Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) reports the Company’s financial and operational results for the fourth quarter and year ended December 31, 2022. For further information please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.

Q4 2022 and Full-Year Summary

Operations

• Gold production: 128,453 ounces in Q4 2022 demonstrating sequential improvements across the portfolio. Full year production of 453,916 ounces in 2022, was 1% below the low end of guidance.
• Gold sales: 132,462 ounces in Q4 2022 at an average realized gold price per ounce sold⁽¹⁾ of $1,754, and 452,953 ounces in 2022 at an average realized gold price per ounce sold⁽¹⁾ of $1,787.
• Production costs: $122.2 million in Q4 2022, and $459.6 million in 2022.
• Cash operating costs⁽¹⁾: $741 per ounce sold in Q4 2022. Full year cash operating costs of $788 per ounce sold in 2022, 5% above the guidance range, driven by price increases for commodities and consumables, including electricity in Turkiye and Greece, and fuel and reagents at Kisladag.
• All-in sustaining costs⁽¹⁾: $1,246 per ounce sold in Q4 2022, and $1,276 per ounce sold in 2022, meeting guidance for the year, driven mainly by the Company’s disciplined deployment of sustaining capital.
• Total capital expenditures: $80.7 million in Q4 2022, and $289.9 million in 2022. Growth capital⁽¹⁾ of $100.0 million in 2022 was primarily focused at Kisladag.

Financial

• Cash, cash equivalents and term deposits: $314.7 million, as at December 31, 2022
• Cash flow from operating activities, before changes in working capital⁽¹⁾: $85.2 million in Q4 2022, and $239.5 million in 2022.
• Free cash flow^(1): $10.7 million in Q4 2022, and negative $104.5 million in 2022 due to lower sales volumes and significant investment in growth capital.
• Earning before interest, taxes, depreciation and amortization (“EBITDA”)⁽¹⁾: $87.5 million in Q4 2022; and $289.1 million in 2022.
• Adjusted EBITDA⁽¹⁾: $97.1 million in Q4 2022, and $321.5 million in 2022.
• Adjusted net earnings (loss)⁽¹⁾:   $25.8 million or $0.14 per share in Q4 2022, and $10.1 million or $0.05 per share in 2022. Net earnings in Q4 2022 were driven by higher production.

2023 Outlook

• As previously announced in the news release titled, “Eldorado Provides 2023 Production and Cost Guidance and Outlines Five-Year Growth Profile; Achieving Approximately 700k oz Gold Production in 2027“, in 2023 we expect:
  • Consolidated gold production of 475,000 to 515,000 ounces.
  • Average Cash operating costs of $760 to $860 per ounce sold.
  • Average AISC of $1,190 to $1,290 per ounce sold.

“In 2022, Eldorado continued to execute on our multi-year strategy in Greece,” said George Burns, Eldorado’s President and Chief Executive Officer. “Late in the year, we were pleased to announce the €680 million project financing facility for Skouries, and conditional Board approval for the full re-start of construction at Skouries. With financing in place, we look forward to delivering this project on time and on budget and unlocking exceptional value for all our stakeholders.”

“Operationally, following a challenging start to the year due to severe weather impacts and COVID, our sites worked diligently to catch up and ultimately improved quarter over quarter. Across our four operating mines, we produced almost 454,000 ounces of gold, slightly below the low end of our guidance range, with fourth quarter production increasing more than 35% over the first quarter. From a cost perspective, global macroeconomic influences impacted costs and supply chains industry wide. Coupled with lower-than-expected production, our cost per ounce finished the year outside of our revised guidance range. We are working diligently to find ways to mitigate these macro factors in our business planning,” added Burns.

“As we look forward to 2023, and beyond, we are excited to deliver on our growth portfolio with production increasing year after year, and reaching 700,000 gold ounces by 2027, as announced earlier today in the 2023 guidance and five-year outlook news release. Our focus remains on execution at Skouries, an asset that will be transformational to our production footprint, and we look forward to updating our stakeholders on our progress throughout the construction period. At Olympias, transformation initiatives in 2023 will continue, with a focus on bulk emulsion, ventilation, and people and equipment efficiencies. Additionally, we look forward to fully optimizing the agglomeration circuit at Kisladag with the installation of the agglomeration drum, and we expect to realize benefits of increased recovery rates from this world-class asset. Lastly, our global exploration and technical teams are focused on resource expansion and conversion, and adding to mine-life across the portfolio, in particular at Efemcukuru and Lamaque,” added Burns.

