Eldorado Gold Delivers Strong 2024 Full Year and Fourth Quarter Financial and Operational Results; Positive Free Cash Flow Realized in the Quarter and Full Year

2025-02-20

NYSE - New York Stock Exchange · Copper · Gold · Molybdenum · United States

(All amounts expressed in U.S. dollars unless otherwise noted)

VANCOUVER, British Columbia, Feb. 20, 2025 (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, 2024. For further information please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) filed on SEDAR+ at www.sedarplus.com under the Company’s profile.

Q4 2024 and Full-Year Summary

Operat ions

G old production: 155,668 ounces in Q4 2024 reflecting continued improvements across the portfolio. Full-year 2024 production of 520,293 ounces was above the midpoint of the tightened guidance range and an increase of 7% over 2023 production of 485,139 ounces, driven by operational upgrades at Kisladag and higher mining rates and ore throughput at Lamaque. Gold sales: 156,864 ounces in Q4 2024 at an average realized gold price per ounce sold (1) of $2,625, resulting in 517,926 ounces sold in 2024 at an average realized gold price per ounce sold of $2,405. Production costs: $172.1 million in Q4 2024, and $564.2 million in 2024, compared to $137.6 million in Q4 2023, and $478.9 million in 2023. The increases are primarily due to higher volumes of production and sales, higher labour costs, and increased royalties (due to higher gold sales and average realized gold price). Total cash costs ( 1 ) : $944 per ounce sold in Q4 2024 and $940 per ounce sold in 2024, within the tightened guidance range, and an increase from $830 per ounce sold in Q4 2023 and $850 per ounce sold in 2023. The increase in both periods was primarily due to higher royalties (driven by higher gold prices) and labour costs. All-in sustaining costs (1) ("AISC"): $1,226 per ounce sold in Q4 2024 and $1,285 per ounce sold in 2024, within the tightened guidance range for the year, and marginally higher than $1,207 per ounce sold in Q4 2023 and $1,220 per ounce sold in 2023. Increases in both periods primarily reflect higher total cash costs per ounce sold as discussed above, and the year-over-year comparison was also impacted by higher sustaining capital expenditures. Total capital expenditures: $174.5 million in Q4 2024, and $620.3 million in 2024, including $97.6 million and $324.7 million of construction project capital invested at our Skouries Project, respectively. Growth capital (1) at the operating mines of $146.1 million in 2024 was primarily focused at Kisladag, including waste stripping to support mine life extension, construction of the second phase of the North Heap Leach Pad ("NHLP"), and construction of the North Adsorption-Desorption-Recovery ("ADR") facilities. Sustaining capital (1) at operating mines totaled $130.3 million in 2024, including $81.9 million at Lamaque primarily related to underground development, equipment rebuilds, and expansion of the tailings management facility.

Financial

Revenue: $435.7 million in Q4 2024, an increase of 42% from revenue of $306.9 million in Q4 2023, and $1,322.6 million in 2024, an increase of 31% from revenue of $1,008.5 million in 2023, both due to higher average realized gold prices and higher volumes sold. Net cash generated from operating activities of continuing operations: $257.3 million in Q4 2024, an increase from $159.6 million in Q4 2023, and $645.7 million in 2024, an increase from $382.9 million in 2023. Increases in both periods were due to higher revenues, partially offset by higher production costs and higher taxes paid. Cash flow from operating activities, before changes in working capital ( 2 ) : $228.5 million in Q4 2024, an increase from $138.0 million in Q4 2023 and $635.5 million in 2024, an increase from $411.2 million in 2023. Increases in both periods were primarily due to higher net cash generated from operating activities of continuing operations. Cash and cash equivalents: $856.8 million as at December 31, 2024, up from $540.5 million as at December 31, 2023. Net earnings attributable to shareholders from continuing operations: $108.2 million in Q4 2024, an increase from $91.8 million in Q4 2023, and $300.9 million in 2024, an increase from net earnings of $106.2 million in 2023. Increases in both periods were primarily due to higher revenue, partially offset by higher production costs and income tax expense. Adjusted net earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") (2) : $246.7 million in Q4 2024, an increase from $147.2 million in Q4 2023, and $691.6 million in 2024, an increase from $463.3 million in 2023. These increases were primarily driven by higher net earnings in both periods. Quarter over quarter higher adjusted EBITDA was partially offset by the removal of $10.2 million of unrealized gains on derivative instruments in Q4 2024, whereas year over year, higher adjusted EBITDA was increased with the removal of $51.8 million of unrealized losses on derivative instruments in 2024. Adjusted net earnings from continuing operations (2) : $127.8 million or $0.62 per share in Q4 2024, an increase from $49.3 million or $0.24 per share in Q4 2023, and $320.7 million or $1.57 per share in 2024, an increase from $110.7 million or $0.57 per share in 2023. Adjusted net earnings in 2024 removes a $14.6 million loss on foreign exchange due to the translation of deferred tax balances, net of a gain on deferred income taxes due to the Turkiye inflationary tax basis, a $51.8 million unrealized loss on derivative instruments, and a $50.1 million after-tax gain related to deferred consideration from the sale of the Tocantinzinho property to G Mining Ventures in 2021, among other things. Adjusted net earnings in Q4 2024 removes a $26.5 million loss on foreign exchange due to the translation of deferred tax balances, a $5.1 million loss on the non-cash revaluation of the derivative related to redemption options in the debt, and a $10.2 million unrealized gain on derivative instruments. Free cash flow (2) : $74.6 million in Q4 2024, and $6.8 million in 2024. Free cash flow excluding capital expenditures at Skouries (2) was $176.2 million in Q4 2024 and $342.0 million in 2024, primarily due to higher revenues. Project Term Facility: Drawdowns on the Skouries Term Facility were €288.3 million in 2024, with cumulative drawdowns as of December 31, 2024 totaling €441.6 million.

