Throughout this press release we use cash operating cost per ounce, total cash costs per ounce, all-in sustaining cost 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
Throughout this press release we use cash operating cost per ounce, total cash costs per ounce, all-in sustaining cost 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 our MD&A for an explanation and discussion of these non IFRS measures. All dollar amounts in US$, unles s stated otherwise.
1
NEWS RELEASE
TSX: ELD NYSE: EGO April 27, 2017
Eldorado Reports 2017 First Quarter Results
VANCOUVER, BC – Eldorado Gold Corporation, ( “Eldorado” or “the Company”) today reported the
Company’s financial and operational results for the first quarter ended March 31, 2017.
First Quarter Financial and Operational Highlights
Profit of $3.8 million ($0.01 per share), compared to a loss of $2.5 million or $0.00 per share in the first
quarter of 2016. Adjusted net earnings of $8.0 million ($0.01 per share) compared to an adjusted net
loss of $0.7 million ($0.00 per share) in the first quarter 2016.
Gold production of 75,172 ounces, compared to 79,892 ounces from continuing operations.
Gold revenues of $90.5 million on sales of 74,068 ounces of gold at an average realized gold price of
$1,222 per ounce.
All-in sustaining cash costs averaged $791 per ounce; considerably lower than 2017 guidance of all-in
sustaining costs of $845-875 per ounce.
Cash operating costs averaged $466 per ounce; lower than 2017 guidance of $484-535 per ounce.
Total liquidity of approximately $1.1 billion, including $873.9 million in cash, cash equivalents and term
deposits, and $250 million in undrawn lines of credit at quarter end.
Olympias Phase II began commissioning in the first quarter 2017.
Announced receipt of multiple tenders for significantly better concentrate sales terms for gold
concentrate produced for beyond 2017 at Olympias Phase II.
Construction at Skouries continued on track for anticipated 2019 start-up.
George Burns set to take on role of President & Chief Executive Officer on April 28, 2017.
“We have had a very successful first quarter of the year, with progress made at all of our development
projects,” said Paul Wright, President and Chief Executive Officer. “Commissioning is underway at Olympias
Phase II in Greece and we remain on track for declaring commercial production in the third quarter of this
year. At Skouries, work continued during the quarter and we are still aiming for production in 2019. Both
Tocantinzinho and Certej are progressing with engineering optimizations. As I leave my current role, I am
confident that the incoming President & CEO, George Burns, and the Eldorado team are well positioned to
continue to grow our company in a manner that provides significant additional value for shareholders.”
2
Financial Results
($ millions except as noted)
Continuing Operations for the quarter ended March 31, 2017 2016
Kisladag
Ounces produced 52,644 52,376
Cash operating costs ($/ounce) 446 536
Total cash cost ($/ounce) 464 552
Sustaining capex 5.1 7.0
Efemcukuru
Ounces produced 22,528 27,516
Cash operating costs ($/ounce) 515 478
Total cash cost ($/ounce) 531 500
Sustaining capex 3.8 4.8
Olympias
Ounces produced (1) 0 2,774
Sustaining capex 0 n/a
Subtotal: Continuing Operations
Ounces produced 75,172 79,892
Cash operating costs ($/ounce) 466 519
Total cash cost ($/ounce) 483 536
Sustaining capex 8.9 11.8
(1) Includes production from tailings retreatment in 2016.
Review of Quarterly Financial Results
Profit attributable to shareholders of the Company was $3.8 million, or $0.01 per share, compared to a loss
of $2.5 million, or $ 0.00 per share in 2016. Adjusted net earnings were $8.0 million ($0.01 per share) as
compared to an adjusted net loss of $0.7 million ($ 0.00 per share) for the first quarter of 2016. The main
difference between profit and adjusted earnings in the first quarter of 2017 was a $3.0 million adjustment
related to closing cash / working capital recorded on finalization of the sale of the Company’s Chinese assets
(see the MD&A for a reconciliation of profit to adjusted earnings).
