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
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$, unless stated otherwise.
1
NEWS RELEASE
TSX: ELD NYSE: EGO October 26, 2017
Eldorado Gold Reports 2017 Third Quarter Results
VANCOUVER, BC – Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reported the
Company’s financial and operational results for the third quarter ended September 30, 2017.
Third Quarter Financial and Operational Results
Loss attributable to shareholders of $4.2 million ($0.01 per share) , compared to a profit of $20.7
million ($0.03 per share) in Q3 2016. Adjusted net earnings of $1.3 million ($0.00 per share) compared
to an adjusted net earnings of $33.5 million ($0.05 per share) in Q3 2016.
Gold production of 70,053 ounces, (including Olympias pre-commercial production).
Gold revenues of $84.4 million on sales of 65,439 ounces of gold at an average realized gold price of
$1,290 per ounce.
All-in sustaining cash costs averaged $925 per ounce.
Cash operating costs averaged $508 per ounce; compared to revised 2017 guidance of $500 per ounce.
The Company holds $546.1 million in cash, cash equivalents and term deposits, and $250 million in
undrawn lines of credit at quarter end.
Olympias Phase II commissioning continued and commercial production is now expected b y the end
of 2017.
Closed the definitive agreement with Integra Gold Corp. (“Integra”) and acquired all issued and
outstanding common shares, not already owned by the Company, by way of a plan of arrangement.
Construction at Skouries continued, with production targeted for 2020.
“It was a productive third quarter with closing the Integra acquisition and managing the ongoing situation
in Greece,” said George Burns, Eldorado’s President and Chief Executive Officer. “ I am pleased that we
received the final permits to complete commissioning at Olympias Phase II and we have entered into
constructive dialogue with the Greek Ministry of Ene rgy and Environment. We are working with the
Ministry to demonstrate our commitment to implementing best in class technologies and operating to the
highest health, safety and environmental standards. We continue to seek issuance of the amended
electromechanical i nstallation permit for the Skouries flotation plant, rel ocation of antiquities at the
Skouries site as well as other matters.”
“Looking at Kisladag, our operating and engineering group is working diligently on alternatives to the gold
recovery issues, including a prefeasibility study on a mill scenario. I am confident we are on the right track.”
“Finally, I am pleased to report that underground development at Lamaque is proceeding expeditiously and
we welcome new employees as our team in Val d’Or grows.”
2
Summarized Financial Results
Continuing Operations (except where noted)
3 months ended September 30 9 months ended September 30
2017 2016 2017 2016
Revenues ($ millions) 95.4 116.2 290.0 318.0
Gold revenues ($ millions) 84.4 98.4 247.1 287.2
Gold sold (ounces) 65,439 73,740 196,713 226,346
Average realized gold price ($/ounce) 1,290 1,334 1,256 1,269
Cash operating costs – gold mines ($/ounce) 508 468 485 492
All-in sustaining cash cost – gold mines ($/ounce) 925 777 859 816
Total cash costs – gold mines ($/ounce) 548 486 510 509
Gross profit from gold mining operations 30.1 45.8 95.2 119.2
Cash flow from operating activities 1 ($ millions) 17.3 40.5 63.5 79.4
Adjusted net earnings 2 ($ millions) 1.3 33.5 15.6 44.6
Net profit (loss) 2, 3 ($ millions) (4.2) 20.7 10.9 (311.6)
Earnings (loss) per share – basic ($/share) 2, 3 (0.01) 0.03 0.01 (0.43)
Earnings (loss) per share – diluted ($/share) 2, 3 (0.01) 0.03 0.01 (0.43)
(1) Before changes in non-cash working capital.
(2) Includes discontinued operations for 2016.
(3) Attributable to shareholders of the Company.
Review of Quarterly Financial Results
Loss attributable to shareholders of the Company for this quarter was $4.2 million, (or $0.01 per share),
compared to a profit of $20.7 million, (or $0.03 per share) in the third quarter of 2016. The difference
between quarters was mainly due to lower gross profit year over year of $18.7 million, a loss of $26.4
million related to certain surplus equipment written down to its estimated recoverable amounts, offset by
a realized gain of marketable securities of $27.3 million. Adjusted net earnings for the quarter were $1.3
million ($0.00 per share) as compared to an adjusted net earnings of $33.5 million ($0.05 per share) for
the third quarter of 2016.
Gold sales of 65,439 ounces and gross profit from continuing gold mining operations were lower year over
year due to lower production and sales at Kisladag. General and administrative expenses increased $3.5
million year over year due to non-recurrent expenses in Integra related to the acquisition. Exploration
expense increased $6.7 million including $3.7 million at Integra and $1.5 million at Stratoni. Mine standby
costs of $1.3 million were recorded in the third quarter of 2017 related to Vila Nova, Perama Hill and
Skouries underground development.
