ego_ex991
ELDORADO GOLD CORPORATION
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1. Name
and Address of Company
Eldorado Gold
Corporation (“Eldorado” or the
“Company”)
Suite
1188 – Bentall
550
Burrard Street
Vancouver, British
Columbia V6C 2B5
Item 2.
Date of Material Change
February 25,
2021
A news
release was disseminated via Global Newswire and filed on SEDAR on
February 25, 2021.
Item 4.
Summary of Material Change
On
February 25, 2021 Eldorado reported the Company’s financial
and operational results for the fourth quarter and year ended
December 31, 2020. For further information please see the
Company’s Consolidated Financial Statements and
Management’s Discussion and Analysis filed on SEDAR at
www.sedar.com
under the Company’s profile.
Item 5.
Full Description of Material Change
On
February 25, 2021 Eldorado reported the Company’s financial
and operational results for the fourth quarter and year ended
December 31, 2020. For further information please see the
Company’s Consolidated Financial Statements and
Management’s Discussion and Analysis filed on SEDAR at
www.sedar.com
under the Company’s profile.
Year-End
Financial and Operating Results Overview and Subsequent Period
Highlights
●
2020 annual production guidance
achieved: Gold production totalled 528,874 ounces in 2020,
an increase of 34% from production of 395,331 ounces in 2019.
Despite impacts related to COVID-19, annual guidance was maintained
and met for the 2020 calendar year.
●
Strong production drives increased cash from
operations and free cash flow: Net cash from operating
activities of $425.6 million in 2020 (2019: $165.8 million)
contributed to free cash flow of $236.2 million in 2020 (2019:
negative $37.1 million) primarily as a result of higher sales
volumes and a higher average realized gold price.
●
Lower all-in sustaining costs: 2020
all-in sustaining costs of $921 per ounce of gold sold were lower
than in 2019 ($1,034 per ounce sold) as a result of increased
production and weakening of the Turkish Lira.
●
Amended Investment Agreement signed: In
February 2021, Eldorado entered into an Amended Investment
Agreement ("Agreement") with the Hellenic Republic, providing a
mutually beneficial and modernized legal and financial framework to
allow for investment in the Skouries project and the Olympias and
Stratoni mines. The Agreement is subject to Greek Parliament
ratification with a vote expected to take place in an upcoming
parliamentary session.
●
Arrangement agreement to acquire QMX Gold
Corporation: In January 2021, the Company entered into a
definitive arrangement agreement with QMX Gold Corporation ("QMX")
to acquire the remaining outstanding shares of QMX for total
consideration of approximately CDN $132 million ($104 million), of
which approximately CDN $29.8 million ($23.4 million) will be paid
in cash. The acquisition remains subject to QMX shareholder and
court approvals, and if completed, will significantly increase
Eldorado's landholdings and exploration footprint in Québec
and adjacent to the Lamaque operations.
●
Maiden resource at Ormaque deposit highlights
exploration success and future growth potential at Lamaque:
In February 2021, we announced maiden Inferred Mineral Resources
for the Ormaque deposit totalling 2.6 million tonnes at a grade of
9.5 grams per tonne, for 803,000 ounces of contained
gold.
●
Continued strong financial liquidity:
The Company currently has $511.0 million of cash, cash equivalents
and term deposits and approximately $29.2 million available under
its revolving credit facility. Redemptions totalling
$66.1 million of principal of the senior secured notes were
completed during the year, including $7.5 million in December
2020. In February 2021 the senior secured credit facility was
amended such that approximately $70.8 million of non-financial
letters of credit no longer reduce credit availability under the
revolving credit facility. Following the amendment, credit
availability under the facility is currently $100 million. A
repayment of $11.1 million on the non-revolving term loan was made
in conjunction with this amendment.
●
Net earnings and adjusted net earnings
attributable to shareholders: Net earnings attributable to
shareholders of the Company in 2020 were $104.5 million or $0.61
per share (2019: $80.6 million, or $0.51 per share), including a
$40.0 million non-cash write-down of capital works in progress that
will no longer be completed as a result of the Agreement. Adjusted
net earnings attributable to shareholders of the Company in 2020
were $170.9 million, or $1.00 per share (2019: $2.4 million, or
$0.02 per share).
●
Increased EBITDA: The Company reported
EBITDA in 2020 of $474.2 million (2019: $311.3 million) and
adjusted EBITDA of $534.0 million (2019: $235.6 million) after
adjusting for, among other things, the non-cash write-down of $40.0
million of capital works in progress.
