Eldorado Gold Reports Q3 2024 Financial and Operational Results; Tightens 2024 Operating Guidance
VANCOUVER, British Columbia, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation ("Eldorado" or "the Company") today reports the Company's financial and operational results for the third quarter of 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.
Third Quarter 2024 Highlights
Operations
Gold production: 125,195 ounces were produced in the quarter. Production increased 3% from Q3 2023, reflecting increased gold production of 13% at Olympias due to higher gold grades processed and 10% at Kisladag as a result of increased heap leach inventory drawdown.
Gold sales: 123,828 ounces at an average realized gold price per ounce sold1 of $2,492. Gold sales increased 4% from Q3 2023 primarily as a result of increased production at Olympias and Kisladag.
Production costs: $141.2 million in Q3 2024, compared to $115.5 million in Q3 2023. The increase was due primarily to higher sales volumes, as well as higher cash costs, the latter impacted by higher royalty expense due to higher gold sales and higher gold price, as well as increases in labour costs.
Total cash costs1: $953 per ounce gold sold compared to $794 per ounce gold sold in Q3 2023, with the increases primarily due to higher royalties (driven by higher gold prices) and higher labour costs.
All-in sustaining costs ("AISC")1: $1,335 per ounce sold compared to $1,177 per ounce sold in Q3 2023, with the increase due to higher total cash costs combined with higher sustaining capital.
Total capital expenditures: $158.1 million, including $82.7 million of growth capital1 invested at Skouries, with activity focused on infrastructure construction. Growth capital at the operating mines totalled $39.0 million and was primarily related to Kisladag for continued waste stripping, construction of the North Heap Leach Pad and related infrastructure.
Production and cost outlook: The Company is tightening its 2024 guidance for gold production, costs, depreciation and capital expenditure, reflecting updated full-year expectations given the operational and financial performance to date. Gold production is expected to be 505,000 to 530,000 ounces, from 505,000 to 555,000 ounces. Total cash costs per ounce sold is expected to be $910 to $940 per ounce sold, from $840 to $940 per ounce sold, primarily due to lower production and increased royalties in Greece and Turkiye related to higher gold price. AISC per ounce sold is expected to be $1,260 to $1,290 per ounce sold, from $1,190 to $1,290 per ounce sold, primarily due to higher total cash costs, partially offset by lower sustaining capital expenditure.
Financial
Revenue: $331.8 million in Q3 2024, an increase of 36% from $244.8 million in Q3 2023, primarily due to the higher averaged realized gold price and higher sales volumes.
Net cash generated from operating activities from continuing operations: $180.9 million compared to $108.1 million in Q3 2023, primarily due to higher revenue, partially offset by higher cash costs.
Cash flow from operating activities before changes in working capital2: $166.5 million compared to $97.5 million in Q3 2023, primarily due to higher revenue, partially offset by higher cash costs.
Cash, cash equivalents and term deposits: $676.6 million, as at September 30, 2024 as compared to $595.1 million as at June 30, 2024, with the cash increase attributable to strong operating cashflows combined with the planned Skouries Term Facility drawdown, partially offset by the significant investing activities, particularly at Skouries.
Net earnings (loss) attributable to shareholders from continuing operations: $101.1 million, or $0.49 per share, compared to $6.6 million loss or $0.03 loss per share in Q3 2023, with the increase driven by higher revenue.
Adjusted net earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA")2: $169.0 million compared to $108.7 million in Q3 2023, with the increase driven by higher revenue, partially offset by the adjustment of a gain on recognition of deferred consideration.
Adjusted net earnings2: $71.0 million or $0.35 per share compared to $35.0 million or $0.17 per share in Q3 2023. Adjustments in Q3 2024 include a $33.1 million unrealized loss on derivative instruments, a $50.1 million gain on recognition of deferred consideration net of tax impacts related to commercial production being declared at the Tocantinzinho Mine, which was divested to G Mining Ventures in 2021, and a $15.3 million gain on foreign exchange due to the translation of deferred tax balances and Turkiye inflation accounting.
Free cash flow2: Negative $4.8 million in Q3 2024 compared to negative $19.3 million in Q3 2023, with the increase in higher operating cash flow, primarily due to the higher average realized gold price and higher sales volumes, partially offset by continued investment at Skouries.
Free cash flow excluding Skouries2: $98.3 million in Q3 2024 compared to $37.3 million in Q3 2023, with the increase driven by higher operating cash flow, primarily due to the higher average realized gold price and higher sales volumes.