“In light of the devastating earthquakes that took place in Turkiye and Syria at the beginning of February and earlier this week, I, on behalf of the global Eldorado team, would like to extend our condolences to those impacted by the disaster. Working with our colleagues in Turkiye, we will continue to provide additional aid and assistance to support relief efforts as needed in the coming days, weeks and months ahead. We will continue to assess the situation and our first priority, as always, is to ensure the continuing safety and well-being of our team members. I would like to thank our entire Turkish team for responding so quickly and compassionately to this tragedy. Their efforts have been an inspiration to us all,” concluded George Burns.

Year in Review: Positioned to Excel

• Skouries Project Proceeding: In December 2022, Eldorado announced a €680 million project financing facility, and conditional Board approval which is expected to enable the restart of construction. Construction and commissioning is expected to take approximately three-years, with first production in 2025. Skouries is expected to produce, on average, 140,000 ounces of gold and 67 million pounds of copper annually over its initial 20-year mine life. Drawdown on the Term Facility is subject to customary closing conditions. We expect such conditions to be satisfied and the initial drawdown is projected to occur in the first quarter of 2023.
• New Lamaque Technical Study: In February 2022, a new technical study was published for Lamaque, showcasing the significant upside potential from the Lower Triangle zones and Ormaque deposit.
• Inaugural Climate Change and Green House Gas (“GHG”) emissions report: In February 2022, Eldorado published its first Climate Change and GHG emissions report, setting a target to mitigate 65,000 tonnes of Scope 1 and Scope 2 emissions by 2030.
• Retained Exposure to Tocantinzinho: In July 2022, Eldorado completed the acquisition of 32.5 million common shares of G Mining Ventures Corp (“GMIN”), continuing our interest in the gold project, located in Brazil. Currently, Eldorado owns approximately 18% of the outstanding shares of GMIN.
• Planned Divestment of Certej: In October 2022, Eldorado entered into an agreement to sell the Certej project, a non-core gold asset located in Romania, which is congruent with the strategy of focusing on its core assets in the portfolio.
• 2022 Global Exploration Program: Approximately 20% increase in spending over 2021, focused on brownfields opportunities at Lamaque and Efemcukuru, as well as greenfields growth in Eastern Canada and Turkiye.
• Notable awards and recognitions across the business:
  • Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights, which acknowledges Canadian companies that are committed to bettering society and the planet. The Best 50 represents a rising standard for corporate sustainability leadership in the country.
  • At Eldorado Gold Quebec, three supervisors received the OHS 2022 Recognition Trophy from the Quebec Mining Association. This award recognizes achievements in maintaining safe workplaces for periods ranging from 50,000 to 150,000 hours for the year 2021.
  • In Greece, the team received Gold in the Hellenic Responsible Business Awards, the most prestigious contest for acknowledging Greek businesses’ work on sustainable and social development, supported by the Ministries of Development & Investments and Environment & Energy and the Hellenic Federation of Enterprises.
  • In Turkiye, the team at Efemcukuru won the Best Team Competence award in the Mine Rescue Competition organized by the Turkish Miners Association. The annual competition aims to create awareness regarding the importance of health and safety while contributing to the development of the occupational safety culture in the industry.
  • Joe Dick, EVP and Chief Operating Officer, received the William L. Saunders Gold Medal Award from the Society for Mining, Metallurgy, & Exploration. The award recognizes Joe’s significant achievements throughout 35 years in mining, including his contributions to promoting safe, productive mining operations and mentoring the industry’s future leaders.
  • Jennifer Prospero, Senior Director, Sustainability, was recognized as one of the ‘100 Global Inspirational Women in Mining’ by Women In Mining UK. This global publication celebrates the “above & beyond” contributions of women to the mining industry and identifies role models to inspire future generations of women to consider mining as a career choice.

