Eldorado Gold Reports Q2 2023 Financial and Operational Results; Well Positioned to Meet 2023 Guidance

VANCOUVER, British Columbia, July 27, 2023 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the second quarter of 2023. For further information, please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis ("MD&A") filed on SEDAR+ at www.sedarplus.com under the Company’s profile.

Second Quarter 2023 Highlights

Operations

• Gold production: 109,435 ounces, compared to 113,462 ounces in Q2 2022, a 4% decrease from Q2 2022 as a result of lower throughput at Lamaque due to the wildfires in the region and lower average gold grade and recoveries at Olympias.
• Gold sales: 110,134 ounces at an average realized gold price per ounce sold¹ of $1,953, compared to 107,631 ounces at an average realized gold price per ounce sold of $1,849 in Q2 2022. Gold sales increased 2% from Q2 2022 primarily a result of an increase in production at Kisladag.
• Production costs: $117.0 million, compared to $109.3 million in Q2 2022. The increase was primarily due to higher royalty expense and increased sales volumes.
• Cash operating costs¹: $791 per ounce gold sold, compared to $789 per ounce gold sold in Q2 2022. Cash operating costs increased from Q2 2022 primarily as a result of lower by-product credits.
• All-in sustaining costs ("AISC")¹: $1,296 per ounce sold, compared to $1,270 per ounce sold in Q2 2022, primarily reflecting the increase in cash operating costs per ounce sold and slightly offset by lower sustaining capital expenditures.
• Total capital expenditures: $99.4 million, including $42.6 million of growth capital¹ invested at Skouries, with activity focused on mobilization, procurement and advancement of contracts. Growth capital invested at the operating mines totalled $29.0 million and was primarily related to Kisladag waste stripping to support mine life extension and construction of the first phase of the North Heap Leach Pad. Sustaining capital¹ totalled $26.1 million, including $16.2 million at Lamaque for underground development, equipment rebuilds, and the expansion of the tailing management facility.
• Production and cost outlook: The Company is maintaining its 2023 annual gold production guidance and cost guidance. Gold production is expected to be 475,000 - 515,000 ounces of gold. Cash operating costs per ounce sold are expected to be $760 to $860, total operating costs of $860 to $960 per ounce sold and AISC per ounce sold of $1,190 to $1,290.

Financial

• Revenue: $229.9 million in Q2 2023, an increase of 8% from $213.4 million in Q2 2022, primarily due to higher sales volumes, and higher average realized gold price.
• Net cash generated from operating activities from continuing operations: $75.3 million compared to $27.0 million in Q2 2022, primarily as a result of higher gold sales volumes and higher average realized prices.
• Cash flow from operating activities before changes in working capital²: $82.4 million in Q2 2023, compared to $49.2 million in Q2 2022, primarily driven by higher sales volumes, lower finance costs and lower income taxes paid.
• Cash, cash equivalents and term deposits: $456.6 million, as at June 30, 2023. Cash increased by $194.7 million from March 31, 2023, primarily as a result of a strategic equity investment ($61.3 million) by the European Bank for Reconstruction and Development ("EBRD") and a bought deal financing ($101.1 million) that were both completed during the quarter.
• Net earnings (loss): Net earnings of $1.5 million, or $0.01 earnings per share, compared to net loss of $22.9 million or $0.12 loss per share in Q2 2022. Higher net earnings in Q2 2023, compared to Q2 2022, is primarily a result of higher gold sales, higher average realized gold prices, foreign exchange gain and lower finance costs.
• Adjusted net earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA")²: $106.8 million, compared to $88.5 million in Q2 2022. The increase was primarily driven by increased gold sales, coupled with lower finance costs.
• Adjusted net earnings (loss)²: $16.1 million or $0.09 earnings per share, compared to net earnings of $13.6 million or $0.07 earnings per share in Q2 2022. Adjusted net earnings in Q2 2023 added back a non-cash loss of $21.4 million on foreign exchange translation of deferred tax balances and removed a non-cash $8.4 million gain on derivative instruments, primarily on gold collars entered into during this quarter.
• Free cash flow²: Negative $21.7 million compared to negative $62.7 million in Q2 2022. Free cash flow excluding Skouries was $13.2 million compared to negative $56.9 million in Q2 2022, with the stronger figure this quarter due primarily to both higher sales volumes and realized gold price as well as lower tax installments and temporary working capital movements.
• Project Facility Drawdowns: Drawdowns on the Skouries Term Facility for Q2 2023 totalled €65.9 million, including the previously reported initial drawdown of €32.3 million in April 2023.

