Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) reports the Company’s financial and operational results for the second quarter of 2024. For further information, please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on SEDAR+ at www.sedarplus.com under the Company’s profile.

Second Quarter 2024 Highlights

Operations

• Gold production: 122,319 ounces in line with expectations for the quarter. Production increased 12% from Q2 2023, reflecting increased gold production of 22% at Lamaque and 14% at Kisladag. Production was slightly offset by lower production at Olympias as a result of intermittent work stoppages during ongoing negotiations for a new Collective Bargaining Agreement.
• Gold sales: 121,226 ounces at an average realized gold price per ounce sold¹ of $2,336. Gold sales increased 10% from Q2 2023 primarily as a result of increased production at Lamaque and Kisladag.
• Production costs: $127.8 million in Q2 2024, compared to $116.1 million in Q2 2023. The increase was due primarily to higher sales volumes, as well as slightly higher cash costs, the latter impacted by higher royalty expense due to higher gold sales and higher gold price, as well as increases in contractor and labour costs and higher fuel prices.
• Total cash costs¹: $940 per ounce gold sold compared to $928 per ounce gold sold in Q2 2023, with the increases primarily due to higher royalties driven by higher gold prices and higher mining costs as well as lower by-product credits.
• All-in sustaining costs¹: $1,331 per ounce sold compared to $1,296 per ounce sold in Q2 2023, with the increase due to higher total cash costs combined with higher sustaining capital.
• Total capital expenditures: $165.7 million, including $91.9 million of growth capital¹ invested at Skouries, with activity focused on major earthworks and infrastructure construction. Growth capital at the operating mines totalled $42.3 million and was primarily related to Kisladag for continued waste stripping, construction of the North Heap Leach Pad and related infrastructure.
• Production and cost outlook: The Company is maintaining its 2024 annual production guidance of 505,000 to 555,000 ounces of gold. Production continues to be weighted to the second half of the year. Total cash costs¹ for the full year are expected to be between $840 to $940 per ounce sold and an average AISC¹ of $1,190 to $1,290 per ounce sold.

Financial

• Revenue: $297.1 million in Q2 2024, an increase of 30% from $229.0 million in Q2 2023, primarily due to the higher averaged realized gold price and higher sales volumes.
• Net cash generated from operating activities from continuing operations: $112.2 million compared to $75.3 million in Q2 2023, primarily due to higher revenue, partially offset by higher income taxes paid.
• Cash flow from operating activities before changes in working capital²: $132.2 million compared to $82.4 million in Q2 2023, primarily due to higher revenue, partially offset by higher income taxes paid.
• Cash, cash equivalents and term deposits: $595.1 million, as at June 30, 2024 as compared to $514.7 million as at March 31, 2024, with the cash increase attributable to strong operating cashflows combined with the planned Skouries Term Facility drawdown, partially offset by the significant investing activities, particularly at Skouries.
• Net earnings attributable to shareholders from continuing operations: $56.4 million, or $0.28 per share, compared to $1.5 million or $0.01 per share in Q2 2023, with the increase driven by higher revenue.
• Adjusted net earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)²: $155.3 million compared to $106.8 million in Q2 2023, with the increase driven by higher revenue, partially offset by the unrealized derivative losses as well as a lower foreign exchange gain.
• Adjusted net earnings²: $66.6 million or $0.33 per share compared to $9.7 million or $0.05 per share in Q2 2023. Adjustments in Q2 2024 include a $1.9 million gain on foreign exchange due to the translation of deferred tax balances net of Turkiye inflation accounting and a $12.0 million unrealized loss on derivative instruments.
• Free cash flow²: Negative $32.0 million in Q2 2024 compared to negative $21.7 million in Q2 2023, with the decrease driven by continued investment activities at Skouries, partially offset by higher operating cash flow, primarily due to the higher average realized gold price and higher sales volumes.
• Free cash flow excluding Skouries²: $33.9 million in Q2 2024 compared to $13.7 million in Q2 2023, with the increase driven by higher operating cash flow, primarily due to the higher average realized gold price and higher sales volumes.
• Project Facility: Drawdowns on the Skouries Term Facility during Q2 2024 totalled €104.0 million and year to date as at June 30, 2024 totalled €118.1 million.

Corporate

“Operationally, the second quarter was aligned with guidance, driven by higher grades at Kisladag, Lamaque and Efemcukuru,” said George Burns, President and Chief Executive Officer. “At Olympias, as negotiations on a new CBA progressed during the quarter, we experienced intermittent labour-initiated work stoppages, which had a small impact on consolidated production. We remain confident we will come to a mutually beneficial agreement between the Company and the union workforce, demonstrating our commitment to mutual respect and collaboration to support Olympias becoming a long-term profitable business.”