●
Measures remain in place to manage the impact
of the novel coronavirus ("COVID-19") pandemic: The
Company's mines remain operational and isolated cases of COVID-19
have been successfully managed. Preventing the spread of COVID-19,
ensuring safe working environments across Eldorado's global sites,
and preparedness should an outbreak occur, remain
priorities.
Fourth
Quarter 2020 Highlights
●
Highest quarterly gold production in nearly
five years: Eldorado produced 138,220 ounces of gold in Q4
2020 (Q4 2019: 118,955 ounces).
●
Continued cash from operations and free cash
flow: Net cash from operating activities of $107.3 million
in Q4 2020 (Q4 2019: $64.2 million) contributed to free cash flow
of $48.4 million in Q4 2020 (Q4 2019: $5.5 million) primarily as a
result of higher sales volumes and a higher average realized gold
price.
●
Operating costs decreasing: Q4 2020 cash
operating costs of $536 per ounce sold and all-in sustaining costs
of $959 per ounce sold were lower than Q4 2019 ($621 per ounce sold
and $1,110 per ounce sold, respectively).
●
Net earnings attributable to
shareholders: Q4 2020 net earnings attributable to
shareholders of the Company were $22.8 million or $0.13 per share,
and included a $40.0 million non-cash write-down of capital works
in progress that will no longer be completed as a result of the
Agreement. Net earnings attributable to shareholders of the Company
in Q4 2019 were $91.2 million or $0.57 per share, mainly
attributable to a net impairment reversal of $85.2 million ($68.2
million net of deferred income tax) for Kisladag. Adjusted net
earnings attributable to shareholders of the Company in Q4 2020
were $58.0 million, or $0.33 per share (Q4 2019: adjusted net
earnings attributable to shareholders of the Company of $19.3
million, or $0.12 per share).
●
Increased EBITDA: Q4 2020 EBITDA was
$95.1 million ($158.7 million in Q4 2019) and Q4 2020 adjusted
EBITDA was $144.2 million ($80.3 million in Q4 2019) after
adjusting for, among other things, the non-cash write-down of $40.0
million of capital works in progress.
Consolidated Financial and Operational Highlights
Summarized Annual Financial Results
|
|
2020
|
|
2019
|
|
2018
|
|
|
Revenue
(1)
|
$1,026.7
|
|
$617.8
|
|
$459.0
|
|
|
Gold
revenue (1)
|
$938.3
|
|
$530.9
|
|
$386.0
|
|
|
Gold
produced (oz) (2)
|
528,874
|
|
395,331
|
|
349,147
|
|
|
Gold
sold (oz) (1)
|
526,406
|
|
374,902
|
|
304,256
|
|
|
Average
realized gold price ($/oz sold) (6)
|
$1,783
|
|
$1,416
|
|
$1,269
|
|
|
Cash
operating costs ($/oz sold) (3,6)
|
560
|
|
608
|
|
625
|
|
|
Total
cash costs ($/oz sold) (3,6)
|
649
|
|
645
|
|
650
|
|
|
All-in
sustaining costs ($/oz sold) (3,6)
|
921
|
|
1,034
|
|
994
|
|
|
Net
earnings (loss) for the period (4)
|
104.5
|
|
80.6
|
|
(361.9)
|
|
|
Net
earnings (loss) per share – basic ($/share) (4)
|
0.61
|
|
0.51
|
|
(2.28)
|
|
|
Adjusted net
earnings (loss) (4,5,6,7)
|
170.9
|
|
2.4
|
|
(30.1)
|
|
|
Adjusted net
earnings (loss) per share ($/share) (4,5,6,7)
|
1.00
|
|
0.02
|
|
(0.19)
|
|
|
Cash
flow from operating activities before changes in working capital
(6,8)
|
390.8
|
|
149.9
|
|
61.1
|
|
|
Free
cash flow (6)
|
236.2
|
|
(37.1)
|
|
(187.8)
|
|
|
Cash,
cash equivalents and term deposits
|
511.0
|
|
181.0
|
|
293.0
|
|
(1)
Excludes sales of inventory mined at Lamaque and Olympias during
the pre-commercial production periods.
(2)
Includes pre-commercial production at Lamaque (2018, Q1 2019) and
at Olympias (Q1 2018).
(3)
By-product revenues are off-set against cash operating
costs.
(4)
Attributable to shareholders of the Company.
(5)
See reconciliation of net earnings (loss) to adjusted net earnings
(loss) in the MD&A section 'Non-IFRS Measures'.
(6)
These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
(7)
2019 and 2018 amounts have been adjusted to conform with 2020
presentation by excluding adjustments relating to normal course
gains on disposal of assets (2019: $7.4 million, 2018: nil) and
inventory write-downs (2019: $2.5 million, 2018: $1.5 million).
