(All amounts expressed in US dollars)
TSX: ELD NYSE:
EGO
VANCOUVER, Sept. 11, 2017 /CNW/ - Eldorado Gold Corporation
("Eldorado" or the "Company") today announces plans to suspend
investment at its operating mines, development projects and
exploration assets in Greece.
Despite repeated attempts by Eldorado and its Greek subsidiary,
Hellas Gold, to engage
constructively with the Greek government, the Ministry of Energy
and Environment (the "Ministry") and other government agencies,
delays continue in issuing routine permits and licences for the
construction and development of the Skouries and Olympias projects
in Halkidiki, northern Greece.
These permitting delays have negatively impacted Eldorado's project schedules and costs,
ultimately hindering the Company's ability to effectively advance
development and operation of these assets.
With the exception of a care and maintenance program and
necessary environmental safeguarding costs, Eldorado and its Board of Directors have
decided that under present conditions no additional investment will
be made into the Kassandra Mines (Olympias, Skouries, Stratoni) in
Halkidiki, the Perama Hill and Sapes projects in Thrace, and any
exploration activity in the country. Funds that were budgeted
to be invested into community spending and infrastructure
development will be phased out. Similarly, tax revenues at
the municipal, regional and national levels will also be
affected.
Actions will be taken to place the Skouries and Olympias
projects and the Stratoni mine on care and maintenance starting on
September 22, 2017. Suspension
and termination of contractors and employees will be done in
accordance with applicable labour regulations in Greece. Environmental protection works
and care and maintenance activities will continue in order to
safeguard the environment and the assets. The Company estimates
that a total of US$30 million will be
spent to prepare for care and maintenance activities, with
sustaining maintenance costs of approximately US$25 million annually.
The Company is also awaiting additional detail from the Greek
government regarding the pending arbitration process.
Eldorado has not yet received
formal notification of arbitration but is confident that any
potential arbitration will again demonstrate the Company's
adherence to all applicable laws and regulations. The Council
of State (Greece's highest court
on environmental and administrative matters) has repeatedly
confirmed the legitimacy of our permits and actions with 18
decisions in the Company's favour.
The Company would re-assess its investment options in
Greece upon approval and receipt
of the required permits, coupled with a supportive government open
to discussions surrounding the use and implementation of best
available technologies.
George Burns, President and Chief
Executive Officer of Eldorado Gold, commented:
"It is extremely unfortunate to find ourselves at this impasse
when we should be advancing an important commercial project in
partnership with Greece and adding
another 1,200 jobs to our current workforce of approximately 2,400
people in Greece. Eldorado's
investment in Greece is about
building a world-class operation that can exist as a long-term
partner to Greece and has the
ability to promote advanced skills and training for its people and
deliver well-paying jobs to sustain families and local
businesses. Of equal importance, as a commercial partner,
this business can provide much-needed tax and export revenue for
generations."
"Eldorado has been a committed,
responsible and patient partner to the Greek government and the
people of Greece. Since acquiring the Kassandra Mines for
nearly $2 billion in 2012,
Eldorado has invested an
additional $1 billion in the
country. That figure would double if Eldorado were able to fully develop its
Olympias, Skouries and Perama Hill assets. However, as a
result of the delay in issuing permits by the Greek government,
Eldorado is unable to continue
investing in the country. We have a responsibility to our
shareholders to allocate capital to projects not only with the best
rates of return, but also in locations where host governments are
supportive of our investment and work with us to grow a sustainable
future. As such, Eldorado
cannot continue to put capital at risk without these permits and
will pursue all avenues to advance its investment and contractual
rights."
"Should the Greek government wish to work within the framework
of its contractual obligations with Hellas
Gold, issue permits in a timely manner and support the
investment, Eldorado will then be
in a position to re-evaluate its investment plans in the
country."
Skouries Project (Halkidiki)
Construction and development activities at the Skouries project,
with over $350 million invested
to-date and a current workforce of 530 people including
contractors, will be suspended effective September 22, 2017.
Olympias Project (Halkidiki)
The refurbished Olympias processing plant is close to completing
the commissioning phase and commercial production from Phase 2 was
planned during the fourth quarter 2017. Current headcount at
Olympias is approximately 950 people including contractors.
