VANCOUVER, BC – Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the second quarter ended June 30, 2018.
Highlights from the Quarter and Subsequent Period1
? Gold production of 99,105 ounces, including 3,134 ounces of pre-commercial production from Lamaque
? Full year production guidance increased to 330,000-340,000 ounces of gold from 290,000-330,000 ounces of gold due to expected higher production at Kisladag
? Key permitting milestones achieved, including confirmation that construction of a mill at Kisladag could proceed under the existing Environmental Impact Assessment (EIA) and receipt of the mining concession at Tocantinzinho
? Cash generated from operating activities was $36.7 million; cash generated from operating activities before changes in non-cash working capital was $23.5 million
? The Company held $429.8 million in cash, cash equivalents and term deposits, and had $250.0 million in undrawn lines of credit at the end of the quarter
? Gold revenues from continuing operations of $121.3 million on sales of 94,224 ounces of gold at an average realized gold price of $1,287 per ounce
? Loss attributable to shareholders was $24.4 million ($0.03 per share) primarily due to several significant non-cash charges that are further described in the review of quarterly results below
? Adjusted net earnings of ($1.8) million ($0.00 per share)
? Cash operating costs averaged $587 per ounce, all-in sustaining cash costs averaged $934 per ounce
“This was an excellent quarter for us. Production was strong, driven by better-than-expected ounces from the heap leach pad at Kisladag,” said George Burns, Eldorado’s President and Chief Executive Officer. “We achieved lower costs at Olympias, reflecting mill and filter press optimizations. With production and costs continuing to trend positively, we have increased full-year guidance to 330,000-340,000 ounces of gold at $580-$630 per ounce. Development continues ahead of schedule at Lamaque and we are on track to complete the feasibility study for a mill at Kisladag in the third quarter of this year.”
“Our cash position remains solid and in light of the positive performance in the first half of 2018, we continue to refine our views on capital and potential funding requirements to meet the medium to long-term needs of the organization and re-establish annual production of 600,000 ounces per year by 2021.”

1) Throughout this press release we use cash operating cost per ounce, all-in sustaining cash cost per ounce, and cash flow from operating activities before changes in non-cash working capital as additional measures of Company performance. These are non-IFRS measures. Please see our MD&A for an explanation and discussion of these non-IFRS measures. All dollar amounts in US$, unless stated otherwise.

Summarized Quarterly Financial Results
3 months ended June 30, 6 months ended June 30, 2018 2017 2018 2017
Revenues 153.2 82.7 285.1 194.6
Gold revenues1 121.3 72.2 236.8 162.7
Gold sold (ounces) 94,224 57,206 180,811 131,274
Average realized gold price ($/ounce) 1,287 1,262 1,310 1,240
Cash operating costs – gold mines ($/ounce) 587 484 579 474
Total cash costs – gold mines ($/ounce) 610 502 604 492
All-in sustaining cash cost – gold mines ($/ounce) 934 846 887 826
Gross profit from gold mining operations 30.1 28.1 64.8 65.1
Cash flow from operating activities 2) 23.5 16.9 61.5 45.1
Adjusted net earnings (1.8) 6.3 12.4 16.7
Net profit/(loss) 3, 4, 5) (24.4) 11.2 (15.7) 15.0
Earnings per share – basic ($/share) 3) (0.03) 0.02 (0.02) 0.02
Earnings per share – diluted ($/share) 3) (0.03) 0.02 (0.02) 0.02

(1) Including market to market price adjustments on provisional sales
(2) Before changes in non-cash working capital
(3) Attributable to shareholders of the Company
(4) 2017 net profit is from continued operations
(5) Including significant non-cash charges, as outlined below

