Eldorado Gold Corporation, (“Eldorado” or “the Company”) today
announces the Company’s fourth quarter and full year 2018
production results and preliminary cash costs. The Company
will provide its full year 2019 guidance in conjunction with its
2018 Year End Results.
Highlights
- Solid full year gold production of 349,147
ounces of gold (2017: 292,971 ounces) including pre-commercial
production from Lamaque; exceeded original 2018 production guidance
of 290,000–333,000 ounces of gold.
- Strong fourth quarter gold production of
75,877 ounces of gold (Q4 2017: 84,054 ounces) including
pre-commercial production from Lamaque.
- Full year cash operating costs expected to be
$621 per ounce of gold sold1 (2017: $509 per ounce sold), in-line
with revised guidance of $600-$650 per ounce sold.
- All in sustaining costs (AISC) expected to be
$990 per ounce sold for the full year (2017: $922 per ounce
sold).
- Continued solid financial liquidity. Closed
the year with total liquidity of approximately $543 million,
including $293 million in cash, cash equivalents and term deposits,
and $250 million in undrawn line of credit.
- Lamaque commissioning underway. Commercial
production on track to be declared in the first quarter of 2019.
Commissioning of the Sigma Mill proceeded ahead of schedule with
the first gold pour achieved in December 2018.
“In 2018, Eldorado successfully met its overall
production goals, which included two upward revisions to production
guidance. These positive results reflect solid execution by
the team and better-than-expected leach pad production at
Kisladag. In addition, underground mine development and
refurbishment of the Sigma Mill at Lamaque proceeded according to
plan and we expect to commence commercial production at Lamaque in
the first quarter of 2019,” stated George Burns, Eldorado's
President and CEO.
“The Olympias team made good progress addressing
challenges relating to the blending of the ore feed to the mill and
start-up of the newly installed paste plant. Ore feed blending
impacted metallurgical performance and contributed to lower second
half production and higher costs. With better control of the blend
anticipated, we expect 2019 to be a better year for both mining and
processing at Olympias.
Overall, our progress through the year has been
substantial as we continue to make decisions about our portfolio to
create maximum value.”
[1] Throughout this press release we use cash
operating cost per ounce sold, total operating cost per ounce sold
and all-in sustaining cost per ounce sold, which are non-IFRS
measures. Please see the Company’s September 30, 2018 MD&A
filed on SEDAR at www.sedar.com for an explanation and discussion
of these non-IFRS measures. All dollar amounts in US$, unless
stated otherwise. Gold Operations Results
|
Q4 2018 |
Q4 2017 |
Q3 2018 |
2018 |
2017 |
Total |
|
|
|
|
|
Production (oz) |
75,887 |
84,054 |
84,783 |
349,147 |
292,971 |
Cash Operating Cost – C1 ($/oz sold) |
605 |
577 |
754 |
621 |
509 |
Total Operating Cost – C2 ($/oz sold) |
645 |
603 |
762 |
646 |
534 |
AISC ($/oz) |
1,180 |
1,104 |
1,112 |
990 |
922 |
Kisladag |
|
|
|
|
|
Production (oz) |
28,196 |
44,356 |
34,070 |
172,009 |
171,358 |
Cash Operating Cost – C1 ($/oz sold) |
547 |
604 |
890 |
662 |
500 |
Total Operating Cost – C2 ($/oz sold) |
586 |
626 |
892 |
683 |
522 |
Non-cash Inventory Costs ($/oz sold)a |
188 |
- |
619 |
308 |
- |
Sustaining Capex ($ million) |
4.2 |
11.4 |
3.3 |
18.0 |
27.9 |
Efemcukuru |
|
|
|
|
|
Production (oz) |
23,544 |
25,463 |
24,493 |
95,038 |
96,080 |
Cash Operating Cost – C1 ($/oz sold) |
535 |
525 |
456 |
511 |
524 |
Total Operating Cost – C2 ($/oz sold) |
582 |
559 |
471 |
540 |
556 |
Sustaining Capex ($ million) |
9.1 |
13.1 |
5.7 |
24.0 |
28.9 |
Olympias |
|
|
|
|
|
Production (oz) |
8,101 |
7,174b |
12,790 |
46,750 |
18,472b |
Cash Operating Cost – C1 ($/oz sold) |
1,070 |
n/a |
1,058 |
730 |
n/a |
Total Operating Cost – C2 ($/oz sold) |
1,092 |
n/a |
1,071 |
759 |
n/a |
Sustaining Capex ($ million) |
3.9 |
n/a |
3.1 |
12.0 |
n/a |
Lamaque |
|
|
|
|
|
Production (oz) |
16,046b |
7,061b |
13,430b |
35,350b |
7,061b |
Cash Operating Cost – C1 ($/oz sold) |
n/a |
n/a |
n/a |
n/a |
n/a |
Total Operating Cost – C2 ($/oz sold) |
n/a |
n/a |
n/a |
n/a |
n/a |
Sustaining Capex ($ million) |
n/a |
n/a |
n/a |
n/a |
n/a |
a Allocates the costs of the heap leach
inventory over the estimated remaining ouncesb Pre-commercial
production
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, Romania, Serbia, 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).
Contacts
Investor RelationsPeter Lekich,
Manager Investor Relations604.687.4018 or
1.888.353.8166 peter.lekich@eldoradogold.com
MediaLouise Burgess, Director
Communications & Government Relations604.687.4018 or
1.888.353.8166 louiseb@eldoradogold.com
Cautionary Note about Forward-looking
Statements and InformationCertain 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”,
“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 statements or information with respect to the
Company’s 2018 production results and preliminary cash operating
costs per ounce sold, total operating cost per ounce sold, and
all-in sustaining costs per ounce sold, anticipated commercial
production at Lamaque, and anticipated results for 2019 for
Olympias.
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 anticipated costs and expenses;
production, mineral reserves and resources and metallurgical
recoveries; the geopolitical, economic, permitting and legal
climate we operate it; the future price of gold and other
commodities; exchange rates; the impact of acquisitions,
dispositions, suspension or delays on our business and the ability
to achieve our goals. In particular, except where otherwise noted,
we have assumed a continuation of existing business on
substantially the same basis as exists at the time of this
release.
Although 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 statements 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: geopolitical and economic climate (global and
local); risks related to mineral tenure and permits; gold and other
commodity price volatility; recoveries of gold and other metals;
risks regarding potential and pending litigation and arbitration
proceedings relating to the Company’s business, properties and
operations; expected impact on reserves and the carrying value;
mining operational and development risks; foreign country
operational risks; risks of sovereign investments; regulatory and
environment and restrictions; discrepancies between actual and
estimated production, mineral reserves and resources and
metallurgical recoveries; additional funding requirements; currency
fluctuations; litigation risks; community and non-governmental
organization actions; dilution; share price volatility;
competition; loss of key employees; and defective title to minerals
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 29, 2018.
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 in this News Release are qualified by this cautionary
statement.
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available: http://www.globenewswire.com/NewsRoom/AttachmentNg/d335e817-2931-4cba-8d6a-5015dac621c7
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