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¹ These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's June 30, 2023 MD&A.

Corporate

• Strategic Investment by the EBRD: On June 14, 2023, Eldorado completed a strategic investment of CDN $81.5 million ($61.3 million) by the EBRD. In June the funds were invested in the Skouries project in Northern Greece, and were credited against the Company’s 20% equity funding commitment per the terms of the project financing facility that closed on April 5, 2023.
• Bought Deal: On June 7, 2023, the Company completed a bought deal offering for gross proceeds of CDN $135.2 million ($101.1 million). Proceeds from the offering are expected to be used to fund growth initiatives across Eldorado's portfolio, including some not currently contemplated within the Company's five-year plan, as well as for general corporate and working capital purposes.
• Gold Collar Contracts: In May 2023, Eldorado entered into a series of zero-cost gold collar contracts in order to manage potential cash flow variability during the Skouries construction period.
• Sustainability: On May 31, 2023, the Company published the 2022 Sustainability Report, its 11^th annual report, detailing our environmental, social and governance performance.
• Appointed Vice President, Legal: On July 24, 2023, Tamiko Ohta was appointed as Vice President, Legal.

Skouries Highlights

• As at June 30, 2023, detailed engineering is 48% complete and procurement is 62% complete.
• Growth capital invested of $42.6 million in Q2 2023, expected total investment of $240-$260 million in 2023.
• Mobilized the first major earthwork initiative for construction of the haul roads to build earthworks structures.
• Commenced structural steel and cladding of process plant and foundation construction of primary crusher.
• On track for commissioning in mid-2025 and commercial production at the end of 2025.

Transitioned to full construction in Q2 2023 with finalization of the project financing. Capital investment in Q2 2023 continued to focus on early construction works, engineering and procurement. Underground development advanced the west decline while mobilization occurred related to the first major earthwork initiative for construction haul roads to build earthworks structures. Upcoming milestones in 2023 include the mobilization of major construction contracts for concrete, finalizing the awards of the remaining major procurement and contract packages to 90% completion, and advancing detailed engineering to 90% completion.

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² These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosure for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's June 30, 2023 MD&A.

“During the quarter, both Kisladag and Lamaque demonstrated resiliency in the face of extraordinary weather-related events,” said George Burns, Eldorado Gold’s President and CEO. “Starting in late May, wildfires in the Abitibi region impacted operations at Lamaque. The safety of our employees and contractors is our top priority and a number of shifts were suspended. Our team took the opportunity to re-sequence the maintenance schedule and devised an alternative route to safely get employees to the Triangle underground that has resulted in minimal impact to expected production for the year. During the month of May at Kisladag, the region experienced heavy rainfall, and despite the impact, the team safely delivered on its key milestones during the quarter which included successfully completing the commissioning of the new agglomeration circuit and rotating the high-pressure grinding rolls for the first time.”

“At Olympias, I am pleased to report that the team delivered on a number of key productivity initiatives including implementing ventilation on demand and bulk emulsion blasting during the quarter,” continued Burns. “Further, the substation is now energized, and in early July, the ventilation fans were able to start, which is expected to not only improve our energy efficiency and health and safety of our employees, but also increase the number of development headings we can effectively work in. I see this as the inflection point that we have been working towards over the past several years through our transformation efforts, which we expect will give us the ability to drive increased tonnage and production going forward. During the quarter, as we worked to finalize the implementation of these initiatives at Olympias which were expected earlier in the year, our mine sequencing was impacted which resulted in lower grades impacting gold and by-product production. That, in combination with lower realized zinc by-product prices and higher treatment charges, resulted in much higher all-in sustaining costs. We expect these costs to trend downwards as we realize the benefits of our productivity initiatives and sequence back into higher grade stopes in the second half of the year, consistent with our 2023 Olympias guidance.”

“In sustainability, Eldorado released its 11^th Annual Sustainability Report in late May highlighting our environmental, social and governance performance over the past year,” said Burns. “Further, our team in Greece completed their first verification against the Mining Association of Canada’s ‘Towards Sustainable Mining’ protocols. They achieved “Triple A” ratings across all indicators for Tailings Management and Biodiversity, underlining our commitment to responsible mining practices. At Lamaque, despite the wildfires, we took delivery of our first electric underground haul truck, marking the first of its kind in Quebec. Once fully operational, we expect electric trucks at Lamaque to both mitigate our GHG emissions and support lower operating costs due to anticipated productivity improvements.”

Consolidated Financial and Operational Highlights