Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) reports the Company’s financial and operational results for the first quarter of 2023. 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.

First Quarter 2023 Highlights

Operations

• Q1 gold production: 112,533 ounces in line with expectations for the quarter. Production increased 21% from Q1 2022, this increase reflected higher gold production at most sites, notably an increase of 25% at Kisladag.
• Q1 gold sales: 109,817 ounces at an average realized gold price per ounce sold⁽¹⁾ of $1,932. Gold sales increased 16% from Q1 2022 as a result of increases in production at Kisladag, Lamaque, and Olympias.
• Cash operating costs⁽¹⁾: $766 per ounce sold in Q1 2023. Costs decreased from $835 per ounce sold in Q1 2022, primarily due to higher gold production in the quarter.
• All-in sustaining costs⁽¹⁾: $1,184 per ounce sold in Q1 2023. Costs decreased from $1,346 in Q1 2022, primarily reflecting the lower cash operating costs per ounce sold in Q1 2023, combined with lower royalty expense.
• Total capital expenditures: $83.4 million in Q1 2023, including $31.4 million of growth capital⁽¹⁾ invested at Skouries with activity focused on mobilization, procurement and advancement of contracts. Growth capital at the operating mines totalled $24.1 million and was primarily related to Kisladag for waste stripping, construction of the North leach pad and stacking and agglomeration enhancements which are expected to drive stronger recoveries and productivity improvements resulting in higher stacking rates over the remainder of 2023.
• Production outlook: We are maintaining our 2023 annual guidance of 475,000 – 515,000 ounces of gold. First quarter production was in-line with our 2023 annual guidance and higher production is expected in the second half of the year.

Financial

• Cash flow from operating activities before changes in working capital⁽¹⁾: $94.5 million in Q1 2023, an increase of 91% over Q1 2022, primarily as a result of higher gold production and sales volumes.
• Cash, cash equivalents and term deposits: $262.3 million, as at March 31, 2023. Cash decreased by $52.5 million in Q1 2023 over Q4 2022 primarily as a result of temporary working capital movements, combined with continued investment in growth capital.
• Adjusted earnings before interest, taxes, depreciation and amortization⁽²⁾: $102.5 million compared to $61.7 million in Q1 2022. The increase was driven by increased gold production and gold sales, coupled with lower operating costs.
• Net earnings: Q1 2023 net earnings attributable to shareholders of the Company was $21.3 million or $0.12 earnings per share. Increased net income in Q1 2023, compared to Q1 2022, is primarily attributable to increased sales volumes.
• Adjusted net earnings⁽²⁾: $20.5 million net earnings, or $0.11 earnings per share in Q1 2023 compared to adjusted net loss of $19.3 million ($0.11 loss per share) in Q1 2022. Adjusted net earnings in Q1 2023 removed, among other things, a one-time current tax expense related to the tax law change to fund earthquake relief efforts in Turkiye, a non-cash recovery of deferred tax due to foreign exchange translation and a non-cash gain on the revaluation of the derivative related to redemption options in the debt.
• Free cash flow⁽²⁾: Negative $34.4 million in Q1 2023, primarily due to temporary working capital movements, combined with continued investment in growth capital.
• Financial outlook: 2023 guidance for average cash operating costs per ounce sold of $760 to $860 and AISC per ounce sold of $1,190 to $1,290 is maintained.

Corporate

• Completed Skouries Project Financing Facility: On April 5, 2023, we satisfied all precedent conditions and closed the €680.4 million project financing facility for the development of the Skouries project, with an initial drawdown of €32.3 million completed in mid-April 2023.
• Hedging Program: In accordance with the Term Facility, we entered into a secured hedging program in April 2023 including: gold and copper commodity swap contracts for settlement on July 7, 2026; foreign exchange contracts to fix the U.S. dollar to Euro exchange rate; and an interest rate swap covering 70% of the variable interest rate exposure under the Term Facility.
• Appointed Vice-President, Investor Relations: On April 5, 2023, Lynette Gould was appointed as Vice-President, Investor Relations.
• Modified Environmental Impact Assessment (“EIA”) Approval: On April 27, 2023, the modification to the Kassandra Mines 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.

