Eldorado Gold Reports Q3 2023 Financial and Operational Results
NEWS RELEASE
TSX: ELD NYSE: EGO October 26, 2023
Eldorado Gold Reports Q3 2023 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 2023. 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.com under the Company’s profile.
Third Quarter 2023 Highlights
Operations
• Gold production: 121,030 ounces, compared to 118,791 ounces in Q3 2022, a 2% increase from Q3 2022
as a result of the enhanced materials handling circuit at Kisladag, productivity initiatives and associated
improvements at Olympias, slightly offset by slower than expected development at Lamaque due to
suspended shifts in Q2 2023 as a result of the wildfires in the region.
• Gold sales : 119,200 ounces at an average realized gold price per ounce sold 1 of $1,879, compared to
118,388 ounces at an average realized gold price per ounce sold of $1,688 in Q3 2022.
• Production costs: $115.9 million, compared to $123.5 million in Q3 2022. The decrease was primarily due
to lower transport and refining charges and a reduction in unit costs of key consumables such as electricity
and diesel in Turkiye.
• Cash operating costs 1: $698 per ounce gold sold, compared to $803 per ounce gold sold in Q3 2022.
Cash operating costs decreased from Q3 2022 primarily a result of higher ounces sold, as well as lower
treatment and refining costs due to lower zinc sales, and lower VAT on concentrate sales in gold treatment
costs.
• All-in sustaining costs ("AISC")1: $1,177 per ounce sold, compared to $1,259 per ounce sold in Q3 2022,
the decrease was due to lower cash operating cost per ounce sold, partially offset by higher royalty
expense.
• Total capital expenditures: $91.1 million, including $27.3 million of growth capital 1 invested at Skouries,
with continued focus on construction, engineering and procurement. Further, underground development
continued to progress on the west decline and it is on plan to reach the targeted development meters for
2023. Growth capital invested at the operating mines totalled $29.1 million and was primarily related to
Kisladag waste stripping to support mine life extension and construction of the first phase of the North Heap
Leach Pad. Sustaining capital 1 totalled $31.8 million, including $18.0 million at Lamaque for underground
development, equipment rebuilds, and the expansion of the tailing management facility.
• Production, cost, and capital expenditure outlook : The Company is updating its 2023 annual gold
production guidance, cost guidance, and capital expenditure guidance to narrow the ranges, reflecting
updated full-year expectations given the operational and financial performance to date.
◦ Gold production is expected to be 475,000 to 495,000 ounces of gold, from 475,000 to 515,000
◦ Cash operating costs per ounce sold range lowered to $730 to $780, from $760 to $860,
primarily due lower unit costs for fuel and power, and a weaker Lira and Canadian dollar.
◦ Total operating costs per ounce sold range lowered to $830 to $880 per ounce sold, from $860
to $960, primarily due to lower operating costs.
◦ AISC per ounce sold is expected to be $1,190 to $1,240 per ounce sold, from $1,190 to $1,290.
◦ Growth Capital Investment in 2023 lowered to $280 to $305 million, from $394 to $437 million,
including:
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 September 30, 2023 MD&A.
▪ Lowering Skouries Growth Capital Investment to $160 to $170 million from $240 to $260
million, as described below within Skouries section.
▪ Lowering other Growth Capital Investment to $120 to $135 million from $154 to $177
million, primarily driven by deferral of projects to 2024 at Lamaque and Kisladag.
Financial
• Revenue: $245.3 million in Q3 2023, an increase of 13% from $217.7 million in Q3 2022, primarily due to
higher sales volumes at a higher realized gold price.
• Net cash generated from operating activities from continuing operations: $108.1 million compared to
$52.7 million in Q3 2022, primarily as a result of higher revenue and lower production costs.
• Cash flow from operating activities before changes in working capital 2: $97.5 million in Q3 2023,
compared to $55.8 million in Q3 2022, primarily driven by higher revenue and lower production costs.
• Cash and cash equivalents: $476.6 million, as at September 30, 2023 . Cash increased by $20.4 million
from June 30, 2023, primarily as a result of cash flow generated from our operations.
• Net earnings (loss): Net loss of $6.6 million, or $0.03 loss per share, compared to net loss of $28.4 million
or $0.15 loss p er share in Q3 2022. The decrease in net loss was driven by higher operating income on
stronger gold sales combined with gains on derivative instruments, partially offset by higher income tax
expense.
