VANCOUVER, British Columbia, July 30, 2020 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the second quarter of 2020.
? Measures remain in place to manage the impact of the novel coronavirus ("COVID-19") pandemic: The Company's mines are fully operational and the global workforce has returned to normal levels. Preventing the spread of COVID-19, ensuring safe working environments across Eldorado's global sites, and preparedness should an outbreak occur, remain priorities.

? Stronger quarterly production and 2020 annual guidance maintained: Gold production totalled 137,782 ounces in Q2 2020, an increase of 50% from Q2 2019 production of 91,803 ounces, and a 19% increase over Q1 2020. Eldorado is maintaining its 2020 annual guidance of 520,000-550,000 ounces of gold at an all-in sustaining cost of $850-950 per ounce sold.

? Significant increase in free cash flow: Free cash flow of $63.4 million in Q2 2020 increased significantly from $4.8 million in Q2 2019 and $7.2 million in Q1 2020 as a result of higher sales volume and a higher gold price.

? Commenced construction of a three kilometre decline at Lamaque: The underground decline will connect the Sigma mill to the 405 metre level of the Triangle mine. Benefits of the decline include eliminating surface haulage of ore (approximately 26km round trip), reducing energy requirements for mine ventilation and providing access to reduce exploration costs. The decline is expected to be completed in the first half of 2022 at an estimated cost of $24 million.

? All-in sustaining costs lower quarter-on-quarter: Q2 2020 all-in sustaining costs of $859 per ounce of gold sold in the quarter were lower than in Q2 2019 ($917 per ounce sold).

? Continued strong financial liquidity: The Company currently has $440 million of cash, cash equivalents and term deposits and approximately $35 million available under the revolving credit facility, with $65 million of capacity on the facility allocated to secure certain reclamation obligations in connection with its operations.


? Improved financial position and net leverage ratio: $33.3 million was repaid on the Company's term loan during the quarter. Continued strong EBITDA has improved the Company's net leverage ratio, lowering the interest rate on the term loan and amounts drawn under the revolving credit facility from LIBOR + 2.5% to LIBOR + 2.25% during the quarter. Additionally, we have issued a redemption notice to repay $58.6 million of principal in August 2020 under the equity clawback provision of our senior secured notes.


? Net earnings and adjusted net earnings attributable to shareholders: Net earnings attributable to shareholders of the Company in Q2 2020 were $45.6 million or $0.27 per share (Q2 2019: net earnings attributable to shareholders of the Company of $12.2 million, or $0.08 per share). Adjusted net earnings attributable to shareholders of the Company in Q2 2020 were $43.8 million, or $0.26 per share (Q2 2019: adjusted net loss attributable to shareholders of the Company of $3.5 million, or $0.02 loss per share).

? Increased EBITDA: Q2 2020 EBITDA was $131.8 million ($74.5 million in Q2 2019) and Q2 2020 adjusted EBITDA was $135.8 million ($66.8 million in Q2 2019). Adjustments included, among other things, share based compensation and losses on asset disposals.

“Our outstanding operational performance during the quarter positions us to continue to generate significant value for our stakeholders. Even while managing COVID-19, we achieved strong quarterly production while seeing lower all-in sustaining costs,” said George Burns, President and CEO.

“We are pleased to have made our first scheduled term loan repayment in June. Additionally, we have issued a redemption notice to repay $59 million dollars of principal in August under the equity clawback provision of our senior secured notes. We are committed to reducing our debt, while at the same time maintaining a strong liquidity position as we continue to grow our business."

“Our teams continue to show agility in addressing COVID-19 and we have begun to integrate innovative new technologies to protect our workforce. We are extremely pleased with first half corporate performance and see several positive catalysts on the horizon, including further success in Turkey and continued growth in Greece and Quebec.”

“The addition of Ms. Judith Mosely as a director is highly complementary to the skills and experience of our existing board members and we look forward to her added insights. This timing is consistent with our ongoing Board succession plan.”

Consolidated Financial and Operational Highlights
3 months ended June 30, 6 months ended June 30, 2020 2019 2020 2019
Revenue (1) $255.9 $173.7 $460.6 $253.7
Gold revenue (1) $232.9 $150.1 $416.6 $204.6
Gold produced (oz) (2) 137,782 91,803 253,732 174,780

Gold sold (oz) (1) 134,960 113,685 251,179 156,759
Average realized gold price ($/oz sold) (6) $1,726 $1,321 $1,658 $1,301
Cash operating costs ($/oz sold) (3,7) 550 631 586 629
Total cash costs ($/oz sold) (3,7) 616 670 644 665
All-in sustaining costs ($/oz sold) (3,6) 859 917 902 977
Net earnings (loss) for the period (4) 45.6 12.2 40.7 (14.8 )
Net earnings (loss) per share – basic ($/share) (4) 0.27 0.08 0.24 (0.09 )
Adjusted net earnings (loss) (4,5,6,7) 43.8 (3.5 ) 56.3 (24.5 )
Adjusted net earnings (loss) per share ($/share) (4,5,6,7) 0.26 (0.02 ) 0.34 (0.15 )
Cash flow from operating activities before changes in working capital (6,7) 99.0 38.5 168.5 46.6
Free cash flow (6) 63.4 4.8 70.5 (59.2 )
Cash, cash equivalents and term deposits $440.3 $119.9 $440.3 $119.9

(1) Excludes sales of inventory mined at Lamaque during the pre-commercial production period (Q1 2019).
(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 section 'Non-IFRS Measures' in the June 30, 2020 MD&A.
(6) These measures are non-IFRS measures. See the June 30, 2020 MD&A for explanations and discussion of these non-IFRS measures.
(7) 2019 amounts have been adjusted to conform with 2020 presentation. See the section 'Non-IFRS Measures' in the June 30, 2020 MD&A for detail.