Project Facility: Drawdowns on the Skouries Term Facility during Q3 2024 totalled €83.7 million and year to date as at September 30, 2024 totalled €201.8 million.
Corporate
"As gold prices reached record highs during the quarter we continued to realize margin expansion and strong cash flow generation across our operations," said George Burns, President and Chief Executive Officer. "Free cash flow before Skouries investment totalled $98.3 million."
"At Olympias, we successfully concluded the CBA negotiations and reached a mutually beneficial agreement with the union workforce in early August. This three-year agreement combined with increased productivity in our underground operations, and as contemplated in our guidance, supports the 650ktpa expansion, an increase from 500ktpa, positioning Olympias for long-term profitability over its current mine life of 15 years. In Canada, at Lamaque, progress continued on the Ormaque bulk sample. We have begun stockpiling material ahead of processing it through the mill in the fourth quarter and remain on track to declare an inaugural reserve later this year."
"At Kisladag, we encountered a few operational challenges including lower tonnes stacked, slightly lower recovery and a longer leach cycle than planned. Throughout the quarter, we implemented a number of improvements to address these issues. This included improving the stacking sequence where we have started to see positive results. In addition, we have begun to see improved solution management through various innovative methods that are being deployed to help draw down the gold inventory."
"Production reached 364,625 ounces in the first nine months of the year, an increase of 7% compared to 2023, and 12% compared to 2022, respectively. We are on track to meet our 2024 production and cost guidance. We have tightened the gold production range to between 505,000 to 530,000 ounces. As gold prices hit record highs in the third quarter, we continued to experience increased royalty costs, which has impacted our overall costs, and we expect full year all-in sustaining costs to be near the upper end of guidance of between $1,260 and $1,290 per ounce."
"Our transformational Skouries project continues to track on budget and on schedule with first production expected in the third quarter of 2025. Solid progress was made during the third quarter, with overall project completion currently at 79%. As anticipated, the contract was awarded for the steel and mechanical installations for the filter building during the quarter, which is part of the critical path. Thus far the construction workforce productivity is slightly beating our assumptions. With approximately 1,000 personnel working, we are making steady progress towards our year-end target of 1,300. Our focus once we have the additional personnel onsite will turn to integrating them at our assumed productivity levels to maintain the schedule and budget. We are managing this closely and taking proactive measures to mitigate potential challenges in a tight construction labour market. To view the progress see our Q3 2024 progress update video linked below."
Q3 2024 progress update video link: https://youtu.be/js0MxV8Dgdo
Skouries Highlights
Growth capital invested totalled $82.7 million in Q3 2024 and $227.1 million during the nine months ended September 30, 2024. At September 30, 2024, the growth capital invested towards the overall capital estimate of $920 million totalled $411.9 million.
In 2024, the expected capital spend has been lowered to between $350 and $380 million from the original guidance of $375 and $425 million. The lowered capital is not expected to impact first production as it is primarily related to rescheduled work that has been shifted to a later phase of the project that is not on the critical path, and reflects a slower than expected ramp-up of contractor mobilization during the first three quarters of 2024.
First production of the copper-gold concentrate is expected in Q3 2025, with expected 2025 gold production of 50,000 to 60,000 ounces and copper production of 15 to 20 million pounds. The project remains on track for commercial production at the end of 2025.
Table 1: Skouries Project, Project Expenditures (January 1, 2023 to September 30, 2024)
Millions of US$
As of September 30, 2024
Total capital estimate
$920
Expenditures incurred since project restart
412
Remaining spend
508
Committed expenditures - including expenditures incurred
788
Uncommitted expenditures
132
Construction Activities
Overall construction progress is 79% when including the first phase of construction.
Work continues to advance on the filtered tailings building which is on the critical path. In September, the first contract for the filtered tailings building was awarded for the structure and mechanical installations. For efficiency, the contract was split into two components:
1)
filtered tailings building structure and mechanical installations, and
2)
piping, electrical and instrumentation.
Piling has been completed for the filtered tailings building and concrete work is progressing to enable construction of the structural steel. With three active drills on site, the piles for the filtered tailings facility ancillary buildings continue to progress. To date, 388 piles have been completed out of a total of 871. As previously announced, the fabricated frames for the filter press plates arrived on site during Q2 2024, and all filter press components have now been delivered to site.
Primary Crusher Building
Progress continued to advance on the foundation construction of the primary crusher with retaining walls and stabilized excavations nearing completion. Construction of the crusher building structure will commence in November.
