Eldorado Reports 2013 Year-End and Fourth Quarter Financial and Operational Results
NEWS RELEASE ELD No. 14-02 TSX: ELD NYSE: EGO February 21, 2014
Eldorado Reports 2013 Year-End and Fourth Quarter Financial and Operational Results
Adjusted net earnings: $0.01 per share – Q4; $0.27 per share – full year 2013 (all figures in United States dollars unless otherwise noted)
VANCOUVER, BC – Paul N. Wright, Chief Executive Officer of Eldorado Gold Corporation, (“Eldorado” the “Company” or “we”) is pleased to report on the Company's financial and operational results for the year ended December 31, 2013. Eldorado reported record gold production of 721,201 ounces at an average cash operating cost1 of $494 per ounce, compared to gold production of 656,324 ounces at an average cash operating cost of $483 per ounce for the year ended December 31, 2012. Adjusted net earnings1 for the year ended December 31, 2013 were $192.9 million, or $0.27 per share compared to adjusted net earnings of $327.4 million, or $0.48 per share for the year ended December 31, 2012, reflecting a 16% decline in gold prices year over year.
“The Company achieved record production of 721,201 ounces of gold in 2013 at $494 cash operating cost per ounce in line with our original guidance of 705,000 to 760,000 ounces of gold at cash operating costs of $515 to $530 per ounce. Steps taken by the Company mid-year, in light of a declining gold price, included rationalizing operating costs and focusing our capital resources on development projects that are expected to deliver near-term cash flows consistent with the Company’s strategic plan” said Paul Wright, Chief Executive Officer of Eldorado.
2013 Overview
Key Consolidated Financial Information
- At December 31, 2013 the Company recognized an impairment charge of $808.4 million, or $684.6 million, net of tax ($0.96 per share) related to Jinfeng and Eastern Dragon.
- Loss attributable to shareholders of the Company was $653.3 million ($0.91 per share), compared to net profit attributable to shareholders of the Company of $305.3 million ($0.44 per share) in 2012.
- Dividends paid were Cdn$0.12 per share (2012: Cdn$0.15 per share).
- Liquidity was $998.9 million at year end, including $623.9 million in cash, cash equivalents, and term deposits, and $375.0 million in lines of credit (2012: $1,191.8 million of liquidity).
Key Performance Measures
- Gold production of 721,201 ounces, including pre-commercial production from Olympias (2012: 656,324 ounces) increased 10% year over year.
- Total cash costs averaged $551 per ounce (2012: $554 per ounce).
1 Throughout this release we use cash operating cost per ounce, total cash costs per ounce, gross profit from gold mining operations, adjusted net earnings, and cash flow from operating activities before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see page 11 of our MD&A for an explanation and discussion of these non-IFRS measures.
- Gross profit from gold mining operations of $481.1 million fell 19% as compared to that of 2012 due to lower prices.
- Adjusted net earnings of $192.9 million ($0.27 per share) were down 41% compared to adjusted net earnings of $327.4 million ($0.48 per share) in 2012.
- Cash generated from operating activities before changes in non-cash working capital was $382.0 million (2012: $447.7 million).
- Year end 2013 Proven and Probable gold reserves of 27.7 million ounces and Measured and Indicated gold resources of 36.4 million ounces.
Impairment Charge
As a result of the impairment testing we performed at the end of December 31, 2013, the Company concluded that the carrying values of Jinfeng and Eastern Dragon were impaired and an impairment loss of $808.4 million was recorded against the property, plant and equipment, and goodwill of these properties ($283.5 million associated with Jinfeng and $524.9 million associated with Eastern Dragon). A deferred income tax recovery of $123.8 million was also recorded related to the impairment charge and reflected as a reduction in tax expense on the income statement.
The Company assumed gold metal prices of $1,200 per ounce for 2014, and $1,300 per ounce long-term. Discounted cash flows were calculated using discount rates between 10% and 12% for Eastern Dragon (3% higher than previous years’ impairment calculations) reflecting increased Chinese permitting risk.
