VANCOUVER, British Columbia, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the fourth quarter and year ended December 31, 2020. For further information please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on SEDAR at www.sedar.com under the Company’s profile.

Year-End Financial and Operating Results Overview and Subsequent Period Highlights

2020 annual production guidance achieved: Gold production totalled 528,874 ounces in 2020, an increase of 34% from production of 395,331 ounces in 2019. Despite impacts related to COVID-19, annual guidance was maintained and met for the 2020 calendar year.

Strong production drives increased cash from operations and free cash flow: Net cash from operating activities of $425.6 million in 2020 (2019: $165.8 million) contributed to free cash flow of $236.2 million in 2020 (2019: negative $37.1 million) primarily as a result of higher sales volumes and a higher average realized gold price.

Lower all-in sustaining costs: 2020 all-in sustaining costs of $921 per ounce of gold sold were lower than in 2019 ($1,034 per ounce sold) as a result of increased production and weakening of the Turkish Lira.

Amended Investment Agreement signed: In February 2021, Eldorado entered into an Amended Investment Agreement ("Agreement") with the Hellenic Republic, providing a mutually beneficial and modernized legal and financial framework to allow for investment in the Skouries project and the Olympias and Stratoni mines. The Agreement has been formally submitted to the Greek Parliament for ratification, with a vote expected to take place in an upcoming parliamentary session.

Arrangement agreement to acquire QMX Gold Corporation: In January 2021, the Company entered into a definitive arrangement agreement with QMX Gold Corporation ("QMX") to acquire the remaining outstanding shares of QMX for total consideration of approximately CDN $132 million ($104 million), of which approximately CDN $29.8 million ($23.4 million) will be paid in cash. The acquisition remains subject to QMX shareholder and court approvals, and if completed, will significantly increase Eldorado's landholdings and exploration footprint in Québec and adjacent to the Lamaque operations.

Maiden resource at Ormaque deposit highlights exploration success and future growth potential at Lamaque: In February 2021, we announced maiden Inferred Mineral Resources for the Ormaque deposit totalling 2.6 million tonnes at a grade of 9.5 grams per tonne, for 803,000 ounces of contained gold.

Continued strong financial liquidity: The Company currently has $511.0 million of cash, cash equivalents and term deposits and approximately $29.2 million available under its revolving credit facility. Redemptions totalling $66.1 million of principal of the senior secured notes were completed during the year, including $7.5 million in December 2020. In February 2021 the senior secured credit facility was amended such that approximately $70.8 million of non-financial letters of credit no longer reduce credit availability under the revolving credit facility. Following the amendment, credit availability under the facility is currently $100 million. A repayment of $11.1 million on the non-revolving term loan was made in conjunction with this amendment.

Net earnings and adjusted net earnings attributable to shareholders: Net earnings attributable to shareholders of the Company in 2020 were $104.5 million or $0.61 per share (2019: $80.6 million, or $0.51 per share), including a $40.0 million non-cash write-down of capital works in progress that will no longer be completed as a result of the Agreement. Adjusted net earnings attributable to shareholders of the Company in 2020 were $170.9 million, or $1.00 per share (2019: $2.4 million, or $0.02 per share).

Increased EBITDA: The Company reported EBITDA in 2020 of $474.2 million (2019: $311.3 million ) and adjusted EBITDA of $534.0 million (2019: $235.6 million) after adjusting for, among other things, the non-cash write-down of $40.0 million of capital works in progress.

Measures remain in place to manage the impact of the novel coronavirus ("COVID-19") pandemic: The Company's mines remain operational and isolated cases of COVID-19 have been successfully managed. Preventing the spread of COVID-19, ensuring safe working environments across Eldorado's global sites, and preparedness should an outbreak occur, remain priorities.
Fourth Quarter 2020 Highlights

Highest quarterly gold production in nearly five years: Eldorado produced 138,220 ounces of gold in Q4 2020 (Q4 2019: 118,955 ounces).