• Adjusted net earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") 2:
$108.7 million, compared to $74.2 million in Q3 2022. The increase was primarily driven by higher revenue
and lower production costs.
• Adjusted net earnings (loss) 2: $35.0 million or $0.17 earnings per share, compared to net loss of $10.0
million or $0.05 loss per share in Q3 2022. Adjusted net earnings in Q3 2023 added back, among other
things, a non-cash loss of $15.2 million on foreign exchange translation of deferred tax balances and
removed a non-cash unrealized $6.0 million gain on derivative instruments, primarily on gold collars.
Additionally, a one-time deferred tax expense adjustment related to a retroactive income tax rate increase
from 20% to 25% in Turkiye of $22.6 million and a one-time out-of-period current tax expense adjustment
from the same tax rate increase of $8.2 million (related to Q1 and Q2 2023) were adjusted from Q3 2023
net earnings.
• Free cash flow 2: Negative $19.3 million compared to negative $25.7 million in Q3 2022. Free cash flow
excluding Skouries was $30.0 million compared to negative $16.5 million in Q3 2022, with the increase this
quarter primarily due to higher revenue, lower production costs, lower tax installments and temporary
working capital movements, partially offset by an increase in investing activities.
• Project Facility Drawdowns: Drawdowns on the Skouries Term Facility year to date as at September 30,
2023 totalled €106.5 million.
Skouries Highlights
Growth capital invested of $27.3 million in Q3 2023, and $101.3 million year-to-date in 2023. Eldorado is reducing
the growth capital investment guidance for Skouries to $160 to $170 million in 2023. The reduced spend in 2023 is
not expected to impact the project plan, including cost and schedule, with critical path on track. The reduction is
driven by:
• A plan change in awarding several contracts in order to optimize project execution;
• Shifting certain pre-production expenditures from 2023 to 2024 without impact to schedule or progress;
• Transitioning engineering work to Greece; and
• Updated execution approach to major earthworks while maintaining construction schedule flexibility.
Activity in the third quarter focused on construction ramp-up, and completing engineering and procurement.
Underground development continued to advance the west decline and it is on plan to reach the targeted
development meters for 2023, while major earthworks initiatives include haul road construction to build earthworks
structures as well as civil works related to the crushing facility. The project cost and schedule are on track with
commissioning in mid-2025 and commercial production at the end of 2025. Upcoming milestones in 2023 include
the mobilization of major construction contracts for concrete, process plant piping and electrical works, in addition to
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 September 30, 2023 MD&A.
finalizing the awards of the remaining major procurement and contract packages to 90% completion and advancing
detailed engineering to 90% completion.
Power service installation advanced with the installation of the new substations and distribution to the underground
network. Power service upgrades are scheduled for completion in the fourth quarter. Work continues to advance on
the water management systems as expected. Mobilization continued related to the first major earthwork initiative for
construction haul roads to build earthworks structures. Upcoming milestones for the remainder of 2023 include
completing the awards of the remaining major procurement and contract packages, while maintaining flexibility in
the construction schedule.
As at September 30, 2023:
• Overall project progress was 34%; on track to be 48% complete by year-end;
• Detailed engineering was 56% complete and procurement was 73% complete, with both on track to be 90%
complete by year-end;
• Mobilization continued for major earthworks for construction haul roads to support construction of
earthworks structures;
• Mobilized contractor and commenced work on the primary crusher earthworks and pilings;
• Progress advanced on the foundation construction of the primary crusher; and
• Project remains on track for commissioning in mid-2025 and commercial production at the end of 2025.
Corporate
• Sustainability: In August 2023, the Company published its 2022 Climate Change Report, introducing
Eldorado's GHG Emissions Target Achievement Pathway.
• Appointed Senior Vice President, Finance: In September 2023, Ryan Swedburg was appointed as
Senior Vice President, Finance.
“Operationally during the third quarter we continued to make progress across our sites,” said George Burns,
Eldorado Gold’s President and CEO. “At Olympias, the productivity initiatives that were completed in early July
drove a solid quarter and we expect to continue to see further improvements over the coming quarters as those
initiatives continue to deliver on their full potential. At Kisladag, the materials handling circuit continues to perform
well and we have seen record tonnes placed. In addition, with the new North Heap Leach Pad now under leach, we
expect to see increased production over the coming quarters. We are fine tuning the circuit with a focus to
potentially increasing recoveries. These initiatives across the sites support our strong outlook for growing
production, declining costs and increasing cash flow.”