3
Third Quarter Review
TURKEY
Kisladag
Kisladag reported gold production of 35,902 ounces for the quarter, down 27% year on year. Cash operating
costs of $491 per ounce were 16% higher year on year. Gold production was in line with mid-year guidance
for the quarter. High cyanide addition rates coupled with increased irrigation volumes were maintained
throughout the quarter resulting in increased solution grades towards the latter part of the reporting
period.
Sustaining capital expenditures of $6.5 million included waste stripping and various construction projects.
On October 23, 2017, the Company provided an update on Kisladag operations based on laboratory test
work undertaken during the third quarter indicating that lower recoveries are now expected from the zone
of mineralization located around the base of the open pit where mining is currently underway. In light of
the lower recoveries, the Company revised its 2017 guidance for Kisladag to 170,000 to 180,000 ounces at
cash costs of $500 to $550 per ounce. The Company also reduced Kisladag’s esti mated recoverable leach
pad inventory by approximately 40,000 ounces of gold.
This change in estimate for the heap leach inventory will be accounted for prospectively as a new
development in accordance with IAS 8 commencing October 1, 2017. The Company assessed the leach pad
inventory at the lower of cost and net realizable value and determined that no write down was required as
at September 30, 2017.
The Company would like to clarify that it has not yet made a decision to proceed on any of the potential
processing options outlined below. The Company is working towards announcing the results of a study and
by the end of the first quarter 2018 filing a prefeasibility report. The Company expects to make a decision
based on this prefeasibility report.
The Company is moving forward on assessing multiple processing solutions with a focus on the milling
option. In parallel, the Company will continue to assess the performance of the deeper material when
placed on the heap leach, along with testwork to determine the viability of the high pressure grinding roll
(“HPGR”) option.
The Company has significantly more data and testwork on the milling scenario compared to HPGR option.
The milling option has been assessed in the past, at the initial feasibility stage and over the life of the mine.
Bottle roll tests, which are indications of how the material would perform under a milling scenario, have
produced recoveries in the range of 60% to 90% based on the different ore types. Milling is a robust
technology that is well understood and Eldorado has previously designed, built and operated numerous
milling circuits around the world.
Further test work and engineering associated with a mill flowsheet has been initiated. On HPGR, samples
are being generated to complete more tests along with looking at agglomeration for this material.
The Company concluded that the lower heap leach recoveries and investigation of alternative treatment
methods are not indicators of impairment at this time.
4
Efemcukuru
Gold production of 24,905 ounces for the quarter was 3% higher year over year. Total gold ounces sold of
29,486 were higher due to a second quarter shipment delayed into the third quarter. Cash operating costs
of $529 per ounce were lower year over year. Capital expenditures of $6.4 million included underground
development, mine equipment overhauls and process and waste rock/tailings facilities construction
projects.
GREECE
On September 11, 2017, Eldorado announced its intention to suspend further investment into its operating
mines, development projects and exploration assets in Greece if outstanding , overdue permits were not
approved. By September 15, Hellas Gold S.A, the Company’s subsidiary had received the overdue permits
needed for its Olympi as development. However, certain permits for its Skouries development project
remain outstanding at this time. Requirements for these permits have been fully met by the Company's
subsidiary, Hellas Gold, and as such are legally due to be issued. Eldorado is seeking these Skouries permits
and constructive engagement with the Government in order to continue its investment in Greece. The
Company has temporarily postponed its decision to place its assets in Halkidiki on care and maintenance
and will continue to reassess its investments in the country.
Greece’s Ministry of Environment and Energy and the Ministry of Finance issued Hellas Gold with formal
notice of arbitration on September 14, 2017. The notice alleges that the Technical Study for the Madem
Lakkos Metallurgical Plant for treating Olympias and Skouries concentrates in the Stratoni Valley, submitted
in December 2014, is deficient and thereby is in violation of the Transfer Contract and the environmental
terms of the project. The Company believes that the subject Technical Study is robust and consistent with
the Transfer Contract, the Business Plan and the approved environmental terms of the project.
Stratoni
Concentrate production of 6,852 tonnes for the third quarter was lower year on year due to a reduction in
ore tonnes processed and slightly lower mined grades (6.5% Pb, 8.5% Zn, 179 g/t Ag). The expected reduced
grade and tonnage reflects the continuing depletion of the current mineable ore reserves remaining at the
Mavres Petres mine. Exploration activities are ongoing to identify additional resources in an effort to extend
the mine’s life.
