Eldorado Gold Corporation, (“Eldorado” or “the Company”) today
reports the Company’s financial and operational results for the
fourth quarter and year ended December 31, 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.
Q4 2023 and Full-Year
Summary
Operations
-
Gold production: 143,166 ounces
in Q4 2023 reflecting continued improvements across the portfolio.
Full year production of 485,139 ounces in 2023 was at the midpoint
of the tightened guidance range and an increase of 7% from 2022
production of 453,916 ounces, driven by operational upgrades at
Kisladag and increased productivity at Olympias.
- Gold
sales: 144,827 ounces in Q4 2023 at an average realized
gold price per ounce sold(1) of $1,999, and 483,978 ounces in 2023
at an average realized gold price per ounce sold of $1,944.
- Production
costs: $137.6 million in Q4 2023, and $478.9 million in
2023, compared to $122.2 million in Q4 2022, and $459.6 million in
2022. The increases are due to higher volumes of production and
sales, as well as higher royalty expense.
- Cash
operating costs(1): $716 per ounce sold in Q4 2023 and
$743 per ounce sold in 2023, within the lowered guidance range, and
a decrease from $741 per ounce sold in Q4 2022 and $788 per ounce
sold in 2022. The decrease in both periods was primarily due to
higher production and slightly lower unit costs for key
consumables, including energy and fuel.
- All-in
sustaining costs(1) ("AISC"): $1,207 per
ounce sold in Q4 2023 and $1,220 per ounce sold in 2023, within the
tightened guidance range for the year, and lower than $1,246 per
ounce sold in Q4 2022 and $1,276 per ounce sold in 2022. Decreases
in both periods primarily reflect the decrease in cash operating
costs per ounce sold, partially offset by higher royalties due to
higher metal prices. The decrease in the year was also due to lower
sustaining capital expenditures.
- Total
capital expenditures: $128.6 million in Q4 2023, and
$401.9 million in 2023, including $52.5 million and $153.8 million
of growth capital(1) invested at our Skouries project in the
respective periods. Growth capital at the operating mines of $121.1
million in 2023 was primarily focused at Kisladag, including waste
stripping to support mine life extension, construction of the first
phase of the North Heap Leach Pad ("NHLP"), and upgraded
higher-capacity conveyors. Sustaining capital at operating
mines(1) totaled $121.8 million in 2023, including $72.7 million at
Lamaque primarily related to underground development, equipment
rebuilds, and expansion of the tailings management facility.
Financial
-
Revenue: $306.9 million in Q4 2023 an increase of
25% from revenue of $246.2 million in Q4 2022, and $1,008.5 million
in 2023, an increase of 16% from revenue of $872.0 million in 2022,
both due to higher average realized gold prices and higher volumes
sold.
- Net cash
generated from operating activities of continuing
operations: $159.6 million in Q4 2023, an increase from
$96.2 million in Q4 2022, and $382.9 million in 2023, an increase
from $211.2 million in 2022. Increases in both periods were due to
higher revenue, lower unit operating costs, lower income taxes
paid, and lower mine standby costs.
- Cash flow
from operating activities, before changes in working
capital(2): $138.0 million in Q4 2023, an
increase from $85.2 million in Q4 2022 and $411.2 million in 2023,
an increase from $239.5 million in 2022. Increases in both periods
were primarily due to higher net cash generated from operating
activities.
- Cash, cash
equivalents and term deposits: $541.6 million as at
December 31, 2023, up from $314.7 million as at
December 31, 2022.
- Net
earnings (loss) attributable to shareholders from continuing
operations: $91.8 million in Q4 2023, an increase from
$41.9 million in Q4 2022, and $106.2 million in 2023, an increase
from net loss of $49.2 million in 2022. Increases in both periods
were primarily due to higher revenue, and lower mine standby costs,
write-downs of assets, and income taxes.
- Adjusted
net earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA")(2): $147.2 million in
Q4 2023, an increase from $97.1 million in Q4 2022, and $463.3
million in 2023, an increase from $321.5 million in 2022. These
increases were driven by higher net earnings, combined with the
reversal of unrealized losses on derivative instruments of $24.6
million in Q4 2023 and $9.6 million in 2023, among other
adjustments.
- Adjusted
net earnings(2): $49.3 million or $0.24
per share in Q4 2023, an increase from $25.8 million or $0.14 per
share in Q4 2022, and $110.7 million or $0.57 per share in 2023, an
increase from $10.1 million or $0.05 per share in 2022. Adjusted
net earnings in Q4 2023 removes a $59.4 million gain on deferred
income taxes due to the Turkiye hyperinflationary tax basis
adjustment and added back a $24.6 million loss on derivative
instruments, among other adjustments. Adjusted net earnings in 2023
removes a $59.4 million gain on deferred income taxes due to the
Turkiye hyperinflationary tax basis adjustment and added back a
one-time deferred tax expense adjustment of $22.6 million related
to a retroactive income tax rate increase from 20% to 25% in
Turkiye as well as a $29.3 million loss on foreign exchange
translation of deferred tax balances, among other things.
- Free cash
flow(2): $29.3 million in Q4 2023, and negative $47.2
million in 2023 due to significant investment in growth capital.
Free cash flow excluding capital expenditures at Skouries(2) was
$82.0 million in Q4 2023 and $112.6 million in 2023.
- Project
Term Facility Drawdowns: Drawdowns on the Skouries Term
Facility as of December 31, 2023 totaled €153.2 million.
“Eldorado finished 2023 with its strongest
quarter of production, delivering 143,166 ounces of gold,” said
George Burns, President and CEO of Eldorado Gold. “Across our four
operating mines we produced 485,139 ounces of gold at an all-in
sustaining cost of $1,220 per ounce, within our guidance range.
This was an important year as we delivered 7% production growth, a
6% lower cash cost per ounce and a 4% lower AISC per ounce compared
to 2022. We achieved this in a challenging inflationary environment
and successfully delivered key initiatives across our operations.
Kisladag successfully commissioned the new agglomeration drum and
North Heap Leach Pad; Olympias started up its ventilation system
and bulk emulsion explosives; Lamaque converted a portion of the
Ormaque inferred resources into indicated in preparation for an
initial reserve later in 2024. By completing these critical
activities we have set up our operations for success to deliver
consistent, sustainable results through continued execution.”
“In 2023, following the closing of the €680
million project financing facility with two Greek Banks we advanced
into full construction on our transformational Skouries project in
Greece. In addition, we completed a C$81.5 million strategic
investment in Eldorado with the European Bank for Reconstruction
and Development. As we advanced on finalizing key contracts in
2023, we remained within the original capital cost estimate from
the December 2021 feasibility study. More recent and pending
contracts incorporate labor rates and labor hours established
through a diligent tendering process that are higher than the
feasibility study. This has positioned us to provide an update to
the overall capital cost estimate which has increased by 9% to $920
million from $845 million. With the project financing in place and
a robust balance sheet we remain fully funded to complete the
construction of Skouries. We look forward to bringing online this
world class copper-gold asset that will deliver an additional 40%
of high-quality gold production growth for our company by
2027.”
“I would like to thank our global team for all
their contributions during the year. We are well positioned for a
strong 2024 and beyond as we continue to benefit from our efforts
over the past several years to optimize our asset portfolio. With a
solid balance sheet we are well funded to complete construction of
Skouries and to advance on continuous improvement projects across
our assets. Our focus in 2024 is on safety, productivity and
driving efficiencies across our portfolio to generate free cash
flow," concluded George Burns.
Skouries Highlights
Capital Estimate and Schedule
After finalizing key contracts in 2023, the
capital cost estimate remained in line with the December 2021
feasibility study estimate. More recent and pending contracts
incorporate labor rates and labor hours established through a
diligent tendering process that are higher than the feasibility
study. This has resulted in a revised capital estimate of $920
million, an increase of 9% over the original estimate of $845
million.
The time invested in diligently negotiating the
key project contracts has increased execution confidence with a
modest effect on the production schedule. First production of the
copper-gold concentrate is now expected in the third quarter of
2025 from prior guidance of mid-2025. As such, the 2025 gold
production range has been lowered to between 50,000 to 60,000
ounces from prior guidance of 80,000 to 90,000 ounces. Copper
production is expected to be between 15 to 20 million pounds in
2025. A steep ramp up curve is expected over that second half of
2025 and remains on track for commercial production at the end of
2025. We are assessing our plans with the goal of increasing
our 2026 gold and copper production profile at Skouries.
Between the Skouries project finance facility
and our balance sheet the project remains fully
funded.
Capital spend towards the original estimate of
$845 million totalled $52.5 million in Q4 2023, and
$153.8 million in 2023.
As at December 31, 2023:
- Overall project progress was 38%
complete and 70% complete when including the first phase of
construction;
- Detailed engineering was 61%
complete and procurement was 82% complete;
- Project execution and ramp-up
continued for major earthworks including construction of haul roads
to support construction of earthworks structures;
- Mobilized contractor and commenced
work on the tailings filtration infrastructure earthworks and
pilings;
- Progress advanced on the foundation
construction of the primary crusher; and
- Completed the upgrade of the
underground power supply from 400V to 690V and the ventilation
upgrade.
As the project advances in 2024 the capital spend is expected to
be between $375 and $425 million.
Upcoming milestones in 2024 include:
Procurement and Engineering
- Substantial completion of procurement and engineering
Process Plant
- Commence construction of the control room and electrical room
building
- Commence construction of the tailings thickeners
Tailings filter facility
- Awarding the filter facility contract
- Preassembly of the filter press plates and frames
- Completion of the structural steel
IEWMF
- Completion of the coffer dam
Underground
- Awarding the underground development and test stoping
contract
- Completion of approximately 2,200 metres of underground
development
Construction Progress
Work continues to ramp up on construction for
the build of major earth works structures including the haul roads,
IEWMF construction, low-grade stockpile, water management, process
facilities, crusher and filter buildings. In addition, work will
focus on the underground development to support test stope mining
in 2025. Mechanical, piping and electrical installations will also
progress in all process and infrastructure areas.
On the critical path is the filter plant
building which continues to advance, with the piling work having
commenced. In Q2 2024 it is expected that the filter building
contract will be awarded which will include the building structure,
assembly of equipment within the building, including air
compressors, conveyors, filter presses and other ancillary
equipment, in addition to the piping and electrical work. The
filter press plates arrived on site in Q1 2024 with the frames for
supporting the filter press plates fabricated and expected to ship
in Q2 2024. Preassembly is expected to start Q2 2024.
Work for the mill/flotation building is in
progress with commissioning work on overhead cranes, installation
of construction lighting and scaffolding, and the commencement of
structural steel work. Mechanical, piping and electrical work for
the process plant are mobilizing with work commencing in Q1
2024.
By the end of 2024 we expect to have completed
the IEWMF coffer dam and significantly advanced the IEWMF
earthworks, water management facilities, process plant and filter
plants.
The first four Company owned Cat 745 trucks have
arrived on site with the remaining 15 scheduled for delivery
through the end of Q2 2024. These trucks will be used once Skouries
is in operation to build the lifts that will be required on the dry
stack tailings facility. During construction of the civil works
these trucks will be used as part of an integrated fleet with the
earthwork's construction contractor for construction of the IEWMF
facilities.
Underground Development
The upgrade of the underground power supply from
400V to 690V has been completed. The ventilation upgrade is also
complete, and the new contact water pumping system will be fully
operational in 2024.
The first phase of underground development
continues to advance the West Decline and access to the test stopes
with a local contractor. The second underground development
contract proposals are in the final evaluation stage and awarding
of the contract is planned for Q2 2024. This contract includes the
test stope work as well as additional development and services work
to support the development of the underground mine. We expect to
complete approximately 2,200 metres of underground development by
the end of 2024.
Engineering
At December 31, 2023, engineering has been fully
transitioned to Greece and was 61% complete with anticipated
substantial completion in Q3 2024. Detailed engineering work
continues to advance in all areas. The release of structural steel
for fabrication is nearing completion and construction drawings are
being issued to support the project schedule.
Procurement
At December 31, 2023, procurement was at 82%
with substantial completion expected in Q2 2024. All long lead
items have been procured and focus is now shifting to managing
fabrication and deliveries.
Operational Readiness
Recruitment of qualified and experienced people
began in 2023 and will continue through 2024 as we build workforce
capability as Skouries advances towards first production. Under the
direction of Louw Smith, Eldorado’s EVP, Development in Greece, we
are progressing with establishing the Skouries operating team with
approximately 40 personnel now on board. This includes 12 in
leadership roles, 10 embedded in the construction projects teams of
open pit mining, underground mining and dry stack tailings
construction; and 9 in sustainability. Recruitment activities are
on track with the operational workforce plan.
Workforce
In addition to the Operational Readiness team as
of December 31, 2023, there were approximately 550 personnel on
site which is expected to ramp up to 1,300 during 2024.
Year in Review: Execution Focus and
Delivery
- Health and
Safety: The Company’s lost-time injury frequency rate per
million person-hours worked ("LTIFR") was 0.42 in Q4 2023, which
was consistent with the LTIFR of Q4 2022 and overall was 0.65 in
2023, a 45% improvement from the LTIFR of 1.19 in 2022. We continue
to take proactive steps to improve workplace safety and to ensure a
safe working environment for our employees and contractors.
- Skouries
Project Financing Completed: In April 2023, Eldorado
closed on a low-cost strategic €680.4 million project
financing facility for the development of the Skouries project in
Northern Greece. The facility is structured to provide 80% of the
funding required to complete the project. Skouries is on schedule
to have first production in Q3 2025 and commercial production by
the end of 2025.
- Strategic
Investment by EBRD: In June 2023, Eldorado closed the CDN
$81.5 million strategic financing from the European Bank for
Reconstruction and Development ("EBRD"). The funds are being
invested in the Skouries project in Northern Greece, and are
credited against the Company’s 20% equity funding commitment for
the Skouries Project.
- Bought
Deal: In June 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, as
well as for general corporate and working capital purposes.
- Modified
EIA Approval - Kassandra Mines: In April 2023, the
modification to the Kassandra Mines Environmental Impact Assessment
("EIA") was approved by the Ministry of Environment and Energy,
allowing the expansion of the Olympias processing facility to 650
ktpa and improvements to the Stratoni port.
- 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.