"In sustainability, Eldorado issued its 2022 Climate Change and GHG Emissions Report which provides our
measurable progress toward our GHG mitigation target and enhancing climate resilience. This report built on our
first Climate Change Report that was published in 2021 and focuses on our progress implementing our Climate
Change Strategy, including our GHG Emissions Target Achievement Pathway, in which we seek to mitigate our
Scope 1 and 2 emissions from operating mines by 30% on a 2020 baseline by 2030."
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Consolidated Financial and Operational Highlights
3 months ended September 30, 9 months ended September 30,
Continuing operations (4) 2023 2022 2023 2022
Revenue $245.3 $217.7 $704.5 $625.8
Gold produced (oz) 121,030 118,791 341,973 325,462
Gold sold (oz) 119,200 118,388 339,151 320,491
Average realized gold price ($/oz sold) (2) $1,879 $1,688 $1,920 $1,801
Production costs 115.9 123.5 344.2 337.4
Cash operating costs ($/oz sold) (2,3) 698 803 754 807
Total cash costs ($/oz sold) (2,3) 794 892 858 902
All-in sustaining costs ($/oz sold) (2,3) 1,177 1,259 1,225 1,289
Net (loss) earnings for the period (1) (8.0) (54.6) 12.2 (397.5)
Net (loss) earnings per share – basic ($/share) (1) (0.04) (0.30) 0.06 (2.17)
Net (loss) earnings per share – diluted ($/share) (1) (0.04) (0.30) 0.06 (2.17)
Net (loss) earnings for the period continuing operations (1) (6.6) (28.4) 14.4 (91.1)
Net (loss) earnings per share continuing operations –
basic ($/share)(1,4) (0.03) (0.15) 0.07 (0.50)
Net (loss) earnings per share continuing operations –
diluted ($/share)(1,4) (0.03) (0.15) 0.07 (0.50)
Adjusted net earnings (loss) continuing operations - basic (1,2,4) 35.0 (10.0) 61.4 (15.7)
Adjusted net earnings (loss) per share continuing operations
($/share)(1,2,4) 0.17 (0.05) 0.32 (0.09)
Net cash generated from operating activities 108.1 52.7 223.3 114.9
Cash flow from operating activities before changes in working
capital (2) 97.5 55.8 273.1 154.3
Free cash flow (2) (19.3) (25.7) (76.4) (115.2)
Free cash flow excluding Skouries (2) 30.0 (16.5) 22.8 (95.7)
Cash, cash equivalents and term deposits 476.6 306.4 476.6 306.4
Total assets 4,812.2 4,402.4 4,812.2 4,402.4
Debt 596.5 497.3 596.5 497.3
(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 cash operating costs.
(4) Amounts presented for 2023 and 2022 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed
consolidated interim financial statements for the three and nine months ended September 30, 2023.
Total revenue was $245.3 million in Q3 2023, an increase of 13% from $217.7 million in Q3 2022 and an increase of
7% from $229.4 million earned in Q2 2023 , both primarily due to higher ounces sold . Total revenue was $704.5
million in the nine months ended September 30, 2023 , an increase from $625.8 million in the nine months ended
September 30, 2022 . The increases in both three and nine-month periods were primarily due to higher sales
volumes, and higher average realized gold price.
Production costs decreased to $115.9 million in Q3 2023 from $123.5 million in Q3 2022 primarily due to reductions
in unit costs of key consumables such as electricity in Turkiye and Greece, and fuel in Turkiye and Canada.
Additionally, transport costs at Olympias were lower as a result of improved shipment logistics. Production costs
increased to $344.2 million in the nine months ended September 30, 2023 from $337.4 million in the nine months
ended September 30, 2022 primarily due to higher royalty expense and increased sales volumes.
Production costs include royalty expense which increased to $11.5 million in Q3 2023 from $10.6 million in Q3 2022
and increased to $35.3 million in the nine months ended September 30, 2023 from $30.4 million in the nine months
ended September 30, 2022 . In Turkiye, royalties are paid on revenue less certain costs associated with ore
haulage, mineral processing and related depreciation and are calculated on the basis of a sliding scale according to
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the average London Metal Exchange gold price during the calendar year. In Greece, royalties are paid on revenue
and calculated on a sliding scale tied to international gold and base metal prices and the EUR/USD exchange rate.
