Mr. George Burns reports

ELDORADO GOLD REPORTS Q3 2023 FINANCIAL AND OPERATIONAL RESULTS

Eldorado Gold Corp. has released the company's financial and operational results for the third quarter of 2023. For further information, please see the company's consolidated financial statements and management's discussion and analysis filed on SEDAR+ under the company's profile. Dollar amounts are in U.S. dollars unless otherwise stated.

Third quarter 2023 highlights

Operations:

• Gold production: 121,030 ounces, compared with 118,791 ounces in Q3 2022, a 2-per-cent increase from Q3 2022 as a result of the enhanced material-handling circuit at Kisladag, productivity initiatives and associated improvements at Olympias, slightly offset by slower-than-expected development at Lamaque due to suspended shifts in second quarter 2023 as a result of the wildfires in the region;
• Gold sales: 119,200 ounces at an average realized gold price per ounce sold of $1,879, compared with 118,388 ounces at an average realized gold price per ounce sold of $1,688 in Q3 2022;
• Production costs: $115.9-million, compared with $123.5-million in Q3 2022; the decrease was primarily due to lower transport and refining charges and a reduction in unit costs of key consumables such as electricity and diesel in Turkey;
• Cash operating costs: $698 per ounce gold sold, compared with $803 per ounce gold sold in Q3 2022; cash operating costs decreased from Q3 2022 primarily as a result of higher ounces sold, as well as lower treatment and refining costs due to lower zinc sales, and lower value-added tax on concentrate sales in gold treatment costs;
• All-in sustaining costs: $1,177 per ounce sold, compared with $1,259 per ounce sold in Q3 2022, the decrease was due to lower cash operating cost per ounce sold, partially offset by higher royalty expense;
• Total capital expenditures: $91.1-million, including $27.3-million of growth capital invested at Skouries, with continued focus on construction, engineering and procurement; further, underground development continued to progress on the west decline, and it is on plan to reach the targeted development metres for 2023; growth capital invested at the operating mines totalled $29.1-million and was primarily related to Kisladag waste stripping to support mine life extension and construction of the first phase of the north heap leach pad; sustaining capital totalled $31.8-million, including $18.0-million at Lamaque for underground development, equipment rebuilds and the expansion of the tailing management facility;
• Production, cost and capital expenditure outlook: the company is updating its 2023 annual gold production guidance, cost guidance and capital expenditure guidance to narrow the ranges, reflecting updated full-year expectations given the operational and financial performance to date:
  • Gold production is expected to be 475,000 to 495,000 ounces of gold from 475,000 to 515,000;
  • Cash operating costs per ounce sold range lowered to $730 to $780 from $760 to $860, primarily due to lower unit costs for fuel and power, and a weaker lira and Canadian dollar;
  • Total operating costs per ounce sold range lowered to $830 to $880 per ounce sold from $860 to $960, primarily due to lower operating costs;
  • AISC per ounce sold is expected to be $1,190 to $1,240 per ounce sold from $1,190 to $1,290;
  • Growth capital investment in 2023 lowered to $280-million to $305-million from $394-million to $437-million, including:
    • Lowering Skouries growth capital investment to $160-million to $170-million from $240-million to $260-million;
    • Lowering other growth capital investment to $120-million to $135-million from $154-million to $177-million, primarily driven by deferral of projects to 2024 at Lamaque and Kisladag.

Financial:

• Revenue: $245.3-million in Q3 2023, an increase of 13 per cent from $217.7-million in Q3 2022, primarily due to higher sales volumes at a higher realized gold price;
• Net cash generated from operating activities from continuing operations: $108.1-million compared with $52.7-million in Q3 2022, primarily as a result of higher revenue and lower production costs;
• Cash flow from operating activities before changes in working capital: $97.5-million in Q3 2023, compared with $55.8-million in Q3 2022, primarily driven by higher revenue and lower production costs;
• Cash and cash equivalents: $476.6-million, as at Sept. 30, 2023; cash increased by $20.4-million from June 30, 2023, primarily as a result of cash flow generated from operations;
• Net earnings (loss): net loss of $6.6-million, or three-cent loss per share, compared with net loss of $28.4-million or 15-cent loss per share in Q3 2022; the decrease in net loss was driven by higher operating income on stronger gold sales combined with gains on derivative instruments, partially offset by higher income tax expense;
• Adjusted net earnings before interest, taxes, depreciation and amortization: $108.7-million, compared with $74.2-million in Q3 2022; the increase was primarily driven by higher revenue and lower production costs;
• Adjusted net earnings (loss): $35.0-million or 17-cent earnings per share, compared with net loss of $10.0-million or five-cent loss per share in Q3 2022; adjusted net earnings in Q3 2023 added back, among other things, a non-cash loss of $15.2-million on foreign exchange translation of deferred tax balances and removed a non-cash unrealized $6.0-million gain on derivative instruments, primarily on gold collars; additionally, a one-time deferred tax expense adjustment related to a retroactive income tax rate increase from 20 per cent to 25 per cent in Turkey of $22.6-million and a one-time out-of-period current tax expense adjustment from the same tax rate increase of $8.2-million (related to first quarter and second quarter 2023) were adjusted from Q3 2023 net earnings;
• Free cash flow: negative $19.3-million compared with negative $25.7-million in Q3 2022; free cash flow excluding Skouries was $30.0-million compared with negative $16.5-million in Q3 2022, with the increase this quarter primarily due to higher revenue, lower production costs, lower tax instalments and temporary working capital movements, partially offset by an increase in investing activities;
• Project facility drawdowns: drawdowns on the Skouries term facility year to date as at Sept. 30, 2023, totalled 106.5 million euros.