- Record Gold
Production in Quebec and Greece: The Lamaque Complex in
Quebec delivered record gold production of 177,069 ounces in 2023,
driven by increased grade and mill throughput. At the Olympias Mine
in Greece, record gold production of 67,133 ounces in 2023 was
achieved, a direct result of transformation initiatives implemented
at the site including increased ventilation capacity, bulk
emulsion, and productivity improvements at the mine and the
mill.
- Enhanced
Capacity at Kisladag: In July 2023, stacking commenced on
the newly constructed North Heap Leach Pad, with three cells under
leach. Additionally, in March 2023, the commissioning of the
upgraded materials handling and fine-ore agglomeration circuit was
completed. These productivity initiatives drove an increase in
throughput and record tonnes placed on the pads and higher
irrigation rates.
- Efemcukuru
Met Guidance for the 9th Consecutive Year: Since 2014,
Efemcukuru has met annual guidance expectations.
- Notable
awards and recognitions across the business:
- Recognized by
Resourcing Tomorrow with the Project Financing of the Year Award
for the Skouries Project Financing Facility.
- Eldorado placed 1st
overall in the Materials sector that includes Mining in the Globe
& Mail's 2023 Board Games. Board Games ranks Canada’s corporate
boards in the S&P/TSX Composite Index to assess the quality of
their governance practice and disclosure. Since 2020, Eldorado has
improved its index wide ranking from 104th to 27th.
- In Greece, the team
completed their first verification against the Mining Association
of Canada’s ‘Towards Sustainable Mining’ protocols, achieving
“Triple A” ratings across all indicators for Tailings Management
and Biodiversity, underlining the Company's commitment to
responsible mining practices.
- In Turkiye, the
team was awarded with the 2023 Euromines Silver Safety Award, which
recognizes innovation and best practices for mitigating safety
risks. The health and safety team showcased an employee engagement
project that addressed management of critical lifting equipment to
enable real-time monitoring, equipment integrity, and enhanced
controls for storage and use.
- In Turkiye, the
team received an appreciation letter from the Governorship of Usak
for the support of containers and water tanks they provided to the
earthquake zone. Additionally, our first mine rescue team was
deployed within 24 hours of the earthquake and rescued 4 people
from the earthquake rubble.
- In Canada, the team
in Quebec recently obtained the UL ECOLOGO® certification for the
application of best environmental and social practices in the
mineral exploration process. The certification evaluates on factors
such as environmental impact, personal safety, the well-being of
affected communities, business practices, the efficiency of
financial resources and the use of responsible technologies.
- Simon Hille, EVP
Technical Services and Operations, raised over $45,000 for Covenant
House Vancouver by participating in the Annual Executive Sleep Out
in Vancouver. 2023 was the second time Simon participated in the
event to raise funds and awareness for youths experiencing
homelessness, and Eldorado's 5th consecutive year. Since 2018,
Eldorado, including employee matching campaigns, has raised over
$200,000 for Covenant House Vancouver.
Multimedia
- On February 22,
2024, Eldorado updated its corporate branding. Download our updated
logo here.
- High-resolution
photos of construction at the Skouries project can be downloaded
here.
Consolidated Financial and Operational
Highlights
Summarized Annual Financial Results
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
Revenue |
$1,008.5 |
|
$872.0 |
|
$940.9 |
|
|
Gold produced (oz) |
|
485,139 |
|
|
453,916 |
|
|
475,850 |
|
|
Gold sold (oz) |
|
483,978 |
|
|
452,953 |
|
|
472,307 |
|
|
Average realized gold price ($/oz sold)(2) |
$1,944 |
|
$1,787 |
|
$1,781 |
|
|
Production costs |
|
478.9 |
|
|
459.6 |
|
|
449.7 |
|
|
Cash operating costs ($/oz sold)(2,3) |
|
743 |
|
|
788 |
|
|
626 |
|
|
Total cash costs ($/oz sold)(2,3) |
|
850 |
|
|
878 |
|
|
715 |
|
|
All-in sustaining costs ($/oz sold)(2,3) |
|
1,220 |
|
|
1,276 |
|
|
1,068 |
|
|
Net earnings (loss) for the period(1) |
|
104.6 |
|
|
(353.8 |
) |
|
(136.0 |
) |
|
Net earnings (loss) per share – basic ($/share)(1) |
|
0.54 |
|
|
(1.93 |
) |
|
(0.75 |
) |
|
Net earnings (loss) per share – diluted ($/share)(1) |
|
0.54 |
|
|
(1.93 |
) |
|
(0.75 |
) |
|
Net earnings (loss) for the period continuing operations(1,4) |
|
106.2 |
|
|
(49.2 |
) |
|
20.9 |
|
|
Net earnings (loss) per share continuing operations – basic
($/share)(1,4) |
|
0.55 |
|
|
(0.27 |
) |
|
0.12 |
|
|
Net earnings (loss) per share continuing operations – diluted
($/share)(1,4) |
|
0.54 |
|
|
(0.27 |
) |
|
0.11 |
|
|
Adjusted net earnings continuing operations – basic(1,2,4) |
|
110.7 |
|
|
10.1 |
|
|
129.5 |
|
|
Adjusted net earnings per share continuing operations - basic
($/share)(1,2,4) |
|
0.57 |
|
|
0.05 |
|
|
0.72 |
|
|
Net cash generated from operating activities |
|
382.9 |
|
|
211.2 |
|
|
366.7 |
|
|
Cash flow from operating activities before changes in working
capital(2) |
|
411.2 |
|
|
239.5 |
|
|
376.5 |
|
|
Free cash flow(2) |
|
(47.2 |
) |
|
(104.5 |
) |
|
63.3 |
|
|
Free cash flow excluding Skouries(2) |
|
112.6 |
|
|
(69.4 |
) |
|
75.6 |
|
|
Cash, cash equivalents and term deposits |
|
541.6 |
|
|
314.7 |
|
|
481.3 |
|
|
Total assets |
|
4,987.6 |
|
|
4,457.9 |
|
|
4,930.7 |
|
|
Debt |
|
636.1 |
|
|
494.4 |
|
|
489.8 |
|
(1) Attributable to
shareholders of the Company. (2) These financial
measures or ratios are non-IFRS financial measures or ratios. See
the section 'Non-IFRS and Other Financial Measures and Ratios' for
explanations and discussion of these non-IFRS financial measures or
ratios. (3) Revenues from silver, lead and
zinc sales are offset against cash operating costs.
(4) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements.
Summarized Quarterly Financial Results
|
2023 |
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
2023 |
|
|
Revenue(7) |
$227.8 |
|
$229.0 |
|
$244.8 |
|
$306.9 |
|
$1,008.5 |
|
|
Gold produced (oz)(6) |
|
111,509 |
|
|
109,435 |
|
|
121,030 |
|
|
143,166 |
|
|
485,139 |
|
|
Gold sold (oz) |
|
109,817 |
|
|
110,134 |
|
|
119,200 |
|
|
144,827 |
|
|
483,978 |
|
|
Average realized gold price ($/oz sold)(2,3) |
$1,932 |
|
$1,953 |
|
$1,879 |
|
$1,999 |
|
$1,944 |
|
|
Production costs(6,7) |
|
109.7 |
|
|
116.1 |
|
|
115.5 |
|
|
137.6 |
|
|
478.9 |
|
|
Cash operating cost ($/oz sold)(2,3,6) |
|
778 |
|
|
791 |
|
|
698 |
|
|
716 |
|
|
743 |
|
|
Total cash cost ($/oz sold)(2,3,6) |
|
857 |
|
|
928 |
|
|
794 |
|
|
830 |
|
|
850 |
|
|
All-in sustaining cost ($/oz sold)(2,3,6) |
|
1,207 |
|
|
1,296 |
|
|
1,177 |
|
|
1,207 |
|
|
1,220 |
|
|
Net earnings (loss)(4,6) |
|
19.3 |
|
|
0.9 |
|
|
(8.0 |
) |
|
92.4 |
|
|
104.6 |
|
|
Net earnings (loss) per share – basic ($/share)(4,6) |
|
0.10 |
|
|
— |
|
|
(0.04 |
) |
|
0.46 |
|
|
0.54 |
|
|
Net earnings (loss) per share – diluted ($/share)(4,6) |
|
0.10 |
|
|
— |
|
|
(0.04 |
) |
|
0.45 |
|
|
0.54 |
|
|
Net earnings (loss) for the period continuing
operations(1,4,6) |
|
19.4 |
|
|
1.5 |
|
|
(6.6 |
) |
|
91.8 |
|
|
106.2 |
|
|
Net earnings (loss) per share continuing operations – basic
($/share)(1,4,6) |
|
0.11 |
|
|
0.01 |
|
|
(0.03 |
) |
|
0.45 |
|
|
0.55 |
|
|
Net earnings (loss) per share continuing operations – diluted
($/share)(1,4,6) |
|
0.10 |
|
|
0.01 |
|
|
(0.03 |
) |
|
0.45 |
|
|
0.54 |
|
|
Adjusted net earnings (loss) continuing operations(1,2,4,6) |
|
16.7 |
|
|
9.7 |
|
|
35.0 |
|
|
49.3 |
|
|
110.7 |
|
|
Adjusted net earnings (loss) per share continuing operations -
basic($/share)(1,2,4,6) |
|
0.09 |
|
|
0.05 |
|
|
0.17 |
|
|
0.24 |
|
|
0.57 |
|
|
Net cash generated from operating activities(1) |
|
41.0 |
|
|
74.6 |
|
|
107.7 |
|
|
159.6 |
|
|
382.9 |
|
|
Cash flow from operating activities before changes in working
capital(1,2,6) |
|
93.2 |
|
|
82.4 |
|
|
97.5 |
|
|
138.0 |
|
|
411.2 |
|
|
Free cash flow(2) |
|
(34.4 |
) |
|
(22.4 |
) |
|
(19.7 |
) |
|
29.3 |
|
|
(47.2 |
) |
|
Free cash flow excluding Skouries(2) |
|
(19.2 |
) |
|
13.0 |
|
|
36.8 |
|
|
82.0 |
|
|
112.6 |
|
|
Cash, cash equivalents and term deposits |
|
262.3 |
|
|
456.6 |
|
|
476.6 |
|
|
541.6 |
|
|
541.6 |
|
|
Total assets |
|
4,501.0 |
|
|
4,742.1 |
|
|
4,812.2 |
|
|
4,987.6 |
|
|
4,987.6 |
|
|
Debt |
|
493.4 |
|
|
546.0 |
|
|
596.5 |
|
|
636.1 |
|
|
636.1 |
|
|
|
|
|
|
|
|
|
2022 |
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
2022 |
|
|
Revenue |
$194.7 |
|
$213.4 |
|
$217.7 |
|
$246.2 |
|
$872.0 |
|
|
Gold produced (oz) |
|
93,209 |
|
|
113,462 |
|
|
118,792 |
|
|
128,453 |
|
|
453,916 |
|
|
Gold sold (oz) |
|
94,472 |
|
|
107,631 |
|
|
118,388 |
|
|
132,462 |
|
|
452,953 |
|
|
Average realized gold price ($/oz sold)(2,3) |
$1,889 |
|
$1,849 |
|
$1,688 |
|
$1,754 |
|
$1,787 |
|
|
Production costs |
|
104.6 |
|
|
109.3 |
|
|
123.5 |
|
|
122.2 |
|
|
459.6 |
|
|
Cash operating cost ($/oz sold)(2,3) |
|
835 |
|
|
789 |
|
|
803 |
|
|
741 |
|
|
788 |
|
|
Total cash cost ($/oz sold)(2,3) |
|
941 |
|
|
879 |
|
|
892 |
|
|
818 |
|
|
878 |
|
|
All-in sustaining cost ($/oz sold)(2,3) |
|
1,346 |
|
|
1,270 |
|
|
1,259 |
|
|
1,246 |
|
|
1,276 |
|
|
Net (loss) earnings(4,5) |
|
(317.6 |
) |
|
(25.3 |
) |
|
(54.6 |
) |
|
43.7 |
|
|
(353.8 |
) |
|
Net (loss) earnings per share – basic ($/share)(4,5) |
|
(1.74 |
) |
|
(0.14 |
) |
|
(0.30 |
) |
|
0.24 |
|
|
(1.93 |
) |
|
Net (loss) earnings per share – diluted ($/share)(4,5) |
|
(1.74 |
) |
|
(0.14 |
) |
|
(0.30 |
) |
|
0.24 |
|
|
(1.93 |
) |
|
Net (loss) earnings for the period continuing
operations(1,4,5) |
|
(39.7 |
) |
|
(22.9 |
) |
|
(28.4 |
) |
|
41.9 |
|
|
(49.2 |
) |
|
Net (loss) earnings per share continuing operations – basic
($/share)(1,4,5) |
|
(0.22 |
) |
|
(0.12 |
) |
|
(0.15 |
) |
|
0.23 |
|
|
(0.27 |
) |
|
Net (loss) earnings per share continuing operations – diluted
($/share)(1,4,5) |
|
(0.22 |
) |
|
(0.12 |
) |
|
(0.15 |
) |
|
0.23 |
|
|
(0.27 |
) |
|
Adjusted net (loss) earnings continuing operations(1,2,4,5) |
|
(19.3 |
) |
|
13.6 |
|
|
(10.0 |
) |
|
25.8 |
|
|
10.1 |
|
|
Adjusted net (loss) earnings per share continuing operations -
basic ($/share)(1,2,4,5) |
|
(0.11 |
) |
|
0.07 |
|
|
(0.05 |
) |
|
0.14 |
|
|
0.05 |
|
|
Net cash flow from operating activities(1) |
|
35.3 |
|
|
27.0 |
|
|
52.7 |
|
|
96.2 |
|
|
211.2 |
|
|
Cash flow from operating activities before changes in working
capital(1,2) |
|
49.4 |
|
|
49.2 |
|
|
55.8 |
|
|
85.2 |
|
|
239.5 |
|
|
Free cash flow(2) |
|
(26.8 |
) |
|
(62.7 |
) |
|
(25.7 |
) |
|
10.7 |
|
|
(104.5 |
) |
|
Free cash flow excluding Skouries(2) |
|
(22.3 |
) |
|
(56.9 |
) |
|
(16.5 |
) |
|
26.3 |
|
|
(69.4 |
) |
|
Cash, cash equivalents and term deposits |
|
434.7 |
|
|
370.0 |
|
|
306.4 |
|
|
314.7 |
|
|
314.7 |
|
|
Total assets |
|
4,510.4 |
|
|
4,504.8 |
|
|
4,402.4 |
|
|
4,457.9 |
|
|
4,457.9 |
|
|
Debt |
|
482.8 |
|
|
497.2 |
|
|
497.3 |
|
|
494.4 |
|
|
494.4 |
|
(1) Amounts presented are
from continuing operations only and exclude the Romania segment.