“With production totaling 239,430 ounces through the first half of the year and unit costs expected to decrease over the second half of the year, we remain on track to achieve 2024 guidance. Our continued focus on operational efficiencies and productivity position us for stronger production and improved unit costs during the second half of 2024. In addition, we remain on budget and on track for first production at Skouries in the third quarter of 2025.”

“We published our Annual Sustainability Report which highlighted our continued focus on our commitment to sustainability across our global sites. In addition, our teams in Turkiye completed external verification against the Mining Association of Canada’s ‘Towards Sustainable Mining’ protocols, receiving very positive scores. More specifically, at Efemcukuru, the site received AAA scores, signifying excellence and leadership, in Tailings, Health & Safety, Biodiversity, and Indigenous and Community Relationships, and A, AA or AAA scores across all other indicators. At Kisladag, the site received AAA scores in all Health & Safety protocol indicators, and A, AA, or AAA scores across all other indicators. TSM scoring is a range from C through AAA with A indicating ‘Good Practice’ and AAA indicating ‘Excellence and Leadership’ in practices. This completes our first round of TSM compliance verifications across all Eldorado operations, which started with the Lamaque Complex in 2022 and the Kassandra Mines in Greece completed in 2023. Notably, Eldorado scored AAA, the highest possible score, for Tailings management across all of our global operations with tailings facilities.”

Skouries Highlights

Growth capital invested totalled $91.9 million in Q2 2024 and $144.4 million during the six months ended June 30, 2024. At June 30, 2024, the growth capital invested towards the overall capital estimate of $920 million totalled $329 million.

In 2024, the capital spend is expected to be between $375 and $425 million, with a higher expected spend in the second half of the year as contractor mobilization continues to ramp up and multiple work fronts open up.

As at June 30, 2024:

• The current Phase 2 of the project was 49% complete and the entire project was 76% complete, when including the first phase of construction;
• Detailed engineering, since project restart, was 72% complete and procurement was substantially complete;
• Project execution and ramp-up continued for major earthworks with work progressing on water management ponds, and top soil stripping and underdrain construction in the low-grade ore stockpile basin. In addition, the coffer dam spillway construction has commenced;
• Work continues to advance on the tailings filtration infrastructure. The earthworks and KT2 channel construction are substantially complete, the piling for the filter plant building is over 95% complete and the piling for the tank farm area is 37% complete;
• Progress advanced on the foundation construction of the primary crusher, as planned, with the upper retaining walls now completed and the concrete slab for the base of the crusher building expected to be poured in Q3 2024;
• Construction of several non-process plant buildings commenced during Q2 2024, and relining of flotation cells are 50% complete;
• Placement of concrete has increased from 445m³/month in Q1 2024 to 2,469m³/month in Q2 2024. The first thickener base concrete pour was completed on July 13, 2024;
• Awarded the underground development and test stoping contract; and
• As previously noted, the upgrade of the underground power supply to 690V and the ventilation upgrade are both completed.

On-track with milestones in 2024, which include:

Procurement and Engineering

• Substantial completion of procurement and engineering

Process Plant

• Construction of the control room and electrical room building – commenced in Q1 2024
• Construction of the tailings thickeners – commenced in Q1 2024

Tailings Filter Facility

• Awarding of the filter facility construction contract
• Preassembly of the filter press plates and frames – commenced in Q1 2024
• Completion of the structural steel

Integrated Extractive Waste Management Facility (“IEWMF”)

• Completion of the coffer dam

Underground

• Awarding of the underground development and test stoping contract – completed in Q2 2024
• Completion of approximately 2,200 metres of underground development

Construction Progress

Work continues to ramp up on construction of major earthworks structures including the haul roads, water management ponds, low-grade stockpile, primary crusher, process facilities, filter building and the IEWMF. Productivity improvement initiatives by the earthworks contractor, including adding a partial second shift, has yielded significant improvements. Work is also progressing on the underground development to support test stope mining in 2025.

On the critical path is the filter plant building which continues to advance, with 871 piles required for the filter plant building and supporting infrastructure. To date, 270 piles have been completed, including 95% of the piles for the filter plant building. There are currently two active drills with a third drill having recently arrived on site. In July 2024, preparation work for the concrete foundations on the filter plant building have commenced, with assembly of the building structure to commence in Q3 2024 following the awarding of the filter plant construction contract. The contract will include the building structure, assembly of equipment within the building, including air compressors, conveyors, filter presses and other ancillary equipment and piping and electrical work. The filter press plates continue to be preassembled with 225 now completed out of a total of 588. The fabricated frames for the filter press plates arrived on site during Q2 2024.