Summarized Annual Financial Results
| ($millions except as noted) | 2013 | 2012 | 2011 |
| Revenues | 1,124.0 | 1,147.5 | 1,103.7 |
| Gold revenues | 1,020.0 | 1,047.1 | 1,042.1 |
| Gold sold (ounces) | 725,095 | 625,394 | 658,919 |
| Average realized gold price ($/ounce) | 1,407 | 1,674 | 1,581 |
| Average London spot gold price ($/ounce) | 1,411 | 1,669 | 1,572 |
| Cash operating costs ($/ounce) | 494 | 483 | 405 |
| Total cash costs ($/ounce) | 551 | 554 | 472 |
| Gross profit from gold mining operations | 481.1 | 595.0 | 610.8 |
| Adjusted net earnings | 192.9 | 327.3 | 332.5 |
| Net profit (loss) attributable to shareholders of the Company | (653.3) | 305.3 | 318.7 |
Earnings (loss) per share attributable to shareholders of the Company (0.91) 0.44 0.58
- basic ($/share)
Earnings (loss) per share attributable to shareholders of the Company (0.91) 0.44 0.58
- diluted ($/share)
Cash flow from operating activities before changes in non-cash 382.0 447.7 502.1 working capital
| Capital Spending – cash basis | 482.0 | 426.2 | 272.8 |
| Dividends paid – (Cdn$/share) | 0.12 | 0.15 | 0.11 |
| Cash, cash equivalents and term deposits | 623.9 | 816.8 | 393.8 |
| Total Assets | 7,235.2 | 7,928.1 | 3,960.4 |
| Total long-term financial liabilities(1) | 670.3 | 662.9 | 63.2 |
(1) Includes long-term debt net of deferred financing costs, defined benefit liabilities, and asset retirement obligations.
Review of Annual Financial Results
Gold sales volumes increased 16%, while total cash costs per ounce remained steady year over year. Gross profit from gold mining operations of $481.1 million fell 19% year over year as a result of a 16% drop in gold prices. Loss attributable to shareholders of the Company was $653.3 million, or $0.91 per share, compared to net profit attributable to shareholders of the Company of $305.3 million, or $0.44 per share in 2012. Adjusted net earnings were $192.9 million or $0.27 per share as compared with $327.3 million or $0.48 per share for 2012. The major items contributing to the loss attributable to shareholders of the Company were: 1) the $684.6 million impairment loss, net of tax, 2) a $125.2 million deferred income tax charge related to a change in the Greek income tax rate, 3) a $14.1 million impairment loss on investment in associates, and 4) a $13.8 million unrealized loss on foreign exchange translation of deferred income tax balances. Other factors that adversely impacted earnings year over year were an increase in interest and financing costs of $33.4 million related to senior notes issued by the Company in December 2012, and an increase in tax expense of $8.5 million related to withholding taxes on dividends paid by the Company’s subsidiaries in China and Turkey to their parent companies.
Summarized Quarterly Financial Results
| 2013 | Q1 | Q2 | Q3 | Q4 | 2013 | ||
| ($millions except as noted) | |||||||
| Revenues 338.1 266.9 287.3 231.7 | 1,124.0 | ||||||
| Gold revenues 307.2 243.6 266.4 202.8 | 1,020.0 | ||||||
| Gold sold (ounces) 189,346 176,260 199,117 160,372 | 725,095 | ||||||
| Average realized gold price ($/ounce) 1,622 1,382 1,338 1,264 | 1,407 | ||||||
| Cash operating costs ($/ounce) 505 478 472 526 | 494 | ||||||
| Total cash costs ($/ounce) 567 536 528 577 | 551 | ||||||
| Gross profit from gold mining operations 163.8 117.2 123.2 76.9 | 481.1 | ||||||
| Net profit (loss) attributable to shareholders of the (45.5) 43.3 36.4 (687.5) Company | (653.3) | ||||||
| Earnings (loss) per share attributable to shareholders (0.06) 0.06 0.05 (0.96) of the Company – basic ($/share) | (0.91) | ||||||
| Earnings (loss) per share attributable to shareholders (0.06) 0.06 0.05 (0.96) of the Company – diluted ($/share) | (0.91) | ||||||
| Dividends paid– (Cdn$/share) 0.07 - 0.05 - | 0.12 | ||||||
| Cash flow from operating activities before changes in 139.9 84.9 104.8 52.4 non-cash working capital | 382.0 |
Review of Quarterly Results
Loss attributable to shareholders of the Company for the quarter ended December 31, 2013 was $687.5 million, or $0.96 per share, compared to profit attributable to shareholders of the Company of $115.0 million, or $0.16 per share for the same period in 2012. The main factors that impacted earnings for the fourth quarter year over year were the impairment charge, net of taxes, of $684.6 million and lower gold revenues due to lower prices and volume.