See Note 6 of our consolidated financial statements.
(2) These financial measures or ratios are non-IFRS
financial measures or ratios. See the section 'Non-IFRS and Other
Financial Measures and Ratios' for explanations and discussion of
these non-IFRS financial measures or
ratios. (3) By-product revenues
are off-set against cash operating
costs.(4) Attributable to shareholders of the
Company.(5) Q1-Q3 2022 amounts have been adjusted to
record additional depreciation expense upon review of the estimated
remaining useful life of the existing heap leach pad and ADR plant
at Kisladag (Q1 2022: $1.0 million, Q2 2022: $3.2 million, Q3 2022:
$5.1 million, YTD 2022: $9.2 million). (6) A concentrate
weight-scale calibration correction at Olympias has resulted in an
adjustment to ending inventory as at March 31, 2023 of 1,024 gold
ounces. Gold production in Q1 2023 has been reduced by this amount,
resulting in additional production costs of $1.3 million and
additional depreciation expense of $0.7 million for Q1
2023.(7) Q1-Q3 2023 revenues and production costs have
been adjusted to reclassify freight-related concentrate sales
pricing adjustments from selling expenses to revenues. The
reclassification was $1.5 million for Q1 2023, $0.9 million for Q2
2023, and $0.4 million for Q3 2023, and has no impact on net
income.
Gold sales in 2023 totaled 483,978 ounces, an
increase of 7% from 452,953 ounces in 2022. The higher sales volume
in 2023 compared with the prior year primarily reflected an
increase of 20,243 ounces sold at Kisladag due to an increase of
tonnes placed on the heap leach pad in 2023 and utilization of the
newly commissioned NHLP. There was also an increase of 10,402
ounces sold at Olympias due to higher tonnes mined, tonnes
processed and average gold grade, and an increase of 3,086 ounces
sold at Lamaque due to increased tonnes mined and processed. These
increases were partially offset by a decrease of 2,706 ounces sold
at Efemcukuru due largely to lower average gold grade. Gold sales
were 144,827 ounces in Q4 2023, an increase of 9% from 132,462
ounces in Q4 2022, primarily due to increased production at
Kisladag and Lamaque in the quarter.
The average realized gold price(3) was $1,944
per ounce sold in 2023, an increase from $1,787 per ounce sold in
2022, primarily driven by strong prices in Q3 and Q4 2023. The
average realized gold price was $1,999 in Q4 2023 ($1,754 in Q4
2022).
Total revenue was $1,008.5 million in 2023, an
increase of 16% from revenue of $872.0 million in 2022. The
increase was due primarily to both higher sales volumes and average
realized gold price. Total revenue was $306.9 million in Q4 2023,
an increase of 25% from revenue of $246.2 million in Q4 2022, which
increased for the same reasons.
Production costs of $478.9 million in 2023
increased from $459.6 million in 2022 and production costs of
$137.6 million in Q4 2023 increased from $122.2 million in Q4 2022.
Increases in both periods were the result of higher tonnes
processed, resulting in increased labour costs and use of key
consumables across most sites. This was partially offset by
decreases in unit costs of key consumables such as electricity in
Turkiye and Greece, and fuel in Turkiye and Canada, as global cost
pressures eased during the year. Additionally, transport costs at
Olympias were lower as a result of improved shipment logistics.
Production costs include royalty expense, which
increased to $51.8 million in 2023 from $40.6 million in 2022, and
to $16.5 million in Q4 2023 from $10.2 million in Q4 2022,
primarily reflecting higher average gold prices combined with
higher sales volumes. In Turkiye, royalties are paid on revenue
less certain costs associated with ore haulage, mineral processing
and related depreciation and are calculated on the basis of a
sliding scale according to the average London Metal Exchange gold
price during the calendar year. In Greece, royalties are paid on
revenue and calculated on a sliding scale tied to international
gold and base metal prices and the EUR:USD exchange rate.
Cash operating costs(3) averaged $743 per ounce
sold in 2023, a decrease from $788 per ounce sold in 2022. In Q4
2023, cash operating costs averaged $716 per ounce sold, a decrease
from $741 per ounce sold in Q4 2022. The decrease in both periods
was primarily due to higher production and slightly lower unit
costs for key consumables, including energy and fuel.
AISC per ounce sold(3)decreased slightly to
$1,220 in 2023 from $1,276 in 2022, and to $1,207 in Q4 2023 from
$1,246 in Q4 2022. Decreases in both periods primarily reflect the
decrease in cash operating costs per ounce sold, partially offset
by higher royalties due to higher metal prices. The decrease in the
year was also due to lower sustaining capital expenditures.
We reported net earnings attributable to
shareholders from continuing operations of $106.2 million ($0.55
earnings per share) in 2023, compared to net loss of $49.2 million
($0.27 per share) in 2022 and net earnings of $91.8 million ($0.45
per share) in Q4 2023, compared to net earnings of $41.9 million
($0.23 earnings per share) in Q4 2022. Net earnings increased in
2023 primarily due to higher revenue, and lower mine standby costs,
write-downs of assets, and income taxes. Net earnings in Q4 2023
reflected higher sales volumes and gold prices, and a higher income
tax recovery, compared to Q4 2022.
Adjusted net earnings from continuing
operations(4) were $110.7 million ($0.57 per share) in 2023,
compared to $10.1 million ($0.05 per share) in 2022. Adjusted net
earnings in 2023 removes a $29.3 million loss on foreign exchange
due to translation of deferred tax balances, $59.4 million gain on
deferred income taxes due to the Turkiye hyperinflationary tax
basis adjustment, $2.0 million gain on the non-cash revaluation of
the derivative related to redemption options in our debt, $9.6
million unrealized loss on derivative instruments, and a $22.6
million deferred tax expense relating to the impact of tax rate
changes in Turkiye. Adjusted net earnings were $49.3 million ($0.24
per share) in Q4 2023 after adjusting for a $3.7 million gain on
foreign exchange due to translation of deferred tax balances, a
$59.4 million gain on deferred income taxes due to the Turkiye
hyperinflationary tax basis adjustment, a $4.0 million gain on the
non-cash revaluation of the derivative related to redemption
options in our debt, and a $24.6 million unrealized loss on
derivative instruments.
Higher sales volumes in 2023, combined with
higher average realized prices, resulted in EBITDA(4) of $442.9
million, including $118.1 million in Q4 2023. Adjusted EBITDA(4) of
$463.3 million in 2023 and $147.2 million in Q4 2023 exclude, among
other things, share based payments and losses on derivative
instruments.
Operations Update
Gold Operations
|
|
3 months ended December 31, |
|
12 months ended December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Total |
|
|
|
|
|
Ounces produced |
|
143,166 |
|
|
128,453 |
|
|
485,139 |
|
|
453,916 |
|
|
Ounces sold |
|
144,827 |
|
|
132,462 |
|
|
483,978 |
|
|
452,953 |
|
|
Production costs |
$137.6 |
|
$122.2 |
|
$478.9 |
|
$459.6 |
|
|
Cash operating costs ($/oz sold)(1) |
$716 |
|
$741 |
|
$743 |
|
$788 |
|
|
All-in sustaining costs ($/oz sold)(1) |
$1,207 |
|
$1,246 |
|
$1,220 |
|
$1,276 |
|
|
Sustaining capital expenditures(1) |
$37.9 |
|
$36.9 |
|
$121.8 |
|
$126.5 |
|
|
Kisladag |
|
|
|
|
|
Ounces produced |
|
46,291 |
|
|
40,307 |
|
|
154,849 |
|
|
135,801 |
|
|
Ounces sold |
|
46,051 |
|
|
39,833 |
|
|
154,456 |
|
|
134,213 |
|
|
Production costs |
$36.1 |
|
$32.2 |
|
$122.8 |
|
$120.1 |
|
|
Cash operating costs ($/oz sold)(1) |
$623 |
|
$709 |
|
$657 |
|
$773 |
|
|
All-in sustaining costs ($/oz sold)(1) |
$909 |
|
$884 |
|
$900 |
|
$1,000 |
|
|
Sustaining capital expenditures(1) |
$5.6 |
|
$3.0 |
|
$16.0 |
|
$14.7 |
|
|
Lamaque |
|
|
|
|
|
Ounces produced |
|
56,619 |
|
|
51,349 |
|
|
177,069 |
|
|
174,097 |
|
|
Ounces sold |
|
57,040 |
|
|
51,244 |
|
|
176,495 |
|
|
173,409 |
|
|
Production costs |
$35.1 |
|
$29.2 |
|
$119.5 |
|
$116.7 |
|
|
Cash operating costs ($/oz sold)(1) |
$580 |
|
$541 |
|
$643 |
|
$642 |
|
|
All-in sustaining costs ($/oz sold)(1) |
$977 |
|
$925 |
|
$1,089 |
|
$1,036 |
|
|
Sustaining capital expenditures(1) |
$20.7 |
|
$18.1 |
|
$72.7 |
|
$62.8 |
|
|
Efemcukuru |
|
|
|
|
|
Ounces produced |
|
22,374 |
|
|
21,362 |
|
|
86,088 |
|
|
87,685 |
|
|
Ounces sold |
|
22,497 |
|
|
21,486 |
|
|
86,078 |
|
|
88,784 |
|
|
Production costs |
$21.4 |
|
$17.9 |
|
$80.1 |
|
$73.1 |
|
|
Cash operating costs ($/oz sold)(1) |
$816 |
|
$738 |
|
$797 |
|
$701 |
|
|
All-in sustaining costs ($/oz sold)(1) |
$1,201 |
|
$1,138 |
|
$1,154 |
|
$1,091 |
|
|
Sustaining capital expenditures(1) |
$4.4 |
|
$5.3 |
|
$14.0 |
|
$18.8 |
|
|
Olympias |
|
|
|
|
|
Ounces produced |
|
17,882 |
|
|
15,435 |
|
|
67,133 |
|
|
56,333 |
|
|
Ounces sold |
|
19,239 |
|
|
19,899 |
|
|
66,949 |
|
|
56,547 |
|
|
Production costs |
$44.9 |
|
$42.9 |
|
$156.5 |
|
$149.5 |
|
|
Cash operating costs ($/oz sold)(1) |
$1,224 |
|
$1,325 |
|
$1,133 |
|
$1,409 |
|
|
All-in sustaining costs ($/oz sold)(1) |
$1,872 |
|
$1,998 |
|
$1,688 |
|
$2,155 |
|
|
Sustaining capital expenditures(1) |
$7.2 |
|
$10.5 |
|
$19.0 |
|
$30.3 |
|
(1) These are non-IFRS
financial measures and ratios. Further details on these non-IFRS
financial measures and ratios are provided in the MD&A
accompanying Eldorado’s financial statements filed from time to
time on SEDAR+ at www.sedarplus.com.
Kisladag
Kisladag produced 154,849 ounces of gold in
2023, a 14% increase from 135,801 ounces in 2022. Gold production
of 46,291 ounces in the quarter increased 15% from 40,307 ounces in
Q4 2022, benefiting from the newly commissioned NHLP, along with
ongoing optimization of on-belt ore agglomeration. Recoverable
ounces placed on the combined heap leach pads (North and South)
increased from the prior year as a result of the efficient stacking
enabled by upgrades of the higher capacity overland conveyors and
the commissioning of the NHLP area. Production also benefited from
average grade increasing in 2023 to 0.78 grams per tonne, from an
average grade of 0.74 grams per tonne in 2022.
Revenue increased to $304.8 million in 2023 from
$243.3 million in 2022 and increased to $92.9 million from $69.9
million in Q4 2022, reflecting a combination of higher gold sales
and higher average realized prices in the current year and
quarter.
Production costs increased to $122.8 million in
2023 from $120.1 million in 2022 primarily due to increased ore
mined and processed and consumption of reagents, as well as higher
royalties due to higher average gold prices, partially offset by
decreases in unit costs of fuel and electricity as cost pressures
in Europe eased in the year as compared to the prior year.
Production costs during the quarter increased to $36.1 million from
$32.2 million in Q4 2022 also as a result of higher gold production
and ounces sold.
Depreciation expense increased to $79.9 million
in 2023 from $72.6 million in 2022 in line with higher tonnes mined
and processed, and higher sales during the year. Depreciation in
the quarter was in line with Q4 2022 despite higher sales in the
current period due to less stacking on the South Leap leach pad,
which depreciates at a faster rate given the shorter remaining
useful life in terms of the number of ounces that can be stacked on
the pad.
Cash operating costs per ounce sold in 2023
decreased to $657 from $773 in 2022 and decreased to $623 in Q4
2023 from $709 in Q4 2022. Decreases in both periods were primarily
due to higher gold production and sales, as well as lower unit
costs of consumables.
AISC per ounce sold decreased to $900 in 2023
from $1,000 in 2022 primarily due to lower cash operating costs per
ounce sold, partly offset by higher sustaining capital expenditure.
In the quarter, AISC per ounce sold increased to $909 from $884 in
Q4 2022 primarily due to higher sustaining capital expenditure,
partially offset by lower cash operating costs per ounce sold.
Sustaining capital expenditure of $16.0 million
in 2023, including $5.6 million in Q4 2023, primarily related to
equipment rebuilds, and processing and infrastructure improvements.
Growth capital investment of $83.7 million in 2023, including
$27.8 million in Q4 2023, primarily included waste stripping
to support the mine life extension, construction of the first phase
of the NHLP and related infrastructure, and building relocation due
to pit expansion.
Lamaque
Lamaque produced 177,069 ounces of gold in 2023,
a 2% increase from 174,097 ounces in 2022 as a result of slightly
higher ore throughput in the year and slightly higher grade. This
was despite the mining disruption caused by forest fires earlier in
the year that led to reduced mining faces available for ore
production in Q3. Gold production of 56,619 ounces in the quarter
was higher compared to 51,349 ounces in Q4 2022 and reflected
strong throughput that was achieved due to productivity
improvements at the mine, which allowed the mill to perform at
capacity. Average grade of 7.36 grams per tonne in the quarter was
slightly lower compared to Q4 2022, while average grade of 6.76
grams per tonne in 2023 slightly exceeded 6.65 grams per tonne in
2022.