Process plant
Work in the process plant continues to progress. Re-lining of the flotation tanks was completed as planned and structural and mechanical work is in progress. Off-site pipe spool fabrication continues and delivery of high-density polyethylene piping to site has commenced. Scaffolding is advancing to support electrical cable tray and piping installations and the contractor continues to ramp up to support increasing levels of activity. Work has also commenced on support infrastructure including the process control room building, process plant sub-station, water pump station, lime plant, air blowers building, compressor building and flotation reagent areas.
Thickeners
Construction of the three thickeners progressed on plan during the quarter. Major concrete pours are complete for the foundations of the first two thickeners. Support columns are complete on the first thickener and over 50% complete for the second thickener. Construction of the third thickener will start in Q4 2024 following completion of the first thickener.
Integrative Extractive Waste Management Facility (the "IEWMF")
During Q3 2024, construction continued to progress at the coffer dam site with excavation of the spillway and foundation preparation. By the end of 2024, the Company expects to have completed the first of two water management ponds, coffer dam and significantly advanced the earthworks. Work continues to progress with foundation preparation for the KL Embankment (tailings embankment) and the fill placement for water management pond 2 has advanced on plan for completion at year end. Excavations for water management pond 1 continue and development of the low-grade ore stockpile advanced with foundation preparation, drain construction and fill placement.
Underground Development
Progress has been made on the underground with expansion of the underground services for water management, ventilation and electrical distribution. Approximately 70% of the equipment and operator licenses have been received to date and development mining is ramping up. Access to the test stopes is advancing at the upper level as planned and the priority for the balance of the year is to advance the main decline and gain access to the bottom elevations of the test stopes. The schedule to receive all licenses and permits was later than planned and while the contractor is ramping up, it has delayed the completion of the expected 2,200 metres of underground development for 2024. The underground development for 2024 is now expected to be between 500 and 600 metres. While the metres are not on track with guidance the underground is not on the critical path for first production, in addition, this does not impact the overall timing for the two test stopes which are expected to be completed in Q3 2025.
Engineering, Procurement and Operational Readiness
Engineering
As engineering works are now at 78% and are nearing substantial completion, the focus has been on finalizing engineering to support the construction schedule. The release of structural steel for fabrication is nearing completion and steel deliveries have commenced to site to support steel construction in the process plant and filtered tailings building.
Procurement
At the end of Q3 2024, procurement is substantially complete, with all long-lead items procured and the focus on managing fabrication and deliveries. Operational Readiness
A key focus of the operational readiness team is to establish a strong, risk-based operational readiness plan. Key departmental plans have been developed, an overarching governance framework established, and weekly leadership forums and monthly steering committee reviews established. Specialized support has been engaged to focus on processing operationalization, and readiness support. Further work is ongoing to establish detailed readiness plans for support and shared services. Priority focus areas have been identified and resource allocation adjusted accordingly.
The development of the Management Operating System (MOS) is currently focused on providing frontline supervisor and worker practices and procedures to the open pit operations team. These practices and procedures are established to ensure adherence to standards as well as establishing best practices and overall transparency across planning, execution, reporting and remediation to the frontline team. Several workshops were held with the heads of functions and initial departmental workflows were established.
The training department's short-term priority was developing a training plan for the open pit excavation activities in line with the recently adopted competency-based framework. The competency-based framework identifies specific competencies per role and then assesses the employee's performance against specific performance criteria on knowledge, skills and attitude. This competency-based framework will ensure improved individual performance compared to the previous time in role-based competency framework only. Training material as well as training providers are in place and four (4) CAT 6020B hydraulic excavator operators commenced training during October 2024. This program will be expanded with the arrival of additional mining equipment in H1 2025. The Mavres Petres main training building structural upgrade has been completed and the focus for the coming quarter will be to equip practical training workbenches for basic skills training and assessment as well as for refresher training.
Operations
The operations team completed their labour strategy and associated organizational designs. Recruitment is underway at local and national levels. Several local and national job fairs are planned for Q4 2024 to attract as many as possible potential employees.
The CAT 6020B hydraulic excavator was assembled during the quarter and training of operators commenced in October 2024. Most of the remaining open pit mining fleet will arrive during H1 2025. The first operational plan was prepared that combines the completion of construction pre-stripping and the start of open pit mining in H1 2025. A similar plan is being prepared for the underground mine and the expectation is that both the surface and underground mining will be operationalized during Q4 2024.
Other operational, commercial and administrative departments made progress in recruiting their leadership and supervision employees and setting up operating and commercial processes.