Operations Review and Outlook Gold Operations
| 2013 | 2012 | 2014 outlook (4) | |
| Total Operating Gold Mines |
| Gold ounces produced(1)(2) | 721,201 | 656,324 | 730,000 to 800,000 |
| Cash operating costs ($ per ounce) | 494 | 483 | 550 to 590 |
| Total cash costs ($ per ounce) | 551 | 554 | 600 to 640 |
| All-in sustaining cash costs ($ per ounce)(5) | n/a | n/a | 915 to 985 |
| Sustaining capital expenditure (millions) | 269.3 | 215.0 | 170.0 |
Kışladağ
| Gold ounces produced | 306,182 | 289,294 | 300,000 to 335,000 |
| Cash operating costs ($ per ounce) | 338 | 332 | 470 to 485 |
| Total cash costs ($ per ounce) | 358 | 361 | 490 to 505 |
| Sustaining capital expenditure ($ millions) | 145.3 | 104.9 | 70.0 |
Efemçukuru
| Gold ounces produced(1) | 90,818 | 66,870 | 90,000 to 100,000 |
| Cash operating costs ($ per ounce) | 580 | 583 | 575 to 590 |
| Total cash costs ($ per ounce) | 604 | 613 | 595 to 610 |
| Sustaining capital expenditure (millions) | 29.9 | - | 20.0 |
Tanjianshan
| Gold ounces produced | 101,451 | 110,611 | 95,000 to 100,000 |
| Cash operating costs ($ per ounce) | 415 | 415 | 450 to 465 |
| Total cash costs ($ per ounce) | 601 | 612 | 620 to 635 |
| Sustaining capital expenditure (millions) | 11.3 | 23.9 | 20.0 |
Jinfeng
| Gold ounces produced | 123,246 | 107,854 | 145,000 to 155,000 |
| Cash operating costs ($ per ounce) | 736 | 817 | 650 to 670 |
| Total cash costs ($ per ounce) | 823 | 901 | 730 to 750 |
| Sustaining capital expenditure (millions) | 54.0 | 59.0 | 35.0 |
White Mountain
| Gold ounces produced | 73,060 | 80,869 | 70,000 to 75,000 |
| Cash operating costs ($ per ounce) | 705 | 625 | 685 to 715 |
| Total cash costs ($ per ounce) | 745 | 671 | 720 to 750 |
| Sustaining capital expenditure (millions) | 28.8 | 27.2 | 25.0 |
Olympias
| Gold ounces produced(2) | 26,444 | 826 | 30,000 to 35,000 |
| Cash operating costs ($ per ounce) | n/a | n/a | 975 to 1050 |
| Total cash costs ($ per ounce) | n/a | n/a | 995 to 1070 |
| Sustaining capital expenditure (millions)(3) | - | - | - |
(1) Gold ounces produced at Efemcukuru in 2012 include 29,824 ounces of pre-commercial production. (2) Gold ounces produced at Olympias in 2012 & 2013 are all on a pre-commercial production basis. (3) Olympias development capital expenditure planned for 2014 is $60.0 million. (4) Outlook assumes the following metal prices: gold - $1,200 per ounce, silver - $22 per ounce. (5) All-in sustaining cash cost is a non-IFRS measure. Please see page 11 of our MD&A for an explanation and discussion of this non-IFRS measure.
Annual Review – Operations
Kişladağ
| Operating Data | 2013 | 2012 |
| Tonnes placed on pad | 13,296,621 | 12,606,575 |
| Average treated head grade (g/t Au) | 1.12 | 1.20 |
Gold (ounces)
| - | Produced | 306,182 | 289,294 |
| - | Sold | 306,176 | 289,056 |
| Cash operating costs (per ounce) | $338 | $332 | |
| Total cash costs (per ounce) | $358 | $361 |
Financial Data (millions)
| Gold revenues | $430.9 | $483.7 |
| Depreciation and Depletion | $15.3 | $11.9 |
| Gross profit from mining operations | $302.9 | $363.2 |
| Sustaining capital expenditures | $145.3 | $104.9 |
Gold production at Kişladağ in 2013 was 6% higher than in 2012 mainly as a result of an increase in oxide ore placed on the leach pad in 2013 as compared to 2012. Kisladag placed 5% more total tonnes on the leach pad compensating for a lower head grade than 2012. Cash operating costs were slightly higher year over year as a result of the increased volume of material placed on the pad, partly offset by lower Turkish lira denominated operating costs as a result of a decline in the value of the Turkish lira compared with the US dollar. Capital expenditures at Kişladağ in 2013 included costs related to the deferred Phase IV Mine Expansion project, capitalised waste stripping and other construction projects.
Efemçukuru
| Operating Data | 2013 | 2012 |
| Tonnes Milled | 413,513 | 352,156 |
| Average Treated Head Grade (g/t Au) | 8.87 | 9.26 |
| Average Recovery Rate (to Concentrate) | 93.3% | 92.7% |
Gold (ounces)
- Produced (including pre-commercial 90,818 66,870 production in 2012)
| - Sold | 121,119 | 37,046 |
| Cash operating costs (per ounce) | $580 | $583 |
| Total cash costs (per ounce) | $604 | $613 |
Financial Data (millions)
| Gold revenues | $171.1 | $61.9 |
| Depreciation and Depletion | $26.6 | $6.8 |
| Gross profit from mining operations | $68.4 | $31.4 |
| Sustaining capital expenditures | $29.9 | - |
Gold production at Efemcukuru increased over 2012 as the mine improved both the tailings processing and paste fill systems subsequent to the commencement of commercial production in November 2012. Ounces sold in 2013 included approximately 30,000 ounces from inventory at the end of 2012. Capital spending in 2013 included costs related to capitalized underground development, mobile equipment, surface infrastructure and process improvements.