Gold sales of 74,068 ounces from continuing operations were consistent year over year, while gross profit
from continuing gold mining operations increased $4.9 million due t o higher gold prices and lower cash
operating costs. General and administrative expenses increased $2.1 million year over year due to
reorganization costs in Vancouver and Turkey. Exploration expense increased $3. 2 million including $ 0.9
million related to development of an exploration drift at Stratoni. Mine standby costs of $1.0 million were
recorded in the first quarter 2017 related to Vila Nova and Perama Hill (2016: $9.6 million mainly related to
the temporary suspension of the Skouries development from January to May 2016). The effective tax rate
of 80% was higher than an expected rate of 20% -30% due to withholding tax accruals in Turkey, foreign
exchange effects on the local tax basis in Greece, and unrecognized losses in Canada and Greece. The
relative impact of these factors was approximately equal.
3
First Quarter Review and 2017 Outlook
TURKEY
Kisladag
Kisladag reported gold production of 52,644 ounces for the quarter, in -line with production in the prior
year. There was a reduction in ore tonnes to the leach pad year over year as low grade run -of-mine ore is
no longer being placed on the pad. Average treated head grade and tonnes mined were higher year over
year as the mine accessed higher grade ore at the bottom of the current cut back. Cash operating costs of
$446 per ounce improved over 2016 due to higher average treated head grade, and reduced operating costs
realized in labour and major consumables through operational improvements. Sustain ing capital
expenditures of $5.1 million were lower year over year due to reduced project work.
Efemcukuru
Gold production of 22,528 ounces for the quarter was slightly lower than 2016 due to the lower average
treated head grade and slightly lower tonnes milled. Cash operating costs of $515 per ounce were higher
year on year due to lower grade. Capital expenditures of $3.8 million included underground development,
mine equipment overhauls, and process and waste rock/tailings facilities construction projects.
GREECE
Stratoni
Concentrate production for the first quarter was significantly higher year on year due to higher ore tonnes
processed and higher zinc head grade. The mine and plant operated largely as planned in comparison to
2016 when operations were disrupted by a suspe nsion of act ivities, with only two scheduled production
days lost due to adverse winter weather conditions in January.
Development of the hangingwall exploration drift progressed according to plan and diamond drilling
commenced from the first drill statio n. Extension of the main footwall access ramp below +117m level to
open up future production areas commenced in earnest in January.
Olympias
Development of Olympias Phase II made significant progress during the quarter. The majority of installation
work in the process plant, including piping and cabling, was completed and commissioning work
commenced in late March. Ore mining and processing began in April. Commercial production is expected
by the beginning of the third quarter.
Capital spending for the first q uarter at Olympias was $37 .1 million, with th e majority deployed for
continued underground development and rehabilitation in the Olympias underground, construction of the
Phase II plant, and construction works in the Kokkinolakas tailings management facility.
During the quarter, the Company also announced that it ha d received multiple tenders for significantly
better concentrate sales terms for gold concentrate produced beyond 2017. This is primarily due to the
treatment of higher grade material resulting in better grades in concentrate produced. Under the new sales
terms, gold payability rates have increased from 58% up to a maximum of 71%, which is expected to result
in an increase of approximately 15,000 ounces of payable gold production per year. Annual Phase II
production is now estimated to be approximately 85,000 ounces of gold ( from 72,000 ounces per year
previously) plus approximately 55,000 ounces of gold equivalent production.
4
Skouries
Work was restricted in the first quarter due to adverse winter weather. Earthworks, building erection and
site clearing all progressed as weather allowed during the quarter. Targeted work included tailings thickener
foundations and stockpile dome embankments. Engineering continued for the integrated waste
management facility and the filter plant. Equipment selection for the main pressure filters for the filter plant
was completed during the quarter. Total capital expenditure for the quarter was $14.0 million.
Perama Hill
The project remains on care and maintenance pending receipt of the Environmental Impact Study permit.
BRAZIL
Tocantinzinho
Installation licenses for the site, road and power line were under review by the Para State government
during the first quarter . Basic engineering was nearly completed for the process plant . De tailed
infrastructure engineering was ongoing and is expected to be completed during the second quarter. The
installation license was received post quarter end, however the tailings and solution ponds permits remain
outstanding and are expected later this year. A total of $1.9 million was spent during the quarter.