Workforce
In addition to the Operational Readiness team, as at September 30, 2024, there were approximately 1,000 personnel working. Thus far the construction workforce productivity is slightly ahead of our assumptions. We are making steady progress towards our year-end target of 1,300 workers on site. Our focus once we have the additional personnel onsite will turn to integrating them at our assumed productivity levels to maintain the schedule and budget. We are managing this closely and taking proactive measures to mitigate potential challenges in a tight construction labour market.
Skouries key milestones in 2024, which include:
Area of Focus
Key Milestone
Status
Procurement and Engineering
Substantial completion of procurement and engineering
Substantial completion of engineering on track for Q4 2024
Procurement substantially complete
Process Plant
Construction of the control room and electrical room building
Q1 2024 commenced
Electrical room building on track for completion in Q4 2024
Construction of the tailings thickeners
Q1 2024 commenced
Filtered Tailings Facility
Awarding of the first filter facility construction contract
Q3 2024 first contract awarded
Integrated Extractive Waste Management Facility ("IEWMF")
Completion of the coffer dam
On track for completion in Q4 2024
Underground
Awarding of the underground development and test stoping contract
Contract awarded and approximately 70% of the equipment and operator licenses have been received to date and development is ramping up
Completion of approximately 2,200 metres of underground development
Expected completion lowered to between 500 and 600 metres (see section titled 'Underground Development')
Ore from test stopes still on track for delivery during plant commissioning period in 2025
Consolidated Financial and Operational Highlights
3 months ended September 30,
9 months ended September 30,
2024
2023
2024
2023
Revenue
$331.8
$244.8
$886.9
$701.6
Gold produced (oz)
125,195
121,030
364,625
341,973
Gold sold (oz)
123,828
119,200
361,062
339,151
Average realized gold price ($/oz sold) (2)
$2,492
$1,879
$2,309
$1,920
Production costs
141.2
115.5
392.0
341.3
Total cash costs ($/oz sold) (2,3)
953
794
939
858
All-in sustaining costs ($/oz sold) (2,3)
1,335
1,177
1,310
1,225
Net earnings (loss) for the period (1)
95.0
(8.0
)
184.1
12.2
Net earnings (loss) per share, basic ($/share) (1)
0.46
(0.04
)
0.90
0.06
Net earnings (loss) per share, diluted ($/share) (1)
0.46
(0.04
)
0.90
0.06
Net earnings (loss) for the period continuing operations (1,4)
101.1
(6.6
)
192.7
14.4
Net earnings (loss) per share continuing operations, basic ($/share)(1,4)
0.49
(0.03
)
0.95
0.07
Net earnings (loss) per share continuing operations, diluted ($/share)(1,4)
0.49
(0.03
)
0.94
0.07
Adjusted net earnings continuing operations, basic (1,2,4)
71.0
35.0
192.9
61.4
Adjusted net earnings per share continuing operations ($/share)(1,2,4)
0.35
0.17
0.95
0.32
Net cash generated from operating activities (4)
180.9
108.1
388.4
223.3
Cash flow from operating activities before changes in working capital (2,4)
166.5
97.5
407.0
273.1
Free cash flow (2,4)
(4.8
)
(19.3
)
(67.8
)
(76.4
)
Free cash flow excluding Skouries (2,4)
98.3
37.3
165.8
30.7
Cash, cash equivalents and term deposits (4)
676.6
476.6
676.6
476.6
Total assets
5,565.1
4,812.2
5,565.1
4,812.2
Debt (4)
849.2
596.5
849.2
596.5
(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' of our MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
(3)
Revenues from silver, lead and zinc sales are off-set against total cash costs.
(4)
Amounts presented for 2024 and 2023 are from continuing operations only and exclude the Romania segment. See Note 4 of our condensed consolidated interim financial statements for the three and nine months ended September 30, 2024.
Total revenue increased to $331.8 million in Q3 2024 from $244.8 million in Q3 2023 and to $886.9 million in the nine months ended September 30, 2024, from $701.6 million in the nine months ended September 30, 2023. The increases in both three and nine-month periods were primarily due to the higher average realized gold price as well as the higher sales volumes.
Production costs increased to $141.2 million in Q3 2024 from $115.5 million in Q3 2023 and to $392.0 million in the nine months ended September 30, 2024 from $341.3 million in the nine months ended September 30, 2023. Increases in both periods were driven primarily by higher sales volume as well as higher cash costs, the latter impacted by higher royalty expense due to higher gold sales and higher gold price, as well as increases in labour costs.
Total cash costs3 averaged $953 per ounce sold in Q3 2024, an increase from $794 in Q3 2023, and $939 the nine months ended September 30, 2024 from $858 in the nine months ended September 30, 2023. The increases in both the three and nine-month periods were primarily due to higher royalties (driven by higher gold prices) and labour costs.
