NOTICE TO READERS This notice accompanies and should be read in conjunction with Eldorado Gold Corporation’s
NOTICE TO READERS
This notice accompanies and should be read in conjunction with Eldorado Gold Corporation’s
press release dated February 21, 2019 and filed via SEDAR with Canadian securities regulatory
authorities under SEDAR Project Number 02876571. The press release has been refiled to
correct the date of the release from February 21, 2019 to February 22, 2019.
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NEWS RELEASE
TSX: ELD NYSE: EGO February 22, 2019
Corrected - Eldorado Gold Reports 2018 Year-End and Fourth Quarter
Financial and Operational Results
VANCOUVER, BC – Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reports that the Company will
refile on SEDAR at www.sedar.com under the Company’s profile its Audited Consolidated Financial Statements for
the years ending December 31, 2018 and 2017 and corresponding Management’s Discussion and Analysis to
correct certain typographical errors outlined at the end of this release.
In addition, the Company is reissuing its updated press release entitled “Eldorado Gold Reports 2018 Year-End and
Fourth Quarter Financial and Operational Results” as follows in order to correct the typographical errors included in
the prior version as described at the end of this release.
Year End Financial and Operating Results Overview (1)
• 2018 Production was ahead of plan: Annual gold production of 349,147 ounces of gold (2017: 292,971 ounces)
including 35,350 ounces of pre-commercial production from Lamaque.
◦ Exceeded original 2018 guidance of 290,000 – 330,000 ounces of gold.
• 2019 guidance increased ~27% year on year: 2019 guidance is 390,000 – 420,000 ounces of gold (per January
30, 2019 press release).
• Progress at Lamaque: A total of 35,350 pre-commercial ounces were produced during the year, including the
first gold pour from ore processed in the Sigma Mill in December 2018. $189.9 million in capital, including
capitalized exploration was spent at Lamaque in 2018, offset by $39.7 million in pre -commercial revenues. The
Company expects to be in commercial operation at Lamaque in Q1 2019.
• Revenue growth: Total revenue from continuing operations during the year was $459.0 million (2017: $391.4
million). Gold revenue from continuing operations was $386.0 million (2017: $333.3 million) on sales of 304,256
ounces of gold at an average realized gold price of $1,269 per ounce (2017: 264,080 ounces at $1,262 per
ounce).
• Increased cash flow provided by continuing operations : Net cash provided by operating activities of
continuing operations was $66.3 million in 2018 (2017: $30.8 million).
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• Cash operating costs consistent with guidance: Cash operating costs were $625 per ounce sold for 2018
(2017: $509 per ounce) and were in-line with expectations of $600-650 per ounce for 2018.
• Continued solid financial liquidity : The Company closed the year with total liquidity of approximately $543
million, including $293 million in cash, cash equivalents and term deposits, and $250 million in an undrawn line
of credit.
• Net loss attributable to shareholders: 2018 Net loss attr ibutable to shareholders of the Company from
continuing operations was $361.9 million or $2.28 per share, mainly attributable to impairment adjustments of
$447.8 for Olympias and Kisladag. Net loss attributable to shareholders of the Company from continuin g
operations in 2017 was $7.1 million or $0.07 per share. Adjusted net loss attributable to shareholders of the
Company in 2018 was $28.6 million, or $0.17 per share (2017: Adjusted net earnings attributed to shareholders
of the Company of $15.2 million, or $0.10 per share).
• Startup of Olympias: Olympias declared commercial production on December 31, 2017. In 2018, a total of
322,659 tonnes of ore were processed with an average grade of 7.75 g/t Au, resulting in 46,750 payable ounces
of gold produced, at operating cash costs of $764 per ounce sold.
• Kisladag Heap Leach: After the decision to suspend placement of ore on the pad in Q2 2018, recoveries
continued to improve, resulting in production of 172,009 ounces for the year. In Q3 2018, as a result of the
completion of the feasibility study and the Board approval to advance the Kisladag mill project, a review of the
useful lives of the Kisladag heap leach assets resulted in an impairment charge of $117.6 million ($94.1 million
net of deferred income tax) re cognized during the third quarter. In January 2019, the Company announced the
decision to suspend the mill project and resume mining by the end of Q1 2019.
• Free cash flow from resumption of mining and heap leaching at Kisladag: Will provide the opportunit y to
consider initial debt retirement starting later in 2019.
Fourth Quarter 2018 Highlights
• First gold poured at Lamaque: A total of 16,046 ounces of gold were produced during the quarter, including
the first gold pour from ore processed in the Sigma Mill in December.
• Steady cash operating costs: Q4 cash operating costs of $626 per ounce and all-in sustaining costs of $1,200
per ounce including $21 per ounce in non-cash operating costs from inventory change, were in line with Q4
2017 ($577 per ounce and $1,104 per ounce, respectively, for 2017).