ROMANIA
Certej
Optimization studies continued during the quarter on the metallurgical process, water and waste
management and site infrastructure to support the ongoing permitting activities. These optimizations are
required for the oxidative process and the optimizations of waste and tailings material generated.
Permitting for offsite infrastructure continued with work progressing on main power line, water tanks and
mine access roads and water supply pipelines. A total of $1.9 million was spent during the quarter.
Exploration Review
Exploration activities during the quarter included reconnaissance -stage programs, drillhole targeting and
drilling programs at our projects in Greece, Turkey, Romania, Serbia and Brazil. A total of 13,600 metres of
exploration drilling was completed.
In Greece, the Company completed the drill-testing of the Fisoka porphyry prospect, and initiated drilling
at the Tsikara porphyry prospect near Skouries. The underground resource drilling program at Mavres
Petres commenced late in the quarter, targeting previously untested down-dip and along-strike projections
of the orebody.
In Romania, drilling was conducted on the Certej North and Bolcana licenses, targeting the Bolcana porphyry
system and related epithermal prospects on its periphery.
In Brazil, drilling programs tested both the Vulture and Parnamirim target areas within the Borborema
project area in Pernambuco state. Regional geochemical sampling continued over the large Borborema
project area, while at the Nazareno project, work focused on infill soil sampling, mapping, and geophysical
surveys to refine targets for drilling during the second half of the year.
5
2017 Outlook
In 2017 Eldorado expects to produce 365,000 -400,000 ounces of gold, including pre -commercial ounces
from Olympias Phase II. Cash costs are forecasted at $ 485-535 per ounce, with all-in sustaining cash costs
expected to range from $845-875 per ounce.
The Company’s balance sheet remains one of the stro ngest in its peer group , with approximately $874
million in cash, cash equivalents and term deposits and $250 million in undrawn credit lines. Sustaining
capital for gold mining operations in 201 7 is e stimated to be approximately $70 million. Planned
expenditures for mining development total $345 million. Exploration expenditures in 2017 are budgeted at
$35 million (65% expensed and 35% capitalized) , with a balanced focus on resource delineation and
brownfield drilling at existing operations, advancing early-stage projects, and project generation.
Depreciation, depletion and amortization expense is expected to be approximately $335 per ounce of gold
sold. General and administrative expense is expected to be approximately $45 million.
Corporate
In December 2016, the Company announced th at Paul Wright, Eldorado’s current President and Chief
Executive Officer, will retire from this role after the Annual General Meeting on April 27, 2017. Mr. Wright
will be succeeded by Mr. George Burns, who will also join Eldorado’s Board of Directors. Mr. Wright will
continue as a member of Eldorado’s Board of Directors, taking on the position of Vice-Chairman.
Mr. Ross Cory did not stand for re-election as a Director at the Company’s Annual Meeting of Shareholders.
Mr. Cory served on the Board for over 13 years and the Company would like to thank him for his many years
of service and dedication.
Conference Call
A conference call to discuss the details of the Company’s 201 7 First Quarter Results will be held by senior
management on April 28, 2017 at 8:30 AM PT (11:30 AM ET). The call will be webcast and can be accessed
at Eldorado Gold’s website: www.eldoradogold.com
Conference Call Details Replay (available until May 12, 2017)
Date: Friday April 28, 2017 Toronto: 416 849 0833
Time: 8:30 am PT (11:30 am ET) Toll Free: 855 859 2056
Dial in: 647 427 7450 Pass code: 9264 4727
Toll free: 888 231 8191
About Eldorado Gold
Eldorado is a leading low cost gold producer with mining, development and exploration operations in
Turkey, Greece, Romania, Serbia and Brazil. The Company’s success to date is based on a low cost strategy,
a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with
the communities where it operates. Eldorado’s common shares trade on the Toronto Stock Exchange (TSX:
ELD) and the New York Stock Exchange (NYSE: EGO).
