Eldorado Gold Reports Q3 2024 Financial and Operational Results; Tightens 2024 Operating Guidance
NEWS RELEASE
TSX: ELD NYSE: EGO October 31, 2024
Eldorado Gold Reports Q3 2024 Financial and Operational Results;
Tightens 2024 Operating Guidance
VANCOUVER, BC - Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s
financial and operational results for the third quarter of 2024. For further information, please see the Company’s
Consolidated Financial Statements and Management’s Discussion and Analysis ("MD&A") filed on SEDAR+ at
www.sedarplus.com under the Company’s profile.
Third Quarter 2024 Highlights
Operations
• Gold production: 125,195 ounces were produced in the quarter. Production increased 3% from Q3 2023,
reflecting increased gold production of 13% at Olympias due to higher gold grades processed and 10% at
Kisladag as a result of increased heap leach inventory drawdown.
• Gold sales : 123,828 ounces at an average realized gold price per ounce sold 1 of $2,492. Gold sales
increased 4% from Q3 2023 primarily as a result of increased production at Olympias and Kisladag.
• Production costs: $141.2 million in Q3 2024, compared to $115.5 million in Q3 2023. The increase was
due primarily to higher sales volumes, as well as higher cash costs, the latter impacted by higher royalty
expense due to higher gold sales and higher gold price, as well as increases in labour costs.
• Total cash costs 1: $953 per ounce gold sold compared to $794 per ounce gold sold in Q3 2023, with the
increases primarily due to higher royalties (driven by higher gold prices) and higher labour costs.
• All-in sustaining costs ("AISC")1: $1,335 per ounce sold compared to $1,177 per ounce sold in Q3 2023,
with the increase due to higher total cash costs combined with higher sustaining capital.
• Total capital expenditures: $158.1 million, including $82.7 million of growth capital 1 invested at Skouries,
with activity focused on infrastructure construction. Growth capital at the operating mines totalled $39.0
million and was primarily related to Kisladag for continued waste stripping, construction of the North Heap
Leach Pad and related infrastructure.
• Production and cost outlook : The Company is tightening its 2024 guidance for gold production, costs,
depreciation and capital expenditure, reflecting updated full-year expectations given the operational and
financial performance to date. Gold production is expected to be 505,000 to 530,000 ounces, from 505,000
to 555,000 ounces. Total cash costs per ounce sold is expected to be $910 to $940 per ounce sold, from
$840 to $940 per ounce sold, primarily due to lower production and increased royalties in Greece and
Turkiye related to higher gold price. AISC per ounce sold is expected to be $1,260 to $1,290 per ounce
sold, from $1,190 to $1,290 per ounce sold, primarily due to higher total cash costs, partially offset by lower
sustaining capital expenditure.
Financial
• Revenue: $331.8 million in Q3 2024, an increase of 36% from $244.8 million in Q3 2023, primarily due to
the higher averaged realized gold price and higher sales volumes.
• Net cash generated from operating activities from continuing operations: $180.9 million compared to
$108.1 million in Q3 2023, primarily due to higher revenue, partially offset by higher cash costs.
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, 2024 MD&A.
• Cash flow from operating activities before changes in working capital 2: $166.5 million compared to
$97.5 million in Q3 2023, primarily due to higher revenue, partially offset by higher cash costs.
• Cash, cash equivalents and term deposits: $676.6 million, as at September 30, 2024 as compared to
$595.1 million as at June 30, 2024, with the cash increase attributable to strong operating cashflows
combined with the planned Skouries Term Facility drawdown, partially offset by the significant investing
activities, particularly at Skouries.
• Net earnings (loss) attributable to shareholders from continuing operations: $101.1 million, or $0.49
per share, compared to $6.6 million loss or $0.03 loss per share in Q3 2023, with the increase driven by
higher revenue.
• Adjusted net earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") 2:
$169.0 million compared to $108.7 million in Q3 2023, with the increase driven by higher revenue, partially
offset by the adjustment of a gain on recognition of deferred consideration.
• Adjusted net earnings 2: $71.0 million or $0.35 per share compared to $35.0 million or $0.17 per share in
Q3 2023. Adjustments in Q3 2024 include a $33.1 million unrealized loss on derivative instruments, a $50.1
million gain on recognition of deferred consideration net of tax impacts related to commercial production
being declared at the Tocantinzinho Mine, which was divested to G Mining Ventures in 2021, and a $15.3
million gain on foreign exchange due to the translation of deferred tax balances and Turkiye inflation
accounting.