Commissioning work and further development activity will be
suspended effective September 22,
2017. To date, Eldorado has
invested over $400 million at
Olympias.
Stratoni Mine (Halkidiki)
The Stratoni Mine currently employs approximately 830 people
including contractors and had a life of mine of approximately one
year based on known proven and probable reserves at the beginning
of 2017. Geological potential exists to expand resources and
extend mine life and Eldorado is
currently undertaking a drilling campaign to test the lower portion
of the Mavres Petres orebody. Additional investment would be
required over the next two years to further delineate additional
resources. All mining operations and exploration activities will be
suspended effective September 22,
2017.
Perama Hill and Sapes Projects (Thrace)
Perama Hill and Sapes are currently on care and maintenance
pending approvals by the Ministry of Energy and the Environment for
Perama Hill's Environmental Impact Study and for Sapes's drilling
permit, both of which have been pending for over three years.
Press Conference
George Burns, President & CEO
of Eldorado Gold will host a press conference at the Athens Hilton
Hotel today, September 11, 2017 at
11:00 AM local time (GMT+2) to
discuss Eldorado's amended
investment plans in Greece. His speech will be available
shortly after the press conference at www.eldoradogold.com.
Conference Call
George Burns will host a
conference call today, September 11,
2017 at 8:00 AM ET
(5:00 AM PT) to discuss Eldorado's amended investment plans in
Greece. The call will be
webcast and can be accessed at www.eldoradogold.com.
Conference Call
Details
|
Replay
(available until September 25, 2017)
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Date:
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Monday, September 11,
2017
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Toronto:
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416 849
0833
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Time:
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8:00 am ET (5:00 am
PT)
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Toll Free:
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855 859
2056
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Dial in:
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647 427
7450
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Pass code:
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828 838 97
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Toll free:
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888 231
8191
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About Eldorado Gold
Eldorado is a leading
intermediate gold producer with mining, development and exploration
operations in Turkey, Greece, Romania, Serbia, Canada and Brazil. The Company's success
to date is based on a highly skilled and dedicated workforce, safe
and responsible operations, a portfolio of high-quality assets, 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).
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 "plans", "expects", "is expected", "budget",
"continue", "projected", "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 contained in this
release include, but are not limited to the Company's Amended
Investment Plans in Greece,
including statements or information with respect to: our
guidance and outlook, including expected production, projected cash
cost, planned capital and exploration expenditures for 2017; our
expectation as to our future financial and operating performance,
including future cash flow, estimated cash costs, expected
metallurgical recoveries, gold price outlook; and our strategy,
plans and goals, including our proposed exploration, development,
construction, permitting and operating plans and priorities, and
related timelines.
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 the
geopolitical, economic, permitting and legal climate that we
operate in; the future price of gold and other commodities;
exchange rates; anticipated costs and expenses; production, mineral
reserves and resources and metallurgical recoveries, the impact of
acquisitions, dispositions, suspensions or delays on our business
and the ability to achieve our goals. In particular, 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 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: geopolitical and economic climate (global and
local), risks related to mineral tenure and permits; gold and other
metal price volatility; mining operational and development risk;
foreign country operational risks; risks of sovereign investment;
regulatory environment and restrictions, including environmental
regulatory restrictions and liability; discrepancies between actual
and estimated production, mineral reserves and resources and
metallurgical recoveries; risks related to impact of the sale of
our Chinese assets and the acquisition of Integra on the Company's
operations; risks related to impact of the integration of Integra;
additional funding requirements; currency fluctuations; litigation
risks; community and non-governmental organization actions;
speculative nature of gold exploration; dilution; share price
volatility; competition; loss of key employees; 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 our business" in the Company's most recent Annual
Information Form & Form 40-F. The reader is directed to
carefully review the detailed risk discussion in our most recent
Annual Information Form filed on SEDAR under our Company name,
which discussion is incorporated by reference in this release, for
a fuller understanding of the risks and uncertainties that affect
the Company's business and operations.
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 Canada and the U.S.
Financial Information and condensed statements contained
herein or attached hereto may not be suitable for readers that are
unfamiliar with the Company and is not a substitute for reading the
full annual financial statements and related MD&A available on
our website and on SEDAR under our Company name. The reader
is directed to carefully review such document for a full
understanding of the financial information summarized
herein.
SOURCE Eldorado Gold Corporation