Revenue increased to $346.3 million in 2023 from
$313.0 million in 2022 primarily reflecting a higher average
realized gold price in the year. In the quarter, both a higher
average realized gold price and higher sales were responsible for
the increase in revenue to $114.9 million from $90.0 million in Q4
2022.
Production costs increased to $119.5 million in
2023 from $116.7 million in 2022, and $35.1 million in Q4 2023 from
$29.2 million in Q4 2022, both primarily due to higher gold
production and increased headcount to enable productivity,
partially offset by slightly lower unit costs of key consumables,
including fuel and cost savings from a weaker Canadian dollar as
compared to the prior year. Cash operating costs per ounce sold was
consistent between 2023 and 2022 but increased to $580 in Q4 2023
from $541 in Q4 2022 despite higher ounces sold primarily due to
extra costs incurred in labour, contractors, and equipment rentals
to increase productivity in the quarter.
AISC per ounce sold increased to $1,089 in 2023
from $1,036 in 2022 and to $977 in Q4 2023 from $925 in Q4 2022
with increases in both periods reflecting higher cash operating
costs per ounce sold and higher sustaining capital expenditure.
Sustaining capital expenditures of $72.7 million
in 2023, including $20.7 million in Q4 2023, primarily related to
underground development, equipment rebuilds, and expansion of the
tailings management facility. Growth capital investments totalled
$23.3 million in 2023, including $8.1 million in Q4 2023, and is
primarily related to construction of underground
infrastructure.
Efemcukuru
Efemcukuru produced 86,088 payable ounces of
gold in 2023, a 2% decrease from 87,685 payable ounces in 2022,
reflecting lower grades and recoveries in the year, partially
offset by higher throughput. Gold production of 22,374 payable
ounces in the quarter was 5% higher than 21,362 payable ounces
produced in Q4 2022, primarily as a result of record throughput
rates in the fourth quarter, averaging 1,500 tpd combined with
higher grades.
Revenue increased to $170.5 million in 2023 from
$155.3 million in 2022 and to $46.7 million in Q4 2023 from $38.4
million in Q4 2022. Increases in both periods were driven primarily
by higher average realized gold prices.
Production costs increased to $80.1 million in
2023 from $73.1 million in 2022 and increased to $21.4 million in
Q4 2023 from $17.9 million in Q4 2022, primarily driven by rising
costs of labour and increased royalties due to higher average
realized gold prices. Operating cost increases and lower gold
production in the year resulted in an increase in cash operating
costs per ounce sold to $797 in 2023, from $701 in 2022. Cost
increases despite higher gold produced in the quarter resulted in
an increase in cash operating cost per ounce sold to $816 in Q4
2023 from $738 in Q4 2022. AISC per ounce sold increased to $1,154
in 2023 from $1,091 in 2022 and to $1,201 in Q4 2023 from $1,138 in
Q4 2022, primarily reflecting higher cash operating costs per ounce
sold.
Sustaining capital expenditure of $14.0 million
in 2023, including $4.4 million in Q4 2023, related primarily to
underground development and equipment rebuilds. Growth capital
investment included both development drilling and resource
conversion drilling at each of the Kokarpinar and Bati vein
systems.
Olympias
Olympias produced 67,133 ounces of gold in 2023,
a 19% increase from 56,333 ounces in 2022, reflecting higher
average gold grade and higher throughput in the year. Throughput in
2023 was 15% higher than in 2022 due to higher mining rates, a
result of key transformation initiatives implemented throughout the
year, enabling stronger mining productivity and record mill
throughput. Achievements in 2023 included a new electrical
substation resulting in increased ventilation capacity,
commissioning of bulk emulsion blasting, ongoing training and
equipment optimization. Gold production of 17,882 ounces in Q4 2023
increased from 15,435 in Q4 2022 as a result of 13% higher
throughput and higher gold grades in the quarter. Lead and silver
production increased as well compared to Q4 2022, primarily
reflecting higher throughput.
Revenue increased to $186.8 million in 2023 from
$159.9 million in 2022 and increased to $52.4 million in Q4 2023
from $47.9 million in Q4 2022 as a result of higher sales volumes
and a higher average realized gold price. From October 1, 2021,
revenue has been impacted by the 13% VAT import charge levied on
customers importing Olympias gold concentrate into China. When
levied, this import charge reduces revenue by a corresponding
amount. Revenues in 2023 benefited from lower gold treatment and
refining charges as we made more shipments to alternative markets
where this 13% import VAT on gold concentrate was not imposed.
Approximately 54% of shipments in 2023 were not subject to the 13%
import VAT.
Production costs increased to $156.5 million in
2023 from $149.5 million in 2022 and to $44.9 million in Q4 2023
from $42.9 million in Q4 2022. Increases in both periods reflect
higher production and volumes of concentrate sold, partially offset
by decreases in unit costs of certain consumables, including
electricity and fuel, and other cost savings as a result of recent
transformation initiatives. Production costs also benefited from
lower transport costs as a result of improved shipment logistics
onsite.
Cash operating costs per ounce sold decreased to
$1,133 in 2023 from $1,409 in 2022, primarily as a result of higher
ounces sold, higher by-product credits, and less shipments to China
incurring the 13% VAT import charge, which is included in cash
operating costs. Similarly, cash operating costs per ounce sold
decreased to $1,224 in Q4 2023 from $1,325 in Q4 2022 primarily due
to higher ounces sold and by-product credits. AISC per ounce sold
decreased to $1,688 in 2023 from $2,155 in 2022 and to $1,872 in Q4
2023 from $1,998 in Q4 2022 primarily due to the decrease in cash
operating costs per ounce sold and lower sustaining capital.
Sustaining capital expenditure decreased to
$19.0 million in 2023 from $30.3 million in 2022 and to $7.2
million in Q4 2023 from $10.5 million in Q4 2022. Spending in both
periods primarily included underground development and underground
infrastructure improvements. Growth capital investments in 2023 and
2022 primarily related to underground development.
For further information on the Company’s
operating results for the year-end and fourth quarter of 2023,
please see the Company’s Management’s Discussion and Analysis filed
on SEDAR+ at www.sedarplus.com under the Company’s
profile.
Conference Call
A conference call to discuss the details of the
Company’s Fourth Quarter and Year-End 2023 Results will be held by
senior management on Friday, February 23, 2024 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 and via this link:
https://services.choruscall.ca/links/eldoradogold2023q4.html.
Participants may elect to pre-register for the
conference call via this link:
https://services.choruscall.ca/DiamondPassRegistration/register?confirmationNumber=10022833&linkSecurityString=1aa6fd6b8d.
Upon registration, participants will receive a
calendar invitation by email with dial in details and a unique PIN.
This will allow participants to bypass the operator queue and
connect directly to the conference. Registration will remain open
until the end of the conference call.
| Conference
Call Details |
|
Replay
(available until March 29, 2024) |
|
Date: |
February 23, 2024 |
|
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 |
|
Access code: |
0604 |
| Toll free: |
+1 800.319.4610 |
|
|
|
| |
|
|
|
|
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkiye, Canada
and Greece. 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).
Contact
Investor Relations
Lynette Gould, VP, Investor Relations647 271
2827 or 1 888 353 8166 lynette.gould@eldoradogold.com
Media
Chad Pederson, Director, Communications236 885
6251 or 1 888 353 8166 chad.pederson@eldoradogold.com
Non-IFRS and Other Financial Measures and
Ratios
Certain non-IFRS financial measures and ratios
are included in this press release, including cash operating costs
and cash operating costs per ounce sold, total cash costs and total
cash costs per ounce sold, all-in sustaining costs ("AISC") and
AISC per ounce sold, sustaining and growth capital, average
realized gold price per ounce sold, adjusted net earnings/(loss)
attributable to shareholders, adjusted net earnings/(loss) per
share attributable to shareholders, earnings before interest,
taxes, depreciation and amortization (“EBITDA”), adjusted earnings
before interest, taxes, depreciation and amortization ("Adjusted
EBITDA"), free cash flow, free cash flow excluding Skouries,
working capital and cash flow from operating activities before
changes in working capital.
Please see the December 31, 2023 MD&A
for explanations and discussion of these non-IFRS and other
financial measures and ratios. The Company believes that these
measures and ratios, in addition to conventional measures and
ratios prepared in accordance with International Financial
Reporting Standards (“IFRS”), provide investors an improved ability
to evaluate the underlying performance of the Company. The non-IFRS
and other financial measures and ratios are intended to provide
additional information and should not be considered in isolation or
as a substitute for measures or ratios of performance prepared in
accordance with IFRS. These measures and ratios do not have any
standardized meaning prescribed under IFRS, and therefore may not
be comparable to other issuers. Certain additional disclosures for
these and other financial measures and ratios have been
incorporated by reference and can be found in the section 'Non-IFRS
and Other Financial Measures and Ratios' in the December 31,
2023 MD&A available on SEDAR+ at www.sedarplus.com and on the
Company's website under the 'Investors' section.
Reconciliation of Production Costs to Cash
Operating Costs and Cash Operating Costs per ounce sold:
|
|
Q4 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
Production costs |
$137.6 |
|
$122.2 |
|
$478.9 |
|
$459.6 |
|
$449.7 |
|
|
Stratoni production costs(1) |
|
— |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
|
(47.6 |
) |
|
Production costs – excluding Stratoni |
|
137.6 |
|
|
122.2 |
|
|
478.9 |
|
|
459.4 |
|
|
402.2 |
|
|
By-product credits(2) |
|
(21.9 |
) |
|
(17.0 |
) |
|
(83.4 |
) |
|
(77.3 |
) |
|
(64.7 |
) |
|
Royalty expense(3) |
|
(16.5 |
) |
|
(10.2 |
) |
|
(51.8 |
) |
|
(40.6 |
) |
|
(42.0 |
) |
|
Concentrate deductions(4) |
|
4.5 |
|
|
3.2 |
|
|
15.7 |
|
|
15.5 |
|
|
— |
|
|
Cash operating costs |
$103.7 |
|
$98.2 |
|
$359.4 |
|
$357.0 |
|
$295.5 |
|
|
Gold ounces sold |
|
144,827 |
|
|
132,462 |
|
|
483,978 |
|
|
452,953 |
|
|
472,307 |
|
|
Cash operating cost per ounce sold |
$716 |
|
$741 |
|
$743 |
|
$788 |
|
$626 |
|
(1) Base
metals production, presented for 2021. Operations at Stratoni were
suspended at the end of 2021.(2) Revenue from silver,
lead and zinc sales.(3) Included in production
costs.(4) Included in revenue.
For the three months ended December 31,
2023:
|
|
Direct mining costs |
|
|
By-product credits |
|
|
Refining and selling costs |
|
|
Inventory change(1) |
|
|
Cash operating costs |
|
|
Gold oz sold |
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$37.4 |
|
|
($0.8 |
) |
|
$0.2 |
|
|
($8.1 |
) |
|
$28.7 |
|
|
46,051 |
|
|
$623 |
|
|
Lamaque |
32.7 |
|
|
(0.5 |
) |
|
0.1 |
|
|
0.8 |
|
|
33.1 |
|
|
57,040 |
|
|
580 |
|
|
Efemcukuru |
16.0 |
|
|
(1.1 |
) |
|
3.7 |
|
|
(0.3 |
) |
|
18.4 |
|
|
22,497 |
|
|
816 |
|
|
Olympias |
35.5 |
|
|
(19.4 |
) |
|
6.3 |
|
|
1.2 |
|
|
23.5 |
|
|
19,239 |
|
|
1,224 |
|
|
Total consolidated |
$121.6 |
|
|
($21.9 |
) |
|
$10.3 |
|
|
($6.3 |
) |
|
$103.7 |
|
|
144,827 |
|
|
$716 |
|
(1) Inventory change adjustments result from timing
differences between when inventory is produced and when it is
sold.
For the year ended December 31, 2023:
|
|
Direct mining costs |
|
|
By-product credits |
|
|
Refining and selling costs |
|
|
Inventory change(1) |
|
|
Cash operating costs |
|
|
Gold oz sold |
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$128.0 |
|
|
($3.1 |
) |
|
$0.7 |
|
|
($24.1 |
) |
|
$101.4 |
|
|
154,456 |
|
|
$657 |
|
|
Lamaque |
116.3 |
|
|
(1.7 |
) |
|
0.4 |
|
|
(1.5 |
) |
|
113.5 |
|
|
176,495 |
|
|
643 |
|
|
Efemcukuru |
59.1 |
|
|
(4.4 |
) |
|
14.0 |
|
|
(0.1 |
) |
|
68.6 |
|
|
86,078 |
|
|
797 |
|
|
Olympias |
126.3 |
|
|
(74.1 |
) |
|
23.0 |
|
|
0.7 |
|
|
75.9 |
|
|
66,949 |
|
|
1,133 |
|
|
Total consolidated |
$429.7 |
|
|
($83.4 |
) |
|
$38.1 |
|
|
($25.0 |
) |
|
$359.4 |
|
|
483,978 |
|
|
$743 |
|
(1) Inventory change adjustments result from timing
differences between when inventory is produced and when it is
sold.
For the three months ended December 31,
2022:
|
|
Direct mining costs |
|
|
By-product credits |
|
|
Refining and selling costs |
|
|
Inventory change(1) |
|
|
Cash operating costs |
|
|
Gold oz sold |
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$32.3 |
|
|
($0.7 |
) |
|
$0.2 |
|
|
($3.6 |
) |
|
$28.2 |
|
|
39,833 |
|
|
$709 |
|
|
Lamaque |
26.3 |
|
|
(0.4 |
) |
|
0.1 |
|
|
1.7 |
|
|
27.7 |
|
|
51,244 |
|
|
541 |
|
|
Efemcukuru |
13.5 |
|
|
(1.0 |
) |
|
3.5 |
|
|
(0.2 |
) |
|
15.9 |
|
|
21,486 |
|
|
738 |
|
|
Olympias |
29.1 |
|
|
(15.0 |
) |
|
8.1 |
|
|
4.2 |
|
|
26.4 |
|
|
19,899 |
|
|
1,325 |
|
|
Total consolidated |
$101.1 |
|
|
($17.0 |
) |
|
$12.0 |
|
|
$2.1 |
|
|
$98.2 |
|
|
132,462 |
|
|
$741 |
|
(1) Inventory change adjustments result from timing
differences between when inventory is produced and when it is
sold.