• Free cash flow2: Negative $4.8 million in Q3 2024 compared to negative $19.3 million in Q3 2023, with the
increase in higher operating cash flow, primarily due to the higher average realized gold price and higher
sales volumes, partially offset by continued investment at Skouries.
• Free cash flow excluding Skouries2: $98.3 million in Q3 2024 compared to $37.3 million in Q3 2023, with
the increase driven by higher operating cash flow, primarily due to the higher average realized gold price
and higher sales volumes.
• Project Facility: Drawdowns on the Skouries Term Facility during Q3 2024 totalled €83.7 million and year
to date as at September 30, 2024 totalled €201.8 million.
Corporate
“As gold prices reached record highs during the quarter we continued to realize margin expansion and strong cash
flow generation across our operations,” said George Burns, President and Chief Executive Officer. “Free cash flow
before Skouries investment totalled $98.3 million.”
“At Olympias, we successfully concluded the CBA negotiations and reached a mutually beneficial agreement with
the union workforce in early August. This three-year agreement combined with increased productivity in our
underground operations, and as contemplated in our guidance, supports the 650ktpa expansion, an increase from
500ktpa, positioning Olympias for long-term profitability over its current mine life of 15 years. In Canada, at
Lamaque, progress continued on the Ormaque bulk sample. We have begun stockpiling material ahead of
processing it through the mill in the fourth quarter and remain on track to declare an inaugural reserve later this
year.”
“At Kisladag, we encountered a few operational challenges including lower tonnes stacked, slightly lower recovery
and a longer leach cycle than planned. Throughout the quarter, we implemented a number of improvements to
address these issues. This included improving the stacking sequence where we have started to see positive results.
In addition, we have begun to see improved solution management through various innovative methods that are
being deployed to help draw down the gold inventory.”
“Production reached 364,625 ounces in the first nine months of the year, an increase of 7% compared to 2023, and
12% compared to 2022, respectively. We are on track to meet our 2024 production and cost guidance. We have
tightened the gold production range to between 505,000 to 530,000 ounces. As gold prices hit record highs in the
third quarter, we continued to experience increased royalty costs, which has impacted our overall costs, and we
expect full year all-in sustaining costs to be near the upper end of guidance of between $1,260 and $1,290 per
ounce."
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, 2024 MD&A.
"Our transformational Skouries project continues to track on budget and on schedule with first production expected
in the third quarter of 2025. Solid progress was made during the third quarter, with overall project completion
currently at 79%. As anticipated, the contract was awarded for the steel and mechanical installations for the filter
building during the quarter, which is part of the critical path. Thus far the construction workforce productivity is
slightly beating our assumptions. With approximately 1,000 personnel working, we are making steady progress
towards our year-end target of 1,300. Our focus once we have the additional personnel onsite will turn to integrating
them at our assumed productivity levels to maintain the schedule and budget. We are managing this closely and
taking proactive measures to mitigate potential challenges in a tight construction labour market. To view the
progress see our Q3 2024 progress update video linked below."
Q3 2024 progress update video link: https://youtu.be/js0MxV8Dgdo
Skouries Highlights
Growth capital invested totalled $82.7 million in Q3 2024 and $227.1 million during the nine months ended
September 30, 2024 . At September 30, 2024, the growth capital invested towards the overall capital estimate of
$920 million totalled $411.9 million.
In 2024, the expected capital spend has been lowered to between $350 and $380 million from the original guidance
of $375 and $425 million. The lowered capital is not expected to impact first production as it is primarily related to
rescheduled work that has been shifted to a later phase of the project that is not on the critical path, and reflects a
slower than expected ramp-up of contractor mobilization during the first three quarters of 2024.
First production of the copper-gold concentrate is expected in Q3 2025, with expected 2025 gold production of
50,000 to 60,000 ounces and copper production of 15 to 20 million pounds. The project remains on track for
commercial production at the end of 2025.
