VANCOUVER, British Columbia, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the second quarter of 2019.
? Steady Q2 gold production and reiterating 2019 annual guidance: Gold production for the quarter totalled 91,803 ounces with 174,780 ounces produced year-to-date. Gold production included 33,140 ounces from Lamaque in its first quarter of commercial operations, of which 5,057 ounces were produced from stockpiles mined during the pre-commercial production period.


? Higher sales volumes in the quarter resulted in revenue of $173.7 million: Total gold sales for the second quarter were 113,685 ounces with 156,759 ounces sold year-to-date. Second quarter sales do not include sales of the remaining 11,705 ounces that were mined at Lamaque during the pre-commercial production period. Net proceeds of $7.6 million were realized in the quarter from these pre-commercial production sales.

? Net earnings per share: Net earnings to shareholders in the quarter totalled $12.2 million, or $0.08 per share. Adjusted net loss was $1.2 million, or $0.01 loss per share, after removing, among other things, the impact of one-time asset sales.

? EBITDA: Higher sales volumes in the quarter resulted in earnings before interest, taxes and depreciation and amortization ("EBITDA") of $74.5 million. Adjusted EBITDA of $66.8 million excludes the impact of one-time asset sales but includes net proceeds from pre-commercial production at Lamaque.

? Refinancing completed: The Company completed its offering of $300 million aggregate principal amount of 9.5% senior second lien notes due 2024 (the "Notes") and its $450 million amended and restated senior secured credit facility (the "Facility"). Eldorado used the net proceeds from the sale of the Notes and $200 million in term loan proceeds drawn under the Facility, together with $100 million cash on hand, to redeem its outstanding $600 million 6.125% senior notes due December 2020.

? Liquidity remains solid: The Company finished the quarter with approximately $300 million of available cash including $119.9 million in cash, cash equivalents and term deposits and approximately $179 million available under its $250 million line of credit, with $71 million of capacity on the line of credit allocated to secure certain obligations in connection with its operations.

? All-in sustaining costs lower due to increased sales volumes: All-in sustaining costs were $917 per ounce of gold sold in the quarter compared to $934 per ounce sold during the second quarter of 2018.

? Divestiture of non-core assets: The Company completed a sale of a net smelter royalty interest held on a property in Turkey for consideration of $8.1 million, of which $5.0 million will be settled through the transfer of an exploration license and the balance to be paid in cash. Subsequent to the quarter, the Company also executed a share purchase agreement for the sale of its Vila Nova iron ore mine for consideration of $9 million in cash, subject to the purchaser securing financing and other standard closing conditions.

Eldorado's President and CEO, George Burns, stated: "It was a steady operational quarter with production and costs on plan. Two key milestones were achieved. We completed the debt refinancing, which de-risked our balance sheet, and we had a fantastic first quarter of commercial production at Lamaque. We are encouraged by our initial discussions with the Greek government. Realizing the potential of Eldorado’s investments in Greece offers significant value for our investors, local communities and the Greek economy. We look forward to a strong second half of the year and are on track to meet our consolidated annual guidance of 390,000-420,000 ounces of gold at all-in sustaining costs of $900-1000 per ounce of gold sold."


Consolidated Financial and Operational Highlights


3 months ended June 30,
6 months ended June 30,

2019 2018 2019 2018
Revenue (1,3) $173.7 $153.2 $253.7 $285.1
Gold revenue (1,3) $150.1 $121.3 $203.9 $236.8
Gold produced (oz) (2) 91,803 99,105 174,780 188,479
Gold sold (oz) (1,3) 113,685 94,224 156,759 180,811
Average realized gold price ($/oz sold) (6) $1,321 $1,287 $1,301 $1,310
Cash operating costs ($/oz sold) (4,6) 631 587 629 579
Total cash costs ($/oz sold) (4,6) 670 610 665 604
All-in sustaining costs ($/oz sold) (4,6) 917 934 977 887
Net earnings (loss) for the period (5) 12.2 (24.4 ) (14.8 ) (15.7 )
Net earnings (loss) per share – basic ($/share) (5) 0.08 (0.15 ) (0.09 ) (0.10 )
Adjusted net earnings (loss) (5,6) (1.2 ) (1.8 ) (19.2 ) 12.4
Adjusted net earnings (loss) per share ($/share) (5,6) (0.01 ) (0.01 ) (0.12 ) 0.08
Cash flow from operating activities before changes in working capital (6,7) 37.5 26.3 45.6 69.7
Cash, cash equivalents and term deposits $119.9 $429.8 $119.9 $429.8

(1) Revenue and ounces sold were impacted by delayed shipments at Efemcukuru in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019. Q2 2019 sales also included approximately 8,000 ounces sold from Olympias that were produced in 2018.
(2) Includes pre-commercial production at Lamaque and Olympias (Q1 2018).
(3) Excludes sales of inventory mined at Lamaque and Olympias (Q1 2018) during the pre-commercial production period.
(4) By-product revenues are off-set against cash operating costs.
(5) Attributable to shareholders of the Company.
(6) These measures are non-IFRS measures. See the June 30, 2019 MD&A for explanations and discussion of these non-IFRS measures.
(7) 2018 amounts have been adjusted to reflect reclassifications in cash flow from operating activities in the current periods.

Gold sales of 113,685 ounces increased from 94,224 ounces in the second quarter of 2018 primarily due to the sale of 48,821 ounces from Efemcukuru, where concentrate shipments had been delayed in Q1 2019, and the sale of 24,330 ounces from Lamaque in its first quarter of commercial operations. These increases were partially offset by decreased sales from Kisladag of 26,072 ounces owing to lower production due to the suspension of mining and stacking of ore on the leach pad from April 2018 through March 2019.