6
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 meaning
of the United States Private Securities Litigation Reform Act of 1995 and applicable C anadian securities laws. Often, these forward -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 the Company’s 2017 First Quarter Financial and
Operational Results, including statements or information with respect to: our guidance and outlook, including expected production, projected cash
cost, planned capital and exploration expenditures for 2017; our expectation as to our future financial and operating performance, including future
cash flow, estimated cash costs, expected metallurgical recoveries, gold price outlook; and our strategy, plans and goals, including our proposed
exploration, development, construction, permitting and operating plans and priorities, and related timelines.
Forward-looking statements and forward -looking information by their nature are based on assumpt ions and involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be material ly different from
any future results, performance or achievements expressed or implied by such forward-looking statements or information.
We have made certain assumptions about the forward-looking statements and information, including assumptions about the geopolitical, economic,
permitting and legal climate that we operate in; the future pr ice of gold and other commodities; exchange rates; anticipated costs and expenses;
production, mineral reserves and resources and metallurgical recoveries, the impact of acquisitions, dispositions, suspension s or delays on our
business and the ability to a chieve our goals. In particular, except where otherwise stated, we have assumed a continuation of existing business
operations on substantially the same basis as exists at the time of this release.
Even though our management believes that the assumptions made and the expectations represented by such statements or information are
reasonable, there can be no assurance that the forward -looking statement or information will prove to be accurate. Many assumptions may be
difficult to predict and are beyond our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions pr ove incorrect, actual
results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include,
among others, the following: geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other metal
price volatility; mining operational and development risk; foreign country operational risks; risks of sovereign investment; regulatory environment
and restrictions, including environmental regulatory restrictions and liability; discrepancies between actual and estimated p roduction, mineral
reserves and resources and metallurgical recoveries; risks related to impact of the sale of our Chinese assets on the Company’s operations; additional
funding requirements; currency fluctuations; litigation risks; community and non -governmental organization actions; specul ative nature of gold
exploration; dilution; share price volatility; competition; loss of key employees; and defective title to mineral claims or p roperty, as well as those
factors discussed in the sections entitled “Forward -Looking Statements” and "Risk fa ctors in our business" in the Company's most recent Annual
Information Form & Form 40 -F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form
filed on SEDAR under our Company name, which discus sion is incorporated by reference in this release, for a fuller understanding of the risks and
uncertainties that affect the Company’s business and operations.
Forward-looking statements and information is designed to help you understand management’s current views of our near and longer term prospects,
and it may not be appropriate for other purposes.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward -looking statements or
information contained herein. Except as required by law, we do not expect to update forward -looking statements and information continually as
conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities
regulatory authorities in Canada and the U.S.
Financial Information and condensed statements contained herein or attached hereto may not be suitable for readers that are u nfamiliar with the
Company and is not a substitute for reading the full annual financial statements and related MD&A available on o ur website and on SEDAR under
our Company name. The reader is directed to carefully review such document for a full understanding of the financial informa tion summarized
herein.
Except as otherwise noted, scientific and technical information contained in this press release was reviewed and approved by Paul Skayman,
FAusIMM, Chief Operating Officer for Eldorado Gold Corporation, and a "qualified person" as defined by Canadian Securities Administrators' National
Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
Contacts
Investor Relations
Krista Muhr, Vice President Investor Relations & Corporate Communications
604.607.6701 or 1.888.363.8166 [email protected]
Media
Louise Burgess, Director Communications & Government Relations
604.601.6679 or 1.888.363.8166 [email protected]
7
Gold Production Highlights (in US$)
1 Ounces produced include production from tailings retreatment at Olympias.
2 Cost figures calculated in accordance with the Gold Institute Standard.
3 Cash operating costs, plus royalties and the cost of off -site administration.
4 Cash operating costs and total cash costs are non-IFRS measures. Please see our MD&A for an explanation and discussion of these.