For the year ended December 31, 2022:
|
|
Direct mining costs |
|
|
By-product credits |
|
|
Refining and selling costs |
|
|
Inventory change(1) |
|
|
Cash operating costs |
|
|
Gold oz sold |
|
|
Cash operating cost/oz sold |
|
|
Kisladag |
$110.9 |
|
|
($2.8 |
) |
|
$1.1 |
|
|
($5.5 |
) |
|
$103.7 |
|
|
134,213 |
|
|
$773 |
|
|
Lamaque |
109.9 |
|
|
(1.4 |
) |
|
0.3 |
|
|
2.6 |
|
|
111.3 |
|
|
173,409 |
|
|
642 |
|
|
Efemcukuru |
52.1 |
|
|
(3.3 |
) |
|
13.1 |
|
|
0.3 |
|
|
62.2 |
|
|
88,784 |
|
|
701 |
|
|
Olympias |
113.0 |
|
|
(69.9 |
) |
|
30.0 |
|
|
6.6 |
|
|
79.7 |
|
|
56,547 |
|
|
1,409 |
|
|
Total consolidated |
$385.8 |
|
|
($77.3 |
) |
|
$44.6 |
|
|
$4.0 |
|
|
$357.0 |
|
|
452,953 |
|
|
$788 |
|
(1) Inventory change adjustments result from timing
differences between when inventory is produced and when it is
sold.
Reconciliation of Cash Operating Costs to Total
Cash Costs and Total Cash Costs per ounce sold:
|
|
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Cash operating costs |
$103.7 |
|
$98.2 |
|
$359.4 |
|
$357.0 |
|
$295.5 |
|
|
Royalty expense(1) |
16.5 |
|
10.2 |
|
51.8 |
|
40.6 |
|
42.0 |
|
|
Total cash costs |
$120.2 |
|
$108.4 |
|
$411.3 |
|
$397.6 |
|
$337.5 |
|
|
Gold ounces sold |
144,827 |
|
132,462 |
|
483,978 |
|
452,953 |
|
472,307 |
|
|
Total cash costs per ounce sold |
$830 |
|
$818 |
|
$850 |
|
$878 |
|
$715 |
|
(1) Included in production costs.
Reconciliation of All-in Sustaining Costs and
All-in Sustaining Costs per ounce sold:
|
|
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Total cash costs |
$120.2 |
|
$108.4 |
|
$411.3 |
|
$397.6 |
|
$337.5 |
|
|
Corporate and allocated G&A |
14.1 |
|
18.2 |
|
46.7 |
|
45.6 |
|
37.4 |
|
|
Exploration and evaluation costs |
0.3 |
|
(0.3 |
) |
1.2 |
|
1.1 |
|
12.3 |
|
|
Reclamation costs and amortization |
2.2 |
|
1.8 |
|
9.3 |
|
7.1 |
|
4.4 |
|
|
Sustaining capital expenditure |
37.9 |
|
36.9 |
|
121.8 |
|
126.5 |
|
113.1 |
|
|
AISC |
$174.8 |
|
$165.0 |
|
$590.3 |
|
$577.9 |
|
$504.6 |
|
|
Gold ounces sold |
144,827 |
|
132,462 |
|
483,978 |
|
452,953 |
|
472,307 |
|
|
AISC per ounce sold |
$1,207 |
|
$1,246 |
|
$1,220 |
|
$1,276 |
|
$1,068 |
|
Reconciliations of adjustments within AISC to the most directly
comparable IFRS measures are presented below.
Reconciliation of general and administrative
expenses included in All-in Sustaining Costs:
|
|
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
General and administrative expenses(from
consolidated statement of operations) |
$10.5 |
|
$13.9 |
|
$39.8 |
|
$37.0 |
|
$35.5 |
|
|
Add: |
|
|
|
|
|
|
Share based payments expense |
4.6 |
|
3.9 |
|
10.2 |
|
10.7 |
|
7.9 |
|
|
Employee benefit pension plan expense from corporate and operating
gold mines |
0.7 |
|
2.5 |
|
4.2 |
|
6.0 |
|
2.3 |
|
|
Less: |
|
|
|
|
|
|
General and administrative expenses related to non-gold mines and
in-country offices |
(0.2 |
) |
(0.1 |
) |
(0.9 |
) |
(0.6 |
) |
(0.5 |
) |
|
Depreciation in G&A |
(0.8 |
) |
(0.5 |
) |
(3.2 |
) |
(2.2 |
) |
(1.0 |
) |
|
Business development |
(0.3 |
) |
(0.8 |
) |
(2.7 |
) |
(2.2 |
) |
(4.6 |
) |
|
Development projects |
(0.4 |
) |
(0.7 |
) |
(0.7 |
) |
(3.4 |
) |
(2.5 |
) |
|
Adjusted corporate general and administrative
expenses |
$14.2 |
|
$18.2 |
|
$46.7 |
|
$45.4 |
|
$37.3 |
|
|
Regional general and administrative costs allocated to gold
mines |
— |
|
— |
|
0.2 |
|
0.2 |
|
0.1 |
|
|
Corporate and allocated general and administrative expenses
per AISC |
$14.2 |
|
$18.2 |
|
$46.9 |
|
$45.6 |
|
$37.4 |
|
Reconciliation of exploration and evaluation costs included in
All-in Sustaining Costs:
|
|
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Exploration and evaluation expense(1)(from
consolidated statement of operations) |
$5.7 |
|
$6.8 |
|
$22.4 |
|
$19.6 |
|
$14.8 |
|
|
Add: |
|
|
|
|
|
|
Capitalized evaluation cost related to operating gold mines |
0.3 |
|
(0.3 |
) |
1.2 |
|
1.1 |
|
8.8 |
|
|
Less: |
|
|
|
|
|
|
Exploration and evaluation expenses related to non-gold mines and
other sites(1) |
(5.7 |
) |
(6.8 |
) |
(22.4 |
) |
(19.6 |
) |
(11.3 |
) |
|
Exploration costs per AISC |
$0.3 |
|
($0.3 |
) |
$1.2 |
|
$1.1 |
|
$12.3 |
|
(1) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements.
Reconciliation of reclamation costs and
amortization included in All-in Sustaining Costs:
|
|
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Asset retirement obligation accretion(1)(from
notes to the consolidated financial statements) |
$1.1 |
|
$0.5 |
|
$4.3 |
|
$2.0 |
|
$1.4 |
|
|
Add: |
|
|
|
|
|
|
Depreciation related to asset retirement obligation assets |
1.3 |
|
1.4 |
|
5.8 |
|
5.4 |
|
3.2 |
|
|
Less: |
|
|
|
|
|
|
Asset retirement obligation accretion related to non-gold mines and
other sites |
(0.2 |
) |
(0.1 |
) |
(0.7 |
) |
(0.3 |
) |
(0.3 |
) |
|
Reclamation costs and amortization per AISC |
$2.2 |
|
$1.8 |
|
$9.3 |
|
$7.1 |
|
$4.3 |
|
(1) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements.
Sustaining and Growth Capital
Our reconciliation of growth capital and
sustaining capital expenditure at operating gold mines to additions
to property, plant and equipment, the most directly comparable IFRS
measure, is presented below.
|
|
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Additions to property, plant and equipment(1)(from
notes to the consolidated financial statements) |
$137.2 |
|
$84.9 |
|
$411.2 |
|
$305.8 |
|
$292.8 |
|
|
Growth and development project capital investment - gold mines |
(41.3 |
) |
(26.3 |
) |
(122.3 |
) |
(111.3 |
) |
(139.6 |
) |
|
Growth and development project capital investment - other(2) |
(58.6 |
) |
(20.8 |
) |
(168.6 |
) |
(66.0 |
) |
(29.5 |
) |
|
Less: Sustaining capital expenditure equipment leases(3) |
0.5 |
|
(0.9 |
) |
1.6 |
|
(2.0 |
) |
(9.2 |
) |
|
Less: Corporate leases |
— |
|
— |
|
(0.1 |
) |
(0.1 |
) |
(1.3 |
) |
|
Sustaining capital expenditure at operating gold
mines |
$37.9 |
|
$36.9 |
|
$121.8 |
|
$126.5 |
|
$113.2 |
|
(1) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements. (2) Includes growth
capital expenditures and capital expenditures relating to Skouries,
Stratoni and Other Projects, excluding non-cash sustaining lease
additions.(3) Non-cash sustaining lease additions, net
of sustaining lease principal and interest payments.
Our reconciliation by asset of AISC and AISC per
ounce sold to cash operating costs is presented below.
For the three months ended December 31,
2023:
|
|
Cash operating costs |
|
Royalties & production taxes |
|
Total cash costs |
|
Corporate & allocated G&A |
|
Exploration costs |
|
Reclamation costs and amortization |
|
Sustaining capex |
|
TotalAISC |
|
Gold oz sold |
|
TotalAISC/oz
sold |
|
|
Kisladag |
$28.7 |
|
$6.6 |
|
$35.3 |
|
$— |
|
$— |
|
$1.0 |
|
$5.6 |
|
$41.9 |
|
46,051 |
|
$909 |
|
|
Lamaque |
33.1 |
|
1.5 |
|
34.5 |
|
— |
|
0.3 |
|
0.1 |
|
20.7 |
|
55.7 |
|
57,040 |
|
977 |
|
|
Efemcukuru |
18.4 |
|
3.5 |
|
21.9 |
|
— |
|
— |
|
0.7 |
|
4.4 |
|
27.0 |
|
22,497 |
|
1,201 |
|
|
Olympias |
23.5 |
|
4.9 |
|
28.4 |
|
— |
|
— |
|
0.4 |
|
7.2 |
|
36.0 |
|
19,239 |
|
1,872 |
|
|
Corporate(1) |
— |
|
— |
|
— |
|
14.1 |
|
— |
|
— |
|
— |
|
14.1 |
|
— |
|
97 |
|
|
Total consolidated |
$103.7 |
|
$16.5 |
|
$120.2 |
|
$14.1 |
|
$0.3 |
|
$2.2 |
|
$37.9 |
|
$174.7 |
|
144,827 |
|
$1,207 |
|
(1) Excludes general and
administrative expenses related to business development activities
and projects. Includes share based payments expense and defined
benefit pension plan expense. AISC per ounce sold has been
calculated using total consolidated gold ounces sold.
For the year ended December 31, 2023:
|
|
Cash operating costs |
|
Royalties & production taxes |
|
Total cash costs |
|
Corporate & allocated G&A |
|
Exploration costs |
|
Reclamation costs and amortization |
|
Sustaining capex |
|
TotalAISC |
|
Gold oz sold |
|
TotalAISC/oz
sold |
|
|
Kisladag |
$101.4 |
|
$18.2 |
|
$119.7 |
|
$— |
|
$— |
|
$3.3 |
|
$16.0 |
|
$139.1 |
|
154,456 |
|
$900 |
|
|
Lamaque |
113.5 |
|
4.3 |
|
117.8 |
|
— |
|
1.2 |
|
0.6 |
|
72.7 |
|
192.3 |
|
176,495 |
|
1,089 |
|
|
Efemcukuru |
68.6 |
|
13.4 |
|
82.1 |
|
0.2 |
|
— |
|
3.1 |
|
14.0 |
|
99.3 |
|
86,078 |
|
1,154 |
|
|
Olympias |
75.9 |
|
15.8 |
|
91.7 |
|
— |
|
— |
|
2.4 |
|
19.0 |
|
113.0 |
|
66,949 |
|
1,688 |
|
|
Corporate(1) |
— |
|
— |
|
— |
|
46.6 |
|
— |
|
— |
|
— |
|
46.6 |
|
— |
|
96 |
|
|
Total consolidated |
$359.4 |
|
$51.8 |
|
$411.2 |
|
$46.7 |
|
$1.2 |
|
$9.3 |
|
$121.8 |
|
$590.3 |
|
483,978 |
|
$1,220 |
|
(1) Excludes general and
administrative expenses related to business development activities
and projects. Includes share based payments expense and defined
benefit pension plan expense. AISC per ounce sold has been
calculated using total consolidated gold ounces sold.
For the three months ended December 31, 2022:
|
|
Cash operating costs |
|
Royalties & production taxes |
|
Total cash costs |
|
Corporate & allocated G&A |
|
Exploration costs |
|
Reclamation costs and amortization |
|
Sustaining capex |
|
TotalAISC |
|
Gold oz sold |
|
TotalAISC/oz
sold |
|
|
Kisladag |
$28.2 |
|
$3.3 |
|
$31.5 |
|
$— |
|
$— |
|
$0.7 |
|
$3.0 |
|
$35.2 |
|
39,833 |
|
$884 |
|
|
Lamaque |
27.7 |
|
1.1 |
|
28.9 |
|
— |
|
0.4 |
|
0.1 |
|
18.1 |
|
47.4 |
|
51,244 |
|
925 |
|
|
Efemcukuru |
15.9 |
|
2.7 |
|
18.5 |
|
— |
|
— |
|
0.6 |
|
5.3 |
|
24.5 |
|
21,486 |
|
1,138 |
|
|
Olympias |
26.4 |
|
3.1 |
|
29.5 |
|
— |
|
(0.7 |
) |
0.5 |
|
10.5 |
|
39.8 |
|
19,899 |
|
1,998 |
|
|
Corporate(1) |
— |
|
— |
|
— |
|
18.1 |
|
— |
|
— |
|
— |
|
18.1 |
|
— |
|
137 |
|
|
Total consolidated |
$98.2 |
|
$10.2 |
|
$108.4 |
|
$18.2 |
|
($0.3 |
) |
$1.8 |
|
$36.9 |
|
$165.0 |
|
132,462 |
|
$1,246 |
|
(1) Excludes general and
administrative expenses related to business development activities
and projects. Includes share based payments expense and defined
benefit pension plan expense. AISC per ounce sold has been
calculated using total consolidated gold ounces sold.