Table 1: Skouries Project – Project Expenditures (January 1, 2023 to September 30, 2024)
Millions of US$ As of September 30, 2024
Total capital estimate $920
Expenditures incurred since project restart 412
Remaining spend 508
Committed expenditures - including expenditures incurred 788
Uncommitted expenditures 132
Construction Activities
Overall construction progress is 79% when including the first phase of construction.
Work continues to advance on the filtered tailings building which is on the critical path. In September, the first
contract for the filtered tailings building was awarded for the structure and mechanical installations. For efficiency,
the contract was split into two components:
1) filtered tailings building structure and mechanical installations, and
2) piping, electrical and instrumentation.
Piling has been completed for the filtered tailings building and concrete work is progressing to enable construction
of the structural steel. With three active drills on site, the piles for the filtered tailings facility ancillary buildings
continue to progress. To date, 388 piles have been completed out of a total of 871. As previously announced, the
fabricated frames for the filter press plates arrived on site during Q2 2024, and all filter press components have now
been delivered to site.
3
Primary Crusher Building
Progress continued to advance on the foundation construction of the primary crusher with retaining walls and
stabilized excavations nearing completion. Construction of the crusher building structure will commence in
November.
Process plant
Work in the process plant continues to progress. Re-lining of the flotation tanks was completed as planned and
structural and mechanical work is in progress. Off-site pipe spool fabrication continues and delivery of high-density
polyethylene piping to site has commenced. Scaffolding is advancing to support electrical cable tray and piping
installations and the contractor continues to ramp up to support increasing levels of activity. Work has also
commenced on support infrastructure including the process control room building, process plant sub-station, water
pump station, lime plant, air blowers building, compressor building and flotation reagent areas.
Thickeners
Construction of the three thickeners progressed on plan during the quarter. Major concrete pours are complete for
the foundations of the first two thickeners. Support columns are complete on the first thickener and over 50%
complete for the second thickener. Construction of the third thickener will start in Q4 2024 following completion of
the first thickener.
Integrative Extractive Waste Management Facility (the "IEWMF")
During Q3 2024, construction continued to progress at the coffer dam site with excavation of the spillway and
foundation preparation. By the end of 2024, the Company expects to have completed the first of two water
management ponds, coffer dam and significantly advanced the earthworks. Work continues to progress with
foundation preparation for the KL Embankment (tailings embankment) and the fill placement for water management
pond 2 has advanced on plan for completion at year end. Excavations for water management pond 1 continue and
development of the low-grade ore stockpile advanced with foundation preparation, drain construction and fill
placement.
Underground Development
Progress has been made on the underground with expansion of the underground services for water management,
ventilation and electrical distribution. Approximately 70% of the equipment and operator licenses have been
received to date and development mining is ramping up. Access to the test stopes is advancing at the upper level as
planned and the priority for the balance of the year is to advance the main decline and gain access to the bottom
elevations of the test stopes. The schedule to receive all licenses and permits was later than planned and while the
contractor is ramping up, it has delayed the completion of the expected 2,200 metres of underground development
for 2024. The underground development for 2024 is now expected to be between 500 and 600 metres. While the
metres are not on track with guidance the underground is not on the critical path for first production, in addition, this
does not impact the overall timing for the two test stopes which are expected to be completed in Q3 2025.
Engineering, Procurement and Operational Readiness
Engineering
As engineering works are now at 78% and are nearing substantial completion, the focus has been on finalizing
engineering to support the construction schedule. The release of structural steel for fabrication is nearing
completion and steel deliveries have commenced to site to support steel construction in the process plant and
filtered tailings building.
Procurement
At the end of Q3 2024, procurement is substantially complete, with all long-lead items procured and the focus on
managing fabrication and deliveries.
4
Operational Readiness
A key focus of the operational readiness team is to establish a strong, risk-based operational readiness plan. Key
departmental plans have been developed, an overarching governance framework established, and weekly
leadership forums and mon thly steering committee re views established. Specialized support has been engaged to
focus on processing operationalization, and readiness support. Further work is ongoing to establish detailed
readiness plans for support and shared services. Priority focus areas have been identified and resource allocation
adjusted accordingly.
The development of the Management Operating System (MOS) is currently focused on providing frontline
supervisor and worker practices and procedures to the open pit operations team. These practices and procedures
are established to ensure adherence to standards as well as establishing best practices and overall transparency
across planning, execution, reporting and remediation to the frontline team. Several workshops were held with the
heads of functions and initial departmental workflows were established.