“Operations across our global portfolio improved significantly compared to the first quarter of 2022, with gold production 21% higher than the same period last year,” said George Burns, Eldorado’s President and Chief Executive Officer. “Across the portfolio, the operations performed largely in line with our expectations, and are on track to deliver 475,000 to 515,000 ounces of gold in 2023, aligned with our guidance. Consolidated gold production is weighted to the second half of 2023, with stronger production in the quarters ahead,” added Burns.

“On April 5, 2023, we announced the closing of the Skouries project financing facility. This strategic facility funds 80% of the remaining capital required to complete construction of this transformational asset. Once in production, Skouries is expected to produce, on average 140,000 ounces of gold and 67 million pounds of copper annually, delivering a meaningful impact on Eldorado’s consolidated production profile, and decreasing average AISC and operating costs on a per ounce basis. Skouries, once in production, alongside Eldorado’s existing operating portfolio, is expected to generate strong cash flow, further strengthening our financial position, and will help establish an exciting future for growth and value creation for our stakeholders, including contributing to the global supply of critical minerals,” continued Burns.

“As we look ahead to the balance of 2023, the installation of a fine ore agglomeration drum at Kisladag has commenced commissioning and will continue to ramp up to nameplate design in the second quarter, which is expected to improve recoveries and offer potential upside, increasing the production rate through better materials handling on the conveying system at the operation. In Greece, at Olympias, we look to continue the positive operating momentum of the first quarter into the rest of the year. Several key initiatives are underway including the implementation of bulk emulsion and ventilation on demand, designed to improve safety performance and efficiency, aligned with our 2023 guidance and continued transformation objectives,” added George. “At both Lamaque and Efemcukuru, we are excited to continue our robust exploration programs aimed at increasing the reserve base, and ultimately extending life of mine.”

Consolidated Financial and Operational Highlights

(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’ of our MD&A for explanations and discussion of these non-IFRS financial measures or ratios.
(3) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(4) Amounts presented for 2023 and 2022 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed consolidated interim financial statements for the three months ended March 31, 2023.

Total revenue was $229.4 million in Q1 2023, an increase of 18% from total revenue of $194.7 million in Q1 2022. The increase was primarily driven by higher sales volumes in Q1 2023.

Production costs increased to $109.9 million in Q1 2023 from $104.6 million in Q1 2022 primarily due to increased production and sales volumes in the quarter. Production costs include royalty expense which decreased to $8.7 million in Q1 2023 from $10.1 million in Q1 2022, despite higher sales volumes. This was due to a $1.9 million reversal of accrued 2022 royalty expense following adjustments in the quarter.

Cash operating costs in Q1 2023 averaged $766 per ounce sold, a decrease from $835 per ounce sold in Q1 2022, primarily due to higher gold production in the quarter. AISC per ounce sold decreased to $1,184 in Q1 2023 from $1,346 in Q1 2022, primarily reflecting the lower cash operating costs per ounce sold in Q1 2023, combined with lower royalty expense.

We reported net earnings attributable to shareholders from continuing operations of $21.3 million ($0.12 earnings per share) in Q1 2023, compared to a net loss of $317.6 million ($1.74 loss per share) in Q1 2022. Higher net income in Q1 2023 is primarily attributable to increased sales volumes, a $277.9 million net loss from discontinued operations attributable to shareholders recognized in Q1 2022 and a $16.0 million net write-down of assets at Kisladag in Q1 2022.