For the year ended December 31, 2022:
|
|
Cash operating costs |
|
Royalties & production taxes |
|
Total cash costs |
|
Corporate & allocated G&A |
|
Exploration costs |
|
Reclamation costs and amortization |
|
Sustaining capex |
|
TotalAISC |
|
Gold oz sold |
|
TotalAISC/oz
sold |
|
|
Kisladag |
$103.7 |
|
$13.6 |
|
$117.3 |
|
$— |
|
$— |
|
$2.3 |
|
$14.7 |
|
$134.3 |
|
134,213 |
|
$1,000 |
|
|
Lamaque |
111.3 |
|
4.0 |
|
115.3 |
|
— |
|
1.0 |
|
0.5 |
|
62.8 |
|
179.6 |
|
173,409 |
|
1,036 |
|
|
Efemcukuru |
62.2 |
|
13.1 |
|
75.3 |
|
0.2 |
|
— |
|
2.6 |
|
18.8 |
|
96.8 |
|
88,784 |
|
1,091 |
|
|
Olympias |
79.7 |
|
10.0 |
|
89.7 |
|
— |
|
0.1 |
|
1.8 |
|
30.3 |
|
121.9 |
|
56,547 |
|
2,155 |
|
|
Corporate(1) |
— |
|
— |
|
— |
|
45.4 |
|
— |
|
— |
|
— |
|
45.4 |
|
— |
|
100 |
|
|
Total consolidated |
$357.0 |
|
$40.6 |
|
$397.6 |
|
$45.6 |
|
$1.1 |
|
$7.1 |
|
$126.5 |
|
$577.9 |
|
452,953 |
|
$1,276 |
|
(1) Excludes general and
administrative expenses related to business development activities
and projects. Includes share based payments expense and defined
benefit pension plan expense. AISC per ounce sold has been
calculated using total consolidated gold ounces sold.
Average realized gold price per ounce sold is
reconciled for the periods presented as follows:
For the three months ended December 31,
2023:
|
|
Revenue |
|
Add concentrate
deductions(1) |
|
Less non-gold revenue |
|
Gold revenue(2) |
|
Gold oz sold |
|
Average realized gold price per ounce sold |
|
|
Kisladag |
$92.9 |
|
$— |
|
($0.8 |
) |
$92.1 |
|
46,051 |
|
$1,999 |
|
|
Lamaque |
114.9 |
|
— |
|
(0.5 |
) |
114.4 |
|
57,040 |
|
2,006 |
|
|
Efemcukuru |
46.7 |
|
1.7 |
|
(1.1 |
) |
47.2 |
|
22,497 |
|
2,098 |
|
|
Olympias |
52.4 |
|
2.9 |
|
(19.4 |
) |
35.8 |
|
19,239 |
|
1,863 |
|
|
Stratoni |
— |
|
— |
|
— |
|
— |
|
N/A |
|
N/A |
|
|
Total consolidated |
$306.9 |
|
$4.5 |
|
($21.9 |
) |
$289.5 |
|
144,827 |
|
$1,999 |
|
(1) Treatment charges, refining charges, penalties and
other costs deducted from proceeds from gold concentrate
sales.(2) Includes the impact of provisional pricing
adjustments on concentrate sales.
For the year ended December 31, 2023:
|
|
Revenue |
|
Add concentrate
deductions(1) |
|
Less non-gold revenue |
|
Gold revenue(2) |
|
Gold oz sold |
|
Average realized gold price per ounce sold |
|
|
Kisladag |
$304.8 |
|
$— |
|
($3.1 |
) |
$301.7 |
|
154,456 |
|
$1,953 |
|
|
Lamaque |
346.3 |
|
— |
|
(1.7 |
) |
344.6 |
|
176,495 |
|
1,953 |
|
|
Efemcukuru |
170.5 |
|
6.4 |
|
(4.4 |
) |
172.5 |
|
86,078 |
|
2,004 |
|
|
Olympias |
186.8 |
|
9.2 |
|
(74.1 |
) |
122.0 |
|
66,949 |
|
1,822 |
|
|
Stratoni |
— |
|
— |
|
— |
|
— |
|
N/A |
|
N/A |
|
|
Total consolidated |
$1,008.5 |
|
$15.7 |
|
($83.4 |
) |
$940.8 |
|
483,978 |
|
$1,944 |
|
(1) Treatment charges, refining charges, penalties and
other costs deducted from proceeds from gold concentrate
sales.(2) Includes the impact of provisional pricing
adjustments on concentrate sales.
For the three months ended December 31,
2022:
|
|
Revenue |
|
Add concentrate
deductions(1) |
|
Less non-gold revenue |
|
Gold revenue(2) |
|
Gold oz sold |
|
Average realized gold price per ounce sold |
|
|
Kisladag |
$69.9 |
|
$— |
|
($0.7 |
) |
$69.2 |
|
39,833 |
|
$1,738 |
|
|
Lamaque |
90.0 |
|
— |
|
(0.4 |
) |
89.6 |
|
51,244 |
|
1,748 |
|
|
Efemcukuru |
38.4 |
|
1.6 |
|
(1.0 |
) |
39.0 |
|
21,486 |
|
1,815 |
|
|
Olympias |
47.9 |
|
1.6 |
|
(15.0 |
) |
34.5 |
|
19,899 |
|
1,735 |
|
|
Stratoni |
— |
|
— |
|
— |
|
— |
|
N/A |
|
N/A |
|
|
Total consolidated |
$246.2 |
|
$3.2 |
|
($17.0 |
) |
$232.3 |
|
132,462 |
|
$1,754 |
|
(1) Treatment charges, refining charges, penalties and
other costs deducted from proceeds from gold concentrate
sales.(2) Includes the impact of provisional pricing
adjustments on concentrate sales.
For the year ended December 31, 2022:
|
|
Revenue |
|
Add concentrate
deductions(1) |
|
Less non-gold revenue |
|
Gold revenue(2) |
|
Gold oz sold |
|
Average realized gold price per ounce sold |
|
|
Kisladag |
$243.3 |
|
$— |
|
($2.8 |
) |
$240.5 |
|
134,213 |
|
$1,792 |
|
|
Lamaque |
313.0 |
|
— |
|
(1.4 |
) |
311.5 |
|
173,409 |
|
1,797 |
|
|
Efemcukuru |
155.3 |
|
5.4 |
|
(3.3 |
) |
157.5 |
|
88,784 |
|
1,774 |
|
|
Olympias |
159.9 |
|
10.1 |
|
(69.9 |
) |
100.1 |
|
56,547 |
|
1,771 |
|
|
Stratoni |
0.5 |
|
— |
|
(0.5 |
) |
— |
|
N/A |
|
N/A |
|
|
Total consolidated |
$872.0 |
|
$15.5 |
|
($77.8 |
) |
$809.6 |
|
452,953 |
|
$1,787 |
|
(1) Treatment charges, refining charges, penalties and
other costs deducted from proceeds from gold concentrate
sales.(2) Includes the impact of provisional pricing
adjustments on concentrate sales.
Reconciliation of Net Earnings attributable to
shareholders of the Company to Adjusted Net Earnings (Loss)
attributable to shareholders of the Company:
|
Continuing Operations(1) |
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Net earnings (loss) attributable to shareholders of the
Company(1) |
$91.8 |
|
$41.9 |
|
$106.2 |
|
($49.2 |
) |
$20.9 |
|
|
Current tax expense due to Turkiye earthquake relief tax law
change(2) |
— |
|
— |
|
4.3 |
|
— |
|
— |
|
|
(Gain) loss on foreign exchange translation of deferred tax
balances |
(3.7 |
) |
(18.3 |
) |
29.3 |
|
35.9 |
|
54.6 |
|
|
Gain on deferred tax due to hyperinflationary accounting |
(59.4 |
) |
— |
|
(59.4 |
) |
— |
|
— |
|
|
(Gain) loss on redemption option derivative |
(4.0 |
) |
(3.0 |
) |
(2.0 |
) |
4.4 |
|
2.7 |
|
|
Unrealized loss on derivative instruments |
24.6 |
|
— |
|
9.6 |
|
— |
|
— |
|
|
Loss (gain) on deferred tax due to changes in tax rates(4) |
— |
|
— |
|
22.6 |
|
(1.0 |
) |
(5.3 |
) |
|
Write-down of assets, net of tax(3) |
— |
|
5.2 |
|
— |
|
20.0 |
|
— |
|
|
Closure of Stratoni, net of tax(5) |
— |
|
— |
|
— |
|
— |
|
30.8 |
|
|
Finance costs relating to debt refinancing(6) |
— |
|
— |
|
— |
|
— |
|
31.1 |
|
|
Gain on sale of mining licences, net of tax(7) |
— |
|
— |
|
— |
|
— |
|
(5.3 |
) |
|
Total adjusted net earnings(1,2) |
$49.3 |
|
$25.8 |
|
$110.7 |
|
$10.1 |
|
$129.5 |
|
|
Weighted average shares outstanding (thousands) |
202,340 |
|
182,496 |
|
194,448 |
|
183,446 |
|
180,297 |
|
|
Adjusted net earnings per share ($/share)(1) |
$0.24 |
|
$0.14 |
|
$0.57 |
|
$0.05 |
|
$0.72 |
|
(1) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements. (2) To help fund
earthquake relief efforts in Turkiye, a one-time tax law change was
introduced in Q1 2023 to reverse a portion of the tax credits and
deductions previously granted in 2022.(3) Non-recurring
write-downs in 2022 include a $5.2 million write-down, net of tax,
related to the existing heap leach pad and ADR plant at Kisladag ,
a $16.0 million write-down, net of tax, related to decommissioned
equipment at Kisladag as a result of installation and commissioning
of the HPGR in Q1, and a partial reversal of equipment at Stratoni
previously written down, net of tax.(4) The deferred tax
expense adjustment in 2023 is due to the income tax rate increase
in Turkiye enacted in Q3 2023. Rate increase from 20% to 25% for
general rate, from 19% to 24% for certain manufacturing activities
(including mining) and from 19% to 20% for export income and is
applicable retroactively to January 1, 2023. The deferred tax
recovery adjustment in 2022 is relating to the adjustment of
opening balances for the tax rate decrease in Turkiye enacted in Q1
2022. The deferred tax recovery adjustment in 2021 includes an
$11.4 million deferred tax recovery relating to the adjustment of
opening balances for a tax rate decrease in Greece net of a $6.1
million deferred tax expense relating to the adjustment of opening
balances for a tax rate increase in Turkiye. Both tax rate changes
were enacted in Q2 2021 and were retroactive to January 1, 2021.
(5) Costs relating to the closure of Stratoni include
$13.9 million impairment, $3.5 million equipment write-downs and
$13.4 million deferred tax expense. (6) Finance costs
relating to the debt refinancing in Q3 2021 include a $21.4 million
redemption premium and $9.7 million of unamortized costs related to
the debt redeemed that were expensed in full in the
quarter.(7) Sale of mining licences in Turkiye in May
2021, net of tax.
Reconciliation of Net Earnings (Loss) before income tax to
EBITDA and Adjusted EBITDA:
|
Continuing Operations(1) |
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
|
Earnings before income tax(1) |
$45.7 |
|
$18.3 |
|
$163.4 |
|
$11.9 |
|
|
Depreciation, depletion and amortization(1,2) |
72.5 |
|
66.6 |
|
264.3 |
|
242.4 |
|
|
Interest income |
(5.9 |
) |
(4.0 |
) |
(17.6 |
) |
(6.8 |
) |
|
Finance costs(1) |
5.8 |
|
6.6 |
|
32.8 |
|
41.6 |
|
|
EBITDA |
$118.1 |
|
$87.5 |
|
$442.9 |
|
$289.1 |
|
|
Other write-down of assets(3) |
— |
|
6.4 |
|
— |
|
24.6 |
|
|
Share-based payments |
4.6 |
|
3.9 |
|
10.2 |
|
10.7 |
|
|
(Gain) Loss on disposal of assets(1) |
(0.1 |
) |
(0.7 |
) |
0.6 |
|
(3.0 |
) |
|
Unrealized loss on derivative instruments |
24.6 |
|
— |
|
9.6 |
|
— |
|
|
Adjusted EBITDA |
$147.2 |
|
$97.1 |
|
$463.3 |
|
$321.5 |
|
(1) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements. (2) Includes
depreciation within general and administrative
expenses.(3) Non-recurring write-downs in 2022 include a
$6.4 million write-down in Q4 2022 relating to the existing heap
leach pad and ADR plant at Kisladag, a $19.8 million write-down in
Q1 2022 related to decommissioned equipment at Kisladag as a result
of installation and commissioning of the HPGR, and in Q2 2022 a
partial reversal of Stratoni equipment previously written down.
Reconciliation of Cash Generated from Operating
Activities to Free Cash Flow:
|
Continuing Operations(1) |
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Cash generated from operating
activities(1) |
$159.6 |
|
$96.2 |
|
$382.9 |
|
$211.2 |
|
$366.7 |
|
|
Less: Cash used in investing activities(1) |
(130.3 |
) |
(55.5 |
) |
(395.7 |
) |
(370.9 |
) |
(263.0 |
) |
|
Add back: Increase (decrease) in term deposits |
— |
|
(30.0 |
) |
(35.0 |
) |
35.0 |
|
(59.0 |
) |
|
Add back: Purchase of marketable securities(2) |
— |
|
— |
|
0.6 |
|
20.2 |
|
28.1 |
|
|
Less: Proceeds from sale of marketable securities |
— |
|
— |
|
— |
|
— |
|
(2.4 |
) |
|
Add back: Acquisition of subsidiary, net of cash received(3) |
— |
|
— |
|
— |
|
— |
|
19.3 |
|
|
Less: Proceeds from sale of Tocantinzinho, net of cash
disposed(4) |
— |
|
— |
|
— |
|
— |
|
(19.7 |
) |
|
Less: Proceeds from sale of mining licences(5) |
— |
|
— |
|
— |
|
— |
|
(7.3 |
) |
|
Add back: Increase in restricted cash |
— |
|
— |
|
— |
|
— |
|
0.6 |
|
|
Free Cash Flow |
$29.3 |
|
$10.7 |
|
($47.2 |
) |
($104.5 |
) |
$63.3 |
|
|
Add back: Skouries cash capital expenditures |
$49.7 |
|
$15.6 |
|
$149.0 |
|
$35.1 |
|
$12.3 |
|
|
Add back: Capitalized interest paid(6) |
$3.0 |
|
$— |
|
$10.8 |
|
$— |
|
$— |
|
|
Free Cash Flow Excluding Skouries |
$82.0 |
|
$26.3 |
|
$112.6 |
|
($69.4 |
) |
$75.6 |
|
(1) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements. (2) Purchase of
marketable securities in 2022 includes cash paid on purchase of
common shares of G Mining Ventures Corp. Purchase of marketable
securities in 2021 includes cash paid on the purchase of shares of
Probe Gold Inc. (3) Cash paid upon acquisition of QMX
Gold Corporation in Q2 2021, net of $4.3 million cash
acquired.(4) Cash proceeds received upon the sale of
Tocantinzinho, net of $0.3 million cash disposed.
