TSX: ELD NYSE: EGO
VANCOUVER, Sept. 7, 2016 /CNW/ - Eldorado Gold
Corporation, ("Eldorado" or "the Company") is hosting an Analyst
Day, where the plans for continued sustainable growth,
comprehensive technical sessions, an exploration program review,
and an outline of its 2020 financial and operational targets are to
be presented. Eldorado remains
focused on its four strategic pillars: quality assets, operational
excellence, accountability, and capital discipline.
Highlights of the topics to be presented today include:
Turkey: Kisladag Expansion
- Plans to proceed with the expansion to crush 20 million tonnes
a year (from the current 12.5 million tonnes per year).
- With completion forecasted in 2018, the Company expects to
produce between 310,000 – 320,000 ounces of gold per year through
2020 at average cash costs of $490
per ounce.
- Remaining capital for the expansion is budgeted at $63 million, to be spent over a two year
implementation period.
Greece: Olympias:
- Parameters around Phase 2, targeting initial production
in the first quarter 2017. Production during this Phase will
average approximately 72,000 ounces of gold, with cash costs during
the first full five years expected to range between $180 and $350 due to significant by-product
credits.
- The capital cost associated with the final stages of Phase 2
construction are estimated at $101
million.
- Parameters around Phase 3 are under development with the
engineering ongoing.
Greece: Skouries
- Decision to develop Skouries in a two phased
approach.
- Phase 1: a combination of open pit and underground
mining over 9 years, producing a total of 1.4 million ounces of
gold and 620 million pounds of copper (or 2.8 million gold
equivalent ounces), at average cash costs of -$255 per ounce due to the copper by-product
credits. Total development capital over the life of this phase is
budgeted at $710 million and includes
all mine development and process facilities.
- Phase 2: preliminary analysis shows underground mining
over the next 15 year period once Phase 1 is complete. Total gold
production during this phase is expected to be an additional 1.7
million ounces, at average cash costs of $165 per ounce due to the copper by-product
credits. Total development capital over the life of this phase is
expected to be approximately $460
million.
Brazil: Tocantinzhino
- Average annual gold production is planned at approximately
170,000 ounces at cash costs of approximately $535 per ounce, with initial production planned
for 2019. Total development capital costs are estimated at
$464 million and conditional upon
Eldorado Board of Directors
approval, construction will commence in 2017.
Financial Outlook
- The Company's financial flexibility is expected to grow, with
over $1 billion in total liquidity
expected for year-end 2016 post the close of the previously
announced Chinese asset sale transactions. The Company's approach
to capital investments remains prudent, and the funds are currently
being allocated to the robust internal growth pipeline.
2017 Outlook
Mine
|
Production (Au
oz)
|
Cash Costs
($/oz)
|
Sustaining
Capital
Expenditure ($M)
|
Kisladag
|
240,000 –
265,000
|
$450 – 500
|
$50 - 60
|
Efemcukuru
|
95,000 -
105,000
|
$525 – 575
|
$15 – 20
|
Olympias
|
40,000 -
50,000
|
$425 - 475
|
$15 – 20
|
Total
|
375,000 -
420,000
|
$450 - 500
|
$80 - 100
|
2017 Capital
Expenditure
|
($M)
|
Kisladag
Development
|
$35 -
45
|
Skouries
Development
|
$240 -
260
|
Tocantinzhino
Development
|
$95 -
105
|
Olympias
Development
|
$30-40
|
Certej
Development
|
$10 -
15
|
Stratoni
|
$10 – 15
|
Total
Development
|
$420-480
|
Total Capitalized
Exploration
|
$10
|
Total
Sustaining
|
$80-100
|
Total Capital
Budget
|
$500-580
|
2020 Targets
- Gold production is expected to increase by 110% over 2017
totals (approximately 400,000 ounces of gold) to over 830,000
ounces in 2020.
- All-in sustaining cash costs to decline to under $650 per ounce.
Assumptions
- Long term outlook assumes $1,300
per ounces gold, $18.00 per ounce
silver, $6,000 per tonne copper,
$2,000 per tonne lead, $2,000 per tonne zinc.