Continued cash from operations and free cash flow: Net cash from operating activities of $107.3 million in Q4 2020 (Q4 2019: $64.2 million) contributed to free cash flow of $48.4 million in Q4 2020 (Q4 2019: $5.5 million) primarily as a result of higher sales volumes and a higher average realized gold price.

Operating costs decreasing: Q4 2020 cash operating costs of $536 per ounce sold and all-in sustaining costs of $959 per ounce sold were lower than Q4 2019 ($621 per ounce sold and $1,110 per ounce sold, respectively).

Net earnings attributable to shareholders: Q4 2020 net earnings attributable to shareholders of the Company were $22.8 million or $0.13 per share, and included a $40.0 million non-cash write-down of capital works in progress that will no longer be completed as a result of the Agreement. Net earnings attributable to shareholders of the Company in Q4 2019 were $91.2 million or $0.57 per share, mainly attributable to a net impairment reversal of $85.2 million ($68.2 million net of deferred income tax) for Kisladag. Adjusted net earnings attributable to shareholders of the Company in Q4 2020 were $58.0 million, or $0.33 per share (Q4 2019: adjusted net earnings attributable to shareholders of the Company of $19.3 million, or $0.12 per share).

Increased EBITDA: Q4 2020 EBITDA was $95.1 million ($158.7 million in Q4 2019) and Q4 2020 adjusted EBITDA was $144.2 million ($80.3 million in Q4 2019) after adjusting for, among other things, the non-cash write-down of $40.0 million of capital works in progress.
“Eldorado’s strong fourth-quarter finish to 2020 caps a year in which we delivered on our original guidance, generated strong free cash flow and continued to strengthen our overall capital position,” said George Burns, Eldorado's President and Chief Executive Officer. “That this was accomplished during an historically challenging global operating environment is a tribute to the dedication of our people.

“We enter 2021 positioned once again to deliver, both operationally and at our most important growth projects. Consistent with Eldorado’s disciplined approach to capital allocation, we will continue to strengthen our balance sheet while reinvesting in mine and project development programs that prioritize profitability and strong returns. Chief among these is the advancement of the world-class Skouries project in Greece. Our recently signed amended investment agreement with the Greek government sets the stage for a productive and mutually beneficial relationship with the Hellenic Republic. Our focus in 2021 is on unlocking the compelling value at Skouries and throughout our portfolio.”

The Company also announced this week maiden Inferred Mineral Resources of 2.6 million tonnes at a grade of 9.5 grams per tonne for 803,000 ounces of gold at the recently-discovered Ormaque deposit near the Lamaque operations in Québec. Over 60% of the resource is in the upper part of the deposit within 400 metres of surface. Exploration in 2021 is focused on in-fill and expansion drilling, as the deposit remains open in multiple directions.

“Exploration success at Ormaque is an important milestone that could lead to a second underground mine to feed the Sigma mill. The growing exploration footprint and targets at Lamaque coupled with low cost expandability of the Sigma plant offer a compelling opportunity to create additional value at Lamaque,” added Burns.

Consolidated Financial and Operational Highlights

Summarized Annual Financial Results

2020 2019 2018
Revenue (1) $ 1,026.7 $ 617.8 $ 459.0Gold revenue (1) $ 938.3 $ 530.9 $ 386.0
Gold produced (oz) (2) 528,874 395,331 349,147
Gold sold (oz) (1) 526,406 374,902 304,256
Average realized gold price ($/oz sold) (6) $ 1,783 $ 1,416 $ 1,269
Cash operating costs ($/oz sold) (3,6) 560 608 625
Total cash costs ($/oz sold) (3,6) 649 645 650
All-in sustaining costs ($/oz sold) (3,6) 921 1,034 994
Net earnings (loss) for the period (4) 104.5 80.6 (361.9 )
Net earnings (loss) per share – basic ($/share) (4) 0.61 0.51 (2.28 )
Adjusted net earnings (loss) (4,5,6,7) 170.9 2.4 (30.1 )
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) 1.00 0.02 (0.19 )
Cash flow from operating activities before changes in working capital (6,8) 390.8 149.9 61.1
Free cash flow (6) 236.2 (37.1 ) (187.8 )
Cash, cash equivalents and term deposits 511.0 181.0 293.0