Consolidated Financial and Operational Highlights

Summarized Annual Financial Results

Summarized Quarterly Financial Results

Gold sales in 2022 totalled 452,953 ounces, a decrease of 4% from 472,307 ounces in 2021. The lower sales volume in 2022 compared with the prior year primarily reflected a decrease of 41,649 ounces sold at Kisladag due to the reduction of tonnes placed on the heap leach pad in the first half of 2022 compared to 2021. There was also a decrease of 3,974 ounces sold at Efemcukuru due largely to lower average gold grade, an increase of 22,016 ounces sold at Lamaque due to increased tonnes mined and processed, and an increase of 4,253 ounces sold at Olympias due to higher average gold grade. Gold sales were 132,462 ounces in Q4 2022, an increase of 11% from 119,384 ounces in Q4 2021, primarily due to increased production at Kisladag in the quarter.

The average realized gold price was $1,787 per ounce sold in 2022, a slight increase from $1,781 per ounce sold in 2021. The average gold price increased during the first quarter of 2022, declined during Q2 and Q3, then strengthened again in Q4 2022. The average realized gold price was $1,754 in Q4 2022 ($1,780 in Q4 2021).

Total revenue was $872.0 million in 2022, a decrease of 7% from total revenue of $940.9 million in 2021. The decrease was due primarily to lower sales volumes, partially offset by the higher average realized gold price. Total revenue was $246.2 million in Q4 2022, an increase of 1% from total revenue of $244.6 million in Q4 2021. The modest increase was due largely to higher sales volumes, partly offset by lower average realized gold prices.

Production costs of $459.6 million in 2022 increased from $449.7 million in 2021 and production costs of $122.2 million in Q4 2022 increased slightly from $118.2 million in Q4 2021. Increases in both periods were primarily due to substantial price increases for certain commodities and consumables as a result of supply concerns caused by financial and trade sanctions against Russia, and ongoing supply chain challenges due to the novel coronavirus (“COVID-19”). Cost increases primarily impacted electricity at operations in Greece and Turkiye, and fuel and reagents at Kisladag.

Production costs include royalty expense which decreased to $40.6 million in 2022 from $42.0 million in 2021. primarily reflecting lower sales volumes in 2022. Additionally, royalty expense in 2021 benefited from a $4.5 million reversal of expense following an amendment of retroactive gold royalty rates in Turkiye. 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. Royalty expense decreased to $10.2 million in Q4 2022 from $13.1 million in Q4 2021 as a result of lower average metal prices, and the closure of the Stratoni mine at the end of 2021.

Cash operating costs in 2022 averaged $788 per ounce sold an increase from $626 per ounce sold in 2021. In Q4 2022, cash operating costs averaged $741 per ounce sold, an increase from $571 per ounce sold in Q4 2021. The increase in 2022 was primarily due to lower production and increases in both periods were primarily due to price increases for certain commodities and consumables.

AISC per ounce sold increased to $1,276 in 2022 from $1,068 in 2021, and to $1,246 in Q4 2022 from $1,076 in Q4 2021. Increases in both periods primarily reflect the increase in cash operating costs per ounce sold and higher sustaining capital expenditures.

We reported net loss attributable to shareholders from continuing operations of $49.2 million ($0.27 loss per share) in 2022, compared to net earnings of $20.9 million ($0.12 per share) in 2021 and net earnings of $41.9 million ($0.23 per share) in Q4 2022, compared to net loss of $39.4 million ($0.22 loss per share) in Q4 2021. The net loss in 2022 was primarily due to lower production and sales volumes, and higher operating costs, depreciation, mine standby costs and non-cash asset write-downs. Net earnings in Q4 2022 reflected higher sales volumes and an income tax recovery, compared to a significant income tax expense in Q4 2021.

Adjusted net earnings from continuing operations were $10.1 million ($0.05 per share) in 2022, compared to $129.5 million ($0.72 per share) in 2021. Adjusted net earnings in 2022 removes a $35.9 million loss on foreign exchange due to translation of deferred tax balances, $20.0 million write-downs of assets, $4.4 million loss on the non-cash revaluation of the derivative related to redemption options in our debt and a $1.0 million deferred tax recovery relating to the impact of tax rate changes in Turkiye. Adjusted net earnings were $25.8 million ($0.14 per share) in Q4 2022 and removes an $18.3 million gain on foreign exchange due to translation of deferred tax balances, a $5.2 million of write-down of assets and a $3.0 million gain on the non-cash revaluation of the derivative related to redemption options in our debt.