The training department’s short-term priority was developing a training plan for the open pit excavation activities in
line with the recently adopted competency-based framework. The competency-based framework identifies specific
competencies per role and then assesses the employee’s performance against specific performance criteria on
knowledge, skills and attitude. This competency-based framework will ensure improved individual performance
compared to the previous time in role-based competency framework only. Training material as well as training
providers are in place and four (4) CAT 6020B hydraulic excavator operators commenced training during October
2024. This program will be expanded with the arrival of additional mining equipment in H1 2025. The Mavres Petres
main training building structural upgrade has been completed and the focus for the coming quarter will be to equip
practical training workbenches for basic skills training and assessment as well as for refresher training.
Operations
The operations team completed their labour strategy and associated organizational designs. Recruitment is
underway at local and national levels. Several local and national job fairs are planned for Q4 2024 to attract as
many as possible potential employees.
The CAT 6020B hydraulic excavator was assembled during the quarter and training of operators commenced in
October 2024. Most of the remaining open pit mining fleet will arrive during H1 2025. The first operational plan was
prepared that combines the completion of construction pre-stripping and the start of open pit mining in H1 2025. A
similar plan is being prepared for the underground mine and the expectation is that both the surface and
underground mining will be operationalized during Q4 2024.
Other operational, commercial and administrative departments made progress in recruiting their leadership and
supervision employees and setting up operating and commercial processes.
Workforce
In addition to the Operational Readiness team, as at September 30, 2024, there were approximately 1,000
personnel working. Thus far the construction workforce productivity is slightly ahead of our assumptions. We are
making steady progress towards our year-end target of 1,300 workers on site. Our focus once we have the
additional personnel onsite will turn to integrating them at our assumed productivity levels to maintain the schedule
and budget. We are managing this closely and taking proactive measures to mitigate potential challenges in a tight
construction labour market.
5
Skouries key milestones in 2024, which include:
Area of Focus Key Milestone Status
Procurement and Engineering • Substantial completion of procurement and
engineering
• Substantial completion of engineering
on track for Q4 2024
• Procurement substantially complete
Process Plant
• Construction of the control room and electrical
room building
• Q1 2024 commenced
• Electrical room building on track for
completion in Q4 2024
• Construction of the tailings thickeners • Q1 2024 commenced
Filtered Tailings Facility • Awarding of the first filter facility construction
contract • Q3 2024 first contract awarded
Integrated Extractive Waste Management Facility
("IEWMF") • Completion of the coffer dam • On track for completion in Q4 2024
Underground
• Awarding of the underground development
and test stoping contract
• Contract awarded and approximately
70% of the equipment and operator
licenses have been received to date
and development is ramping up
• Completion of approximately 2,200 metres of
underground development
• Expected completion lowered to
between 500 and 600 metres (see
section titled 'Underground
Development')
• Ore from test stopes still on track for
delivery during plant commissioning
period in 2025
6
Consolidated Financial and Operational Highlights
3 months ended September 30, 9 months ended September 30,
2024 2023 2024 2023
Revenue $331.8 $244.8 $886.9 $701.6
Gold produced (oz) 125,195 121,030 364,625 341,973
Gold sold (oz) 123,828 119,200 361,062 339,151
Average realized gold price ($/oz sold) (2) $2,492 $1,879 $2,309 $1,920
Production costs 141.2 115.5 392.0 341.3
Total cash costs ($/oz sold) (2,3) 953 794 939 858
All-in sustaining costs ($/oz sold) (2,3) 1,335 1,177 1,310 1,225
Net earnings (loss) for the period (1) 95.0 (8.0) 184.1 12.2
Net earnings (loss) per share – basic ($/share) (1) 0.46 (0.04) 0.90 0.06
Net earnings (loss) per share – diluted ($/share) (1) 0.46 (0.04) 0.90 0.06
Net earnings (loss) for the period continuing operations (1,4) 101.1 (6.6) 192.7 14.4
Net earnings (loss) per share continuing operations –
basic ($/share)(1,4) 0.49 (0.03) 0.95 0.07
Net earnings (loss) per share continuing operations –
diluted ($/share)(1,4) 0.49 (0.03) 0.94 0.07
Adjusted net earnings continuing operations – basic (1,2,4) 71.0 35.0 192.9 61.4
Adjusted net earnings per share continuing operations
($/share)(1,2,4) 0.35 0.17 0.95 0.32
Net cash generated from operating activities (4) 180.9 108.1 388.4 223.3
Cash flow from operating activities before changes in working
capital (2,4) 166.5 97.5 407.0 273.1
Free cash flow (2,4) (4.8) (19.3) (67.8) (76.4)
Free cash flow excluding Skouries (2,4) 98.3 37.3 165.8 30.7
Cash, cash equivalents and term deposits (4) 676.6 476.6 676.6 476.6
Total assets 5,565.1 4,812.2 5,565.1 4,812.2
Debt (4) 849.2 596.5 849.2 596.5
(1) Attributable to shareholders of the Company.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' of
our MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
(3) Revenues from silver, lead and zinc sales are off-set against total cash costs.