• Updated Reserves and Resources: As of September 30, 2018, total Proven and Probable Reserves of 389
million tonnes at 1.35 grams per tonne gold containing 16.9 million ounces were reported.
◦ Added new reserves of 60,000 ounces of gold at Lamaque
◦ Replaced depletion of 80,000 ounces of gold at Efemcukuru
◦ Added 572,000 ounces of gold to the Lamaque Inferred Resources which now total 1.8 million ounces of
gold.
◦ Maiden Inferred Resource at Bolcana in Romania of 381 million tonnes at 0.53 grams per tonne gold and
0.18% copper containing 6.5 million ounces of gold and 686,000 tonnes of copper.
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◦ Share consolidation: In December 2018, the Company completed a 5:1 consolidation of its common
shares.
Eldorado’s President and CEO, George Burns, stated: “As a result of the team ’s hard work in 2018, we are well
positioned to grow annual gold production to over 500,000 ounces in 2020. We expect this will allow us to generate
significant free cash flow and provide us with the opportunity to consider debt retirement later this year.
“The restart of mining and heap leaching at Kisladag is a key part of our path forward. With improved heap leach
recoveries, we expect our revised plan will provide increased free cash flow over the next three years.
“Eldorado’s growth is also supported by the strong momentum at Lamaque. Less than two years after we acquired
the asset, we are set to begin commercial gold production later this quarter. We expect total output at Lamaque,
including pre -commercial production, in excess of 100,000 ounces in 2019. We continue to focus on expansion
possibilities through resource conversion, exploration drilling and increasing mill feed at this core asset.
“Looking ahead, I am confident about our future. Eldorado is a focused gold producer with strong assets and a team
that is committed to driving long-term shareholder value.”
Consolidated Financial and Operational Highlights
Summarized Annual Financial Results
(Continuing operations, except where noted)
2018 2017
Revenue $459.0 $391.4
Gold revenue $386.0 $333.3
Gold produced 349,147 292,971
Gold sold (oz) 6 304,256 264,080
Average realized gold price ($/oz) $1,269 $1,262
Cash operating costs ($/oz) 5 625 509
Total cash costs ($/oz) 5 650 534
All-in sustaining cost ($/oz) 5 994 922
Net earnings from gold mining operations 83.5 121.2
Net loss 1, 2 (361.9 ) (9.9 )
Net loss per share – basic ($/share) 1, 2 (2.28 ) (0.07 )
Adjusted net earnings (loss) 1, 2, 7 (28.6 ) 15.2
Adjusted net earnings (loss) per share ($/share) 1, 2 (0.17 ) 0.10
Cash flow from operating activities 3 61.3 66.5
Dividends paid — (10.6)
Cash, cash equivalents and term deposits 293.0 485.0
Total assets 4,628.9 5,090.3
Total long-term financial liabilities 4 $710.2 $703.7
(1) Includes discontinued operations - China in 2017.
(2) Attributable to shareholders of the Company.
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(3) Before changes in non-cash working capital.
(4) Includes all long-term liabilities except deferred income tax liabilities.
(5) By-product revenues are off-set against costs.
(6) Excludes pre-commercial sales from Lamaque and Olympias.
(7) See reconciliation of net earnings to adjusted net earnings.