In the quarter, AISC4 averaged $1,335 per ounce sold in Q3 2024, an increase from $1,177 in Q3 2023, and $1,310 the nine months ended September 30, 2024 from $1,225 in the nine months ended September 30, 2023, with the increases in both the three and nine-month periods due to higher total cash costs combined with higher sustaining capital.
Eldorado reported net earnings attributable to shareholders from continuing operations of $101.1 million ($0.49 earnings per share) in Q3 2024 compared to a net loss of $6.6 million ($0.03 loss per share) in Q3 2023 and net earnings of $192.7 million ($0.95 earnings per share) in the nine months ended September 30, 2024 compared to net earnings of $14.4 million ($0.07 earnings per share) in the nine months ended September 30, 2023. The increases in net earnings in both the three and nine-month periods were driven by higher operating income due primarily to higher average realized gold price as well as stronger gold sales and the gain on deferred consideration, partially offset by higher unrealized derivative losses.
Adjusted net earnings4 was $71.0 million ($0.35 earnings per share) in Q3 2024 compared to adjusted net earnings of $35.0 million ($0.17 earnings per share) in Q3 2023. Adjustments in Q3 2024 include a $33.1 million unrealized loss on derivative instruments, a $50.1 million gain on recognition of deferred consideration net of tax impacts related to commercial production being declared at the Tocantinzinho Mine, which was divested to G Mining Ventures in 2021, and a $15.3 million gain on foreign exchange due to the translation of deferred tax balances and Turkiye inflation accounting.
Adjusted net earnings was $192.9 million ($0.95 earnings per share) in the nine months ended September 30, 2024 compared to adjusted net earnings of $61.4 million ($0.32 earnings per share) in the nine months ended September 30, 2023. Adjustments in the nine months ended September 30, 2024 include a $61.9 million unrealized loss on derivative instruments, a $50.1 million gain on recognition of deferred consideration net of tax impacts mentioned above, and a $11.9 million gain on foreign exchange due to the translation of deferred tax balances net of Turkiye inflation accounting.
Quarterly Operations Update
3 months ended September 30,
9 months ended September 30,
2024
2023
2024
2023
Consolidated
Ounces produced
125,195
121,030
364,625
341,973
Ounces sold
123,828
119,200
361,062
339,151
Production costs
$141.2
$115.5
$392.0
$341.3
Total cash costs ($/oz sold) (1,2)
$953
$794
$939
$858
All-in sustaining costs ($/oz sold) (1,2)
$1,335
$1,177
$1,310
$1,225
Sustaining capital expenditures (2)
$33.3
$31.8
$93.2
$83.9
Kisladag
Ounces produced
41,084
37,219
117,597
108,558
Ounces sold
40,724
38,732
117,068
108,405
Production costs
$37.3
$28.6
$106.5
$86.7
Total cash costs ($/oz sold) (1,2)
$899
$722
$889
$778
All-in sustaining costs ($/oz sold) (1,2)
$1,028
$884
$1,002
$897
Sustaining capital expenditures (2)
$3.7
$5.5
$8.9
$10.5
Lamaque
Ounces produced
43,106
43,821
132,796
120,450
Ounces sold
44,531
40,908
132,776
119,455
Production costs
$32.8
$26.9
$101.6
$84.4
Total cash costs ($/oz sold) (1,2)
$728
$648
$755
$697
All-in sustaining costs ($/oz sold) (1,2)
$1,189
$1,099
$1,228
$1,143
Sustaining capital expenditures (2)
$20.0
$18.0
$61.1
$52.0
Efemcukuru
Ounces produced
19,794
21,142
60,692
63,714
Ounces sold
19,741
21,364
60,817
63,581
Production costs
$26.4
$20.6
$73.0
$58.7
Total cash costs ($/oz sold) (1,2)
$1,325
$990
$1,185
$947
All-in sustaining costs ($/oz sold) (1,2)
$1,578
$1,205
$1,336
$1,137
Sustaining capital expenditures (2)
$4.7
$3.7
$10.7
$9.6
Olympias
Ounces produced
21,211
18,848
53,540
49,251
Ounces sold
18,833
18,196
50,401
47,710
Production costs
$44.7
$39.3
$110.9
$111.6
Total cash costs ($/oz sold) (1,2)
$1,210
$1,048
$1,241
$1,325
All-in sustaining costs ($/oz sold) (1,2)
$1,513
$1,319
$1,520
$1,614
Sustaining capital expenditures (2)
$4.9
$4.7
$12.5
$11.8
(1)
Revenues from silver, lead and zinc sales are off-set against total cash costs.