Review of Quarterly Financial Results
Gold sales of 94,224 ounces during the quarter were significantly higher year over year mainly due to higher production and sales at Kisladag and Efemcukuru as well as the first year of commercial gold sales at Olympias. Metal sales revenues were $153.2 million compared to $82.7 million in the second quarter of 2017, driven by higher sales volumes along with higher average realized gold price of $1,287 per ounce compared with $1,262 per ounce for the second quarter of 2017.
Higher gold revenues were offset by higher production costs and depreciation, depletion and amortization (“DDA”) expense resulting in gross profit from gold mining operations remaining relatively flat year over year. Production costs were $46.4 million higher, primarily driven by $26.5 million in non-cash charges related to the leach pad inventory draw-down at Kisladag. Additional quarterly non-cash charges are expected as the Kisladag leach pad inventory draw-down continues. DDA costs were $18.0 million higher due to the start-up of Olympias as well as an increase at Kisladag due to leach pad draw-down and lower reserves. General and administrative expenses increased $2.5 million year over year due to reorganization costs. Mine standby costs of $4.3 million were recorded in the second quarter of 2018 related to Kisladag, Vila Nova, Perama Hill and Skouries (2017: $1.3 million).
In the second quarter, the weakening Turkish and Brazilian currencies in relation to the US dollar had a negative impact on deferred income tax expenses. Total income tax expense for the quarter was $21.6 million, including a $19.1 million non-cash charge related to unrealized losses on deferred tax assets resulting from these adverse currency movements. Currency volatility will continue to affect our quarterly income tax expense.
As a result, loss attributable to shareholders of the Company for this quarter was $24.4 million, (or $0.03 per share), compared to a profit of $11.2 million, (or $0.02 per share) in the second quarter of 2017. Adjusted net earnings for the quarter were ($1.8) million (or $0.00 per share) as compared to adjusted net earnings of $6.3 million ($0.01 per share) for the second quarter of 2017 (see page 14 of Management’s Discussion and Analysis for the quarter for a reconciliation of profit to adjusted earnings).
Cash flow from operating activities before changes in non-cash working capital was $23.5 million, an increase year over year from $16.9 million in the second quarter of 2017.
Review of Quarterly Operational Results
Gold production for the quarter was up 56% year on year (99,105 ounces versus 63,692 ounces in Q2 2017) due to the increase in production at Kisladag, Efemcukuru and Olympias. Kisladag saw increased production due to improved leach kinetics and placement of ore in early 2018 on an inter-lift liner, which shortened the time that gold bearing solution took to return to the ADR Plant.
Since start-up of the Kisladag operation in 2006 approximately 145 million tonnes of material has been placed on the leach pad, at an average grade of 1.01 g/t. Production from leach operation has totaled approximately 2.88 million ounces of gold and the remaining book inventory is 61,100 ounces of gold. This leaves approximately 1.77 million ounces of contained gold in the pad. Historically this gold has been deemed not recoverable based on past metallurgical test work. However, we have progressed efforts to profitably extract a small portion of this contained gold. Based on the results of those efforts to date, the Kisladag production guidance for 2018-2020 is being increased by 40,000-45,000 ounces.
The efforts to increase production beyond the leach pad inventory included contract sonic drilling of the pad, which began at the end of 2017. We have subsequently purchased a sonic drill and have commenced injecting cyanide into the sonic drill holes. We have also commenced re-grading and re-leaching of side slopes, which have shown promising early results. Additionally, recent metallurgical test work has indicated that gold recovery is increased in core samples that are over one year old, which suggests higher ultimate recovery on the pad could be possible assuming that solution chemistry can be maintained at a sustainable level. The Company will continue to study this over the remainder of the year and implement methods to extract additional gold from the leach pad, but there can be no assurance that these recovery alternatives will result in increased gold recovery from the pad beyond the Company’s revised guidance.
Olympias production was higher than the second quarter of 2017 as the asset is now in commercial production. Operating costs for Olympias have decreased compared to the first quarter of 2018 due to continued optimization of the mill and tailings filter presses, which are now fully operational.
Consolidated operating costs in the quarter were higher year on year due to increased costs on a per ounce basis at Kisladag.
For further information on the Company’s operating results please see the Management’s Discussion and Analysis for the quarter available at www.eldoradogold.com