(4) Amounts presented for 2024 and 2023 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed
consolidated interim financial statements for the three and nine months ended September 30, 2024.
Total revenue increased to $331.8 million in Q3 2024 from $244.8 million in Q3 2023 and to $886.9 million in the
nine months ended September 30, 2024 , from $701.6 million in the nine months ended September 30, 2023 . The
increases in both three and nine-month periods were primarily due to the higher average realized gold price as well
as the higher sales volumes.
Production costs increased to $141.2 million in Q3 2024 from $115.5 million in Q3 2023 and to $392.0 million in the
nine months ended September 30, 2024 from $341.3 million in the nine months ended September 30, 2023 .
Increases in both periods were driven primarily by higher sales volume as well as higher cash costs, the latter
impacted by higher royalty expense due to higher gold sales and higher gold price, as well as increases in labour
costs.
Total cash costs3 averaged $953 per ounce sold in Q3 2024, an increase from $794 in Q3 2023, and $939 the nine
months ended September 30, 2024 from $858 in the nine months ended September 30, 2023 . The increases in
both the three and nine-month periods were primarily due to higher royalties (driven by higher gold prices) and
labour costs.
7
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, 2024 MD&A.
In the quarter, AISC4 averaged $1,335 per ounce sold in Q3 2024, an increase from $1,177 in Q3 2023, and $1,310
the nine months ended September 30, 2024 from $1,225 in the nine months ended September 30, 2023 , with the
increases in both the three and nine-month periods due to higher total cash costs combined with higher sustaining
capital.
Eldorado reported net earnings attributable to shareholders from continuing operations of $101.1 million ($0.49
earnings per share) in Q3 2024 compared to a net loss of $6.6 million ($0.03 loss per share) in Q3 2023 and net
earnings of $192.7 million ($0.95 earnings per share) in the nine months ended September 30, 2024 compared to
net earnings of $14.4 million ( $0.07 earnings per share) in the nine months ended September 30, 2023 . The
increases in net earnings in both the three and nine-month periods were driven by higher operating income due
primarily to higher average realized gold price as well as stronger gold sales and the gain on deferred consideration,
partially offset by higher unrealized derivative losses.
Adjusted net earnings4 was $71.0 million ($0.35 earnings per share) in Q3 2024 compared to adjusted net earnings
of $35.0 million ($0.17 earnings per share) in Q3 2023. Adjustments in Q3 2024 include a $33.1 million unrealized
loss on derivative instruments, a $50.1 million gain on recognition of deferred consideration net of tax impacts
related to commercial production being declared at the Tocantinzinho Mine, which was divested to G Mining
Ventures in 2021, and a $15.3 million gain on foreign exchange due to the translation of deferred tax balances and
Turkiye inflation accounting.
Adjusted net earnings was $192.9 million ($0.95 earnings per share) in the nine months ended September 30, 2024
compared to adjusted net earnings of $61.4 million ( $0.32 earnings per share) in the nine months ended
September 30, 2023. Adjustments in the nine months ended September 30, 2024 include a $61.9 million unrealized
loss on derivative instruments, a $50.1 million gain on recognition of deferred consideration net of tax impacts
mentioned above, and a $11.9 million gain on foreign exchange due to the translation of deferred tax balances net
of Turkiye inflation accounting.
8
4 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, 2024 MD&A.