Summarized Quarterly Financial Results
(Continuing operations, except where noted)
2018 Q1 Q2 Q3 Q4 2018
Revenue $131.9 $153.2 $81.1 $92.8 $459.0
Gold revenue $115.4 $121.3 $76.0 $73.3 $386.0
Gold produced (oz) 86,634 99,105 84,783 75,887 349,147
Gold sold (oz) 5 86,587 94,224 64,589 58,856 304,256
Average realized gold price ($/oz) $1,333 $1,287 $1,177 $1,245 $1,269
Cash operating cost ($/oz) 4 571 587 754 626 625
Total cash cost ($/oz) 4 598 610 762 666 650
All-in sustaining cost ($/oz) 4 878 934 1,112 1,200 994
Net earnings from gold mining operations 34.7 30.1 4.7 14.0 83.5
Net earnings (loss) 1, 2 8.7 (24.4 ) (128.0 ) (218.2 ) (361.9 )
Net earnings (loss) per share – basic ($/share) 1, 2 0.06 (0.15 ) (0.81 ) (1.38 ) (2.28 )
Adjusted net earnings (loss) 1, 2, 6 14.0 (1.8 ) (21.9 ) (18.9 ) (28.6 )
Adjusted net earnings (loss) per share ($/share) 1, 2 0.09 (0.01 ) (0.14 ) (0.11 ) (0.17 )
Cash flow from operating activities 3 37.9 23.5 23.2 (23.3 ) 61.3
Cash, cash equivalents and term deposits $459.7 $429.8 $385.0 $293.0 $293.0
2017 Q1 Q2 Q3 Q4 2017
Revenue $111.9 $82.7 $95.4 $101.4 $391.4
Gold revenue $90.5 $72.2 $84.4 $86.2 $333.3
Gold produced (oz) 75,172 63,692 70,053 83,887 292,971
Gold sold (oz) 5 74,068 57,206 65,439 67,367 264,080
Average realized gold price ($/oz) $1,222 $1,262 $1,290 $1,280 $1,262
Cash operating cost ($/oz) 4 466 484 508 577 509
Total cash cost ($/oz) 4 483 502 547 602 534
All-in sustaining cost ($/oz) 4 791 846 925 1,104 922
Net earnings from gold mining operations 37.0 28.1 30.1 26.0 121.2
Net earnings (loss) 1, 2 3.8 11.2 (4.2 ) (20.7 ) (9.9 )
Net earnings (loss) per share – basic ($/share) 1, 2 0.03 0.08 (0.03 ) (0.15 ) (0.07 )
Adjusted net earnings (loss) 1, 2 8.0 6.3 1.3 (0.4 ) 15.2
Adjusted net earnings (loss) per share ($/share) 1, 2 0.06 0.04 0.01 (0.02 ) 0.10
Cash flow from operating activities 3 28.2 16.9 16.3 5.1 66.5
Cash, cash equivalents and term deposits $873.9 $752.1 $546.1 $485.0 $485.0
(1) Includes discontinued operations - China in 2017.
(2) Attributable to shareholders of the Company.
(3) Before changes in non-cash working capital.
(4) By-product revenues are off-set against costs.
(5) Excludes pre-commercial sales from Lamaque and Olympias.
(6) See reconciliation of net earnings to adjusted net earnings.
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REVIEW OF FINANCIAL PERFORMANCE
Total revenue of $459.0 million, represented a 17% increase over 2017 revenue of $391.4 million due to increased
gold production. The realized gold price in 2018 was $1,269 per ounce, marginally higher than the realized gold price
of $1,262 per ounce in 2017.
Operating cash costs per ounce sold in 2018 averaged $625, an increase from $509 in 2017, mainly reflecting the
impact of the first year of operations at Olympias in 2018 where operating cash costs per ounce sold were $764 for
the year. Operating cash costs in 2018 were also impacted by a higher non-cash inventory change at Kisladag during
the year. Operating cash costs per ounce sold at Kisladag were $662 in 2018, compared to $500 in 2017, the increase
due primarily to the non-cash inventory change impact of $309 per ounce sold as a result of lower inventory on the
pad in 2018.
Exploration and evaluation expenditures decreased from $38.3 million in 2017 to $33.8 million in 2018. The decrease
for both the year and fourth quarter reflected the exploration focus on brownfields resource expansion at the
Company's mining operations and development projects during 2018. General and administrative expenses of $46.8
million in 2018 decreased 14% from $54.6 million in 2017.
Deferred tax recovery was $86.5 million for 2018 due to the impairment adjustments recorded for Kisladag and
Olympias, together with a 1% decrease in the Greece corporate income tax rate. The corporate income tax rate in
Greece was 29% in 2018 and will gradually decrease 1% each year to 25% by 2022.
Net Loss to Shareholders
In 2018 the net loss to shareholders from continuing operations was $361.9 million, ($2.28 per share) compared to
net loss from continuing operations of $7.1 million and a net loss from discontinuing operations of $2.8 million in 2017,
reflective of the impairment charge of $330.2 million ($247.7 million net of deferred tax) at Olympias in Q4 2018, and
the impairment charge related to Kisladag leach pad assets of $117.6 million ($94.1 million net of tax) in Q3 2018.
In Q4 2018, the Company recorded an impairment adjustment for Olympias of $330.2 million ($247.7 million net of
deferred tax). The Company believes this is reflective of the con tinued jurisdictional risk with obtaining permits in
Greece, and the recent softening of the global concentrate market. As a result, the net loss attributable to shareholders
during the quarter was $218.2 million ($1.38 per share) as compared to a net loss attributable to shareholders for the
quarter ended December 31, 2017 of $20.7 million ($0.15 per share)
In 2018, the adjusted net loss from continuing operations was $28.6 million, compared to adjusted net earnings of
$15.2 million in 2017, a reflection of higher production and gold price in Q4 2017.
The adjusted net loss from continuing operations in Q4 2018 was $18.9 million as compared to Q4 2017 adjusted net
loss of $0.4 million. Adjusted net earnings for Q4 2018 were slightly lower year over year d ue to reduced sales
volumes, and marginally lower gold prices, together with increased production costs due to first year of Olympias
production.