Olympias
Commissioning and operational ramp-up of the Olympias Phase II plant continued during the quarter, with
steady improvement achieved in m etallurgical performance. Pre-commercial gold produced during the
quarter was 9,246 ounces. Commercial production is expected to be achieved in the fourth quarter this
year.
In September 2017, Olympias received all of the outstanding permits required to construct the paste backfill
plant, which will provide additional tailings filtration capacity. The plant throughput bottleneck is expected
to be fully resolved by end of the second quarter of 2018 when the paste backfill plant becomes operational.
Capital spending for the quarter at Olympias was $28.4 million. Spending was allocated between continued
underground development and infrastructure in the Olympias underground mine, ongoing construction of
the new tailings management facility and completion work in the Phase II plant.
5
Skouries
Progress was made during the quarter with key earthworks completed on the process plant, the access road
and the enabling works associated with the construction of the Karatzos Lakkos tailings facility. Steel work
erection began in the grinding and pebble crushing buildings as well as installation of the drives on grinding
mills.
Total capital expenditure for the quarter was $ 19.3 million. Capital expenditure is in line with current
guidance. Slower spending is attributable to ongoing delays in the timely granting of the required permits
by the Greek government. Production remains targeted for 2020. This development remains subject to the
possibility of resumption of the care and maintenance decision discussed in the Greece section above.
A contractor’s employee regrettably had a fatality at the Skouries project during the quarter, which
occurred during routine tree cutting activity. A full incident investigation took place and actions and
recommendations have been implemented across sites when tree cutting activities are underway.
Perama Hill
The project remains on care and maintenance pending receipt of the Environmental Impact Study permit.
CANADA
Lamaque
Permitting for Triangle production progressed throughout the quarter, with the mine license
documentation completed and submitted post quarter end . The permit approval has an expected
turnaround time of three months.
Underground development at Triangle for the quarter totalled 1,200 metres, which aligned with the plan
for the quarter. Progress is expected to increase in the fourth quarter with additional crews for both
development and production.
Over 28,000 tonnes of ore was delivered to the Camflo Mill at the end of the quarter and doré was poured
in early October.
Total capital expenditure for the quarter was $13 .8 million. Capital expenditure was mainly focused on
underground development and is expected to ramp up in the last quarter.
BRAZIL
Tocantinzinho
The mining concession application was reviewed by the Department of Mineral Production/Para State and
received a positive recommendation. The application was with the federal branch of the Mining Ministry
for review and it has been sent back to Para State for final review. Detailed engineering was completed for
the tailings dam and the permit application was submitted. Work continued on the detailed design required
for the solution pon d for permit application. All permit approvals are expected during the first quarter of
2018.
A total of $2.7 million was spent during the quarter.
6
ROMANIA
Certej
Engineering and design work continued during the quarter in order to support the permitting of the tailings
and waste management facilities. A geotechnical field investigation and permitting level designs
commenced based on the selected tailings impoundment location. Engineering and permitting for offsite
infrastructure continued with work progressing on the main power line, mine access road, water tanks and
water supply pipeline.
A total of $3.5 million was spent during the quarter.
Exploration Review
During the third quarter, the Company completed 55,300 metres of exploration drilling at the Company’s
exploration projects and mines. Exploration expenditures for the quarter totalled $14 million.
Turkey
At Efemcukuru, exploration drilling included resource conversion drilling at Kestane Beleni and testing of
new targets at the nearby Kokarpinar vein system. Regional exploration activities evaluated potential
epithermal and porphyry targets associated with Tertiary volcanic centers in Western Turkey.
Romania
The 2017 drilling program at Bolcana was completed late in the quarter, with over 28,000 metres drilled
during the year. Widely -spaced drillholes have outlined Au -rich porphyry style mineralization from near
surface to over a kilometre depth. A review of results is in progress to define follow-up programs.
Serbia
Exploration during the quarter included continued drilling at the KMC project and surface programs on
regional licenses. At KMC, 8,800 metres were completed at the Copper Canyon, Gradina, and Medenovac
targets. At Copper Canyon and Gradina, drillholes tested for continuity of previous high -grade skarn
intercepts. At Medenovac, an initial program of five scout holes testing skarn targets is underway. Surface
programs have advanced the Lisa and Kukavitsa projects to drill ready stage.
Greece
At the Stratoni mine, 13 underground drillholes tested the lower portion of the Mavres Petres orebody,
including both resource conversion and resource expansion holes. Drilling also continued at the early-stage
Tsikara porphyry prospect, testing geochemical and geophysical anomalies associated with intrusive contact
zones.