Total revenues increased to $173.7 million from $153.2 million in the second quarter of 2018 as a result of higher sales volumes and a higher average realized gold price of $1,321 per ounce in the second quarter of 2019 compared to $1,287 per ounce in the second quarter of 2018.

An increase in average operating cash cost per ounce sold to $631 from $587 in the second quarter of 2018 reflected lower production levels at Olympias combined with higher selling costs for Efemcukuru concentrate. Mine standby costs of $3.5 million decreased from $4.3 million in the second quarter of 2018 due to the resumption of mining, crushing and stacking activities at Kisladag in April 2019.

Net earnings attributable to shareholders of $12.2 million ($0.08 per share) improved from a net loss attributable to shareholders in the second quarter of 2018 of $24.4 million ($0.15 loss per share). The increase was primarily a result of higher sales volumes and lower income tax expense in the second quarter, partially offset by an increase in finance costs reflecting interest no longer being capitalized following the commencement of commercial operations at Lamaque. Net earnings also included an $11.7 million impairment reversal relating to Vila Nova.

Higher sales volumes in the quarter resulted in EBITDA of $74.5 million. Adjusted EBITDA of $66.8 million excludes the impact of one-time asset sales but includes $7.6 million proceeds from pre-commercial production at Lamaque.

Adjusted net loss was $1.2 million ($0.01 loss per share) in the quarter, compared to adjusted net loss of $1.8 million ($0.01 loss per share) in Q2 2018. The adjusted net loss removes, among other things, an $8.1 million gain on the sale of the net smelter royalty interest, the $11.7 million impairment reversal relating to Vila Nova and a $3.6 million write-off of unamortized transaction costs relating to the debt that was redeemed in the quarter.

Gold Operations

3 months ended June 30, 6 months ended June 30,

2019 2018 2019 2018
Total
Ounces produced (1) 91,803 99,105 174,780 188,479
Ounces sold (2, 4) 113,685 94,224 156,759 180,811
Cash operating costs ($/oz sold) (5) $631 $587 $629 $579
All-in sustaining costs ($/oz sold) (5) $917 $934 $977 $887
Sustaining capex (5) $15.6 $13.8 $26.4 $24.9
Kisladag
Ounces produced (3) 26,072 55,930 53,319 109,744
Ounces sold 26,072 55,631 53,327 109,470
Cash operating costs ($/oz sold) (5) $381 $664 $471 $621
All-in sustaining costs ($/oz sold) (5) $471 $808 $590 $762
Sustaining capex (5) $1.1 $5.5 $4.2 $10.3
Efemcukuru
Ounces produced 25,667 24,146 51,791 47,001
Ounces sold (4) 48,821 23,853 54,639 50,853
Cash operating costs ($/oz sold) (5) $593 $515 $598 $524
All-in sustaining costs ($/oz sold) (5) $774 $832 $840 $781
Sustaining capex (5) $5.4 $5.8 $9.0 $9.5
Olympias
Ounces produced (1) 6,924 15,895 16,852 25,860
Ounces sold (2) 14,462 14,740 24,463 20,488
Cash operating costs ($/oz sold) (5) $1,402 $412 $1,156 $493
All-in sustaining costs ($/oz sold) (5) $1,731 $715 $1,553 $897
Sustaining capex (5) $3.8 $2.5 $7.9 $5.1
Lamaque
Ounces produced (1) 33,140 3,134 52,818 5,874
Ounces sold (2) 24,330 n/a 24,330 n/a
Cash operating costs ($/oz sold) (5) $517 n/a $517 n/a
All-in sustaining costs ($/oz sold) (5) $814 n/a $814 n/a
Sustaining capex (5) $5.3 n/a $5.3 n/a

(1) Includes pre-commercial production at Lamaque and at Olympias (Q1 2018).
(2) Excludes sales of inventory produced at Lamaque and Olympias (Q1 2018) during the pre-commercial production period. In the three and six months ended June 30, 2019, 11,705 ounces and 27,627 ounces, respectively, were sold from inventory produced during the pre-commercial production period.
(3) Kisladag resumed mining, crushing and placing ore on the heap leach pad on April 1, 2019. This activity had been suspended since April 2018.
(4) Efemcukuru ounces sold were impacted by delayed shipments in Q1 2019 that were completed in Q2 2019. This timing issue resulted in lower ounces sold in Q1 2019 and higher ounces sold in Q2 2019.
(5) These measures are non-IFRS measures. See the June 30, 2019 MD&A for explanations and discussion of these non-IFRS measures.

Gold production of 91,803 ounces was below last year’s second quarter production of 99,105 ounces primarily due to the suspension of new ore placement on the Kisladag heap leach pad from April 2018 through March 2019. Production also decreased as a result of reduced tonnage fed to the processing plant at Olympias due to limited headings underground resulting from slower than anticipated capital development and a backlog of stopes to be filled. These decreases were partially offset by 33,140 ounces produced at Lamaque in its first quarter of commercial operations.

Conference Call

A conference call to discuss the details of the Company’s Q2 2019 results will be held by senior management on Friday, August 2, 2019 at 8:30 AM PT (11:30 AM ET). The call will be webcast and can be accessed at Eldorado Gold’s website: www.eldoradogold.com and via this link: http://services.choruscall.ca/links/eldoradogold20190802.html