Mr. George Burns reports

ELDORADO GOLD REPORTS 2023 YEAR-END AND FOURTH QUARTER FINANCIAL AND OPERATIONAL RESULTS; ACHIEVES ANNUAL GUIDANCE; PROVIDES SKOURIES UPDATE

Eldorado Gold Corp. today released the company's financial and operational results for the fourth quarter and year ended Dec. 31, 2023. For further information please see the company's consolidated financial statements and management's discussion and analysis (MD&A) filed on SEDAR+ 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 per cent 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 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 with $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: $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 (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 invested at the company's 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 totalled $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 per cent from revenue of $246.2-million in Q4 2022, and $1,008.5-million in 2023, an increase of 16 per cent 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: $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 Dec. 31, 2023, up from $314.7-million as at Dec. 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, writedowns of assets and income taxes.
• Adjusted net earnings before interest, taxes, depreciation and amortization (adjusted EBITDA): $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: $49.3-million or 24 cents per share in Q4 2023, an increase from $25.8-million or 14 cents per share in Q4 2022, and $110.7-million or 57 cents per share in 2023, an increase from $10.1-million or five cents per share in 2022. Adjusted net earnings in Q4 2023 removes a $59.4-million gain on deferred income taxes due to the Turkey 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 Turkey 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 per cent to 25 per cent in Turkey, as well as a $29.3-million loss on foreign exchange translation of deferred tax balances, among other things.
• Free cash flow: $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 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 Dec. 31, 2023, totalled 153.2 million euros.

"Eldorado finished 2023 with its strongest quarter of production, delivering 143,166 ounces of gold," said George Burns, president and chief executive officer 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-per-cent production growth, a 6-per-cent-lower cash cost per ounce and a 4-per-cent-lower AISC per ounce compared with 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-euro project financing facility with two Greek banks we advanced into full construction on our transformational Skouries project in Greece. In addition, we completed a $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 labour rates and labour 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 per cent 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 on line this world-class copper-gold asset that will deliver an additional 40 per cent 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 Mr. Burns.

Gold sales in 2023 totalled 483,978 ounces, an increase of 7 per cent 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 per cent from 132,462 ounces in Q4 2022, primarily due to increased production at Kisladag and Lamaque in the quarter.

The average realized gold price 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 per cent 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 per cent 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 Turkey and Greece, and fuel in Turkey 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 Turkey, 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 euro:U.S. dollar exchange rate.

Cash operating costs 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 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.

The company reported net earnings attributable to shareholders from continuing operations of $106.2-million (55 cents earnings per share) in 2023, compared with net loss of $49.2-million (27 cents per share) in 2022 and net earnings of $91.8-million (45 cents per share) in Q4 2023, compared with net earnings of $41.9-million (23 cents earnings per share) in Q4 2022. Net earnings increased in 2023 primarily due to higher revenue, and lower mine standby costs, writedowns of assets and income taxes. Net earnings in Q4 2023 reflected higher sales volumes and gold prices, and a higher income tax recovery, compared with Q4 2022.

Adjusted net earnings from continuing operations were $110.7-million (57 cents per share) in 2023, compared with $10.1-million (five cents 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 Turkey hyperinflationary tax basis adjustment, $2.0-million gain on the non-cash revaluation of the derivative related to redemption options in the company's 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 Turkey. Adjusted net earnings were $49.3-million (24 cents 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 Turkey hyperinflationary tax basis adjustment, a $4.0-million gain on the non-cash revaluation of the derivative related to redemption options in the company's 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 of $442.9-million, including $118.1-million in Q4 2023. Adjusted EBITDA 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.

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, Feb. 23, 2024, at 8:30 a.m. PT (11:30 a.m. ET). The call will be webcast and can be accessed at Eldorado Gold's website.

Upon registration, participants will receive a calendar invitation by e-mail 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.

About Eldorado Gold Corp.

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada and Greece. 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 (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).

We seek Safe Harbor.