Canada
Exploration at the Lamaque project focused on resource delineation programs at the Triangle and Plug 4
deposits, with approximately 24,000 metres of drilling completed since project acquisition. At Triangle, infill
drilling of the C4 zone has now defined the resource area on roughly 20-30 metre drillhole spacing. Results
of this infill drilling are generally consistent with predictions from the previous drilling. Drilling at Plug 4 has
7
provided additional definition of mineralized zones associated with both throughgoing shear -hosted veins
and peripheral extensional vein systems.
Brazil
During the quarter, drilling was conducted on the early-stage Mara Rosa orogenic gold project, testing
new targets defined by soil geochemistry, geology and geophysics. At the Nazareno project, drilling was
initiated late in the quarter at the Gamba showing, testing for down-plunge extensions of shoots defined
by previous drilling programs.
Corporate
Post quarter-end, the Company was pleased to announce the appointment of Christos Balaskas as Vice
President and General Manager, Greece. Prior to joining Eldorado, Christos held the position of Ge neral
Manager, Athens Natural Gas Supply and Distribution Company. Christos is an oil and gas energy
professional with over 25 years of experience in the downstream oil and gas sector mostly with the Royal
Dutch Shell Group of companies and BG Group.
Eduardo Moura, previously Vice President and General Mana ger, Greece, will be relocating back to the
Vancouver office and assuming the role of Vice President and Special Advisor to the President and Chief
Executive Officer.
Paul N. Wright, Eldorado’s Vice Chairman, has notified his intention to resign from the Board of Directors
effective December 31, 2017. The Company wishes to thank Paul for his tireless dedication over the past
two decades, both as a member of the Board and in his previous role as Pres ident and Chief Executive
Officer.
Conference Call
A conference call to discuss the details of the Company’s 2017 Third Quarter Results will be held by senior
management on October 27, 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 November 10, 2017)
Date: Friday, October 27, 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: 930 298 43
Toll free: 888 231 8191
About Eldorado Gold
Eldorado is a leading intermediate gold producer with mining, development and exploration operations in
Turkey, Greece, Romania, Serbia, Canada and Brazil. The Company’s success to date is based on a highly
skilled and dedicated workforce, safe and respon sible operations, a portfolio of high -quality assets, 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).
8
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 Canadian 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 Second Quarter Financial
and Operational Results, including statements or information with respect to: our guidance and outlook, includi ng expected production, projected
cash cost, planned capital and exploration expenditures for 2017; our expectation as to our future financial and operating pe rformance, including
future cash flow, estimated cash costs, expected metallurgical recoveries, g old 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 assumptions and involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be ma terially 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 price of gold and other commodities; exchange rates; anticipated costs and expenses;
production, mineral reserves and resources and metallurgical recoveries, the i mpact of acquisitions, dispositions, suspensions or delays on our
business and the ability to achieve 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 informat ion are
reasonable, there can be no assurance that the forward -looking statement or informat ion 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; recoveries of gold; results of test work; revised guidance; expected impact on reserves and the carrying va lue; the updating of the
reserve and resource model and life of mine plans; mining operat ional and development risk; foreign country operational risks; risks of sovereign
investment; regulatory risks and liabilities including, regulatory environment and restrictions, and environmental regulatory restrictions and liability;
discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; risks related to impact of the
sale of our Chinese assets and the acquisition of Integra on the Company’s operations; risks related to impact of the integration of Integra; additional
funding requirements; currency fluctuations; litigation and arbitration risks; community and non -governmental organization actions; speculative
nature of gold exploration; dilution; share price volatility; competition; loss of key e mployees; and defective title to mineral claims or property, as
well as those factors discussed in the sections entitled “Forward -Looking Statements” and "Risk factors 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 discussion 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 quarterly financial statements and related MD&A available on our website and on SEDAR under
our Company name. The reader is directed to carefully review such document for a full understanding of the financial information summarized
herein.
Dr. Peter Lewis, P. Geo., Vice President, Exploration at Eldorado, is the Qualified Person for the technical disclosure of the Exploration Review.
Jacques Simoneau, P. Geo., Exploration Manager and François Ch abot, P. Eng., Director of Operations & Engineering at the Lamaque Project, are
Qualified Persons for the purposes of National Instrument 43 -101 - Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators. Mr. Simoneau is responsible for the exploration activities on the project while Mr. Cha bot is responsible for the engineering and
operation activities. Both have reviewed and approved the scientific and technical information in this news release relating to the Lamaque Project.
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").