Cash operating costs3 averaged $698 per ounce sold in Q3 2023, a decrease from $803 in Q3 2022, primarily as a
result of higher ounces sold, lower unit costs of key consumables, lower transport costs and lower VAT on
concentrate sales in gold treatment costs, which are included in cash operating costs. Cash operating costs per
ounce sold averaged $754 in the nine months ended September 30, 2023 , a decrease from $807 in the nine
months ended September 30, 2022, primarily due to an increase in volume sold.
AISC per ounce sold 3 averaged $1,177 in Q3 2023 , a decrease from $1,259 in Q3 2022 , due to lower cash
operating cost per ounce sold, partially offset by higher royalty expense. AISC per ounce sold averaged $1,225 in
the nine months ended September 30, 2023 , a decrease from $1,289 in the nine months ended September 30,
2022, primarily reflecting the decrease in cash operating costs per ounce sold and lower sustaining capital
expenditures, partially offset by higher royalty expense.
We reported a net loss attributable to shareholders from continuing operations of $6.6 million ($0.03 loss per share)
in Q3 2023 compared to a net loss of $28.4 million ($0.15 loss per share) in Q3 2022 and net earnings of $14.4
million ($0.07 earnings per share) in the nine months ended September 30, 2023 compared to net loss of $91.1
million ($0.50 loss per share) in the nine months ended September 30, 2022. The decrease in net loss this quarter,
compared to Q3 2022, was driven by higher operating income on stronger gold sales and higher gold price
combined with unrealized gains on derivative instruments, partially offset by higher income tax expense. The higher
net earnings in the nine months ended September 30, 2023, compared to the prior year, was primarily due to higher
operating income from the increase in gold sales, higher gold price, lower mine standby costs and write-down of
assets, and unrealized gains on derivatives, partially offset by higher income tax expense.
Adjusted net earnings3 was $35.0 million ($0.17 earnings per share) in Q3 2023 compared to an adjusted net loss
of $10.0 million ($0.05 loss per share) in Q3 2022. Adjusted net earnings in Q3 2023 added back a non-cash loss of
$15.2 million on foreign exchange translation of deferred tax balances and removed a non-cash unrealized gain of
$6.0 million on derivative instruments, primarily on the gold collars. Additionally, a one-time deferred tax expense
adjustment related to a retroactive income tax rate increase from 20% to 25% in Turkiye of $22.6 million and a one-
time out-of-period current tax expense adjustment from the same tax rate increase of $8.2 million (related to Q1 and
Q2 2023) were adjusted from Q3 2023 net earnings. Adjusted net earnings in Q3 2022 added back an $18.4 million
loss on foreign exchange translation of deferred tax balances.
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3 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 September 30, 2023 MD&A.
Quarterly Operations Update
3 months ended September 30, 9 months ended September 30,
2023 2022 2023 2022
Consolidated
Ounces produced 121,030 118,791 341,973 325,462
Ounces sold 119,200 118,388 339,151 320,491
Production costs $115.9 $123.5 $344.2 $337.4
Cash operating costs ($/oz sold) (1,2) $698 $803 $754 $807
All-in sustaining costs ($/oz sold) (1,2) $1,177 $1,259 $1,225 $1,289
Sustaining capital expenditures (2) $31.8 $32.8 $83.9 $89.6
Kisladag
Ounces produced 37,219 37,741 108,558 95,494
Ounces sold 38,732 37,721 108,405 94,380
Production costs $28.6 $32.7 $86.7 $87.9
Cash operating costs ($/oz sold) (1,2) $622 $752 $671 $800
All-in sustaining costs ($/oz sold) (1,2) $884 $993 $897 $1,049
Sustaining capital expenditures (2) $5.5 $4.8 $10.5 $11.6
Lamaque
Ounces produced 43,821 42,454 120,450 122,748
Ounces sold 40,908 42,385 119,455 122,165
Production costs $26.9 $28.8 $84.4 $87.5
Cash operating costs ($/oz sold) (1,2) $624 $650 $673 $684
All-in sustaining costs ($/oz sold) (1,2) $1,099 $1,106 $1,143 $1,082
Sustaining capital expenditures (2) $18.0 $18.2 $52.0 $44.7
Efemcukuru
Ounces produced 21,142 22,473 63,714 66,322
Ounces sold 21,364 22,488 63,581 67,298
Production costs $20.6 $17.7 $58.7 $55.2
Cash operating costs ($/oz sold) (1,2) $817 $709 $791 $689
All-in sustaining costs ($/oz sold) (1,2) $1,205 $1,039 $1,137 $1,075
Sustaining capital expenditures (2) $3.7 $4.1 $9.6 $13.5
Olympias
Ounces produced 18,848 16,123 49,251 40,898
Ounces sold 18,196 15,794 47,710 36,648
Production costs $39.8 $44.3 $114.4 $106.6
Cash operating costs ($/oz sold) (1,2) $885 $1,466 $1,096 $1,455
All-in sustaining costs ($/oz sold) (1,2) $1,319 $2,070 $1,614 $2,240
Sustaining capital expenditures (2) $4.7 $5.7 $11.8 $19.8
(1) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' of our
MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
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Kisladag
Kisladag produced 37,219 ounces of gold in Q3 2023 , comparable to 37,741 ounces produced in Q3 2022.