Lower sales volumes in 2022, combined with a lower gold price, resulted in EBITDA of $289.1 million, including $87.5 million in Q4 2022. Adjusted EBITDA of $321.5 million in 2022 and $97.1 million in Q4 2022 exclude, among other things, asset write-downs related to Kisladag and the closure of Stratoni.

Operations Update and Outlook

Gold Operations

Kisladag

Kisladag produced 135,801 ounces of gold in 2022, a 22% decrease from 174,365 ounces in 2021. Gold production of 40,307 ounces in the quarter increased 22% from 33,136 ounces in Q4 2021 and benefited from increased tonnes placed on the heap leach pad in Q3 2022, following reduced productivity in early 2022 as a result of snowfall, prolonged freezing temperatures, impacts from the startup of belt agglomeration and COVID-19 absenteeism. Gold production during 2022 decreased 22% from 2021 due to debottlenecking of the belt agglomeration circuit, reducing stacking capacity. In Q4 2022, eight larger, higher-capacity conveyors were installed, which has improved material handling capacity and belt agglomeration. The high-pressure grinding roll circuit (“HPGR”) is performing to plan with recovery rates as expected. Average grade declined slightly in 2022 to 0.74 grams per tonne, as compared to an average grade of 0.75 grams per tonne in 2021.

Cash operating costs per ounce sold increased to $773 in 2022 from $583 in 2021 primarily due to lower production during the year. In the quarter, higher production resulted in a decrease in cash operating costs per ounce sold to $709 from $737 in Q4 2021. Production costs in 2022 were negatively impacted by price increases in labour, reagents, electricity, and fuel, some of which were partly offset by the weakening of the Turkish Lira. AISC per ounce sold increased to $1,000 in 2022 from $797 in 2021 primarily due to higher cash operating costs per ounce sold, partly offset by lower sustaining capital expenditure. In the quarter, AISC per ounce sold decreased to $884 from $977 in Q4 2021 primarily due to higher production combined with slightly lower sustaining capital expenditure.

Sustaining capital expenditure of $14.7 million in 2022, including $3.0 million in Q4 2022, primarily related to equipment rebuilds, and processing and infrastructure improvements. Growth capital expenditures of $82.5 million in 2022, including $21.2 million in Q4 2022, primarily included waste stripping to support the mine life extension, construction of the first phase of the North heap leach pad and stacking and agglomeration enhancements.

Lamaque

Lamaque produced 174,097 ounces of gold in 2022, a 14% increase from 153,201 ounces in 2021 and a result of an 11% increase in throughput in the year despite challenges with COVID-19 related absenteeism in mid-2022. Gold production of 51,349 ounces in the quarter was comparable to 51,354 ounces in Q4 2021 and reflected strong throughput, which offset planned lower grade. Average grade of 7.41 grams per tonne in the quarter resulted from mining higher-grade stopes as compared to previous quarters in 2022. Average grade of 6.65 grams per tonne in 2022 slightly exceeded 6.54 grams per tonne in 2021.

Cash operating costs per ounce sold increased to $642 in 2022 from $616 in 2021 and to $541 in Q4 2022 from $482 in Q4 2021 primarily due to cost increases in labour and consumables, which were partly offset by higher production, and cost savings from a weaker Canadian dollar. In 2022, ore began to be transported from the Triangle underground mine to the Sigma mill using the underground decline, avoiding public roads. The significantly shorter hauling distance and reduced rehandling resulted in cost savings of approximately $4 per tonne transported. AISC per ounce sold increased to $1,036 in 2022 from $1,017 in 2021 and to $925 in Q4 2022 from $815 in Q4 2021 with increases in both periods reflecting higher cash operating costs per ounce sold and higher sustaining capital expenditure.