Tanjianshan
| Operating Data | 2013 | 2012 |
| Tonnes Milled | 1,064,058 | 1,056,847 |
| Average Treated Head Grade (g/t Au) | 3.47 | 3.67 |
| Average Recovery Rate | 82.2% | 82.6% |
| - | Produced | 101,451 | 110,611 |
| - | Sold | 101,451 | 110,611 |
| Cash operating costs (per ounce) | $415 | $415 | |
| Total cash costs (per ounce) | $601 | $612 |
| Gold revenues | $143.5 | $185.5 |
| Depreciation and Depletion | $24.7 | $26.2 |
| Gross profit from mining operations | $56.5 | $90.5 |
| Sustaining capital expenditures | $11.3 | $23.9 |
Gold production at Tanjianshan in 2013 was 8% lower than in 2012 mainly as a result of lower average treated head grade and lower additional flotation concentrate feed. Cash operating costs per ounce in 2013 were unchanged from the previous year mainly due to cost savings realised through process plant upgrades. Capital expenditures for the year included lining of tailings dam, process plant upgrades, and capitalized exploration costs as well as other sustaining capital.
Jinfeng
| Operating Data | 2013 | 2012 |
| Tonnes Milled | 1,412,548 | 1,422,794 |
| Average Treated Head Grade (g/t Au) | 3.24 | 2.65 |
| Average Recovery Rate | 85.4% | 84.3% |
Gold (ounces)
| - | Produced | 123,246 | 107,854 |
| - | Sold | 123,289 | 107,812 |
| Cash operating costs (per ounce) | $736 | $817 | |
| Total cash costs (per ounce) | $823 | $901 |
Financial Data (millions)
| Gold revenues | $171.1 | $180.9 |
| Depreciation and Depletion | $38.5 | $28.7 |
| Gross profit from mining operations | $31.0 | $55.0 |
| Sustaining capital expenditures | $54.0 | $59.0 |
Gold production at Jinfeng in 2013 was 14% higher than in 2012 mainly as a result of the resumption of ore mining in the open pit from May 2013, after the completion of the open pit cutback. A total of 629,996 tonnes of ore was mined from the open pit in 2013 compared to 96,800 tonnes in 2012. Ore tonnes mined from underground increased 25% as two production levels were added to the underground operations. Cash operating costs per ounce were 10% lower in 2013 as compared to 2012 mainly due to an increase in the number of ounces produced. Capital expenditures for the year included capitalized underground development, process plant upgrades, tailings dam uplifts, and tailings thickening projects.
White Mountain
| Operating Data | 2013 | 2012 |
| Tonnes Milled | 810,389 | 754,673 |
| Average Treated Head Grade (g/t Au) | 3.39 | 3.85 |
| Average Recovery Rate | 86.0% | 86.3% |
| - | Produced | 73,060 | 80,869 |
| - | Sold | 73,060 | 80,869 |
| Cash operating costs (per ounce) | $705 | $625 | |
| Total cash costs (per ounce) | $745 | $671 |
| Gold revenues | $103.4 | $135.1 |
| Depreciation and Depletion | $26.4 | $25.7 |
| Gross profit from mining operations | $22.3 | $54.9 |
| Sustaining capital expenditures | $28.8 | $27.2 |
Gold production at White Mountain in 2013 was below that of 2012 with lower average treated head grade partially offset by higher ore throughput. The increase in tonnes milled year over year was due to an increase in underground mining efficiency as a result of increased stope production and mine development. Cash operating costs per ounce were 13% higher in 2013 as a result of the decrease in head grade, and an increase in costs related to increased backfill and secondary development rates. Capital expenditures for the year included capitalized underground development, construction of a mobile maintenance workshop, acquisition of underground mobile equipment, upgrade of underground service facilities, capitalized exploration and construction of a tailing dam lift.
Stratoni
| Operating Data | 2013 | 2012 |
| Tonnes ore processed (dry) | 225,493 | 191,602 |
| Pb grade (%) | 6.3% | 6.4% |
| Zn grade (%) | 10.0% | 10.0% |
| Tonnes of concentrate produced | 59,626 | 50,680 |
| Tonnes of concentrate sold | 59,534 | 52,934 |
| Average realized concentrate price (per tonne) | $850 | $905 |
| Cash Costs (per tonne of concentrate sold) | $757 | $729 |
Financial Data (millions)
| Concentrate revenues | $50.6 | $47.9 |
| Depreciation and Depletion | $10.2 | $6.5 |
| Gross profit from mining operations | ($4.6) | $2.8 |
| Sustaining capital expenditures | $4.0 | $3.2 |
Lead/zinc concentrate production at Stratoni increased year over year as 2012 reflects production only from February 24, 2012, the date of the acquisition of European Goldfields Limited (“EGU”). Cash operating costs increased 4% year over year.