Production in the quarter benefited from successful commissioning of the new North Heap Leach Pad ("NHLP")
along with continual optimization of fine ore agglomeration and continued usage of larger capacity conveyors which
have increased stacking efficiency. NHLP gold recovery and adsorption is in line with expectations and we are
drawing down the excess solution and gold inventory caused by the unusually high precipitation event during Q2,
with the drawdown to continue through Q4 this year. Additionally, average grade was higher, from 0.72 grams per
tonne in Q3 2022 to 0.85 grams per tonne in Q3 2023.
Revenue increased to $75.2 million in Q3 2023 from $65.7 million in Q3 2022, reflecting higher sales in the quarter,
and an increase in the average realized gold price.
Production costs decreased to $28.6 million in Q3 2023 from $32.7 million in Q3 2022 primarily due to decreases in
unit costs of fuel and electricity in Turkiye as cost pressures of the energy crisis in Europe ease. These impacts
were partially offset by higher tonnes processed and gold sold. As a result, cash operating costs per ounce
decreased to $622 in Q3 2023 from $752 in Q3 2022.
AISC per ounce sold decreased to $884 in Q3 2023 from $993 in Q3 2022, primarily due to the decrease in cash
operating costs per ounce sold.
Sustaining capital expenditures of $5.5 million in Q3 2023 and $10.5 million in the nine months ended
September 30, 2023 primarily included equipment rebuilds and mine equipment purchases. Growth capital
investments of $18.6 million and $55.9 million in the three and nine months ended September 30, 2023 included
waste stripping to support the mine life extension and construction of the first phase of the NHLP , which was
commissioned in July 2023.
Production is expected to increase over the course of the fourth quarter as we realize full effectiveness from the
upgraded materials handling equipment. Our optimization efforts are expected to drive increased stacking rates. In
addition, we expect to recover the ounces that were delayed as a result of the extraordinary rainfall in May and early
June.
Lamaque
Lamaque produced 43,821 ounces of gold in Q3 2023, an increase of 3% from 42,454 ounces in Q3 2022. The
increase was primarily due to higher ore throughput, partially offset by lower gold grade compared to Q3 2022.
Mining disruption caused by the forest fires earlier in the year led to reduced mining faces available for ore
production in Q3. Despite this, tonnes processed were 7% higher in Q3 2023 as compared to Q3 2022, which had
been affected by COVID-19 related absenteeism in 2022. Average grade decreased to 7.04 grams per tonne in Q3
2023 from 7.28 grams per tonne in Q3 2022.
Revenue increased to $79.1 million in Q3 2023 from $73.1 million in Q3 2022 primarily due to higher average
realized gold price, partially offset by lower ounces sold.
Production costs decreased to $26.9 million in Q3 2023 from $28.8 million in Q3 2022, primarily due to lower
volume sold in the quarter and lower unit costs of fuel. Cash operating costs per ounce sold decreased to $624 in
Q3 2023 from $650 in Q3 2022 as a result of cost savings from a weaker Canadian dollar as compared to the prior
year.
AISC per ounce sold decreased to $1,099 in Q3 2023 from $1,106 in Q3 2022 primarily due to lower cash operating
cost per ounce, partially offset by lower volume of gold sold.
Sustaining capital expenditures of $18.0 million in Q3 2023 and $52.0 million in the nine months ended September
30, 2023 primarily included underground development, equipment rebuilds, and expansion of the tailings
management facility. Growth capital investment of $8.5 million in Q3 2023 and $16.1 million in the nine months
ended September 30, 2023 were primarily related to resource conversion drilling at Ormaque and spending on other
exploration projects.
