from $494 in Q3 2020, primarily reflecting the
planned shift to lower-grade ore.
AISC per ounce sold increased to $1,130 in Q3 2021 from $747 in Q3 2020 as a result of higher cash operating
costs per ounce sold and higher sustaining capital. Sustaining capital expenditure totalled $13.7 million in Q3 2021
and related primarily to underground development and maintenance.
Growth capital expenditure totalled $10.1 million in Q3 2021 and $26.0 million in the nine months ended
September 30, 2021, and primarily included continued development of the underground decline from the Sigma mill
to the Triangle mine which commenced in Q3 2020 and remains on schedule for completion in Q4 2021. Following
completion, the decline is expected to reduce operating costs, reduce greenhouse gas emissions, and provide
access for underground drill platforms for Ormaque, Plug 4, and other exploration targets in the prospective corridor
between the Triangle underground mine and the Sigma mill.
Efemcukuru
Efemcukuru produced 23,305 ounces of gold in Q3 2021, a slight decrease from 23,892 ounces in Q3 2020 and
reflect continued strong production. The flotation columns installed in late 2020 continue to operate well and have
resulted in an increase in quality of gold concentrate through 2021. Production in 2021 has been adjusted to reflect
a reduced effective rate for payable ounces, following a change in the structure of concentrate sales contracts. The
reduced effective rate for payable ounces under the new contracts are offset by a decrease in production costs due
to the elimination of treatment charges and other deductions now blended in the reduced effective rate.
Cash operating costs per ounce sold improved to $552 in Q3 2021 from $561 in Q3 2020. Cash operating costs in
Q3 2021 benefited from lower selling costs due to the change in pricing structure of concentrate sales contracts and
lower costs resulting from the weakening of the Turkish Lira.
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AISC per ounce sold improved to $911 in Q3 2021 from $1,012 in Q3 2020. The decrease is primarily due to higher
royalty expense in Q3 2020 as a result of a gold royalty rate increase announced in September 2020, for which $1.2
million of additional royalty expense was recorded in Q3 2020 associated with gold sales during the first six months
of 2020. In early 2021, the retroactive portion of the gold royalty rate increase was amended to be effective from the
announcement date only and no longer retroactive to January 1, 2020. Sustaining capital expenditure of $5.3 million
in Q3 2021 primarily included underground development, equipment rebuilds, and process upgrades.
Olympias
Olympias produced 13,745 ounces of gold in Q3 2021, a slight decrease from 13,912 ounces in Q3 2020. Lower
processing volumes in the quarter were partially offset by higher average gold grade. Lead and silver production
was also lower in Q3 2021 as compared to Q3 2020, primarily a result of lower processing volumes. An increase in
zinc feed grade to 4.55% in Q3 2021 from 3.53% in Q3 2020 resulted in higher zinc production in the quarter,
despite lower processing volumes. Operations at Olympias continued to be negatively affected in Q3 2021 by low
productivity as the Company progresses through the implementation of transformation efforts at its Kassandra
mines. Discussions with stakeholders are ongoing and are expected to lead to a sustainable continuous
improvement program as the year progresses. Further improvement is underway to long range mine design and
planning based on updated geotechnical guidance.
Cash operating costs per ounce sold improved to $952 in Q3 2021 from $992 in Q3 2020 , primarily a result of
processing higher-grade ore, combined with higher silver and base metal sales, which reduce cash operating costs
as by-product credits.
AISC per ounce sold increased to $1,728 in Q3 2021 from $1,450 in Q3 2020 due to an increase in royalties
following ratification of the Amended Investment Agreement in March 2021. AISC was also negatively impacted by
an increase in sustaining capital expenditure to $7.5 million in Q3 2021 from $4.9 million in Q3 2020. Sustaining
capital expenditure of $7.5 million in Q3 2021 primarily included underground development, diamond drilling and
tailings facility construction.
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Conference Call
A conference call to discuss the details of the Company’s Q3 2021 results will be held by senior management on
Friday, October 29, 2021 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 and via this link: http://services.choruscall.ca/links/
eldoradogold20211029.html
Conference Call Details Replay (available until Dec. 3, 2021)
Date: October 29, 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 Pass code: 7602
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).
Contact
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 1.888.363.8166 [email protected]
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