Vila Nova
| Operating Data | 2013 | 2012 |
| Tonnes Processed | 812,003 | 710,909 |
| Iron Ore Produced | 700,857 | 613,780 |
| Average Grade (% Fe) | 63.1% | 63.3% |
Iron Ore Tonnes
| - Sold | 470,140 | 603,668 |
| Average Realized Iron Ore Price | $99 | $76 |
| Cash Costs (per tonne produced) | $63 | $60 |
Financial Data (millions)
| Iron ore revenues | $46.4 | $45.6 |
| Depreciation and Depletion | $4.5 | $5.3 |
| Gross profit from mining operations | $12.3 | $3.9 |
| Sustaining capital expenditures | $4.8 | $1.3 |
Vila Nova processed 14% more iron ore tonnes than the previous year at approximately the same grade. The higher production year over year was due to mechanical and operational adjustments made in the treatment plant as well as an increase in scheduled operating hours in order to improve plant productivity. Iron ore sales were 22% lower than in 2012 as a result of an incident that closed the Anglo-Ferrous port facility during the second quarter. Shipments of iron ore have been routed through the smaller capacity public port in Santana since the incident.
Annual Review – Development Projects
Kişladağ Phase IV Mine Expansion
The full Kisladag expansion was deferred during 2013 pending improvement in metal prices. The capital programme required to replace the existing mining fleet with larger loading and haulage equipment and electrification of the mine continued during the year. By year end most of the upgraded fleet was delivered and placed into operation.
Olympias
In 2013, the Olympias plant reprocessed 552,557 tonnes of tailings at a grade of 3.32 grams per tonne. Approximately 26,444 payable ounces of gold in concentrate were produced during the year and were treated as pre-commercial production for financial reporting purposes.
New development and underground refurbishment continued during 2013. Underground mining on Phase II is projected to begin in 2016. During 2013, approximately 1,076 metres of underground drifts were rehabilitated and 3,034 metres of new drifts were completed, including approximately 800 metres of advance on the main Stratoni-Olympias decline to the 1.4 kilometre mark, representing 18% completion of the planned 8.0 kilometre decline. Capital costs incurred in 2013 were $94.1 million.
Skouries
During 2013 a total of $51.5 million was spent on Skouries. The primary contractor was mobilized and site preparation commenced. The primary underground portal was completed and 324 metres of the decline was advanced. A review of the planned infrastructure, tailings facilities, and processing facilities was completed, culminating in modifications to support ongoing permitting, and assure adherence to the overall design criteria. An optimization study for the Skouries underground will commence in 2014.
Certej
The year-end updated mineral resource for Certej resulted in an overall increase in Measured and Indicated ounces of 10%. A prefeasibility study was initiated to redefine the scope of the operation as well as address results from ongoing metallurgical test work aimed at maximizing gold recoveries. During 2013 a total of $22.8 million was spent on Certej, mainly on exploration drilling, geotechnical and metallurgical testing, road access work and engineering studies.
Perama Hill
During 2013 a total of $8.3 million was spent on Perama Hill including engineering and exploration drilling. Approval of the Environmental Impact Assessment is expected after the local and European Union elections scheduled for the second quarter of 2014.
Eastern Dragon
Eastern Dragon was placed on care and maintenance during 2013 pending resolution of permitting issues. Site management worked with the local authorities to maintain local permits in good standing. Work continued on preparing the necessary paperwork to submit to the National Development and Reform Commission (“NDRC”), as well as determining the timeline for review and approval. Capital costs incurred at Eastern Dragon totalled $1.5 million.
Tocantinzinho
During 2013 a total of $5.5 million was spent on Tocantinzinho mainly on optimization of the capital and operating requirements in the feasibility study as well as on limited exploration activities. Field work was focused on environmental assessments and monitoring at the site, as well as support for the optimization work on the feasibility study.
Annual Review - Exploration
A total of $68.3 million (including capitalized evaluation costs) was spent on grassroots, advanced stage and minesite exploration activities during 2013. The exploration activities included drilling totalling approximately 128,000 metres and were conducted on 18 projects across Turkey, China, Brazil, Greece, and Romania.
Turkey
In Turkey, drilling programs were completed at our Efemcukuru mine site and at the Ardala/Salinbas joint venture project. At Efemcukuru, exploration drilling focussed on down-dip extensions of the Kestane Beleni vein, as well as resource drilling at the nearby Kokarpinar vein. Drilling at Ardala/Salinbas confirmed continuity of mineralization between epithermal (Salinbas) and gold-copper porphyry (Ardala) mineralized systems.
China
Brownfields exploration programs were completed at each of our three operating mines in China. At Tanjianshan, resource drilling focused on the Bridge and West Wall Zones within the Jinlongou pit, and on definition and step-out drilling just beneath the northern end of the Qinlongtan open pit. All of these target areas yielded high-grade intersections outside of existing resources.