Work in the mill/flotation building continues to progress. Commissioning of all overhead cranes was completed during Q2 2024. Construction lighting, scaffolding, steel and concrete work are all progressing according to plan. In addition, off-site pipe spool fabrication and contractor mobilization continue on plan. Work has also commenced on support infrastructure including the process control room building, process plant sub-station, water pump station, lime plant, air blowers building and flotation reagent areas.

During Q2 2024, earthworks were completed to allow access to the coffer dam site and construction has now commenced. In addition, the low-grade ore stockpile fill placement also commenced.

By the end of 2024, the Company expects to have completed the first of two water management ponds, IEWMF coffer dam and significantly advanced the IEWMF earthworks, process plant and filter plant earthworks.

All 19 company-owned Cat 745 trucks are now onsite and operational. During construction, these trucks are used as part of an integrated fleet with the earthwork’s construction contractor for construction of the water management ponds one and two, low-grade ore stockpile, IEWMF and facilities. These trucks will continue to be used once Skouries is in operation to build the IEWMF lifts that will be required for stacking of produced dry tailings.

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, which included the West Decline and access to the test stopes was completed with a local contractor. The second underground development contract was awarded and the contractor mobilized to site as planned in Q2 2024, taking their first blast on June 17, 2024. This second contract includes the test stope work as well as additional development and services work to support the development of the underground mine. The Company expects to complete approximately 2,200 metres of underground development by the end of 2024.

Engineering

Following the transition of engineering to Greece at the end of 2023, it is currently 72% complete as at the end of Q2 2024 and remains on track for substantial completion at the end of Q3 2024. Detailed engineering work continues to advance in all areas. The release of structural steel for fabrication is nearing completion with approximately 60% of the total steel fabricated to date.

Procurement

At the end of Q2 2024, procurement is substantially complete, with all long lead items procured and the focus on managing fabrication and deliveries.

Operational Readiness

The experienced commissioning, operational readiness and operations leadership team, which includes seven specialists, is currently focused on finalizing the commissioning plan integration with the project construction schedule. In addition, development of a Management Operating System, which provides operations with a system and processes to manage production, is ongoing. Several process mapping workshops were held to map current processes, which are analyzed and then integrated to ensure industry best practices to improve safety, reliability and effective decision making to drive efficiencies.

The Skouries operations team now consists of 133 personnel; including 118 in leadership, sustainability, operations and support services roles, and 15 embedded in the construction projects teams for open pit mining, underground mining and dry stack tailings construction. The operations recruitment profile was completed, and recruitment activities are on track with the Operational Workforce Plan. Finalization of operational and maintenance training solutions is ongoing.

The Mavres Petres Training Centre was utilized for ventilation training, business process mapping, document management and integration of Metso operations and training solutions into training and development programs. An agreement was reached with the technical and operational teams on a competency framework. This framework provides industry focused, comprehensive theoretical and hands-on practical training. Trainees are assessed on both theoretical and practical knowledge before being qualified to work independently in the mine. The training program is consistent with and compliments the applicable standards outlined in the Greek Mining Code and labour legislation. Training solutions for the open pit and processing operations and maintenance were identified, scoped and mutually agreed to. Mine operators and maintenance progression systems were also developed.

Workforce

In addition to the Operational Readiness team, as at June 30, 2024, there were 841 personnel on site which is expected to ramp up to 1,300 during 2024.

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 discussions of these non-IFRS financial measures or ratios.
(3) Revenues from silver, lead and zinc sales are off-set against total cash costs.
(4) Amounts presented for 2024 and 2023 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed consolidated interim financial statements for the three and six months ended June 30, 2024.

Total revenue increased to $297.1 million in Q2 2024 from $229.0 million in Q2 2023 and to $555.1 million in the six months ended June 30, 2024, from $456.8 million in the six months ended June 30, 2023. The increases in both three and six-month periods were primarily due to the higher average realized gold price as well as the higher sales volumes.

Production costs increased to $127.8 million in Q2 2024 from $116.1 million in Q2 2023 and to $250.8 million in the six months ended June 30, 2024 from $225.8 million in the six months ended June 30, 2023. Increases in both periods were driven primarily by higher sales volume as well as slightly higher cash costs, the latter impacted by higher royalty expense due to higher gold sales and higher gold price, as well as increases in contractor and labour costs and higher fuel prices.