(2)
These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' of our MD&A for explanations and discussions of these non-IFRS financial measures or ratios.
Kisladag
Kisladag produced 41,084 ounces of gold in Q3 2024, a 10% increase from 37,219 ounces produced in Q3 2023. Production in the quarter benefited from both higher average grade and higher stacking rates from earlier in the year. Grade slightly increased from 0.85 grams per tonne in Q3 2023 to 0.86 grams per tonne in Q3 2024 as a result of mine planning changes and positive grade reconciliation.
Availability of the crushing circuit has been impacted due to maintenance issues, leading to slightly lower tonnes stacked compared to plan. We are working on a solution and expect to install it in Q1 2025. In addition, a small portion of the ore product coming from the high pressure grinding rolls ("HPGR") contains particles that are greater than 10mm which has slightly reduced recovery due to the larger particle size. As we continue to analyze data following the ramp-up of the HPGR and agglomeration drum, we are seeing leach cycles extending beyond the planned 220 days which leads to an increase in gold inventory.
We have responded to these operational challenges through irrigation optimization activities, which have demonstrated positive results through the drawdown of gold inventory partially offsetting the longer leach cycle. Additionally, as we have previously discussed, a geometallurgical study has commenced with drilling currently underway. Starting in Q4 2024, as the new Adsorption-Desorption facility goes into operations we will also realize a number of benefits at Kisladag including: reducing carbon handling requirements, realigning the extraction cycle with the stacking cycle and decoupling the North and South heap leach facilities.
Revenue increased to $102.2 million in Q3 2024 from $75.2 million in Q3 2023, reflecting the higher average realized gold price as well as higher ounces sold.
Production costs increased to $37.3 million in Q3 2024 from $28.6 million in Q3 2023, with more than half the increase attributable to the higher sales volume, as well as higher royalty expense due to both the higher average realized gold price and higher gold sales. As a result, total cash costs per ounce increased to $899 in Q3 2024 from $722 in Q3 2023.
AISC per ounce sold increased to $1,028 in Q3 2024 from $884 in Q3 2023, primarily due to the increase in total cash costs per ounce sold.
Sustaining capital expenditures were $3.7 million in Q3 2024 and $8.9 million in the nine months ended September 30, 2024, which primarily included equipment rebuilds, mine equipment purchases and geotechnical drilling and monitoring. Growth capital investment of $27.4 million and $85.1 million in the three and nine months ended September 30, 2024 and was primarily related to waste stripping and associated equipment costs to support the mine life extension, continued construction of the second phase of the North Heap Leach Pad and adsorption-desorption-regeneration plant infrastructure, and preparation work for building relocation due to pit expansion.
Lamaque
Lamaque produced 43,106 ounces of gold in Q3 2024, compared to 43,821 ounces in Q3 2023. The slight decrease was primarily due to lower grades processed, partially offset by increased throughput. Average grade decreased to 6.03 grams per tonne in Q3 2024 from 7.04 grams per tonne in the comparative quarter.
Revenue increased to $111.6 million in Q3 2024 from $79.1 million in Q3 2023, reflecting the higher average realized gold price as well as higher ounces sold.
Production costs increased to $32.8 million in Q3 2024 from $26.9 million in Q3 2023 due to higher sales volume, as well as additional costs incurred in labour, contractors, and equipment rentals. Total cash costs were also impacted by slightly higher royalties due to the higher average realized gold price, with total cash costs per ounce sold increasing to $728 in Q3 2024 from $648 in Q3 2023.
AISC per ounce sold increased to $1,189 in Q3 2024 from $1,099 in Q3 2023, primarily due to higher total cash costs per ounce as well as higher sustaining capital.
Sustaining capital expenditures of $20.0 million in Q3 2024 and $61.1 million in the nine months ended September 30, 2024 primarily included underground development, equipment rebuilds and expenditure on the expansion of the tailings facility. Growth capital investment of $6.4 million in Q3 2024 and $18.9 million in the nine months ended September 30, 2024 was primarily related to resource conversion drilling and initiation of the bulk sample development at Ormaque.
The inaugural reserve at Ormaque is expected to be announced by the end of 2024, and material for the bulk sample is now being stockpiled in preparation for processing through the mill in December.
Efemcukuru
Efemcukuru produced 19,794 ounces of gold in Q3 2024, a 6% decrease from 21,142 ounces in Q3 2023. The slight decrease was primarily driven by lower throughput and lower grade.