Adjusted net earnings was $20.5 million ($0.11 earnings per share) in Q1 2023, compared to adjusted net loss of $19.3 million ($0.11 loss per share) in Q1 2022. Adjusted net earnings in Q1 2023 removed, among other things, the $4.3 million current tax expense related to the tax law change to fund earthquake relief efforts in Turkiye, a $3.5 million non-cash recovery of deferred tax due to foreign exchange translation, and a $1.1 million non-cash gain on the revaluation of the derivative related to redemption options in our debt.

Quarterly Operations Update

Gold Operations

(1) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section ‘Non-IFRS and Other Financial Measures and Ratios’ of our MD&A for explanations and discussion of these non-IFRS financial measures or ratios.

Kisladag

Kisladag produced 37,160 ounces of gold in Q1 2023, a 25% increase from 29,779 ounces in Q1 2022. The increase was primarily due to production in Q1 2022 being impacted by lower tonnage placed on the heap leach pad in late 2021 during the commissioning of the HPGR, combined with material handling challenges in that quarter. Average grade increased to 0.70 grams per tonne in Q1 2023 from 0.61 grams per tonne in Q1 2022.

Tonnes placed on the heap leach pad in the quarter benefited from the installation in late 2022 of eight larger, higher-capacity conveyors, improving material handling capacity and belt agglomeration. The installation of a fine ore agglomeration drum at Kisladag has commenced commissioning and will continue to ramp up in Q2 2023. The fine ore agglomeration drum is expected to improve materials handling on the conveying system, increasing recoveries and production rates. Tonnes placed on the heap leach pad in Q1 2022 were reduced by snowfall and prolonged freezing temperatures that impacted the ore conveyance and stacking system, reducing productivity.

Revenue increased to $72.1 million in Q1 2023 from $56.6 million in Q1 2022, reflecting increased gold ounces sold in the quarter and to a lesser extent, an increase in the average realized gold price.

Production costs increased to $30.5 million in Q1 2023 from $30.1 million in Q1 2022. The slight increase was due to higher gold sales in the quarter, mostly offset by a decrease in cash operating costs per ounce sold to $708 in Q1 2023 from $861 in Q1 2022. Cash operating costs per ounce sold in Q1 2022 were negatively impacted by reduced production in late 2021 and early 2022.

AISC per ounce sold decreased to $875 in Q1 2023 from $1,084 in Q1 2022, primarily due to the decrease in cash operating costs per ounce sold.

Sustaining capital expenditures of $2.2 million in Q1 2023 primarily included equipment rebuilds. Growth capital expenditures of $18.6 million in Q1 2023 included waste stripping to support the mine life extension, stacking system and agglomeration enhancements, and continued construction of the first phase of the North heap leach pad, on which stacking is expected to commence in the second half of 2023.

For 2023, production guidance at Kisladag is 160,000 to 170,000 ounces of gold. Production is expected to improve over the course of the second quarter as we realize full effectiveness from the upgraded materials handling equipment. Our optimization efforts are expected to drive increased stacking rates in the second half of the year.

Lamaque

Lamaque produced 37,884 ounces of gold in Q1 2023, a 14% increase from 33,377 ounces in Q1 2022 and primarily due to an increase in average grade. Average grade increased to 6.06 grams per tonne in Q1 2023 from 5.27 grams per tonne in Q1 2022. As expected, gold production was reduced in the quarter, as compared to Q4 2022, due to stope access and mine sequencing.

Revenue increased to $73.6 million in Q1 2023 from $64.9 million in Q1 2022 primarily due to higher production and sales in the quarter.

Production costs increased slightly to $29.2 million in Q1 2023 from $27.2 million in Q1 2022. The increase in average grade resulted in a decrease in cash operating costs per ounce sold to $721 in Q1 2023 from $763 in Q1 2022.

AISC per ounce sold increased to $1,217 in Q1 2023 from $1,182 in Q1 2022, primarily due to an increase in sustaining capital expenditure and partly offset by the decrease in cash operating costs per ounce sold.