Sustaining capital expenditures of $62.8 million in 2022, including $18.1 million in Q4 2022, primarily related to underground development and expansion of the tailings management facility. Growth capital expenditure totalled $6.0 million in 2022, including $1.8 million in Q4 2022, and is primarily related to construction of underground infrastructure.

Efemcukuru

Efemcukuru produced 87,685 payable ounces of gold in 2022, a 5% decrease from 92,707 payable ounces in 2021. Gold production of 21,362 payable ounces in the quarter was 6% lower than 22,631 payable ounces in Q4 2021. Decreases in both periods reflect planned lower average grade, partly offset by higher throughput.

Cost increases combined with lower average grade resulted in an increase in cash operating costs per ounce sold to $701 in 2022, from $551 in 2021 and to $738 in Q4 2022 from $606 in Q4 2021. AISC per ounce sold increased to $1,091 in 2022 from $901 in 2021 and to $1,138 in Q4 2022 from $1,104 in Q4 2021, primarily reflecting higher cash operating costs per ounce sold.

Sustaining capital expenditure of $18.8 million in 2022, including $5.3 million in Q4 2022, related primarily to underground development and equipment rebuilds. Growth capital expenditure included resource conversion drilling at Kokarpinar and Bati.

Olympias

Olympias produced 56,333 ounces of gold in 2022, a 1% increase from 55,577 ounces in 2021 and reflecting higher average gold grade in the year. Throughput in 2022 was 2% lower than in 2021 as a result of lower mining rates, combined with the negative impacts of weather-related power outages and COVID-19 related absenteeism in early 2022. We continue to implement operating initiatives designed to improve productivity.

Gold production of 15,435 ounces in Q4 2022 decreased slightly from 15,461 in Q4 2021 as a result of 11% higher throughput in the quarter, offsetting lower average gold grade. Lead and silver production increased slightly in the quarter compared to Q4 2021, primarily reflecting higher throughput, and zinc production decreased slightly in the quarter, primarily reflecting lower average grade and recovery rate compared to Q4 2021.

Cash operating costs per ounce sold increased to $1,409 in 2022 from $930 in 2021, primarily as a result of cost inflation and increased shipments to China which incurred the 13% VAT import charge, which is included in cash operating costs. Cash operating costs per ounce sold increased to $1,325 in Q4 2022 from $441 in Q4 2021 primarily due to the timing of silver and base metal sales, which reduce cash operating costs as by-product credits. Cash operating costs per ounce sold in Q4 2021 benefited from bulk shipments of zinc, combined with higher base metal prices. AISC per ounce sold increased to $2,155 in 2022 from $1,715 in 2021 and to $1,998 in Q4 2022 from $1,467 in Q4 2021 primarily due to the increase in cash operating costs per ounce sold.

Sustaining capital expenditure increased slightly to $30.3 million in 2022 from $29.1 million in 2021 and to $10.5 million in Q4 2022 from $10.1 million in Q4 2021. Spending in both periods primarily included underground development, tailings facility construction and underground infrastructure improvements. Growth capital expenditure in 2022 and 2021 primarily related to underground development.

For further information on the Company’s operating results for the year-end and fourth quarter of 2022, please see the Company’s Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.

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 and the New York Stock Exchange.

Eldorado Gold Corporation
Consolidated Statements of Financial Position
As at December 31, 2022 and December 31, 2021
(In thousands of U.S. dollars)

Commitments and Contractual Obligations (Note 24)
Contingencies (Note 25)

Approved on behalf of the Board of Directors

(signed) John Webster Director                         (signed) George Burns Director

Date of approval: February 23, 2023

Eldorado Gold Corporation
Consolidated Statements of Operations
For the years ended December 31, 2022 and December 31, 2021
(In thousands of U.S. dollars except share and per share amounts)

Eldorado Gold Corporation
Consolidated Statements of Comprehensive (Loss) Income
For the years ended December 31, 2022 and December 31, 2021
(In thousands of U.S. dollars)

Eldorado Gold Corporation
Consolidated Statements of Cash Flows
For the years ended December 31, 2022 and December 31, 2021
(In thousands of U.S. dollars)

Eldorado Gold Corporation
Consolidated Statements of Changes in Equity
For the years ended December 31, 2022 and December 31, 2021
(In thousands of U.S. dollars)