- Rates to the US$: 2.9 TRL;
3.75 BRL; 1.15 EU; 1.25 CAD.
Materials
All presentation materials are available for download at
www.eldoradogold.com. Hardcopies may also be requested by
contacting 1-888-353-8166.
About Eldorado Gold
Eldorado is a leading low cost
gold producer with mining, development and exploration operations
in Turkey, China, Greece, Romania, Serbia and Brazil. The
Company's success to date is based on a low cost strategy, a highly
skilled and dedicated workforce, safe and responsible operations,
and long-term partnerships with the communities where it
operates. Eldorado's common
shares trade on the Toronto Stock Exchange (TSX: ELD) and the New
York Stock Exchange (NYSE: EGO).
Qualified Person
Paul Skayman, Chief Operating
Officer of Eldorado Gold Corporation, is the "Qualified Person" for
the purposes of National Instrument 43-101 - Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators who has reviewed, approved and verified the
scientific and technical information herein.
Forward Looking Statements
Certain of the statements made herein may contain
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, but not always,
forward-looking statements and forward-looking information can be
identified by the use of words such as "plans", "targets",
"targeted", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or the negatives thereof or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information herein include, but are
not limited to the proposed use of the funds anticipated from the
sale of the Company's Chinese assets, information with respect to
our strategy, plans, goals and outlook for our properties,
including expansions and production, our future financial and
operating performance and targets, and our proposed mine
development and exploration and other events.
Forward-looking statements and forward-looking information by
their nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements or information. We have made certain assumptions
about the forward-looking statements and information, including
assumptions about closing of both Chinese sale transactions,
including liability and timing of meeting the closing conditions,
the political and economic environment that we operate in, the
future price of commodities, anticipated costs and expenses and
impact of the disposition on the business. 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. 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: closing of the transactions not occurring or
delayed, political, economic, environmental and permitting risks,
gold price volatility, discrepancies between actual and estimated
production, estimated mineral reserves and resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions, including environmental
and permitting regulatory restrictions and liabilities,
internal and external approval risks, risks of sovereign
investment, risks related to advancing the Chinese monetization
process, currency fluctuations, speculative nature of gold
exploration, global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements, and defective title to mineral claims or property, as
well as those factors discussed in the sections entitled
"Forward-Looking Statements" and "Risk Factors" in the Company's
Annual Information Form & Form 40-F dated March 30, 2016.
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 Canada and the U.S.
All forward-looking statements and information contained
herein are qualified by this cautionary statement.
Cautionary Note to U.S. Investors:
Mineral Reserves and Mineral Resources - The terms "mineral
reserve", "proven mineral reserve" and "probable mineral reserve"
referred to in the Company's disclosure are Canadian mining terms
as defined in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects under the guidelines
set out in the Canadian Institute of Mining, Metallurgy and
Petroleum (the "CIM") Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council as amended from time to time
by the CIM. These definitions differ from the definitions in
the United States Securities &
Exchange Commission ("SEC") Guide 7. Under SEC Guide 7
standards, a "final" or "bankable" feasibility study is required to
report reserves, the three-year historic average price is used in
any reserve or cash flow analysis to designate reserves and the
primary environmental analysis or report must be filed with the
appropriate governmental authority.
The terms "mineral resource", "measured mineral resource",
"indicated mineral resource", "inferred mineral resource" used in
the Company's disclosure are Canadian mining terms used in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects under the guidelines set out in the
CIM Standards. Mineral resources which are not mineral
reserves do not have demonstrated economic viability.
While the terms "mineral resource", "measured mineral
resource," "indicated mineral resource", and "inferred mineral
resource" are recognized and required by Canadian regulations, they
are not defined terms under standards in the United States and normally are not
permitted to be used in reports and registration statements filed
with the SEC. As such, information contained in the Company's
disclosure concerning descriptions of mineralization and resources
under Canadian standards may not be comparable to similar
information made public by U.S companies in SEC filings. With
respect to "inferred mineral resource" there is a great amount of
uncertainty as to their existence and a great uncertainty as to
their economic and legal feasibility. It cannot be assumed
that all or any part of an "inferred mineral resource" will ever be
upgraded to a higher category. Investors are cautioned not to
assume that any part or all of mineral deposits in these categories
will ever be converted into reserves.
SOURCE Eldorado Gold Corporation