At the White Mountain mine, exploration drilling included both underground testing of down-dip extensions of the main orebody, and surface drilling of the newly-recognized West Zone, immediately adjacent to the present deposit.
At Jinfeng, underground resource drilling focused on step-outs along the known major mineralized fault zones (F2, F3, F6), gaps in the existing resource model, and new conceptual targets. The exploration drilling was successful in identifying mineralised splays sub-parallel to existing resources.
Limited drilling was completed on adjacent exploration licenses. The Company divested its interests in the Jingdu and Jinluo Exploration joint ventures, and in the Gaolu exploration license.
Brazil
In Brazil, exploration programs focused on drill-testing the optioned Chapadina project, on advancing our early-stage projects to drill-ready status, and on project generation activities.
Greece
In the Chalkidiki district, 12,000 metres of drilling was completed at the Piavitsa Project, consisting of step-out drilling over a 2.5 km strike length of the mineralized Stratoni Fault zone. At Olympias, an extensive drillcore-relogging and deposit interpretation program culminated in an updated resource model for the deposit. At Perama Hill, exploration activities focused on extending coverage of soil sampling programs, and on sterilization testing of areas of planned infrastructure.
Romania
Exploration activities in the Certej district focused on over 40,000 metres of infill and step-out drilling of the Certej deposit. Drilling programs were also completed on the Certej North prospect, and at the Muncel and Brad exploration license areas.
Reserves and Resources
Reserves at the end of 2013 totalled 27.7 million contained ounces of gold at an average grade of 1.17 g/t, compared with 25.8 million ounces of gold at an average grade of 1.14 g/t at the end of 2012.
Measured and Indicated resources at the end of 2013 totalled 36.4 million contained ounces of gold at an average grade of 1.04 g/t, compared with 36.3 million ounces of gold at an average grade of 1.02 g/t at the end of 2012.
A gold price of $1,250 per ounce was utilized for estimating reserves except for the Eastern Dragon, Tocantinzinho and Skouries underground projects which used $1,000 per ounce.
Complete mineral Reserve and Resource information including tonnes, grades and ounces as well as major assumptions and qualified persons responsible are shown in Tables 1 and 2.
| Table 1: Eldorado Gold Mineral Reserves, as of December 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Project | Proven Mineral Reserves Probable Mineral Reserves Total Proven and Probable | ||||||||
| Gold | Tonnes | Au | In-situ Au | Tonnes | Au | In-situ Au | Tonnes | Au | In-situ Au |
| (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | |
| Certej | 20,441 | 1.91 | 1,255 | 26,543 | 1.41 | 1,203 | 46,984 | 1.63 | 2,458 |
| Eastern Dragon | 837 | 11.07 | 297 | 2,253 | 6.46 | 467 | 3,090 | 7.71 | 764 |
| Efemcukuru | 1,321 | 9.63 | 409 | 3,490 | 6.92 | 777 | 4,811 | 7.67 | 1,186 |
| Jinfeng | 5,715 | 4.12 | 758 | 9,882 | 3.85 | 1,222 | 15,597 | 3.95 | 1,980 |
| Kisladag | 86,915 | 0.86 | 2,402 | 344,584 | 0.64 | 7,145 | 431,499 | 0.69 | 9,547 |
| Olympias | 6,706 | 7.20 | 1,552 | 11,236 | 7.54 | 2,724 | 17,942 | 7.41 | 4,276 |
| Perama | 2,477 | 4.44 | 354 | 7,220 | 2.68 | 621 | 9,697 | 3.13 | 975 |
| Skouries | 68,762 | 0.87 | 1,928 | 81,311 | 0.67 | 1,752 | 150,073 | 0.76 | 3,680 |