Adjusted net earnings as originally presented in 2019 were $5.6
million ($0.04 per share) and Adjusted net loss as originally
presented for 2018 was $28.6 million ($0.17 loss per
share).
(8)
2019 amount has been adjusted to reflect a $0.7 million
reclassification within cash flow from operating activities in the
current period. 2018 adjustment was negligible.
Summarized Quarterly Financial Results
|
2020
|
Q1
|
Q2
|
Q3
|
Q4
|
2020
|
|
Revenue
|
$204.7
|
|
$255.9
|
|
$287.6
|
|
$278.5
|
|
$1,026.7
|
|
|
Gold
revenue
|
$185.4
|
|
$235.0
|
|
$264.3
|
|
$253.7
|
|
$938.3
|
|
|
Gold
produced (oz)
|
115,950
|
|
137,782
|
|
136,922
|
|
138,220
|
|
528,874
|
|
|
Gold
sold (oz)
|
116,219
|
|
134,960
|
|
137,704
|
|
137,523
|
|
526,406
|
|
|
Average
realized gold price ($/oz sold) (6)
|
$1,580
|
|
$1,726
|
|
$1,919
|
|
$1,845
|
|
$1,783
|
|
|
Cash
operating cost ($/oz sold) (3,6)
|
627
|
|
550
|
|
537
|
|
536
|
|
560
|
|
|
Total
cash cost ($/oz sold) (3,6)
|
678
|
|
616
|
|
664
|
|
640
|
|
649
|
|
|
All-in
sustaining cost ($/oz sold) (3,6)
|
952
|
|
859
|
|
918
|
|
959
|
|
921
|
|
|
Net
earnings (loss) (4)
|
(4.9)
|
|
45.6
|
|
41.0
|
|
22.8
|
|
104.5
|
|
|
Net
earnings (loss) per share – basic ($/share) (4)
|
(0.03)
|
|
0.27
|
|
0.24
|
|
0.13
|
|
0.61
|
|
|
Adjusted net
earnings (loss) (4,5,6)
|
12.5
|
|
43.8
|
|
56.7
|
|
58.0
|
|
170.9
|
|
|
Adjusted net
earnings (loss) per share ($/share) (4,5,6)
|
0.08
|
|
0.26
|
|
0.33
|
|
0.33
|
|
1.00
|
|
|
Cash
flow from operating activities before changes in working capital
(6)
|
69.4
|
|
99.0
|
|
125.1
|
|
97.2
|
|
390.8
|
|
|
Free
cash flow (6)
|
$7.2
|
|
$63.4
|
|
$117.2
|
|
$48.4
|
|
$236.2
|
|
|
Cash,
cash equivalents and term deposits
|
$363.6
|
|
$440.3
|
|
$504.4
|
|
$511.0
|
|
$511.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
Q1
|
Q2
|
Q3
|
Q4
|
2019
|
|
Revenue
(1)
|
$80.0
|
|
$173.7
|
|
$172.3
|
|
$191.9
|
|
$617.8
|
|
|
Gold
revenue (1)
|
$54.5
|
|
$150.1
|
|
$150.2
|
|
$176.1
|
|
$530.9
|
|
|
Gold
produced (oz) (2)
|
82,977
|
|
91,803
|
|
101,596
|
|
118,955
|
|
395,331
|
|
|
Gold
sold (oz) (1)
|
43,074
|
|
113,685
|
|
99,241
|
|
118,902
|
|
374,902
|
|
|
Average
realized gold price ($/oz sold) (6)
|
$1,265
|
|
$1,321
|
|
$1,513
|
|
$1,475
|
|
$1,416
|
|
|
Cash
operating cost ($/oz sold) (3,6)
|
625
|
|
631
|
|
560
|
|
621
|
|
608
|
|
|
Total
cash cost ($/oz sold) (3,6)
|
652
|
|
670
|
|
603
|
|
652
|
|
645
|
|
|
All-in
sustaining cost ($/oz sold) (3,6)
|
1,132
|
|
917
|
|
1,031
|
|
1,110
|
|
1,034
|
|
|
Net
earnings (loss) (4)
|
(27.0)
|
|
12.2
|
|
4.2
|
|
91.2
|
|
80.6
|
|
|
Net
earnings (loss) per share – basic ($/share) (4)
|
(0.17)
|
|
0.08
|
|
0.03
|
|
0.57
|
|
0.51
|
|
|
Adjusted net
earnings (loss) (4,5,6,7)
|
(21.1)
|
|
(3.5)
|
|
7.6
|
|
19.3
|
|
2.4
|
|
|
Adjusted net
earnings (loss) per share ($/share) (4,5,6,7)
|
(0.13)
|
|
(0.02)
|
|
0.05
|
|
0.12
|
|
0.02
|
|
|
Cash
flow from operating activities before changes in working capital
(6,8)
|
8.1
|
|
38.5
|
|
63.0
|
|
40.4
|
|
149.9
|
|
|
Free
cash flow (6)
|
($64.0)
|
|
$4.8
|
|
$16.7
|
|
$5.5
|
|
($37.1)
|
|
|
Cash,
cash equivalents and term deposits
|
$227.5
|
|
$119.9
|
|
$134.9
|
|
$181.0
|
|
$181.0
|
|
(1)
Excludes sales of inventory mined at Lamaque and Olympias during
the pre-commercial production periods.
