Eldorado Provides 2023 Production and Cost Guidance and Outlines Five-Year Growth Profile; Achieving Approximately 700K Ounces of Gold Production in 2027
2023 Guidance Highlights
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Gold production of 475,000 to 515,000 ounces.
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Average Cash operating costs(1) of
$760 to$860 per ounce sold. -
Average Total operating costs(1) of
$860 to$960 per ounce sold. -
Average All-in sustaining costs(1) (“AISC”) of
$1,190 to$1,290 per ounce sold. -
Total Growth Capital(1) of
$394 to$437 million , including$240 to$260 million towards the advancement of the Skouries project. -
Total Sustaining Capital(1) of
$114 to$139 million . -
Exploration expenditures of
$28 to$31 million , focused on resource conversion drilling at Lamaque and Efemcukuru and resource growth and discovery inQuebec , Turkiye andGreece . An additional$7 to$10 million of non-sustaining exploration expenditures is included in growth capital.
(1) These financial measures are non-IFRS financial measures. 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’ of Eldorado’s
Five-Year Outlook
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Skouries incorporated into the five-year production guidance, with first production expected in the second half of 2025.
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Gold production of 675,000 to 735,000 ounces by 2027, resulting in growth of 55% over the five-year period, from 2022 production and a compound annual growth rate of over 9%.
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Continued strong commitment to exploration to unlock the outstanding potential of the Company’s brownfields property portfolio and identifying and developing new opportunities in Eldorado’s focus jurisdictions.
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Addition of critical mineral production, primarily copper, is not currently reflected in the five-year outlook.
“Eldorado is committed to growing a safe, sustainable and high-quality gold business, creating value today and for the future,” said
“The addition of Skouries to our five-year production outlook provides significant near-term growth and positions the Company to deliver strong operational and financial performance. Additionally, Skouries is expected to produce on average 67 million pounds of copper per year, contributing to the supply chain of critical minerals in a socially and environmentally responsible way, and reducing our overall cash cost profile with the addition of material by-product credits,” added Burns.
The Company’s 2023 consolidated gold production is forecast to be between 475,000 to 515,000 ounces at an average cash operating cost(1) of
Similar to 2022, quarter-to-quarter gold production in 2023 is expected to fluctuate during the year, with higher production expected in the second half, accounting for the full commissioning of the agglomeration drum at Kisladag expected in the first half and reflecting some seasonality impacts at our operating sites.
(1) Cash operating costs per ounce sold and AISC per ounce sold are non-IFRS financial measures. 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' of Eldorado’s
Five-Year Gold Production Outlook
| Production (oz) | 2023E | 2024E | 2025E(1) | 2026E | 2027E |
| Kisladag | 160,000 -170,000 | 195,000 -205,000 | 180,000 - 190,000 | 150,000 - 160,000 | 165,000 - 175,000 |
| Lamaque | 170,000 - 180,000 | 180,000 - 190,000 | 175,000 - 185,000 | 180,000 - 200,000 | 180,000 - 200,000 |
| Efemcukuru | 80,000 - 90,000 | 75,000 - 85,000 | 75,000 - 85,000 | 75,000 - 85,000 | 60,000 - 70,000 |
| Olympias | 60,000 - 75,000 | 65,000 - 75,000 | 75,000 - 85,000 | 80,000 - 90,000 | 75,000 - 85,000 |
| Skouries | - | - | 80,000 - 90,000(2) | 145,000 - 155,000 | 195,000 - 205,000 |
| Total(3) | 475,000 - 515,000 | 515,000 - 555,000 | 585,000 - 635,000 | 630,000 - 690,000 | 675,000 - 735,000 |
(1) Includes expected pre-commercial production from Skouries.
(2) First production at Skouries is expected in H2 2025, followed by a ramp-up and commercial production by the end of 2025.
(3) Figures may not down add due to rounding.