(1) Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods.
(2) Includes pre-commercial production at Lamaque (2018, Q1 2019) and at Olympias (Q1 2018).
(3) By-product revenues are off-set against cash operating costs.
(4) Attributable to shareholders of the Company.
(5) See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
(6) These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
(7) 2019 and 2018 amounts have been adjusted to conform with 2020 presentation by excluding adjustments relating to normal course gains on disposal of assets (2019: $7.4 million, 2018: nil) and inventory write-downs (2019: $2.5 million, 2018: $1.5 million). Adjusted net earnings as originally presented in 2019 were $5.6 million ($0.04 per share) and Adjusted net loss as originally presented for 2018 was $28.6 million ($0.17 loss per share).
(8) 2019 amount has been adjusted to reflect a $0.7 million reclassification within cash flow from operating activities in the current period. 2018 adjustment was negligible.


Summarized Quarterly Financial Results

2020 Q1 Q2 Q3 Q4 2020
Revenue $ 204.7 $ 255.9 $ 287.6 $ 278.5 $ 1,026.7
Gold revenue $ 185.4 $ 235.0 $ 264.3 $ 253.7 $ 938.3
Gold produced (oz) 115,950 137,782 136,922 138,220 528,874
Gold sold (oz) 116,219 134,960 137,704 137,523 526,406
Average realized gold price ($/oz sold) (6) $ 1,580 $ 1,726 $ 1,919 $ 1,845 $ 1,783
Cash operating cost ($/oz sold) (3,6) 627 550 537 536 560
Total cash cost ($/oz sold) (3,6) 678 616 664 640 649
All-in sustaining cost ($/oz sold) (3,6) 952 859 918 959 921
Net earnings (loss) (4) (4.9 ) 45.6 41.0 22.8 104.5
Net earnings (loss) per share – basic ($/share) (4) (0.03 ) 0.27 0.24 0.13 0.61
Adjusted net earnings (loss) (4,5,6) 12.5 43.8 56.7 58.0 170.9
Adjusted net earnings (loss) per share ($/share) (4,5,6) 0.08 0.26 0.33 0.33 1.00
Cash flow from operating activities before changes in working capital (6) 69.4 99.0 125.1 97.2 390.8
Free cash flow (6) $ 7.2 $ 63.4 $ 117.2 $ 48.4 $ 236.2
Cash, cash equivalents and term deposits $ 363.6 $ 440.3 $ 504.4 $ 511.0 $ 511.0


2019 Q1 Q2 Q3 Q4 2019
Revenue (1) $ 80.0 $ 173.7 $ 172.3 $ 191.9 $ 617.8
Gold revenue (1) $ 54.5 $ 150.1 $ 150.2 $ 176.1 $ 530.9
Gold produced (oz) (2) 82,977 91,803 101,596 118,955 395,331
Gold sold (oz) (1) 43,074 113,685 99,241 118,902 374,902
Average realized gold price ($/oz sold) (6) $ 1,265 $ 1,321 $ 1,513 $ 1,475 $ 1,416
Cash operating cost ($/oz sold) (3,6) 625 631 560 621 608
Total cash cost ($/oz sold) (3,6) 652 670 603 652 645
All-in sustaining cost ($/oz sold) (3,6) 1,132 917 1,031 1,110 1,034
Net earnings (loss) (4) (27.0 ) 12.2 4.2 91.2 80.6
Net earnings (loss) per share – basic ($/share) (4) (0.17 ) 0.08 0.03 0.57 0.51
Adjusted net earnings (loss) (4,5,6,7) (21.1 ) (3.5 ) 7.6 19.3 2.4
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) (0.13 ) (0.02 ) 0.05 0.12 0.02
Cash flow from operating activities before changes in working capital (6,8) 8.1 38.5 63.0 40.4 149.9
Free cash flow (6) $ (64.0 ) $ 4.8 $ 16.7 $ 5.5 $ (37.1 )
Cash, cash equivalents and term deposits $ 227.5 $ 119.9 $ 134.9 $ 181.0 $ 181.0