(5) Cash consideration received on sale of mining
licences. (6) Includes interest from the Term facility
of $3.0 million in Q4 2023 and $3.5 million in 2023, with the
remainder of interest from senior notes.
Working capital for the periods highlighted is
as follows:
|
|
As at December 31, 2023 |
|
As at December 31, 2022 |
|
|
Current assets, excluding assets held for sale |
$902.8 |
|
$604.7 |
|
|
Less: Current liabilities, excluding liabilities held for sale |
263.3 |
|
200.5 |
|
|
Working capital |
$639.4 |
|
$404.3 |
|
Reconciliation of Net Cash Generated from
Operating Activities to Cash Flow from Operating Activities before
Changes in Working Capital:
|
Continuing Operations(1) |
Q4 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|
2021 |
|
|
Net cash generated from operating activities(1) |
$159.6 |
|
$96.2 |
|
$382.9 |
|
$211.2 |
|
$366.7 |
|
|
Less: Changes in non-cash working capital |
21.6 |
|
11.1 |
|
(28.3 |
) |
(28.3 |
) |
(9.8 |
) |
|
Cash flow from operating activities before changes in
working capital |
$138.0 |
|
$85.2 |
|
$411.2 |
|
$239.5 |
|
$376.5 |
|
(1) Amounts presented are from continuing operations
only and exclude the Romania segment. See Note 6 of our
consolidated financial statements.
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 “anticipates”, “believes”, “budgets” , “continue”,
“commitment”, “confident”, “estimates”, “expects”, “forecasts”,
“guidance”, “intends”, “outlook”, “plans”, “potential”,
“projected”, “prospective”, or “schedule” or the negatives thereof
or variations of such words and phrases or statements that certain
actions, events or results “can”, “could”, “likely”, “may”,
“might”, “will” or “would” be taken, occur or be achieved.
Forward-looking statements or information
contained in this press release include, but are not limited to,
statements or information with respect to: the consistency and
sustainability of the Company’s operations; the Company’s 2024
annual production and cost guidance, including our priorities with
respect to the advancement and development of Skouries and other
continuous advancements across other assets; individual mine
production; the timing of production; the timing of conversion of
resources at Ormaque; the Company’s ability to successfully advance
the Skouries project and achieve the project scope contained in the
Skouries feasibility study; expectations regarding advancement and
development of the Skouries project, including a revised capital
estimate for the project, upcoming milestones, and timing of
contracts; expected total growth capital investment in Skouries in
2024; expected 2025 gold and copper production at Skouries; the
timing of commissioning and commercial production at Skouries,
including expected spending and construction activities,
underground development, the timeline for first production and
first commercial production; expected increases in personnel at the
Skouries site; sources of expected funding for the Skouries
project; the Company's conference call to be held on February 23,
2024; changes in law and tax rates; sustainability; non-IFRS
financial measures and ratios; capital projects at our properties,
including anticipated timing and benefits; risk factors affecting
our business; our expectations as to our future financial and
operating performance, including future cash flow, estimated cash
costs, expected metallurgical recoveries and gold price outlook;
and our strategy, plans and goals, including our proposed
exploration, development, construction, permitting and operating
plans and priorities, related timelines and schedules.
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
materially 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: production and cost expectations; the total funding required
to complete Skouries; our ability to meet our timing objectives for
Skouries; our ability to execute our plans relating to Skouries,
including the timing thereof; our ability to obtain and maintain
all required approvals and permits; cost estimates in respect of
Skouries; no changes in input costs, exchange rates, development
and gold; our preliminary gold production and our guidance,
benefits of the anticipated progress at Lamaque, improvements at
various projects and the optimization of Greek operations; tax
expenses (in Turkiye and elsewhere); timing, cost and results of
our construction and development activities, improvements, and
exploration; the future price of gold and other commodities; the
global concentrate market; exchange rates; anticipated values,
costs, expenses and working capital requirements; production and
metallurgical recoveries; mineral reserves and resources; and the
impact of acquisitions, dispositions, suspensions or delays on our
business and the ability to achieve our goals; and the
geopolitical, economic, permitting and legal climate that we
operate in (including recent disruptions to shipping operations in
the Red Sea and any related shipping delays, shipping price
increases, or impacts on the global energy market). In addition,
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 press 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 prove 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: increases in financing costs or adverse changes to
the Term Facility; failure or delays to receive necessary
approvals; the proceeds of the Term Facility not being available to
the Company or Hellas Gold Single Member S.A.; ability to execute
on plans relating to Skouries, including the timing thereof,
ability to achieve the social impacts and benefits contemplated;
ability to meet production, expenditure and cost guidance;
inability to achieve the expected benefits of the completion of the
decline at Lamaque; inability to assess income tax expenses in
Turkiye; risks relating to our operations in foreign jurisdictions
(including recent disruptions to shipping operations in the Red Sea
and any related shipping delays, shipping price increases, or
impacts on the global energy market); risks relating to any
pandemic, epidemic, endemic or similar public health threats;
development risks at Skouries and other development projects;
community relations and social license; liquidity and financing
risks; climate change; inflation risk; environmental matters;
production and processing; waste disposal; geotechnical and
hydrogeological conditions or failures; the global economic
environment; reliance on a limited number of smelters and
off-takers; labour (including in relation to employee/union
relations, the Greek Transformation, employee misconduct, key
personnel, skilled workforce, expatriates, and contractors);
indebtedness (including current and future operating restrictions,
implications of a change of control, ability to meet debt service
obligations, the implications of defaulting on obligations and
change in credit ratings); government regulation; the
Sarbanes-Oxley Act (SOX); commodity price risk; mineral tenure;
permits; risks relating to environmental sustainability and
governance practices and performance; financial reporting
(including relating to the carrying value of our assets and changes
in reporting standards); non-governmental organizations;
corruption, bribery and sanctions; information and operational
technology systems; litigation and contracts; estimation of mineral
reserves and mineral resources; different standards used to prepare
and report mineral reserves and mineral resources; credit risk;
price volatility, volume fluctuations and dilution risk in respect
of our shares; actions of activist shareholders; reliance on
infrastructure, commodities and consumables (including power and
water); currency risk; interest rate risk; tax matters; dividends;
reclamation and long-term obligations; acquisitions, including
integration risks, and dispositions; regulated substances;
necessary equipment; co-ownership of our properties; the
unavailability of insurance; conflicts of interest; compliance with
privacy legislation; reputational issues; competition, as well as
those risk factors discussed in the sections titled
“Forward-Looking Information and Risks” and “Risk factors in Our
Business” in our 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, MD&A
& Form 40-F filed on SEDAR+ and EDGAR under our Company name,
which discussion is incorporated by reference in this release, for
a fuller understanding of the risks and uncertainties that affect
our business and operations.
The inclusion of 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 United
States.
This press release contains information that may
constitute future-orientated financial information or financial
outlook information (collectively, “FOFI”) about Eldorado’s
prospective financial performance, financial position or cash
flows, all of which is subject to the same assumptions, risk
factors, limitations and qualifications as set forth above. Readers
are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise or inaccurate and, as such,
undue reliance should not be placed on FOFI. Eldorado’s actual
results, performance and achievements could differ materially from
those expressed in, or implied by, FOFI. Eldorado has included FOFI
in order to provide readers with a more complete perspective on
Eldorado’s future operations and management’s current expectations
relating to Eldorado’s future performance. Readers are cautioned
that such information may not be appropriate for other purposes.
FOFI contained herein was made as of the date of this press
release. Unless required by applicable laws, Eldorado does not
undertake any obligation to publicly update or revise any FOFI
statements, whether as a result of new information, future events
or otherwise. Financial Information and condensed statements
contained herein or attached hereto may not be suitable for readers
that are unfamiliar with the Company and is not a substitute for
reading the Company’s financial statements and related MD&A
available on our website and on SEDAR+ and EDGAR under our Company
name. The reader is directed to carefully review such document for
a full understanding of the financial information summarized
herein.
Except as otherwise noted, scientific and
technical information contained in this press release was reviewed
and approved by Simon Hille, FAusIMM and EVP Technical Services and
Operations for the Company, and a "qualified person" under NI
43-101.
Jessy Thelland, géo (OGQ No. 758), a member in
good standing of the Ordre des Géologues du Québec, is the
qualified person as defined in NI 43-101 responsible for, and has
verified and approved, the scientific and technical disclosure
contained in this press release for the Quebec projects.
| |
| Eldorado
Gold CorporationConsolidated Statements of
Financial PositionAs at December 31, 2023 and December 31,
2022(In thousands of U.S. dollars) |
| |
|
|
|
|
|
|
|
Note |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
| |
|
|
|
|
|
| ASSETS |
|
|
|
|
|
| Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
7 |
|
$ |
540,473 |
|
|
$ |
279,735 |
|
|
Term deposits |
|
|
|
1,136 |
|
|
|
35,000 |
|
|
Accounts receivable and other |
8 |
|
|
122,778 |
|
|
|
91,113 |
|
|
Inventories |
9 |
|
|
235,890 |
|
|
|
198,872 |
|
|
Current derivative assets |
27 |
|
|
2,502 |
|
|
|
— |
|
|
Assets held for sale |
6 |
|
|
27,627 |
|
|
|
27,738 |
|
| |
|
|
|
930,406 |
|
|
|
632,458 |
|
| Restricted cash |
|
|
|
2,085 |
|
|
|
2,033 |
|
| Deferred tax assets |
|
|
|
14,748 |
|
|
|
14,507 |
|
| Other assets |
10 |
|
|
185,209 |
|
|
|
120,065 |
|
| Non-current derivative
assets |
27 |
|
|
7,036 |
|
|
|
— |
|
| Property, plant and
equipment |
12 |
|
|
3,755,559 |
|
|
|
3,596,262 |
|
| Goodwill |
13 |
|
|
92,591 |
|
|
|
92,591 |
|
| |
|
|
$ |
4,987,634 |
|
|
$ |
4,457,916 |
|
| LIABILITIES &
EQUITY |
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
15 |
|
$ |
254,030 |
|
|
$ |
191,705 |
|
|
Current portion of lease liabilities |
|
|
|
5,020 |
|
|
|
4,777 |
|
|
Current portion of asset retirement obligations |
17 |
|
|
4,019 |
|
|
|
3,980 |
|
|
Current derivative liabilities |
27 |
|
|
279 |
|
|
|
— |
|
|
Liabilities associated with assets held for sale |
6 |
|
|
10,867 |
|
|
|
10,479 |
|
| |
|
|
|
274,215 |
|
|
|
210,941 |
|
| Debt |
16 |
|
|
636,059 |
|
|
|
494,414 |
|
| Lease liabilities |
|
|
|
12,092 |
|
|
|
12,164 |
|
| Employee benefit plan
obligations |
|
|
|
10,261 |
|
|
|
8,910 |
|
| Asset retirement
obligations |
17 |
|
|
125,090 |
|
|
|
105,893 |
|
| Non-current derivative
liabilities |
27 |
|
|
18,843 |
|
|
|
— |
|
| Deferred income tax
liabilities |
|
|
|
399,109 |
|
|
|
424,726 |
|
| |
|
|
|
1,475,669 |
|
|
|
1,257,048 |
|
| Equity |
|
|
|
|
|
| Share capital |
20 |
|
|
3,413,365 |
|
|
|
3,241,644 |
|
| Treasury stock |
|
|
|
(19,263 |
) |
|
|
(20,454 |
) |
| Contributed surplus |
|
|
|
2,617,216 |
|
|
|
2,618,212 |
|
| Accumulated other
comprehensive loss |
|
|
|
(4,751 |