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Operations Update and Outlook
Gold Operations
Gold Operations
3 months ended
December 31,
12 months ended
December 31,
2018 2017 2018 2017 2019 Outlook
Total
Ounces produced 1 75,887 83,887 349,147 292,971 390,000 – 420,000
Cash operating costs ($/oz) $626 $577 $625 $509 $550 – 600
All in sustaining costs ($/oz) 3 1,200 1,104 994 922 900 – 1,000
Sustaining capex $17.2 $24.5 $54.4 $56.8 $80 – 105
Kisladag
Ounces produced 28,196 44,357 172,009 171,358 145,000 – 165,000
Cash operating costs ($/oz) $547 $604 $662 $500 $570 – 620
All in sustaining costs ($/oz) 3 770 n/a 812 n/a n/a
Sustaining capex $4.2 $11.4 $17.8 $27.9 $10 – 15
Efemcukuru
Ounces produced 23,544 25,295 95,038 96,080 90,000 – 100,000
Cash operating costs ($/oz) $535 $525 $511 $524 $550 – 600
All in sustaining costs ($/oz) 3 1,041 n/a 834 n/a n/a
Sustaining capex $9.1 $13.1 $24.4 $28.9 $15 – 20
Olympias
Ounces produced1 8,101 7,174 46,750 18,472 50,000 – 55,000
Cash operating costs ($/oz) $1,237 n/a $764 n/a $550 – 650
All in sustaining costs ($/oz) 3 2,038 n/a 1,297 n/a n/a
Sustaining capex $3.9 n/a 12.2 n/a $20 – 25
Lamaque
Ounces produced 2 16,046 7,061 35,350 7,061 100,000 – 110,000
Cash operating costs ($/oz) n/a n/a n/a n/a $550 – 600
All in sustaining costs ($/oz) 3 n/a n/a n/a n/a n/a
Sustaining capex n/a n/a n/a n/a $35 – 45
(1) Includes pre-commercial production in 2017 and 2018
(2) Includes pre-commercial production at Lamaque.
(3) The Company commenced reporting AISC by site in 2018.
Gold production in 2018 was 349,147 ounces up 19% year on year (2017: 292,971 ounces) due to increased
production at Kisladag, commercial production at Olympias and pre-commercial production at Lamaque. Production
at Efemcukuru remained in-line with 2017. Gold production in Q4 2018 was 75,887 ounces , down 10% quarter on
quarter (Q4 2017: 83,887) due to lower production at Kisladag partially offset by increased production at Lamaque.
For further information on the Company’s operating results for the year -end and fourth quarter of 2018, please see
the Company’s Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s
profile.
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Conference Call
A conference call to discuss the details of the Company’s Fourth Quarter and Year End 2018 Results and Technical
Reports will be held by senior management on Friday, February 22, 2019 at 8:30 AM PT (11:30 AM ET). The call will
be webcast and can be accessed at Eldorado Gold ’s we bsite: www.eldoradogold.com and via this link:
http://services.choruscall.ca/links/eldoradogold20190222.html
Conference Call Details Replay (available)
Date: February 22, 2019 Toronto: 1+ 604.638.9010
Time: 8:30 am PT (11:30 am ET) Toll Free: 1.800.319.6413
Dial in: 1+ 604.638.5340 Pass code: 2800
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, Romania, Serbia, and Brazil. 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).
Contacts
Investor Relations
Peter Lekich, Manager Investor Relations
604.687.4018 or 1.888.353.8166 [email protected]
Media
Louise Burgess, Director Communications & Government Relations
604.687.4018 or 1.888.353.8166 [email protected]
Cautionary Note about Forward-looking Statements and Information
Certain of the statements made and information provided in this press release are forward -looking statements or information within the me aning
of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these f orward-looking
statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and
phrases or statements that certain actions, events or results "may", " could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information contained in this release include, but are not limited to, statements or information with r espect to: our
guidance and outlook, including expected production, cost guidance and recoveries of gold, including higher heap leach recoveries at Kisladag,
favourable economics for our heap leaching plan and the ability to extend heap leach mine life at Kisladag through further me tallurgical tests on
deeper material, planned capital and exploration expenditures; our expecta tion as to our future financial and operating performance, including
expectations around generating significant free cash flow and debt retirement, expected metallurgical recoveries, gold price and global concentrate
outlook; and our strategy, plans and go als, including our proposed exploration, development, construction, permitting and operating plans and
priorities and related timelines and schedules and results of litigation and arbitration proceedings.
Forward-looking statements and forward -looking information by their nature are based on assumptions and involve known and unknown risks,
market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by such forward -looking statements or information.