“With the strong finish to the year, as anticipated, we delivered solid operational and financial performance in 2024,” said George Burns, President and Chief Executive Officer. “Gold production increased 7% to 520,293 ounces of gold above the mid-point of the tightened full year guidance range. Costs were also in line with the tightened guidance range, reflecting solid performance across our global operations. The strong operational performance combined with the robust gold price, resulted in a number of financial milestones in 2024, including a 31% increase in revenue, to $1,322.6 million, and increased cash flow from operating activities to $645.7 million a 69% increase compared to 2023. We also generated $342.0 million of free cash flow, excluding the capital invested at Skouries.”

“In 2024, we continued to focus on unlocking the full potential of our operating assets through continuous improvement. Highlights included record gold production at the Lamaque Complex of 196,538 ounces, and the declaration of an inaugural Mineral Reserve at Ormaque. Efemcukuru maintained consistent performance, marking its 10th consecutive year of meeting guidance, in addition to increasing Mineral Reserves by 23% to extend its mine life. A strong fourth quarter at Kisladag was driven by the implementation of optimization efforts. At Olympias, the successful labour negotiations coupled with productivity improvements supports the plant expansion from 500 ktpa to 650 ktpa which is expected to drive long-term profitability.

“At Skouries, we continued to advance the project through the year. However, as we announced on February 5, 2025, with a slower than expected ramp-up of personnel as a result of the tight labour market for construction workers within Greece, we have revised the schedule and construction project capital cost estimate for the Skouries Project. First production is expected in the first quarter of 2026 with commercial production expected in mid-2026. Once into production, we believe that Skouries will offer substantial long-term growth and deliver significant long-term value for shareholders and the Greek economy.

“I want to express my gratitude to our global team for their dedication and contributions this year. As we look ahead, we remain fully focused on driving long-term value as we continue to demonstrate our ability to grow our production profile, optimize our operations and deliver sustainable value to our shareholders, while maintaining our high standards of safety and environmental stewardship.”

Skouries Highlights

Capital Estimate and Schedule

On February 5, 2025, the Company announced an update to the project schedule and construction project capital cost estimate as a result of continued labour market tightness in Greece. The construction project capital cost incorporates an increase of approximately $143 million, to total $1.06 billion. In addition, the Company expects to complete additional pre-commercial production mining and has accelerated the purchase of higher capacity mobile mining equipment (originally expected to be purchased post commercial production), resulting in $154 million of accelerated operational capital prior to commercial production.

First production of the copper-gold concentrate is expected in Q1 2026, with 2026 gold production projected to be between 135,000 and 155,000 ounces and copper production of between 45 and 60 million pounds. Commercial production is expected in mid-2026.

Between the Term Facility related to the Skouries project and the strength of the balance sheet, the project remains fully funded.

Capital spend towards the second phase of construction totalled $97.6 million in Q4 2024, and $324.7 million in 2024.

Construction Activities A progress update video link can be found here: https://youtu.be/yj92oFQgmzw

As at December 31, 2024 overall project progress was 60% complete for Phase 2 of construction.