) |
|
|
(42,284 |
) |
| Deficit |
|
|
|
(2,488,420 |
) |
|
|
(2,593,050 |
) |
| Total equity
attributable to shareholders of the Company |
|
|
|
3,518,147 |
|
|
|
3,204,068 |
|
| Attributable to
non-controlling interests |
|
|
|
(6,182 |
) |
|
|
(3,200 |
) |
| |
|
|
|
3,511,965 |
|
|
|
3,200,868 |
|
| |
|
|
$ |
4,987,634 |
|
|
$ |
4,457,916 |
|
Commitments and contractual obligations (Note 24) Contingencies
(Note 25)Subsequent events (Note 17)
| Approved on behalf of the Board of
Directors |
| |
|
|
|
|
|
|
(signed) |
John Webster |
Director |
(signed) |
George Burns |
Director |
| |
| Date of approval:
February 22, 2024 |
| |
| Eldorado
Gold CorporationConsolidated Statements of
OperationsFor the years ended December 31, 2023 and
December 31, 2022(In thousands of U.S. dollars except share and per
share amounts) |
| |
|
|
|
|
|
| |
Note |
|
Year ended |
|
|
Year ended |
|
| |
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
| Revenue |
|
|
|
|
|
|
Metal sales |
29 |
|
$ |
1,008,501 |
|
|
$ |
871,984 |
|
| |
|
|
|
|
|
| Cost of
sales |
|
|
|
|
|
|
Production costs |
30 |
|
|
478,947 |
|
|
|
459,586 |
|
|
Depreciation and amortization |
|
|
|
261,087 |
|
|
|
240,185 |
|
| |
|
|
|
740,034 |
|
|
|
699,771 |
|
| |
|
|
|
|
|
| Earnings from mine
operations |
|
|
|
268,467 |
|
|
|
172,213 |
|
| |
|
|
|
|
|
| Exploration and evaluation
expenses |
|
|
|
22,422 |
|
|
|
19,635 |
|
| Mine standby costs |
31 |
|
|
16,106 |
|
|
|
34,367 |
|
| General and administrative
expenses |
|
|
|
39,788 |
|
|
|
37,015 |
|
| Employee benefit plan
expense |
|
|
|
4,228 |
|
|
|
5,982 |
|
| Share-based payments
expense |
21 |
|
|
10,195 |
|
|
|
10,744 |
|
| Write-down of assets |
|
|
|
9,719 |
|
|
|
32,499 |
|
| Foreign exchange gain |
|
|
|
(16,000 |
) |
|
|
(9,708 |
) |
| Earnings from
operations |
|
|
|
182,009 |
|
|
|
41,679 |
|
| |
|
|
|
|
|
| Other income |
18 |
|
|
14,195 |
|
|
|
11,802 |
|
| Finance costs |
18 |
|
|
(32,839 |
) |
|
|
(41,625 |
) |
| |
|
|
|
|
|
| Earnings from
continuing operations before income tax |
|
|
|
163,365 |
|
|
|
11,856 |
|
| Income tax expense |
19 |
|
|
57,575 |
|
|
|
61,224 |
|
| Net earnings (loss)
from continuing operations |
|
|
|
105,790 |
|
|
|
(49,368 |
) |
| Net loss from
discontinued operations, net of tax |
6 |
|
|
(4,407 |
) |
|
|
(377,485 |
) |
| Net earnings (loss)
for the year |
|
|
$ |
101,383 |
|
|
$ |
(426,853 |
) |
| |
|
|
|
|
|
| Net earnings (loss)
attributable to: |
|
|
|
|
|
| Shareholders of the
Company |
|
|
|
104,630 |
|
|
|
(353,824 |
) |
| Non-controlling interests |
|
|
|
(3,247 |
) |
|
|
(73,029 |
) |
| Net earnings (loss)
for the year |
|
|
$ |
101,383 |
|
|
$ |
(426,853 |
) |
| |
|
|
|
|
|
| Net earnings (loss)
attributable to shareholders of the Company: |
|
|
|
|
|
| Continuing operations |
|
|
|
106,183 |
|
|
|
(49,176 |
) |
| Discontinued operations |
|
|
|
(1,553 |
) |
|
|
(304,648 |
) |
| |
|
|
$ |
104,630 |
|
|
$ |
(353,824 |
) |
| |
|
|
|
|
|
| Net loss attributable
to non-controlling interest: |
|
|
|
|
|
| Continuing operations |
|
|
|
(393 |
) |
|
|
(192 |
) |
| Discontinued operations |
|
|
|
(2,854 |
) |
|
|
(72,837 |
) |
| |
|
|
$ |
(3,247 |
) |
|
$ |
(73,029 |
) |
| |
|
|
|
|
|
| Weighted average number of
shares outstanding (thousands): |
|
|
|
|
|
| Basic |
32 |
|
|
194,448 |
|
|
|
183,446 |
|
| Diluted |
32 |
|
|
195,329 |
|
|
|
183,446 |
|
| |
|
|
|
|
|
| Net earnings (loss)
per share attributable to shareholders of the
Company: |
|
|
|
|
|
| Basic earnings (loss) per
share |
|
|
$ |
0.54 |
|
|
$ |
(1.93 |
) |
| Diluted earnings (loss) per
share |
|
|
$ |
0.54 |
|
|
$ |
(1.93 |
) |
| |
|
|
|
|
|
| Net earnings (loss)
per share attributable to shareholders of the Company - Continuing
operations: |
|
|
|
|
|
| Basic earnings (loss) per
share |
|
|
$ |
0.55 |
|
|
$ |
(0.27 |
) |
| Diluted earnings (loss) per
share |
|
|
$ |
0.54 |
|
|
$ |
(0.27 |
) |
| |
|
|
|
|
|
| |
| Eldorado
Gold CorporationConsolidated Statements of
Comprehensive Income (Loss)For the years ended December
31, 2023 and December 31, 2022(In thousands of U.S. dollars) |
| |
|
|
|
|
| |
|
Year ended |
|
|
Year ended |
|
| |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
| |
|
|
|
|
|
Net earnings (loss) for the year |
|
$ |
101,383 |
|
|
$ |
(426,853 |
) |
| Other comprehensive
income (loss): |
|
|
|
|
| Items that will not be
reclassified to earnings or (loss): |
|
|
|
|
|
Change in fair value of investments in marketable securities |
|
|
44,437 |
|
|
|
(19,753 |
) |
|
Income tax expense on change in fair value of investments in
marketable securities |
|
|
(3,449 |
) |
|
|
— |
|
|
Actuarial losses on employee benefit plans |
|
|
(4,476 |
) |
|
|
(2,163 |
) |
|
Income tax recovery on actuarial losses on employee benefit pension
plans |
|
|
1,021 |
|
|
|
537 |
|
| Total other
comprehensive income (loss) for the year |
|
|
37,533 |
|
|
|
(21,379 |
) |
| Total comprehensive
income (loss) for the year |
|
$ |
138,916 |
|
|
$ |
(448,232 |
) |
| |
|
|
|
|
| Attributable
to: |
|
|
|
|
| Shareholders of the
Company |
|
|
142,163 |
|
|
|
(375,203 |
) |
| Non-controlling interests |
|
|
(3,247 |
) |
|
|
(73,029 |
) |
| |
|
$ |
138,916 |
|
|
$ |
(448,232 |
) |
| |
|
|
|
|
|
|
|
|
| |
| Eldorado
Gold CorporationConsolidated Statements of Cash
FlowsFor the years ended December 31, 2023 and December
31, 2022(In thousands of U.S. dollars) |
| |
|
|
|
|
|
| |
Note |
|
Year ended |
|
|
Year ended |
|
| Cash flows generated
from (used in): |
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
| |
|
|
|
|
|
| Operating
activities |
|
|
|
|
|
|
Net earnings (loss) for the year from continuing operations |
|
|
$ |
105,790 |
|
|
$ |
(49,368 |
) |
| Adjustments for: |
|
|
|
|
|
| Depreciation and
amortization |
|
|
|
264,325 |
|
|
|
242,393 |
|
| Finance costs |
18 |
|
|
32,839 |
|
|
|
41,625 |
|
| Interest income |
|
|
|
(17,640 |
) |
|
|
(6,763 |
) |
| Unrealized foreign exchange
gain |
|
|
|
(15,167 |
) |
|
|
(2,413 |
) |
| Income tax expense |
19 |
|
|
57,575 |
|
|
|
61,224 |
|
| Loss (gain) on disposal of
assets |
18 |
|
|
605 |
|
|
|
(2,959 |
) |
| Unrealized loss on derivative
contracts |
18 |
|
|
9,584 |
|
|
|
— |
|
| Realized gain on derivative
contracts |
18 |
|
|
(431 |
) |
|
|
— |
|
| Write-down of assets |
|
|
|
9,719 |
|
|
|
32,499 |
|
| Share-based payments
expense |
21 |
|
|
10,195 |
|
|
|
10,744 |
|
| Employee benefit plan
expense |
|
|
|
4,228 |
|
|
|
5,982 |
|
| |
|
|
|
461,622 |
|
|
|
332,964 |
|
| Property reclamation
payments |
|
|
|
(3,591 |
) |
|
|
(3,202 |
) |
| Employee benefit plan
payments |
|
|
|
(5,084 |
) |
|
|
(6,180 |
) |
| Settlement of derivative
contracts |
18 |
|
|
431 |
|
|
|
— |
|
| Income taxes paid |
|
|
|
(59,839 |
) |
|
|
(90,871 |
) |
| Interest received |
|
|
|
17,640 |
|
|
|
6,763 |
|
| Changes in non-cash operating
working capital |
22 |
|
|
(28,282 |
) |
|
|
(28,314 |
) |
| Net cash generated
from operating activities of continuing operations |
|
|
|
382,897 |
|
|
|
211,160 |
|
| Net cash generated
from (used in) operating activities of discontinued
operations |
|
|
|
414 |
|
|
|
(164 |
) |
| |
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
| Additions to property, plant
and equipment |
|
|
|
(401,870 |
) |
|
|
(289,853 |
) |
| Capitalized interest paid |
|
|
|
(10,782 |
) |
|
|
— |
|
| Proceeds from the sale of
property, plant and equipment |
|
|
|
1,647 |
|
|
|
4,293 |
|
| Value added taxes related to
mineral property expenditures |
|
|
|
(17,906 |
) |
|
|
(30,134 |
) |
| Purchase of marketable
securities and investment in debt securities |
|
|
|
(633 |
) |
|
|
(20,163 |
) |
| Decrease (increase) in term
deposits |
|
|
|
33,864 |
|
|
|
(35,000 |
) |
| Net cash used in
investing activities of continuing operations |
|
|
|
(395,680 |
) |
|
|
(370,857 |
) |
| Net cash used in
investing activities of discontinued operations |
|
|
|
— |
|
|
|
(33 |
) |
| |
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
| Issuance of common shares, net
of issuance costs |
|
|
|
168,664 |
|
|
|
14,101 |
|
| Contributions from
non-controlling interests |
|
|
|
265 |
|
|
|
272 |
|
| Proceeds from Term Facility -
Commercial Loans and RRF Loans |
16 |
|
|
166,738 |
|
|
|
— |
|
| Proceeds from Term Facility -
VAT Facility |
16 |
|
|
14,588 |
|
|
|
— |
|
| Repayments of Term Facility -
VAT Facility |
16 |
|
|
(11,328 |
) |
|
|
— |
|
| Term Facility loan financing
costs |
16 |
|
|
(22,084 |
) |
|
|
— |
|
| Term Facility commitment
fees |
|
|
|
(5,066 |
) |
|
|
— |
|
| Interest paid |
|
|
|
(29,490 |
) |
|
|
(34,862 |
) |
| Principal portion of lease
liabilities |
|
|
|
(3,968 |
) |
|
|
(6,884 |
) |
| Purchase of treasury
stock |
|
|
|
(4,442 |
) |
|
|
(13,969 |
) |
| Net cash generated
from (used in) financing activities of continuing
operations |
|
|
|
273,877 |
|
|
|
(41,342 |
) |
| |
|
|
|
|
|
| Net increase
(decrease) in cash and cash equivalents |
|
|
|
261,508 |
|
|
|
(201,236 |
) |
| Cash and cash
equivalents - beginning of year |
|
|
|
279,735 |
|
|
|
481,327 |
|
| Cash in disposal group
held for sale |
6 |
|
|
(770 |
) |
|
|
(356 |
) |
| Cash and cash
equivalents - end of year |
|
|
$ |
540,473 |
|
|
$ |
279,735 |
|
| |
|
|
|
|
|
|
|
|
|
| |
| Eldorado
Gold CorporationConsolidated Statements of Changes
in EquityFor the years ended December 31, 2023 and
December 31, 2022(In thousands of U.S. dollars) |
| |
|
|
|
|
|
| |
Note |
|
Year ended |
|
|
Year ended |
|
| |
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
| Share
capital |
|
|
|
|
|
|
Balance beginning of year |
|
|
$ |
3,241,644 |
|
|
$ |
3,225,326 |
|
|
Shares issued upon exercise of share options |
|
|
|
7,390 |
|
|
|
4,438 |
|
|
Shares issued upon exercise of performance share units |
|
|
|
— |
|
|
|
2,256 |
|
|
Transfer of contributed surplus on exercise of options |
|
|
|
3,112 |
|
|
|
1,787 |
|
|
Shares issued in private placements, net of share issuance
costs |
|
|
|
59,873 |
|
|
|
— |
|
|
Shares issued to the public, net of share issuance costs |
|
|
|
101,346 |
|
|
|
7,837 |
|
| Balance end of year |
20 |
|
$ |
3,413,365 |
|
|
$ |
3,241,644 |
|
| |
|
|
|
|
|
| Treasury
stock |
|
|
|
|
|
| Balance beginning of year |
|
|
$ |
(20,454 |
) |
|
$ |
(10,289 |
) |
|
Purchase of treasury stock |
|
|
|
(4,442 |
) |
|
|
(13,969 |
) |
|
Shares redeemed upon exercise of restricted share units |
|
|
|
5,633 |
|
|
|
3,804 |
|
| Balance end of year |
|
|
$ |
(19,263 |
) |
|
$ |
(20,454 |
) |
| |
|
|
|
|
|
| Contributed
surplus |
|
|
|
|
|
| Balance beginning of year |
|
|
$ |
2,618,212 |
|
|
$ |
2,615,459 |
|
|
Share-based payment arrangements |
|
|
|
7,749 |
|
|
|
10,600 |
|
|
Shares redeemed upon exercise of restricted share units |
|
|
|
(5,633 |
) |
|
|
(3,804 |
) |
|
Shares redeemed upon exercise of performance share units |
|
|
|
— |
|
|
|
(2,256 |
) |
|
Transfer to share capital on exercise of options |
|
|
|
(3,112 |
) |
|
|
(1,787 |
) |
| Balance end of year |
|
|
$ |
2,617,216 |
|
|
$ |
2,618,212 |
|
|
|
|
|
|
|
|
| Accumulated other
comprehensive loss |
|
|
|
|
|
| Balance beginning of year |
|
|
$ |
(42,284 |
) |
|
$ |
(20,905 |
) |
|
Other comprehensive earnings (loss) for the year attributable to
shareholders of the Company |
|
|
|
37,533 |
|
|
|
(21,379 |
) |
| Balance end of year |
|
|
$ |
(4,751 |
) |
|
$ |
(42,284 |
) |
| |
|
|
|
|
|
| Deficit |
|
|
|
|
|
| Balance beginning of year |
|
|
$ |
(2,593,050 |
) |
|
$ |
(2,239,226 |
) |
| Net earnings (loss)
attributable to shareholders of the Company |
|
|
|
104,630 |
|
|
|
(353,824 |
) |
| Balance end of year |
|
|
$ |
(2,488,420 |
) |
|
$ |
(2,593,050 |
) |
| Total equity
attributable to shareholders of the Company |
|
|
$ |
3,518,147 |
|
|
$ |
3,204,068 |
|
|
|
|
|
|
|
|
| Non-controlling
interests |
|
|
|
|
|
| Balance beginning of year |
|
|
$ |
(3,200 |
) |
|
$ |
69,557 |
|
|
Loss attributable to non-controlling interests |
|
|
|
(3,247 |
) |
|
|
(73,029 |
) |
|
Contributions from non-controlling interests |
|
|
|
265 |
|
|
|
272 |
|
| Balance end of year |
|
|
$ |
(6,182 |
) |
|
$ |
(3,200 |
) |
| Total
equity |
|
|
$ |
3,511,965 |
|
|
$ |
3,200,868 |
|
| |
|
|
|
|
|
|
|
|
|
1 These financial measures or ratios are non-IFRS financial
measures and ratios. Certain additional disclosures 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 Eldorado's December 31, 2023 MD&A.2 These
financial measures or ratios are non-IFRS financial measures and
ratios. Certain additional disclosures 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 Eldorado's December 31, 2023 MD&A.3 These financial
measures or ratios are non-IFRS financial measures or ratios.
Certain additional disclosure for non-IFRS and 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 December 31, 2023 MD&A.4 These financial measures or
ratios are non-IFRS financial measures or ratios. Certain
additional disclosure for non-IFRS and 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
December 31, 2023 MD&A.
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