(1) Excludes sales of inventory mined at Lamaque and Olympias during the pre-commercial production periods.
(2) Includes pre-commercial production at Lamaque (Q1 2019).
(3) By-product revenues are off-set against cash operating costs.
(4) Attributable to shareholders of the Company.
(5) See reconciliation of net earnings (loss) to adjusted net earnings (loss) in the MD&A section 'Non-IFRS Measures'.
(6) These measures are non-IFRS measures. See the MD&A section 'Non-IFRS Measures' for explanations and discussion of these non-IFRS measures.
(7) 2019 amounts have been adjusted to conform with 2020 presentation by excluding adjustments relating to normal course gains on disposal of assets ($7.4 million) and inventory write-downs ($2.5 million). Adjusted net earnings as originally presented in 2019 were $5.6 million ($0.04 per share).
(8) 2019 amount has been adjusted to reflect a $0.7 million reclassification within cash flow from operating activities in the current period.

Gold sales of 526,406 ounces in 2020 increased from 374,902 ounces in 2019. The 40% increase was primarily due to an increase of 88,158 ounces sold from Kisladag as a result of an increase in tonnes of ore stacked and placed under leach following the restart of full operations in 2019 and an increase of 55,524 ounces sold from Lamaque enabled by receipt of authorization in March 2020 to increase mine production.

Total revenues increased to $1,026.7 million in 2020 from $617.8 million in 2019 as a result of higher sales volumes and a higher average realized gold price of $1,783 per ounce compared to $1,416 per ounce in 2019.

Cash operating costs per ounce sold decreased to $560 in 2020 from $608 in 2019, primarily due to increased mining rates at Lamaque following the receipt of authorization in March 2020 to increase mine production, higher production at Olympias and reduced costs at Efemcukuru due to the weakening of the Turkish Lira during the year. These decreases were partly offset by an increase of cash operating costs per ounce sold at Kisladag resulting from decreases in the average grade of ore placed on the heap leach pad.

Net earnings attributable to shareholders of $104.5 million ($0.61 per share) in 2020 improved from $80.6 million ($0.51 per share) in 2019. The improvement was primarily a result of higher production and sales volumes combined with a higher average realized gold price. Net earnings attributable to shareholders of $22.8 million ($0.13 per share) in Q4 2020 decreased from $91.2 million ($0.57 per share) in Q4 2019 primarily due to the $40.0 million write-down of capital works in progress ($43.4 million combined with a net impairment reversal of $85.2 million ($68.2 million net of deferred income tax) for Kisladag in Q4 2019.

Adjusted net earnings were $170.9 million ($1.00 per share) in 2020, compared to $2.4 million ($0.02 per share) in 2019. Adjusted net earnings in 2020 removes, among other things, the $40.0 million non-cash write-down of capital works in progress, a $3.4 million VAT provision associated with the write-down, a $16.3 million net loss on foreign exchange due to translation of deferred tax balances, $8.6 million of finance costs related to the $66.1 million redemption of the senior secured notes during the year and the $2.5 million gain on disposal of the Vila Nova mine in Q3 2020. Adjusted net earnings were $58.0 million ($0.33 per share) in Q4 2020, compared to $19.3 million ($0.12 per share) in Q4 2019.

Higher sales volumes in 2020, combined with a higher gold price, resulted in EBITDA of $474.2 million, including $95.1 million in Q4 2020. Adjusted EBITDA of $534.0 million in 2020 and $144.2 million in Q4 2020 exclude, among other things, the $40.0 million write-down of capital works in progress.

Operations Update and Outlook

Gold Operations
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