(2)
Includes pre-commercial production at Lamaque (Q1
2019).
(3)
By-product revenues are off-set against cash operating
costs.
(4)
Attributable to shareholders of the Company.
(5)
See reconciliation of net earnings (loss) to adjusted net earnings
(loss) in the MD&A section 'Non-IFRS Measures'.
(6)
These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
(7)
2019 amounts have been adjusted to conform with 2020 presentation
by excluding adjustments relating to normal course gains on
disposal of assets ($7.4 million) and inventory write-downs ($2.5
million). Adjusted net earnings as originally presented in 2019
were $5.6 million ($0.04 per share).
(8)
2019 amount has been adjusted to reflect a $0.7 million
reclassification within cash flow from operating activities in the
current period.
Gold
sales of 526,406 ounces in 2020 increased from 374,902 ounces in
2019. The 40% increase was primarily due to an increase of 88,158
ounces sold from Kisladag as a result of an increase in tonnes of
ore stacked and placed under leach following the restart of full
operations in 2019 and an increase of 55,524 ounces sold from
Lamaque enabled by receipt of authorization in March 2020 to
increase mine production.
Total
revenues increased to $1,026.7 million in 2020 from $617.8 million
in 2019 as a result of higher sales volumes and a higher average
realized gold price of $1,783 per ounce compared to $1,416 per
ounce in 2019.
Cash
operating costs per ounce sold decreased to $560 in 2020 from $608
in 2019, primarily due to increased mining rates at Lamaque
following the receipt of authorization in March 2020 to increase
mine production, higher production at Olympias and reduced costs at
Efemcukuru due to the weakening of the Turkish Lira during the
year. These decreases were partly offset by an increase of cash
operating costs per ounce sold at Kisladag resulting from decreases
in the average grade of ore placed on the heap leach
pad.
Net
earnings attributable to shareholders of $104.5 million ($0.61 per
share) in 2020 improved from $80.6 million ($0.51 per share) in
2019. The improvement was primarily a result of higher production
and sales volumes combined with a higher average realized gold
price. Net earnings attributable to shareholders of $22.8 million
($0.13 per share) in Q4 2020 decreased from $91.2 million ($0.57
per share) in Q4 2019 primarily due to the $40.0 million write-down
of capital works in progress ($43.4 million combined with a net
impairment reversal of $85.2 million ($68.2 million net of deferred
income tax) for Kisladag in Q4 2019.
Adjusted
net earnings were $170.9 million ($1.00 per share) in 2020,
compared to $2.4 million ($0.02 per share) in 2019. Adjusted net
earnings in 2020 removes, among other things, the $40.0 million
non-cash write-down of capital works in progress, a $3.4 million
VAT provision associated with the write-down, a $16.3 million net
loss on foreign exchange due to translation of deferred tax
balances, $8.6 million of finance costs related to the
$66.1 million redemption of the senior secured notes during
the year and the $2.5 million gain on disposal of the Vila Nova
mine in Q3 2020. Adjusted net earnings were $58.0 million ($0.33
per share) in Q4 2020, compared to $19.3 million ($0.12 per share)
in Q4 2019.
Higher
sales volumes in 2020, combined with a higher gold price, resulted
in EBITDA of $474.2 million, including $95.1 million in Q4 2020.
Adjusted EBITDA of $534.0 million in 2020 and $144.2 million in Q4
2020 exclude, among other things, the $40.0 million write-down of
capital works in progress.