2023 Cost(1) and Capital Expenditure Guidance
| 2023E | 2023E | |||
| Consolidated Costs | Corporate ($ millions) | |||
| Cash Operating Cost – C1 ($/oz sold) | 760 – 860 | General and Administrative | 35 – 38 | |
| Total Cash Cost – C2 ($/oz sold) | 860 – 960 | Exploration & Evaluation(2,3) | 28 – 31 | |
| AISC ($/oz sold) | 1,190 – 1,290 | Depreciation | 265 – 275 | |
| Kisladag | Growth Capital ($ millions) | |||
| Cash Operating Cost – C1 ($/oz sold) | 750 – 850 | Kisladag | 110 – 120 | |
| Total Cash Cost – C2 ($/oz sold) | 850 – 950 | Lamaque | 37 – 42 | |
| Sustaining Capex ($ millions) | 14 – 19 | Efemcukuru | 4 – 8 | |
| Olympias | 3 – 7 | |||
| Lamaque | Skouries | 240 – 260 | ||
| Cash Operating Cost – C1 ($/oz sold) | 670 – 770 | |||
| Total Cash Cost – C2 ($/oz sold) | 700 – 800 | |||
| Sustaining Capex ($ millions) | 60 – 70 | |||
| Efemcukuru | ||||
| Cash Operating Cost – C1 ($/oz sold) | 790 – 890 | |||
| Total Cash Cost – C2 ($/oz sold) | 920 – 1,020 | |||
| Sustaining Capex ($ millions) | 10 – 15 | |||
| Olympias | ||||
| Cash Operating Cost – C1 ($/oz sold) | 980 – 1,080 | |||
| Total Cash Cost – C2 ($/oz sold) | 1,130 – 1,230 | |||
| Sustaining Capex ($ millions) | 30 – 35 |
(1) These financial measures are non-IFRS financial measures. 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’ of Eldorado’s
(2) 74% expensed and 26% capitalized.
(3) Assumes the expected sale of Certej in H1 2023.
TURKIYE
At Kisladag and Efemcukuru, labour costs increased in 2023 related to commitments under our collective bargaining agreement which included an annual adjustment to labour rates in line with the annual consumer inflation rate. To support our workforce with the rising costs of food and electricity, approximately half of the adjustment was provided in mid-2022 with the remaining provided in
Kisladag
In 2023, Kisladag is expected to mine and place on leach approximately 12.5 to 13.0 million tonnes of ore at an average gold grade of 0.70 to 0.75 grams per tonne. With the commissioning of the enhanced metallurgical process circuit, including the High-Pressure Grinding Roll, additional conveyors, and the agglomeration drum, average recoveries in 2023 are expected to increase. In addition to increased mining and processing costs as a result of higher throughput and lower grades, cash operating costs per ounce in 2023 also reflect increases in labour rates, utility costs, and consumable costs relative to 2022.
Planned 2023 sustaining capital of
Efemcukuru
In 2023, Efemcukuru is expected to mine and process approximately 530,000 to 550,000 tonnes of ore at an average gold grade of 5.50 to 6.00 grams per tonne. Cash operating costs per ounce in 2023 reflect increases in labour rates, utility costs, and consumable costs. Planned sustaining capital expenditures for 2023 of
Lamaque
In 2023, Lamaque is expected to mine and process approximately 860,000 to 870,000 tonnes of ore at an average gold grade of 6.25 to 6.75 grams per tonne. Cash operating costs per ounce of
Sustaining capital expenditures for 2023 are expected to be approximately
Expensed exploration programs in 2023 will focus on early-stage targets at Sigma-Lamaque, continued exploration drilling on the Bourlamaque property, and other early-stage targets.
Olympias
In 2023, Olympias is expected to mine approximately 460,000 to 490,000 tonnes of ore at an average grade of 7.50 to 8.50 grams per tonne of gold, 140 to 150 grams per tonne of silver, 4.0 to 4.5% lead and 4.0 to 4.5% zinc. Payable production is expected to be 60,000 to 75,000 ounces of gold, 1.7 to 1.9 million ounces of silver, 15,000 to 18,000 tonnes of lead metal and 13,000 to 16,000 tonnes of zinc metal. Cash operating costs per ounce in 2023 are expected to be lower year-over-year due to increased production and throughput and higher by-product credits for silver, lead and zinc production.