The fourth quarter is expected to be stronger as we push development into higher grade stopes.
Efemcukuru
Efemcukuru produced 21,142 payable ounces of gold in Q3 2023, a 6% decrease from 22,473 payable ounces in
Q3 2022. The decrease was primarily due to lower grade as planned, a decrease to 5.46 grams per tonne in Q3
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2023 from 5.74 grams per tonne in Q3 2022, and slightly lower tonnes milled, which was a result of slightly lower
tonnes mined in the quarter.
Revenue increased to $39.1 million in Q3 2023 from $34.3 million in Q3 2022. Lower payable ounces sold was
offset by a higher average realized gold price recorded during Q3 2023.
Production costs increased to $20.6 million in Q3 2023 from $17.7 million in Q3 2022 primarily due to a higher
proportion of ore production relative to development tonnage and higher royalty expense due to higher average
realized gold prices, partially offset by lower unit costs. This resulted in an increase in cash operating costs per
ounce sold to $817 in Q3 2023 from $709 in Q3 2022.
AISC per ounce sold increased to $1,205 in Q3 2023 from $1,039 in Q3 2022. The increase was primarily due to
the increase in cash operating costs per ounce sold and was partly offset by lower sustaining capital expenditure.
Sustaining capital expenditures of $3.7 million in Q3 2023 and $9.6 million in the nine months ended September 30,
2023 were primarily underground development and equipment rebuilds. Growth capital investment of $1.1 million in
Q3 2023 and $4.5 million in the nine months ended September 30, 2023 primarily included capital development and
resource conversion drilling.
Production for the fourth quarter is expected to increase slightly over the third quarter as processing rates increase.
Olympias
Olympias produced 18,848 ounces of gold in Q3 2023, a 17% increase from 16,123 ounces in Q3 2022 and was
driven by record high mill throughput that was achieved this quarter and the productivity benefits of transformation
initiatives that were completed in early July as we continue to ramp up productivity. This was partially offset by lower
average gold grade due to changes in stope sequencing in the quarter. Q3 2023 production of by-product metals
increased as compared to both Q2 2023 and Q3 2022 across silver, lead, and zinc as a result of higher average
grades in the Flats Zone as planned in both the three and nine months ended periods as well as overall higher
throughput.
In line with our 2023 guidance, key transformation initiatives are on-going as the mine continues to ramp up
productivity. Bulk emulsion blasting was commissioned in June, and we are continuing to ramp up and optimize this
initiative through ongoing training and equipment optimization. The Flats Zone is ramping up in ore production while
we continue to develop and open up additional access to the ore body.
Revenue increased to $51.9 million in Q3 2023 from $44.6 million in Q3 2022 primarily as a result of higher gold
sales and higher average realized gold price. Sales of silver and lead were also higher in Q3 2023 due to higher
production in the quarter and successful timing of shipments at quarter end.
Production costs decreased to $39.8 million in Q3 2023 from $44.3 million in Q3 2022 despite increased volumes of
throughput and gold, silver, and lead sales, primarily due to productivity efficiencies resulting from recent
transformation initiatives, as well as slightly lower unit costs of certain consumables, including electricity. Production
costs also benefited from lower transport costs as a result of improved shipment logistics. This resulted in cash
operating costs per ounce sold decreasing to $885 in Q3 2023 from $1,466 in Q3 2022, combined with the impacts
of lower treatment and refining costs and higher gold ounces sold. Furthermore, some sales were not subject to the
13% VAT paid on sales exports to China, further lowering cash operating costs per ounce sold.
AISC per ounce sold decreased to $1,319 in Q3 2023 from $2,070 in Q3 2022 primarily due lower sustaining capital
expenditures and lower direct operating costs per ounce sold.
Sustaining capital expenditures of $4.7 million in Q3 2023 and $11.8 million in the nine months ended
September 30, 2023 primarily included underground development and expansion of tailings facilities. Growth capital
investment of $0.9 million in Q3 2023 and $4.4 million in the nine months ended September 30, 2023 were primarily
related to underground development.
Gold production is expected to be steady over the fourth quarter as the productivity initiatives continue to deliver
increased tonnage and higher grades.
Development Project
Skouries
The Skouries project, part of the Kassandra Mines Complex, is located within the Halkidiki Peninsula of Northern
Greece and is a high-grade gold-copper asset. In December 2021, we published the results of the Skouries Project
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