Total cash costs³ averaged $940 per ounce sold in Q2 2024, an increase from $928 in Q2 2023, and $931 the six months ended June 30, 2024 from $893 in the six months ended June 30, 2023. The increases in both the three and six-month periods were primarily due to higher royalties (driven by higher gold prices) and mining costs as well as lower by-product credits.

AISC per ounce sold⁴ averaged $1,331 in Q2 2024, an increase from $1,296 in Q2 2023, and $1,297 the six months ended June 30, 2024 from $1,252 in the six months ended June 30, 2023, with the increases in both the three and six-month periods due to higher total cash costs combined with higher sustaining capital and G&A.

Eldorado reported net earnings attributable to shareholders from continuing operations of $56.4 million ($0.28 earnings per share) in Q2 2024 compared to net earnings of $1.5 million ($0.01 earnings per share) in Q2 2023 and net earnings of $91.6 million ($0.45 earnings per share) in the six months ended June 30, 2024 compared to net earnings of $20.9 million ($0.11 earnings per share) in the six months ended June 30, 2023. The increases in net earnings in both the three and six-month periods were driven by higher operating income due primarily to higher average realized gold price as well as stronger gold sales, partially offset by higher unrealized derivative losses.

Adjusted net earnings⁴ was $66.6 million ($0.33 earnings per share) in Q2 2024 compared to adjusted net earnings of $9.7 million ($0.05 earnings per share) in Q2 2023. Adjustments in Q2 2024 include a $1.9 million gain on foreign exchange due to the translation of deferred tax balances net of Turkiye inflation accounting and a $12.0 million unrealized loss on derivative instruments.

Adjusted net earnings was $121.8 million ($0.60 earnings per share) in the six months ended June 30, 2024 compared to adjusted net earnings of $26.4 million ($0.14 earnings per share) in the six months ended June 30, 2023. Adjustments in the six months ended June 30, 2024 include a $3.4 million loss on foreign exchange due to the translation of deferred tax balances net of Turkiye inflation accounting, a $28.9 million unrealized loss on derivative instruments and a $2.0 million gain on the non-cash revaluation of the derivative related to redemption options in our Senior Notes.

Quarterly Operations Update

(1) Revenues from silver, lead and zinc sales are off-set against total cash 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 discussions of these non-IFRS financial measures or ratios.

Kisladag

Kisladag produced 38,990 ounces of gold in Q2 2024, an increase from 34,180 ounces produced in Q2 2023. Production in the quarter benefited from both higher average grade and higher tonnes placed on the pad. Grade increased from 0.76 grams per tonne in Q2 2023 to 0.92 grams per tonne in Q2 2024 as a result of mine planning changes and positive grade reconciliation. A geometallurgical test work program is evaluating the effects of ore type variability on the life of mine resource in order to refine the crushing, agglomeration, and heap leach circuits with an expectation of completing the study in 2025. The study will focus on optimal moisture and reagent addition, particle size, and incremental debottlenecking of the crushing plant to maximize Kisladag value. Optimization of drum and belt agglomeration continues within the circuit to ensure product consistency and operability.

Revenue increased to $94.0 million in Q2 2024 from $64.7 million in Q2 2023, reflecting the higher average realized gold price as well as higher ounces sold.

Production costs increased to $38.2 million in Q2 2024 from $27.5 million in Q2 2023, with more than half the increase attributable to the higher sales volume, including higher royalty expense as a result of both the higher average realized gold price and higher gold sales. As a result of the increased royalty expense, total cash costs per ounce increased to $941 in Q2 2024 from $827 in Q2 2023.

AISC per ounce sold increased to $1,055 in Q2 2024 from $937 in Q2 2023, primarily due to the increase in total cash costs per ounce sold.

Sustaining capital expenditures were $3.1 million in Q2 2024 and $5.2 million in the six months ended June 30, 2024, which primarily included equipment rebuilds, mine equipment purchases and geotechnical drilling and monitoring. Growth capital investment of $32.3 million and $57.7 million in the three and six months ended June 30, 2024 included waste stripping and associated equipment costs to support the mine life extension, continued construction of the second phase of the North Heap Leach Pad and adsorption-desorption-regeneration plant infrastructure, and building relocation due to pit expansion.

For 2024, production guidance at Kisladag is 180,000 to 195,000 ounces of gold. Production is expected to increase in the second half as compared to the first half of the year as we realize expected higher stacking rates.

Lamaque

Lamaque produced 47,391 ounces of gold in Q2 2024, an increase of 22% from 38,745 ounces in Q2 2023. The increase was primarily due to higher tonnes milled combined with higher grade ore and no stoppages due to wildfires. Average grade increased to 6.95 grams per tonne in Q2 2024 from 6.43 grams per tonne in the comparative quarter, with the increase attributable to higher grade ore from the C4 and C5 zones.