| Tanjianshan | 3,118 | 3.06 | 307 | 1,128 | 2.84 | 103 | 4,246 | 3.00 | 410 |
| Tocantinzinho | 17,735 | 1.39 | 792 | 31,315 | 1.17 | 1,183 | 49,050 | 1.25 | 1,975 |
| White Mountain | 4,320 | 2.56 | 355 | 1,327 | 2.87 | 122 | 5,647 | 2.63 | 477 |
| TOTAL GOLD | 218,347 | 1.48 | 10,409 | 520,289 | 1.04 | 17,319 | 738,636 | 1.17 | 27,728 |
| Silver | Tonnes | Ag | In-situ Ag | Tonnes | Ag | In-situ Ag | Tonnes | Ag | In-situ Ag |
| (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | |
| Certej | 20,441 | 10 | 6,283 | 26,543 | 12 | 9,967 | 46,984 | 11 | 16,250 |
| Eastern Dragon | 837 | 81 | 2,178 | 2,253 | 67 | 4,848 | 3,090 | 71 | 7,026 |
| Olympias | 4,851 | 124 | 19,339 | 11,236 | 130 | 46,962 | 16,087 | 128 | 66,301 |
| Perama | 2,477 | 3 | 254 | 7,220 | 4 | 897 | 9,697 | 4 | 1,151 |
| Stratoni | 763 | 172 | 4,219 | 371 | 176 | 2,099 | 1,134 | 173 | 6,318 |
| TOTAL SILVER | 29,369 | 34 | 32,273 | 47,623 | 42 | 64,773 | 76,992 | 39 | 97,046 |
| Copper | Tonnes | Cu | In-situ Cu | Tonnes | Cu | In-situ Cu | Tonnes | Cu | In-situ Cu |
| (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | |
| Skouries | 68,762 | 0.53 | 362 | 81,311 | 0.50 | 405 | 150,073 | 0.51 | 767 |
| TOTAL COPPER | 68,762 | 0.53 | 362 | 81,311 | 0.50 | 405 | 150,073 | 0.51 | 767 |
| Lead | Tonnes | Pb | In-situ Pb | Tonnes | Pb | In-situ Pb | Tonnes | Pb | In-situ Pb |
| (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | |
| Olympias | 4,851 | 4.1 | 199 | 11,236 | 4.4 | 494 | 16,087 | 4.3 | 693 |
| Stratoni | 763 | 6.5 | 50 | 371 | 6.5 | 24 | 1,134 | 6.5 | 74 |
| TOTAL LEAD | 5,614 | 4.4 | 249 | 11,607 | 4.5 | 518 | 17,221 | 4.5 | 767 |
| Zinc | Tonnes | Zn | In-situ Zn | Tonnes | Zn | In-situ Zn | Tonnes | Zn | In-situ Zn |
| (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | |
| Olympias | 4,851 | 5.1 | 247 | 11,236 | 6.0 | 674 | 16,087 | 5.7 | 921 |
| Stratoni | 763 | 9.4 | 72 | 371 | 9.5 | 35 | 1,134 | 9.4 | 107 |
| TOTAL ZINC | 5,614 | 5.7 | 319 | 11,607 | 6.1 | 709 | 17,221 | 6.0 | 1,028 |
| Iron | Tonnes | Fe | Tonnes | Fe | Tonnes | Fe | |||
| (x1000) | % | (x1000) | % | (x1000) | % | ||||
| Vila Nova | 2,640 | 59.3 | 6,605 | 58.5 | 9,245 | 58.7 | |||
| TOTAL IRON | 2,640 | 59.3 | 6,605 | 58.5 | 9,245 | 58.7 |
| Table 2: Eldorado Gold Mineral Resources as of December 2013 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Project | Measured Resources | Indicated Resources | Total Meaured and Indicated | Inferred Resources | ||||||||
| Gold | Tonnes | Au | In-situ Au | Tonnes | Au | In-situ Au | Tonnes | Au | In-situ Au | Tonnes | Au | In-situ Au |
| (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | |
| Certej | 25,680 | 1.75 | 1,448 | 85,435 | 1.23 | 3,368 | 111,115 | 1.35 | 4,816 | 29,002 | 1.08 | 1,010 |
| Eastern Dragon | 800 | 12.48 | 322 | 2,700 | 6.04 | 530 | 3,500 | 7.50 | 852 | 2,200 | 2.67 | 190 |
| Efemcukuru | 1,645 | 9.70 | 513 | 3,971 | 7.96 | 1,017 | 5,616 | 8.47 | 1,530 | 5,418 | 5.03 | 876 |
| Jinfeng | 9,798 | 3.93 | 1,238 | 15,368 | 3.50 | 1,729 | 25,166 | 3.67 | 2,967 | 10,493 | 2.98 | 1,006 |
| Kisladag | 89,954 | 0.84 | 2,432 | 458,085 | 0.59 | 8,616 | 548,039 | 0.63 | 11,048 | 379,725 | 0.40 | 4,908 |
| Olympias | 6,319 | 8.04 | 1,633 | 10,644 | 8.55 | 2,926 | 16,963 | 8.36 | 4,559 | 3,955 | 8.34 | 1,060 |
| Perama | 3,064 | 4.30 | 424 | 9,375 | 3.18 | 958 | 12,439 | 3.46 | 1,382 | 8,766 | 1.96 | 554 |
| Piavitsa | 0 | 0.00 | 0 | 0 | 0.00 | 0 | 10,410 | 5.49 | 1,839 | |||