Sustaining capital expenditure increased to $17.8 million in Q1 2023 from $13.0 million in Q1 2022 primarily due to increased underground development, combined with equipment rebuilds. Sustaining capital expenditure is expected to increase in Q2 and Q3 2023 as the seasonal tailings facility expansion is completed. Growth capital expenditures of $2.7 million in Q1 2023 was primarily related to resource conversion drilling at Ormaque.

In 2023, production guidance at Lamaque is 170,000 to 180,000 ounces of gold. For the second quarter, processing rates will increase slightly, coupled with slightly higher grades. Production for the second half of the year is expected to be stronger than the first half with throughput stable and averaging approximately 2,400 tonnes per day.

Efemcukuru

Efemcukuru produced 19,928 payable ounces of gold in Q1 2023, a 5% decrease from 21,057 payable ounces in Q1 2022. The slight decrease was due to a planned decrease in grade to 5.45 grams per tonne in Q1 2023 from 5.95 grams per tonne in Q1 2022, and was partly offset by higher throughput during the quarter.

Revenue decreased to $40.7 million in Q1 2023 compared to $41.3 million in Q1 2022. The slight decrease was due to lower payable gold ounces sold, partly offset by an increased average realized gold price during the quarter.

Higher tonnes processed and lower grade also resulted in an increase in production costs to $17.7 million in Q1 2023 from $17.0 million in Q1 2022. Additionally, lower gold production and sales resulted in an increase in cash operating costs per ounce sold to $869 in Q1 2023, from $648 in Q1 2022.

AISC per ounce sold increased to $1,094 in Q1 2023 from $999 in Q1 2022, primarily due to the increase in cash operating costs per ounce sold, partly offset by a decrease in sustaining capital expenditure and a decrease in royalty expense due to a $1.0 million reversal of accrued 2022 royalty expense following adjustments in the quarter.

Sustaining capital expenditures of $2.2 million in Q1 2023 primarily included underground development and equipment rebuilds. Growth capital expenditures of $1.9 million includes resource conversion drilling at Kokarpinar.

For 2023, production guidance at Efemcukuru is forecast to be 80,000 to 90,000 ounces of gold. Production in the second quarter is expected to be consistent with the first quarter with the second half slightly higher as grades improve.

Olympias

Olympias produced 17,561 ounces of gold in Q1 2023, a 95% increase from 8,996 ounces in Q1 2022. The significant increase reflected increased processing volumes combined with increased average gold grade in the quarter. Lead, silver and zinc production also increased in Q1 2023 as compared to Q1 2022, due to increased processing volumes and higher average grades. In Q1 2022, gold production at Olympias was negatively impacted by COVID-19 related absenteeism and weather-related power outages.

Revenue increased to $43.0 million in Q1 2023 compared to $31.2 million in Q1 2022 primarily as a result of higher sales volumes. Inclement weather at the end of March delayed the shipment of approximately 2,000 ounces of gold. The shipments were completed in early April and the gold ounces sold and related revenue will be recognized in Q2 2023.

Increased production in the quarter resulted in an increase in production costs to $32.5 million in Q1 2023 from $30.2 million in Q1 2022 and a decrease in cash operating costs per ounce sold to $898 in Q1 2023 from $1,449 in Q1 2022. Electricity prices continued to benefit from state subsidies introduced in 2022 and on average remained in line with Q4 2022 levels.

AISC per ounce sold decreased to $1,355 in Q1 2023 from $2,399 in Q1 2022 primarily due to the decrease in cash operating costs per ounce sold, combined with a decrease in sustaining capital expenditure in the quarter and a decrease in royalty expense, in line with lower average lead and zinc prices in the quarter. Sustaining capital expenditures of $2.5 million in Q1 2023 primarily included underground development and tailings facility construction.

This year, production guidance at Olympias is 60,000 to 75,000 ounces of gold. Gold production is expected to be relatively consistent quarter over quarter.

For further information on the Company’s operating results for the first quarter of 2023, please see the Company’s MD&A 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, Greece, and Romania. 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.