Skouries highlights

Growth capital invested of $27.3-million in Q3 2023 and $101.3-million year to date in 2023. Eldorado is reducing the growth capital investment guidance for Skouries to $160-million to $170-million in 2023. The reduced spend in 2023 is not expected to impact the project plan, including cost and schedule, with critical path on track. The reduction is driven by:

• A plan change in awarding several contracts to optimize project execution;
• Shifting certain preproduction expenditures from 2023 to 2024 without impact to schedule or progress;
• Transitioning engineering work to Greece;
• Updated execution approach to major earthworks while maintaining construction schedule flexibility.

Activity in the third quarter focused on construction ramp-up and completing engineering and procurement. Underground development continued to advance the west decline, and it is on plan to reach the targeted development metres for 2023 while major earthwork initiatives include haul road construction to build earthwork structures, as well as civil works related to the crushing facility. The project cost and schedule are on track with commissioning in mid-2025 and commercial production at the end of 2025. Coming milestones in 2023 include the mobilization of major construction contracts for concrete, process plant piping and electrical works, in addition to finalizing the awards of the remaining major procurement and contract packages to 90-per-cent completion and advancing detailed engineering to 90-per-cent completion.

Power service installation advanced with the installation of the new substations and distribution to the underground network. Power service upgrades are scheduled for completion in the fourth quarter. Work continues to advance on the water management systems as expected. Mobilization continued related to the first major earthwork initiative for construction haul roads to build earthwork structures. Coming milestones for the rest of 2023 include completing the awards of the remaining major procurement and contract packages, while maintaining flexibility in the construction schedule.

As at Sept. 30, 2023:

• Overall project progress was 34 per cent; on track to be 48 per cent complete by year-end;
• Detailed engineering was 56 per cent complete, and procurement was 73 per cent complete, with both on track to be 90 per cent complete by year-end;
• Mobilization continued for major earthworks for construction haul roads to support construction of earthwork structures;
• Mobilized contractor and commenced work on the primary crusher earthworks and pilings;
• Progress advanced on the foundation construction of the primary crusher;
• Project remains on track for commissioning in mid-2025 and commercial production at the end of 2025.

Corporate:

• Sustainability: In August, 2023, the company published its 2022 climate change report, introducing Eldorado's greenhouse gas emission target achievement pathway.
• Appointed senior vice-president, finance: In September, 2023, Ryan Swedburg was appointed as senior vice-president, finance.

"Operationally, during the third quarter, we continued to make progress across our sites," said George Burns, Eldorado's president and chief executive officer. "At Olympias, the productivity initiatives that were completed in early July drove a solid quarter, and we expect to continue to see further improvements over the coming quarters as those initiatives continue to deliver on their full potential. At Kisladag, the materials-handling circuit continues to perform well, and we have seen record tonnes placed. In addition, with the new north heap leach pad now under leach, we expect to see increased production over the coming quarters. We are fine-tuning the circuit with a focus to potentially increasing recoveries. These initiatives across the sites support our strong outlook for growing production, declining costs and increasing cash flow.

"In sustainability, Eldorado issued its 2022 climate change and GHG emissions report, which provides our measurable progress toward our GHG mitigation target and enhancing climate resilience. This report built on our first climate change report that was published in 2021 and focuses on our progress implementing our climate change strategy, including our GHG emissions target achievement pathway, in which we seek to mitigate our Scope 1 and 2 emissions from operating mines by 30 per cent on a 2020 baseline by 2030."

For further information on the company's operating results for the third quarter of 2023, please see the company's management's discussion and analysis filed on SEDAR+ under the company's profile.

Conference call

A conference call to discuss the details of the company's third quarter 2023 results will be held by senior management on Friday, Oct. 27, 2023, at 11:30 a.m. ET (8:30 a.m. PT). The call will be webcast and available at Eldorado's website.

Conference call details                    Replay (available until Dec. 1, 2023)  

Date:      Oct. 27, 2023                   Vancouver:        1-604-638-9010     
Time:      11:30 a.m. ET (8:30 a.m. PT)    Toll-free:        1-800-319-6413      
Dial-in:   1-604-638-5340                  Access code:      0401                
Toll-free: 1-800-319-4610                                                  

About Eldorado Gold Corp.

Eldorado is a gold and base metal producer with mining, development and exploration operations in Turkey, Canada, Greece and Romania. The company has a highly skilled and dedicated work force, 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 (ELD) and the New York Stock Exchange (EGO).

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