Revenue increased to $102.8 million in Q2 2024 from $78.6 million in Q2 2023, reflecting the higher average realized gold price as well as higher ounces sold.

Production costs increased to $33.6 million in Q2 2024 from $28.3 million in Q2 2023, with roughly half the increase attributable to the higher sales volume, and the remaining increase due to additional costs incurred in labour, contractors, and equipment rentals. Total cash costs were also impacted by slightly higher royalties due to the higher average realized gold price, with total cash costs per ounce sold increasing to $759 in Q2 2024 from $701 in Q2 2023.

AISC per ounce sold increased to $1,233 in Q2 2024 from $1,117 in Q2 2023 primarily due to higher total cash costs per ounce as well as higher sustaining capital.

Sustaining capital expenditures of $20.1 million in Q2 2024 and $41.1 million in the six months ended June 30, 2024 primarily included underground development, equipment rebuilds and expenditure on the expansion of the tailings facility (Phase 6). Growth capital investment of $7.4 million in Q2 2024 and $12.5 million in the six months ended June 30, 2024 was primarily related to resource conversion drilling and initiation of bulk sample development at Ormaque.

For 2024, production guidance at Lamaque is 175,000 to 190,000 ounces of gold. Production in the second half of the year is expected to be stronger than the first half of the year as grades are expected to increase.

Efemcukuru

Efemcukuru produced 22,397 ounces of gold in Q2 2024, a 1% decrease from 22,644 ounces in Q2 2023. The slight decrease was primarily driven by lower throughput, partially offset by modestly higher grade.

Revenue increased to $55.3 million in Q2 2024 from $44.1 million in Q2 2023, with the increase attributable entirely to the higher average realized gold price given the stable sales volume.

Production costs increased to $24.8 million in Q2 2024 from $20.4 million in Q2 2023, with the increase attributable entirely to higher unit costs, including higher transportation costs as well as increased royalty expense due to the higher average realized gold price. This resulted in an increase to total cash costs per ounce sold to $1,087 in Q2 2024 from $915 in Q2 2023.

AISC per ounce sold increased to $1,288 in Q2 2024 from $1,111 in Q2 2023 primarily due to higher total cash costs per ounce.

Sustaining capital expenditures of $3.6 million in Q2 2024 and $6.0 million in the six months ended June 30, 2024 were primarily underground development, equipment rebuilds, and tailings filter press maintenance. Growth capital investment of $1.1 million in Q2 2024 and $2.2 million in the six months ended June 30, 2024 supported underground development to Kokarpinar.

For 2024, production guidance at Efemcukuru is 75,000 to 85,000 ounces of gold. Production in the second half of the year is expected to be relatively consistent with the first half of the year.

Olympias

Olympias produced 13,541 ounces of gold in Q2 2024, a 2% decrease from 13,866 ounces in Q2 2023 and was driven by lower tonnes milled, mostly offset by higher grade ore, the latter of which reflected stope sequencing in the quarter.

During the quarter, production at Olympias was negatively impacted by labour-initiated intermittent work stoppages totalling 17 days, primarily in June. Eldorado is currently engaged in negotiating a new collective bargaining agreement with the objective of finalizing an agreement that will underpin the long-term sustainability of Olympias and provide lasting benefits for our workforce and the communities in which we operate.

Revenue increased to $45.0 million in Q2 2024 from $41.6 million in Q2 2023 primarily as a result of the higher average realized gold price.

Production costs decreased to $31.3 million in Q2 2024 from $40.0 million in Q2 2023 driven by productivity efficiencies, as well as slightly lower consumable costs. Production costs also benefited from lower transport costs. This resulted in a decrease to total cash costs per ounce sold to $1,231 in Q2 2024 from $1,746 in Q2 2023.

AISC per ounce sold decreased to $1,522 in Q2 2024 from $2,036 in Q2 2023 primarily due to total cash costs per ounce sold.

Sustaining capital expenditures of $4.1 million in Q2 2024 and $7.6 million in the six months ended June 30, 2024 primarily included underground development and process improvements. Growth capital investment of $1.6 million in Q2 2024 and $2.6 million in the six months ended June 30, 2024 was primarily related to underground development.

For 2024, production guidance at Olympias is 75,000 to 85,000 ounces of gold. Production in the second half of the year is expected to increase over the first half of the year as a result of an expected increase in ore mined and processed.

For further information on the Company’s operating results for the second quarter of 2024, please see the Company’s MD&A filed on SEDAR+ at www.sedarplus.com under the Company’s profile.

About Eldorado

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.