| Skouries | 99,135 | 0.80 | 2,552 | 184,493 | 0.49 | 2,853 | 283,628 | 0.60 | 5,405 | 168,063 | 0.31 | 1,673 |
| Tanjianshan | 4,006 | 2.79 | 358 | 3,622 | 2.86 | 333 | 7,628 | 2.82 | 691 | 3,185 | 3.65 | 375 |
| Tocantinzinho | 19,777 | 1.29 | 820 | 50,457 | 0.97 | 1,574 | 70,234 | 1.06 | 2,394 | 6,950 | 0.66 | 147 |
| White Mountain | 4,371 | 3.42 | 480 | 2,931 | 3.12 | 294 | 7,302 | 3.30 | 774 | 2,883 | 6.44 | 597 |
| TOTAL GOLD | 264,549 | 1.44 | 12,220 | 827,081 | 0.91 | 24,198 | 1,091,630 | 1.04 | 36,418 | 631,050 | 0.70 | 14,235 |
| Silver | Tonnes | Ag | In-situ Ag | Tonnes | Ag | In-situ Ag | Tonnes | Ag | In-situ Ag | Tonnes | Ag | In-situ Ag |
| (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | (x1000) | g/t | ounces (x1000) | |
| Certej | 25,680 | 9 | 7,150 | 85,435 | 9 | 24,611 | 111,115 | 9 | 31,761 | 29,002 | 6 | 5,268 |
| Eastern Dragon | 800 | 91 | 2,400 | 2,700 | 67 | 5,900 | 3,500 | 73 | 8,300 | 2,200 | 20 | 1,500 |
| Olympias | 4,464 | 142 | 20,380 | 10,644 | 147 | 50,305 | 15,108 | 146 | 70,685 | 3,955 | 118 | 15,050 |
| Perama | 3,064 | 3 | 335 | 9,375 | 9 | 2,833 | 12,439 | 8 | 3,168 | 8,766 | 7 | 1,860 |
| Piavitsa | 0 | 0 | 0 | 0 | 0 | 0 | 10,410 | 50 | 16,721 | |||
| Stratoni | 837 | 197 | 5,301 | 507 | 207 | 3,374 | 1,344 | 201 | 8,675 | 490 | 169 | 2,662 |
| TOTAL SILVER | 34,845 | 32 | 35,566 | 108,661 | 25 | 87,023 | 143,506 | 27 | 122,589 | 54,823 | 24 | 43,061 |
| Copper | Tonnes | Cu | In-situ Cu | Tonnes | Cu | In-situ Cu | Tonnes | Cu | In-situ Cu | Tonnes | Cu | In-situ Cu |
| (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | |
| Skouries | 99,135 | 0.49 | 484 | 184,493 | 0.41 | 750 | 283,628 | 0.43 | 1,234 | 168,063 | 0.34 | 575 |
| TOTAL COPPER | 99,135 | 0.49 | 484 | 184,493 | 0.41 | 750 | 283,628 | 0.43 | 1,234 | 168,063 | 0.34 | 575 |
| Lead | Tonnes | Pb | In-situ Pb | Tonnes | Pb | In-situ Pb | Tonnes | Pb | In-situ Pb | Tonnes | Pb | In-situ Pb |
| (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | |
| Olympias | 4,464 | 4.7 | 210 | 10,644 | 5.0 | 532 | 15,108 | 4.9 | 742 | 3,955 | 3.9 | 153 |
| Stratoni | 837 | 7.5 | 63 | 507 | 7.7 | 39 | 1,344 | 7.6 | 102 | 490 | 6.4 | 31 |
| TOTAL LEAD | 5,301 | 5.1 | 273 | 11,151 | 5.1 | 571 | 16,452 | 5.1 | 844 | 4,445 | 4.1 | 184 |
| Zinc | Tonnes | Zn | In-situ Zn | Tonnes | Zn | In-situ Zn | Tonnes | Zn | In-situ Zn | Tonnes | Zn | In-situ Zn |
| (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | (x1000) | % | tonnes (x1000) | |
| Olympias | 4,464 | 5.8 | 259 | 10,644 | 6.8 | 724 | 15,108 | 6.5 | 983 | 3,955 | 4.3 | 171 |
| Stratoni | 837 | 10.5 | 88 | 507 | 10.7 | 54 | 1,344 | 10.6 | 142 | 490 | 8.8 | 43 |
| TOTAL ZINC | 5,301 | 6.5 | 347 | 11,151 | 7.0 | 778 | 16,452 | 6.8 | 1,125 | 4,445 | 4.8 | 214 |
| Iron | Tonnes | Fe | Tonnes | Fe | Tonnes | Fe | Tonnes | Fe | ||||
| (x1000) | % | (x1000) | % | (x1000) | % | (x1000) | % | |||||
| Vila Nova | 2,851 | 59.3 | 11,115 | 58.5 | 13,966 | 58.7 | 10,323 | 59.8 | ||||
| TOTAL IRON | 2,851 | 59.3 | 11,115 | 58.5 | 13,966 | 58.7 | 10,323 | 59.8 |
Notes on Mineral Resources and Reserves
1) Mineral reserves and mineral resources are as of December 31, 2013
2) Mineral reserves are included in the mineral resources.
3) The mineral reserves and mineral resources are disclosed on a total project basis.
4) The Olympias mineral reserves and mineral resources include 1.855 million tonnes of economically recoverable old tailings that grade 3.4 g/t Au. These are added into the gold Proven reserve and Measured resource categories, respectively.