5 Outlook assumes the following metal prices: Gold $1,150 per ounce; Silver $20 per ounce.
First Quarter
2017
First Quarter
2016 Full Year 2016 2017 Outlook5
Gold Production
Ounces Sold 74,068 133,467 483,461 n/a
Ounces Produced1 75,172 140,989 486,025 365,000 to 400,000
Cash Operating Cost ($/oz)2,4 466 603 579 485 to 535
Total Cash Cost ($/oz)3,4 483 658 621 n/a
Realized Price ($/oz - sold) 1,222 1,198 1,253 n/a
Kişladağ Mine, Turkey
Ounces Sold 52,783 52,679 211,284 n/a
Ounces Produced 52,644 52,376 211,161 230,000 to 245,000
Tonnes to Pad 3,227,406 4,046,896 16,565,254 n/a
Grade (grams / tonne) 1.13 0.73 0.80 n/a
Cash Operating Cost ($/oz)4 446 536 474 500 to 550
Total Cash Cost ($/oz)3,4 464 552 488 n/a
Efemçukuru Mine, Turkey
Ounces Sold 21,285 22,304 99,744 n/a
Ounces Produced 22,528 27,516 98,364 95,000 to 105,000
Tonnes Milled 115,794 116,487 476,528 n/a
Grade (grams / tonne) 6.77 7.96 7.4 n/a
Cash Operating Cost ($/oz)4 515 478 514 525 to 575
Total Cash Cost ($/oz)3,4 531 500 530 n/a
Tanjianshan Mine, China
Ounces Sold - 14,053 49,266 n/a
Ounces Produced - 14,053 49,266 n/a
Tonnes Milled - 268,615 869,964 n/a
Grade (grams / tonne) - 1.84 1.90 n/a
Cash Operating Cost ($/oz)4 - 852 819 n/a
Total Cash Cost ($/oz)3,4 - 1,083 970 n/a
Jinfeng Mine, China
Ounces Sold - 26,096 66,902 n/a
Ounces Produced - 25,935 68,195 n/a
Tonnes Milled - 305,484 766,697 n/a
Grade (grams / tonne) - 3.26 3.32 n/a
Cash Operating Cost ($/oz) 4 - 726 705 n/a
Total Cash Cost ($/oz) 3,4 - 807 791 n/a
White Mountain Mine, China
Ounces Sold - 18,335 56,265 n/a
Ounces Produced - 18,335 56,265 n/a
Tonnes Milled - 206,090 717,145 n/a
Grade (grams / tonne) - 3.25 2.78 n/a
Cash Operating Cost ($/oz) 4 - 582 731 n/a
Total Cash Cost ($/oz) 3,4 - 620 773 n/a
Olympias, Greece
Ounces Sold - - - n/a
Ounces Produced1 - 2,774 2,774 40,000 to 50,000
Tonnes Milled - 87,350 87,350 n/a
Grade (grams / tonne) - 2.47 2.47 n/a
Cash Operating Cost ($/oz)4 - - - n/a
Total Cash Cost ($/oz)3,4 - - - n/a
Eldorado Gold Corporation
Unaudited Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
Please see the Financial Statements dated March 31, 2017 for notes to the accounts.
8
Approved on behalf of the Board of Directors
(Signed) John Webster Director
(Signed) Paul N. Wright Director
$ $
642,618 883,171
231,258 5,292
244 240
45,191 28,327
52,121 54,315
126,913 120,830
1,098,345 1,092,175
11,938 48,297
12,739 11,620
3,698,141 3,645,827
4,821,163 4,797,919
104,397 90,705
104,397 90,705
5 591,845 591,589
10,928 10,882
89,710 89,778
442,933 443,501
1,239,813 1,226,455
2,819,821 2,819,101
(8,000) (7,794)
2,609,055 2,606,567
7,653 (7,172)
(1,934,800) (1,928,024)
3,493,729 3,482,678
87,621 88,786
3,581,350 3,571,464
4,821,163 4,797,919
Defined benefit pension plan
Attributable to non-controlling interests
As set retirement obligations
Deferred income tax liabilities
Equity
Share capital
Treasury stock
Contributed surplus
Accumulated other comprehensive income (loss)
Deficit
Total equity attributable to shareholders of the Company
December 31, 2016
ASSETS
Current assets
Cash and cash equivalents
Term deposits
Note March 31, 2017
Restricted cash
Marketable securities
Accounts receivable and other
Inventories
Other assets
Debt
Defined benefit pension plan
Property, plant and equipment
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities