VANCOUVER, British Columbia, April 28, 2022 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the first quarter of 2022. For further information please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis ("MD&A") filed on SEDAR at www.sedar.com under the Company’s profile.

First Quarter 2022 Highlights

Operations

Q1 gold production: 93,209 ounces in Q1 2022. Production was heavily impacted in the earlier part of the quarter by COVID-related absenteeism, weather related challenges and power outages at our operations. In the latter part of the quarter, most operations returned to planned levels of tonnage, grades and production.
Q1 gold sales: 94,472 ounces at an average realized gold price per ounce sold (1) of $1,889 in Q1 2022.
Cash operating costs (1) : $835 per ounce sold in Q1 2022. The increase in cost was primarily driven by lower overall gold production and an increase in the price of certain commodities and consumables.
All-in sustaining costs ("AISC") (1) : $1,347 per ounce sold in Q1 2022.
Total capital expenditures: $60.8 million in Q1 2022, including $5.6 million of growth capital(1) spent at Skouries with activity focused on cladding of the process plant, commencement of basic engineering, and continued preservation of site facilities and equipment. Growth capital of $23.7 million in Q1 2022 focused on waste stripping at Kisladag and construction of the North leach pad.
Production outlook: We are maintaining our 2022 annual guidance of 460,000 – 490,000 ounces of gold production.
Financial

Cash flow from operating activities before changes in working capital (1) : $49.7 million in Q1 2022.
Cash, cash equivalents and term deposits: $434.7 million, as at March 31, 2022.
Adjusted EBITDA (1) : $62.1 million in Q1 2022.
Net loss: Q1 2022 net loss attributable to shareholders of the Company was $316.8 million or $1.74 loss per share. Lower net income in Q1 2022 is primarily attributable to an impairment of $365.4 million ($345.4 million, net of deferred tax) of the Certej project, a non-core asset, and a write-down of $19.8 million ($15.4 million, net of deferred tax) relating to decommissioned equipment at Kisladag.
Adjusted net loss (1) : $19.0 million net loss, or $0.10 loss per share in Q1 2022. Adjusted net loss in Q1 2022 removes, among other things, the non-cash impairment charge related to the Certej project and the non-cash write-down of decommissioned equipment at Kisladag.
Free cash flow(1): Negative $26.8 million in Q1 2022, primarily due to lower gold production and sales.
Financial outlook: Cash operating costs and AISC were higher in Q1 2022 due to operational challenges that resulted in lower gold ounces produced and sold. In light of significant volatility in prices for electricity, fuel, reagents and other consumables required for our operations, we are monitoring the impact on expected full year operating and capital costs and will provide an update next quarter.
(1) These financial measures or ratios are non-IFRS financial measures or ratios. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release and in the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's March 31, 2022 MD&A.

Other

Strengthened union agreements: In January 2022, we completed a two-year collective bargaining agreement with our labour union in Turkey. Adjustments were incorporated in light of continued high consumer inflation rates to support our workforce with rising costs of food and electricity. In April 2022, we also completed a two-year collective bargaining agreement with our labour unions in Greece. The agreement incorporates technology and flexibility to support the achievement of productivity and efficiency targets.
"Our global operations were met with significant challenges in the first quarter,” said George Burns, Eldorado’s President and Chief Executive Officer. "Severe weather in Turkey and Greece, a government-mandated power outage in Turkey, and COVID-related absenteeism across all sites impacted our production. As we previously indicated, production in 2022 is expected to be heavily weighted to the second half of the year. Despite the headwinds, we have seen operations improve towards the end of the quarter and are maintaining our consolidated full-year guidance of 460,000 to 490,000 ounces of gold," added Burns.

“During the quarter, we made meaningful progress at Skouries, our development project in Greece, with activity focused on cladding of the process plant, commencement of basic engineering, and continued preservation of site facilities and equipment. At Kisladag, the ramp-up of the newly installed HPGR is continuing, and agglomeration optimization continues to show improvements. At Lamaque, an exploration drift is currently being developed from the Triangle-Sigma decline to provide drilling platforms for resource conversion of the Ormaque deposit beginning in the second quarter."

"Our focus ahead is on maintaining positive momentum by delivering on key initiatives including a financing package for Skouries. Financing discussions continue to advance, and we are evaluating all available options including, joint venture equity partners, project and debt financing through EU and Greek lenders as well as the EU Recovery and Resilience Fund, and metal streams. Subject to financing and Board approval, target restart of construction at Skouries is in the second half of 2022."

Consolidated Financial and Operational Highlights

3 months ended March 31,
Continuing Operations (6) 2022 2021
Revenue $ 194.7 $ 224.6
Gold produced (oz) 93,209 111,742
Gold sold (oz) 94,472 113,594
Average realized gold price ($/oz sold)(2) $1,889 $ 1,732
Production costs $ 104.6 $ 108.6
Cash operating costs ($/oz sold)(2,3) $ 835 $ 641
Total cash costs ($/oz sold)(2,3) $ 941 $ 687
All-in sustaining costs ($/oz sold)(2,3) $1,347 $ 986
Net (loss) earnings for the period(1,4) $ (316.8 ) $ 14.3
Net (loss) earnings earnings per share – basic ($/share)(1,4) $(1.74) $0.08
Adjusted net (loss) earnings (1,2,4) $ (19.0 ) $ 25.2
Adjusted net (loss) earnings per share ($/share)(1,2,4) $ (0.10) $0.14
Net cash generated from operating activities(5) $ 35.2 $99.1
Cash flow from operating activities before changes in working capital(2,5) $ 49.7 $ 81.2
Free cash flow(2,5) $ (26.8 ) $ 33.4
Cash, cash equivalents and term deposits $434.7 $ 533.8

(1) Attributable to shareholders of the Company.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's MD&A for explanations and discussion of these non-IFRS financial measures and ratios.
(3) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(4) Q1 2021 amounts have been recast to correct an immaterial error related to an understatement of the net book value of certain of our property, plant and equipment as a result of errors in the amounts recorded for depreciation.
(5) Q1 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity.
(6) The Brazil segment is presented as a discontinued operation in 2021. See Note 17 of our condensed consolidated interim financial statements. Amounts presented are from continuing operations only.

Total revenue was $194.7 million in Q1 2022, a decrease of 13% from total revenue of $224.6 million in Q1 2021. The decrease was primarily driven by lower sales volumes in Q1 2022, and was partly offset by higher average metal prices.

Production costs decreased to $104.6 million in Q1 2022 from $108.6 million in Q1 2021 primarily due the suspension of operations at Stratoni at the end of 2021. Production costs at Stratoni totalled $15.3 million in Q1 2021. This decrease was partly offset by increases in certain production costs in Q1 2022 as a result of supply concerns caused by financial and trade sanctions against Russia, and ongoing supply chain challenges due to COVID-19. Cost increases primarily impacted electricity, fuel and reagents.

Cash operating costs in Q1 2022 averaged $835 per ounce sold, an increase from $641 per ounce sold in Q1 2021. The increase was primarily due to lower production in the quarter, combined with an increase in certain production costs. AISC per ounce sold increased to $1,347 in Q1 2022, from $986 in Q1 2021, primarily due to the increase in cash operating costs per ounce sold, combined with higher royalty expense.

We reported net loss attributable to shareholders from continuing operations of $316.8 million ($1.74 loss per share) in Q1 2022, compared to net earnings of $14.3 million ($0.08 earnings per share) in Q1 2021. Lower net income in Q1 2022 is primarily attributable to the impairment of the Certej project, a non-core gold asset, and the write-down of decommissioned equipment at Kisladag.

Adjusted net loss was $19.0 million ($0.10 loss per share) in Q1 2022, compared to adjusted net earnings of $25.2 million ($0.14 earnings per share) in Q1 2021. Adjusted net loss in Q1 2022 removed the $365.4 million ($278.0 million attributable to shareholders and net of deferred tax) non-cash impairment of Certej, the $19.8 million ($15.4 million net of deferred tax) non-cash write-down of decommissioned equipment at Kisladag, $12.4 million loss on foreign exchange due to translation of deferred tax balances, a $7.0 million gain on the non-cash revaluation of the derivative related to redemption options in our debt and a $1.0 million deferred tax recovery relating to the impact of tax rate changes in Turkey.

Operations Update

Gold Operations
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