Filtered Tailings Facility

Work continues to advance on the filtered tailings building, which is on the critical path. Piling has been completed for the filtered tailings building and concrete work is progressing to enable assembly and installation of the structural steel. All filter press components inclusive of fabricated frames have been delivered to the site. Structural steel pre-assembly continues to advance.

Primary Crusher Building

Progress continues on the foundation construction of the primary crusher with retaining walls and stabilized excavations completed. Construction of the crusher building structure has commenced. The fixed location construction crane has been mobilized for the crusher build.

Process Plant

Work in the process plant continues and re-lining of the flotation tanks was completed in Q3 2024 as planned and structural and mechanical work is advancing. Off-site pipe spool fabrication is progressing and delivery of high-density polyethylene piping to the site is ongoing. Electrical cable tray and mechanical installations have commenced and the contractor continues to ramp up to support increasing levels of activity. Work continues on the support infrastructure including the process control room building, process plant sub-station, water pump station, lime plant, flotation blowers building, compressor building and flotation reagent areas. Structural steel installation is complete at the water pump house and nearing completion for the lime plant building and flotation blowers building.

Thickeners

Construction of the three thickeners progressed on plan during Q4 2024. Concrete works for the first two thickeners have reached approximately 85% and 65% respectively, and construction of the third thickener has commenced.

Integrated Extractive Waste Management Facility (the "IEWMF")

During Q4 2024, construction continued to progress at the coffer dam site with excavation of the spillway and foundation preparation. The coffer dam is expected to be completed at the end of Q1 2025. At the KL embankment the foundation placement preparation is expected to start in Q2 2025, once the coffer dam is in place. Fill placement for water management pond 2 is advancing with excavations for water management pond 1 continuing as planned along with the development of the low-grade ore stockpile.

Underground Development

Approximately 90% of the equipment and operator licenses have been received to date and development mining is ramping up. Access to the test stopes advanced ahead of plan at the upper level. The total metres of underground development for 2024 totaled 571 metres, compared to the expected 2,200 total metres, with the delay attributable to receiving all licenses and permits later than planned. The two test stopes are expected to be completed in 2025.

Engineering, Procurement, and Operational Readiness

Engineering

Engineering works were substantially complete at December 31, 2024. The focus has been on finalizing engineering to support the construction schedule. The release of structural steel for fabrication was substantially completed during Q4 2024.

Procurement

All major procurement is complete and the focus is on managing and expediting deliveries to support construction.

Operational Readiness

Operational readiness ("OR") has been progressing with the addition of new staff for developing and executing key tasks in mining and processing. In-depth sessions have been conducted to ensure that detailed plans are in place to manage progress in all operational areas, including finalizing a fully integrated OR plan. Progress is being made by the OR asset management team, particularly in identifying critical spares. The Management Operating System (MOS) for the open pit mining function is being implemented. Workforce training is advancing and a training needs analysis is underway for the mining and processing departments. Furthermore, content creation and onboarding of internal and external service providers continues.

Workforce

In addition to the OR team, as at December 31, 2024, there were approximately 1,050 personnel working.