Planned 2023 sustaining capital expenditures of
Skouries
Project spending at Skouries in 2023 is expected to be focused on finalizing detailed engineering, which is 42% complete and forecasted to be 70-75% complete for full construction mobilization in the second half of 2023, the release of remaining procurement packages, and ongoing community engagement. Procurement of fixed plant and tagged items is currently 10% complete and expected to be approximately 90% complete by year-end. The remaining purchasing efforts, beyond 2023, are related to mining equipment and some minor construction purchases. The Company has an approximate
As discussed in further detail in the news release dated
Additionally, based on the “Technical Report,
Perama Hill
Spending at Perama Hill during the year is forecast to be less than
2023 Commodity and Currency Price Assumptions
| Gold ($/oz) | $ 1,700 |
| Silver ($/oz) |
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| Lead ($/mt) |
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| Zinc ($/mt) |
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| USD : CDN | 1 : 1.30 |
| EURO : USD | 1 : 0.92 |
| USD: TRY | 1 : 21.0 |
Qualified Person
Except as otherwise noted,
About
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye,
Contacts
Investor Relations
604.757 2237 or 1.888.353.8166
[email protected]
Media
604.616 2296 or 1.888.353.8166
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Non-IFRS and Other Financial Measures and Ratios
Certain non-IFRS financial measures and ratios are included in this press release, including cash operating costs and cash operating costs per ounce sold, total cash costs and total cash costs per ounce sold, all-in sustaining costs ("AISC") and AISC per ounce sold, sustaining and growth capital.
Please see the
The most directly comparable IFRS financial measures and results from the year ended
| Non-IFRS Measure | Most Directly Comparable IFRS Measure | 2021 |
| Cash operating costs (C1) | Production costs |
M |
| Total cash costs (C2) | ||
| AISC | ||
| Average realized gold price per ounce sold | Revenue | M |
| EBITDA | Earnings (loss) from continuing operations before income tax |
M |
| Adjusted EBITDA | ||
| Adjusted net earnings/(loss) | Net earnings (loss) attributable to shareholders of the Company from continuing operations |
M |
| Adjusted net earnings/(loss) per share | ||
| Cash flow from operations before changes in non-cash working capital | Net cash generated from operating activities of continuing operations |
M |
| Free cash flow | ||
| Sustaining capital expenditures | Additions to property, plant and equipment during the period |
M |
| Growth capital expenditures |
Cautionary Note About Forward-Looking Statements and Information
Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as “anticipates”, “believes”, “budgets”, “continue”, “commitment”, “confident”, “estimates”, “expects”, “forecasts”, “guidance”, “intends”, “outlook”, “plans”, “potential”, “projected”, “prospective”, or “schedule” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “can”, “could”, “likely”, “may”, “might”, “will” or “would” be taken, occur or be achieved.
Forward-looking statements or information contained in this press release include, but are not limited to, statements or information with respect to: our guidance and outlook, including expected production, cost and capital expenditure guidance, AISC and cash operating cost guidance, expected future amount mined and processed, mining rate, recoveries and grade, and five year production outlook; expected impacts on cash operating costs and expected use of sustaining capital at Kisladag, Efemcukuru, Lamaque, and Olympias; expected improvements at Kisladag; expected exploration program at Efemcukuru and Lamaque; expected improvements at Olympias; expected project spending and construction at Skouries; commodity and currency price assumptions; planned capital projects, including timing; growth capital projects at its properties, including anticipated timing and benefits; the duration, extent and other implications of production challenges and cost increases, including those in respect of COVID-19, the
We have made certain assumptions about the forward-looking statements and information, including assumptions about: production and cost expectations; the total funding required to complete Skouries; our ability to meet our timing objectives for first drawdown of the Facility; our ability to execute our plans relating to Skouries, including the timing thereof; our ability to obtain all required approvals and permits; cost estimates in respect of Skouries; no changes in input costs, exchange rates, development and gold; the geopolitical, economic, permitting and legal climate that we operate in, including at Skouries; how the worldwide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic; timing, cost and results of our construction, improvements and exploration; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated values, costs, expenses and working capital requirements; production and metallurgical recoveries; mineral reserves and resources; and the impact of acquisitions, dispositions, suspensions or delays on our business and the ability to achieve our goals. In addition, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this press release.
Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: the outcome of planned technical studies, production and exploration, development, optimization and expansion plans at the Company’s projects; possible variations in ore grade or recovery rates; changes in mineral resources and mineral reserves; costs and timing of the development of new deposits; success of exploration activities; increases in financing costs or adverse changes to the Facility; failure or delays to receive necessary approvals or otherwise satisfy the conditions to the drawdown of the Facility; the proceeds of the Facility not being available to the Company or
The inclusion of forward-looking statements and information is designed to help you understand management’s current views of our near- and longer-term prospects, and it may not be appropriate for other purposes.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities in
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