Revenue increased to $52.3 million in Q3 2024 from $39.1 million in Q3 2023, with the increase attributable to the higher average realized gold price, partially offset by lower sales volume.
Production costs increased to $26.4 million in Q3 2024 from $20.6 million in Q3 2023, with the increase attributable to higher unit costs, primarily a result of increased royalty expense due to the higher average realized gold price during the quarter. Additionally, labour and transportation costs have increased compared to the comparative period of the prior year. Overall, this resulted in an increase to total cash costs per ounce sold to $1,325 in Q3 2024 from $990 in Q3 2023.
AISC per ounce sold increased to $1,578 in Q3 2024 from $1,205 in Q3 2023, primarily due to higher total cash costs per ounce.
Sustaining capital expenditures of $4.7 million in Q3 2024 and $10.7 million in the nine months ended September 30, 2024 were primarily related to underground development and equipment rebuilds. Growth capital investment of $1.2 million in Q3 2024 and $3.3 million in the nine months ended September 30, 2024 supported underground development to Kokarpinar.
Olympias
Olympias produced 21,211 ounces of gold in Q3 2024, a 13% increase from 18,848 ounces in Q3 2023 primarily driven by higher grade ore, which reflected stope sequencing in the quarter.
Revenue increased to $65.7 million in Q3 2024 from $51.4 million in Q3 2023, primarily as a result of the higher average realized gold price and slightly higher ounces sold.
Production costs increased to $44.7 million in Q3 2024 from $39.3 million in Q3 2023 driven by higher labour costs and higher royalty expenses as a result of higher realized gold prices, as well as higher gold ounces sold. The increase in unit costs, which were partially offset by higher by-product revenues, resulted in an increase to total cash costs per ounce sold to $1,210 in Q3 2024 from $1,048 in Q3 2023.
AISC per ounce sold increased to $1,513 in Q3 2024 from $1,319 in Q3 2023 primarily due to higher total cash costs per ounce sold.
Sustaining capital expenditures of $4.9 million in Q3 2024 and $12.5 million in the nine months ended September 30, 2024 primarily included underground development and process improvements. Growth capital investment of $4.1 million in Q3 2024 and $6.7 million in the nine months ended September 30, 2024 was primarily related to underground development and investment towards the mill throughput expansion.
During Q3 2024, the Collective Bargaining Agreement was finalized. This three-year agreement, combined with increased productivity in our underground operations and as contemplated in our guidance, supports the 650ktpa expansion, an increase from 500ktpa.
For further information on the Company's operating results for the third quarter of 2024, please see the Company's MD&A filed on SEDAR+ at www.sedarplus.com under the Company's profile.
Conference Call
A conference call to discuss the details of the Company's Third Quarter 2024 Results will be held by senior management on Friday, November 1, 2024 at 11:30 AM ET (8:30 AM PT). The call will be webcast and can be accessed at Eldorado's website: www.eldoradogold.com or via this link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=EB9o82Zh.
Participants may elect to pre-register for the conference call via this link: https://dpregister.com/sreg/10192246/fd5e1d8d60. Upon registration, participants will receive a calendar invitation by email with dial in details and a unique PIN. This will allow participants to bypass the operator queue and connect directly to the conference. Registration will remain open until the end of the conference call.
Conference Call Details
Replay (available until December 6 2024)
Date:
November 1, 2024
Vancouver:
+1 412 317 0088
Time:
11:30 AM ET (8:30 AM PT)
Toll Free:
1 855 669 9658
Dial in:
+1 647 484 8814
Access code:
6725564
Toll free:
1 844 763 8274
About Eldorado
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada and Greece. 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).
Contact
Investor Relations
Lynette Gould, VP, Investor Relations, Communications & External Affairs 647 271 2827 or 1 888 353 8166
Media
Chad Pederson, Director, Communications and Public Affairs 236 885 6251 or 1 888 353 8166
Non-IFRS and Other Financial Measures and Ratios
Certain non-IFRS financial measures and ratios are included in this press release, including total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, sustaining and growth capital, average realized gold price per ounce sold, adjusted net earnings/(loss) attributable to shareholders, adjusted net earnings/(loss) per share attributable to shareholders, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), free cash flow, and free cash flow excluding Skouries.
Please see the September 30, 2024 MD&A for explanations and discussion of these non-IFRS and other financial measures and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios prepared in accordance with International Financial Reporting Standards ("IFRS"), provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS and other financial measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these and other financial measures and ratios have been incorporated by reference and can be found in the section 'Non-IFRS and Other Financial Measures and Ratios' in the September 30, 2024 MD&A available on SEDAR+ at www.sedarplus.com and on the Company's website under the 'Investors' section.