Gold production of 137,782 ounces increased 50% from last year’s second quarter production of 91,803 ounces. Gold sales totalled 134,960 ounces in Q2 2020, an increase of 19% from 113,685 ounces sold in Q2 2019. The higher sales volume compared with the prior year reflected an increase of 33,845 ounces sold at Kisladag following the resumption of mining activities in April 2019, an increase of 7,634 ounces sold at Lamaque following its commencement of commercial operations in April 2019 and an increase of 2,925 ounces sold at Olympias as a result of increased production. Gold sales at Efemcukuru in Q2 2020 decreased by 23,129 ounces from the prior year as sales in Q2 2019 included shipments that had been delayed from Q1 2019.

Total revenue was $255.9 million in Q2 2020, an increase of 47% from $173.7 million in Q2 2019. The increase was due to increased sales volume combined with a higher average realized gold price.

Cash operating costs per ounce sold in Q2 2020 averaged $550, a decrease from $631 in Q2 2019. The improvement was primarily due to higher production at Kisladag with an increase in stacked ore on the heap leach pad, higher production and grade at Olympias and higher production at Efemcukuru. The improvement was also due to increased mining rates at Lamaque in Q2 2020 following approval to expand underground production. Cash operating costs also benefited from a weakening of the Turkish Lira in the first half of 2020.

We reported net earnings attributable to shareholders of $45.6 million ($0.27 per share) in Q2 2020, compared to net earnings of $12.2 million ($0.08 per share) in Q2 2019. The improvement reflects higher production and sales volumes, combined with a higher average realized gold price.

Adjusted net earnings were $43.8 million ($0.26 per share) in Q2 2020 compared to adjusted net loss of $3.5 million ($0.02 loss per share) in Q2 2019. Adjusted net earnings in Q2 2020 removes, among other things, the $5.7 million gain on the non-cash revaluation of the derivative related to redemption options in our debt and a $3.0 million loss on foreign exchange due to translation of deferred tax balances.

Gold Operations
3 months ended June 30, 6 months ended June 30, 2020 2019 2020 2019

Total
Ounces produced (1) 137,782 91,803 253,732 174,780
Ounces sold (2, 4) 134,960 113,685 251,179 156,759
Cash operating costs ($/oz sold) (4,5) $550 $631 $586 $629
All-in sustaining costs ($/oz sold) (4,5) $859 $917 $902 $977
Sustaining capex (5) $21.9 $15.6 $41.3 $26.4
Kisladag
Ounces produced (3) 59,890 26,072 110,066 53,319
Ounces sold 59,917 26,072 111,517 53,327
Cash operating costs ($/oz sold) (5) $465 $381 $459 $471
All-in sustaining costs ($/oz sold) (5) $631 $471 $606 $590
Sustaining capex (5) $5.4 $1.1 $8.4 $4.2
Lamaque
Ounces produced (1) 33,095 33,140 60,448 52,818
Ounces sold (2) 31,964 24,330 58,692 24,330
Cash operating costs ($/oz sold) (5) $480 $517 $553 $517
All-in sustaining costs ($/oz sold) (5) $796 $814 $908 $814
Sustaining capex (5) $8.0 $5.3 $16.3 $5.3
Efemcukuru
Ounces produced 26,876 25,667 50,115 51,791
Ounces sold (4) 25,692 48,821 48,913 54,639
Cash operating costs ($/oz sold) (4,5) $534 $593 $586 $598
All-in sustaining costs ($/oz sold) (4,5) $807 $774 $835 $840
Sustaining capex (5) $3.6 $5.4 $6.7 $9.0
Olympias
Ounces produced 17,921 6,924 33,103 16,852
Ounces sold 17,387 14,462 32,057 24,463
Cash operating costs ($/oz sold) (5) $993 $1,402 $1,086 $1,156
All-in sustaining costs ($/oz sold) (5) $1,377 $1,731 $1,500 $1,553
Sustaining capex (5) $4.9 $3.8 $9.9 $7.9

(1) Includes pre-commercial production at Lamaque (Q1 2019).
(2) Excludes sales of inventory produced at Lamaque during the pre-commercial production period (Q1 2019).
(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 and unit costs were impacted by delayed shipments in Q1 2019 that were completed in Q2 2019.
(5) These measures are non-IFRS measures. See the June 30, 2020 MD&A for explanations and discussion of these non-IFRS measures.

Corporate

On July 30, 2020, the Company issued a redemption notice for the senior secured notes and intends to redeem $59 million of the principal amount of the senior secured notes in August 2020 using proceeds from the ATM Program. The redemption price is 109.5% of the aggregate principal amount repaid, plus accrued and unpaid interest.

We are pleased to announce the appointment of Ms. Judith Mosely to the Board of Directors, effective September 1, 2020. Ms. Mosely has over 20 years of experience in the mining and metals banking sector.

Conference Call

A conference call to discuss the details of the Company’s Q2 2020 results will be held by senior management on Friday, July 31, 2020 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/eldoradogold20200731.html.


Conference Call Details Replay (available until Sept. 4, 2020)
Date: July 31, 2020 Vancouver: +1 604 638 9010
Time: 8:30 am PT (11:30 am ET) Toll Free: 1 800 319 6413
Dial in: +1 604 638 5340 Pass code: 4874
Toll free: 1 800 319 4610

About Eldorado Gold

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania and Brazil. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).