2024 Year in Review: Enabled for Growth

Health and Safety: The Company’s lost-time injury frequency rate per million person-hours worked ("LTIFR") was 1.02 in Q4 2024, an increase from the LTIFR of 0.42 in Q4 2023 and overall was 0.99 in 2024, an increase from the LTIFR of 0.65 in 2023. The Company continues to take proactive steps to improve workplace safety and to ensure a safe working environment for employees and contractors. Courageous Safety Leadership: In November 2024, the Company successfully launched a new health and safety initiative, Courageous Safety Leadership (CSL), that will help shape the global health and safety culture at Eldorado Gold. CSL is designed to challenge participants to explore the impact of one’s own beliefs, attitudes, and behaviors in creating a positive culture of health and safety both at work and at home. Sustainability: In May 2024, the Company completed the first round of external verification against the Mining Association of Canada’s ‘Towards Sustainable Mining’ protocols across Eldorado’s global sites with the completion of verifications at Kisladag and Efemcukuru. Notably, the Company scored “AAA” – the highest rating possible for all the operating tailings facilities. Increased Mineral Reserves: In December 2024, the updated Mineral Reserve and Mineral Resource statement was published showing that in addition to replacing depletion, the Company increased Mineral Reserves by 2%, with a 45% increase at the Lamaque Complex and a 23% increase at Efemcukuru, providing a solid foundation and underpinning the Company’s production profile over the next decade and beyond. Ormaque Reserve Declaration: In December 2024, the inaugural Mineral Reserve at Ormaque was announced. Since 2017, the Company has successfully replaced Mineral Reserves annually at the Lamaque Complex. This achievement and the reserve at Ormaque positions the Company for long-term success with two underground mines and substantial potential for converting Inferred Mineral Resources, along with exploration opportunities. Additionally, a bulk sample of Ormaque material was processed at the Sigma Mill in December 2024. Preliminary results from the bulk sample are in-line with expectations and support the current Ormaque Mineral Reserves and block model. Record Gold Production in Quebec: The Lamaque Complex in Quebec delivered another year of record gold production of 196,538 ounces in 2024, an 11% increase over 2023, driven by higher grade ore and mill throughput. Continuing to Enhance Capacity at Kisladag: In October 2024, processing of loaded carbon commenced at the new north Adsorption-Desorption and Recovery plant. In addition, the planned phased expansion of the North Heap Leach pad facilities continued. Efemcukuru Met Guidance for the 10th Consecutive Year : Since 2014, Efemcukuru has met annual guidance expectations. Olympias: In August 2024, a new, unified, and mutually beneficial three-year Collective Bargaining Agreement was completed with the unionized workforce at Olympias. This new agreement, in conjunction with productivity improvements in the underground operations, lays the necessary foundation for support to increase mill capacity from the current capacity of 500 ktpa to 650 ktpa, positioning Olympias for long-term profitability. Progressed with Strategic Investments: In July 2024, Eldorado signed option agreements with Brixton Metals for its Atlin Goldfields Project in Northern British Columbia, and with TRU Precious Metals for its Golden Rose Project in Central Newfoundland. Both these option agreements provide Eldorado increased exposure to early-stage exploration opportunities. Extension of Senior Secured Credit Facility: In June 2024, the Company announced it had extended and increased its senior secured credit facility to $350 million, with a $100 million accordion feature and to a four-year term. While the focus remains on delivering the Skouries Project, this facility provided additional financial flexibility to continue to strengthen and grow the business with value-creating opportunities for all Eldorado’s stakeholders.

Notable Awards, Recognitions, and Milestones Across the Business:

The team at Eldorado Gold Québec won the Mining Association of Canada’s ‘Towards Sustainable Mining’ Community Engagement Excellence Award in 2024, the site’s first-ever TSM Award and a first for Eldorado. The award was received in recognition of the Lamaque team’s social and long-term closure planning. In Canada, the Lamaque Complex celebrated the 5th anniversary of commercial production. The Lamaque Complex has since produced nearly one million ounces of gold since declaring commercial production. In Canada, ten of Eldorado Gold Québec supervisors were recently recognized for achieving between 50,000 and 200,000 hours without a lost-time accident with their teams. In Greece, Environmental Manager at Hellas Gold, Emmy Gazea, was recognized as one of the 100 Global Inspirational Women in Mining by Women in Mining UK. Hellas Gold had the honour of hosting Deputy Minister of Environment and Energy – Alexandra Sdoukou and Deputy Minister of the Interior – Konstantinos Gioulekas at Skouries, both noting the crucial role mining investments can play in the Greek economy as a whole, and particularly in Northern Greece. Hellas Gold was recognized among the “Leading Employers in Greece 2024” by ICAP CRIF. Hellas Gold won the Silver Award at the 2nd Annual Euromines Safety Awards recognizing innovative virtual and augmented reality training programs deployed at the state-of-the-art training center at Madem Lakkos. In Turkiye, members of our mine rescue teams at Tuprag participated in the 3rd Mine Rescue Competition organized by the Turkish Miners Association, tying for 1st place in the ‘Best Mine Rescue Team’ award. Recognized as one of 30 companies in the Globe & Mail’s ‘Road to Net Zero’ in the Globe’s Report on Business Magazine. Eldorado placed 3rd overall in the Materials sector that includes Mining in the Globe & Mail's 2024 Board Games. Board Games ranks Canada’s corporate boards in the S&P/TSX Composite Index to assess the quality of their governance practice and disclosure. Since 2020, Eldorado has improved its index-wide ranking from 104th to 36th. Simon Hille, EVP Technical Services and Operations, raised over C$55,000 for Covenant House Vancouver by participating in the Annual Executive Sleep Out in Vancouver. This was the third time Simon participated in the event to raise funds and awareness for youths experiencing homelessness, and Eldorado's 6th consecutive year. Since 2018, Eldorado, including employee matching campaigns, has raised approximately C$245,000 for Covenant House Vancouver.