Reconciliation of Production Costs to Total Cash Costs and Total Cash Costs per Ounce Sold:
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Production costs
$141.2
$115.5
$392.0
$341.3
By-product credits (1)
(26.9
)
(23.7
)
(64.3
)
(61.5
)
Concentrate deductions (2)
$3.7
$2.9
$11.2
$11.1
Total cash costs
$118.0
$94.7
$339.0
$291.0
Gold ounces sold
123,828
119,200
361,062
339,151
Total cash cost per ounce sold
$953
$794
$939
$858
(1)
Revenue from silver, lead and zinc sales.
(2)
Included in revenue.
Reconciliation of Total Cash Costs and Total Cash Cost per ounce sold, by asset, for the three months ended September 30, 2024:
Direct operating costs
By-product credits
Refining and selling costs
Inventory change (1)
Royalty expense
Total cash costs
Gold oz sold
Total cash cost/oz sold
Kisladag
$36.1
($0.7
)
$0.1
($6.8
)
$7.9
$36.6
40,724
$899
Lamaque
32.4
(0.4
)
0.1
(1.0
)
1.3
32.4
44,531
728
Efemcukuru
18.0
(1.4
)
3.7
(0.2
)
6.0
26.2
19,741
1,325
Olympias
38.6
(24.4
)
4.6
(1.8
)
5.8
22.8
18,833
1,210
Total consolidated
$125.2
($26.9
)
$8.5
($9.8
)
$21.0
$118.0
123,828
$953
(1)
Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Total Cash Costs and Total Cash Cost per ounce sold, by asset, for the nine months ended September 30, 2024:
Direct operating costs
By-product credits
Refining and selling costs
Inventory change (1)
Royalty expense
Total cash costs
Gold oz sold
Total cash cost/oz sold
Kisladag
$105.3
($2.5
)
$0.6
($19.4
)
$20.1
$104.0
117,068
$889
Lamaque
100.8
(1.3
)
0.3
(3.3
)
3.7
100.3
132,776
755
Efemcukuru
51.1
(4.7
)
11.4
(0.6
)
15.0
72.1
60,817
1,185
Olympias
96.5
(55.8
)
13.9
(6.2
)
14.2
62.6
50,401
1,241
Total consolidated
$353.7
($64.3
)
$26.1
($29.5
)
$53.0
$339.0
361,062
$939
(1)
Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Total Cash Costs and Total Cash Cost per ounce sold, by asset, for the three months ended September 30, 2023:
Direct operating costs
By-product credits
Refining and selling costs
Inventory change (1)
Royalty expense
Total cash costs
Gold oz sold
Total cash cost/oz sold
Kisladag
$32.7
($0.7
)
$0.2
($8.1
)
$3.9
$28.0
38,732
$722
Lamaque
27.0
(0.4
)
0.1
(1.2
)
1.0
26.5
40,908
648
Efemcukuru
14.3
(1.0
)
3.8
0.3
3.7
21.2
21,364
990
Olympias
32.2
(21.6
)
4.5
1.0
3.0
19.1
18,196
1,048
Total consolidated
$106.2
($23.7
)
$8.6
($8.0
)
$11.5
$94.7
119,200
$794
(1)
Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Total Cash Costs and Total Cash Cost per ounce sold, by asset, for the nine months ended September 30, 2023:
Direct operating costs
By-product credits
Refining and selling costs
Inventory change (1)
Royalty expense
Total cash costs
Gold oz sold
Total cash cost/oz sold
Kisladag
$90.6
($2.3
)
$0.5
($16.0
)
$11.6
$84.3
108,405
$778
Lamaque
83.6
(1.2
)
0.2
(2.3
)
2.9
83.2
119,455
697
Efemcukuru
43.1
(3.3
)
10.3
0.2
9.9
60.2
63,581
947
Olympias
90.9
(54.7
)
16.7
(0.6
)
10.9
63.2
47,710
1,325
Total consolidated
$308.1
($61.5
)
$27.8
($18.7
)
$35.3
$291.0
339,151
$858
(1)
Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.
Reconciliation of Total Cash Costs to All-in Sustaining Costs and All-in Sustaining Costs per ounce sold:
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Total cash costs
$118.0
$94.7
$339.0
$291.0
Corporate and allocated G&A
10.9
11.5
35.3
32.6
Exploration and evaluation costs
0.8
(0.1
)
2.8
0.9
Reclamation costs and amortization
2.3