Operations Update and Outlook
Gold Operations
|
|
3 months ended December 31,
|
12 months ended December 31,
|
|
|
|
2020
|
2019
|
2020
|
2019
|
2021 Outlook
|
|
Total
|
|
|
|
|
|
|
Ounces
produced (1)
|
138,220
|
|
118,955
|
|
528,874
|
|
395,331
|
|
430,000 – 460,000
|
|
Ounces
sold (2)
|
137,523
|
|
118,902
|
|
526,406
|
|
374,902
|
|
n/a
|
|
Cash
operating costs ($/oz sold) (4)
|
$536
|
|
$621
|
|
$560
|
|
$608
|
|
$590 – 640
|
|
All-in
sustaining costs ($/oz sold) (4)
|
$959
|
|
$1,110
|
|
$921
|
|
$1,034
|
|
$920 – 1,150
|
|
Sustaining capex
(4)
|
$29.1
|
|
$41.1
|
|
$92.5
|
|
$97.4
|
|
$122 – 142
|
|
Kisladag
|
|
|
|
|
|
|
Ounces
produced (3)
|
56,816
|
|
51,010
|
|
226,475
|
|
140,214
|
|
140,000 – 150,000
|
|
Ounces
sold
|
55,807
|
|
49,529
|
|
226,895
|
|
138,737
|
|
n/a
|
|
Cash
operating costs ($/oz sold) (4)
|
$447
|
|
$421
|
|
$451
|
|
$435
|
|
$590 – 640
|
|
All-in
sustaining costs ($/oz sold) (4)
|
$732
|
|
$616
|
|
$664
|
|
$593
|
|
n/a
|
|
Sustaining capex
(4)
|
$6.5
|
|
$6.7
|
|
$20.1
|
|
$14.7
|
|
$18 – 23
|
|
Lamaque
|
|
|
|
|
|
|
Ounces
produced (1)
|
44,168
|
|
29,085
|
|
144,141
|
|
113,940
|
|
140,000 – 150,000
|
|
Ounces
sold (2)
|
44,990
|
|
31,293
|
|
142,269
|
|
86,745
|
|
n/a
|
|
Cash
operating costs ($/oz sold) (4)
|
$503
|
|
$663
|
|
$522
|
|
$556
|
|
$560 – 610
|
|
All-in
sustaining costs ($/oz sold) (4)
|
$789
|
|
$1,273
|
|
$827
|
|
$1,078
|
|
n/a
|
|
Sustaining capex
(4)
|
$9.8
|
|
$17.0
|
|
$32.9
|
|
$38.2
|
|
$48 – 53
|
|
Efemcukuru
|
|
|
|
|
|
|
Ounces
produced
|
25,828
|
|
26,243
|
|
99,835
|
|
103,767
|
|
90,000 – 95,000
|
|
Ounces
sold
|
24,956
|
|
25,530
|
|
98,340
|
|
105,752
|
|
n/a
|
|
Cash
operating costs ($/oz sold) (4)
|
$493
|
|
$608
|
|
$556
|
|
$599
|
|
$550 – 600
|
|
All-in
sustaining costs ($/oz sold) (4)
|
$989
|
|
$1,122
|
|
$918
|
|
$923
|
|
n/a
|
|
Sustaining capex
(4)
|
$7.3
|
|
$10.2
|
|
$19.1
|
|
$24.5
|
|
$18 – 23
|
|
Olympias
|
|
|
|
|
|
|
Ounces
produced
|
11,408
|
|
12,617
|
|
58,423
|
|
37,410
|
|
55,000 – 65,000
|
|
Ounces
sold
|
11,770
|
|
12,550
|
|
58,902
|
|
43,668
|
|
n/a
|
|
Cash
operating costs ($/oz sold) (4)
|
$1,166
|
|
$1,331
|
|
$1,078
|
|
$1,286
|
|
$775 – 825
|
|
All-in
sustaining costs ($/oz sold) (4)
|
$1,768
|
|
$1,986
|
|
$1,541
|
|
$1,837
|
|
n/a
|
|
Sustaining capex
(4)
|
$5.5
|
|
$7.2
|
|
$20.2
|
|
$20.1
|
|
$38 – 43
|
(1)
Includes pre-commercial production at Lamaque (Q1
2019).
(2)
Excludes sales of inventory produced at Lamaque during the
pre-commercial production period (Q1 2019). During the year ended
December 31, 2019, 27,627 ounces were sold from inventory produced
during the pre-commercial production period at
Lamaque.
(3)
Kisladag resumed mining, crushing and placing ore on the heap leach
pad on April 1, 2019. This activity had been suspended since April
2018.
(4)
These measures are non-IFRS measures. See the MD&A section
'Non-IFRS Measures' for explanations and discussion of these
non-IFRS measures.
Gold
production of 528,874 ounces in 2020
increased 34% from 395,331 ounces in 2019 primarily due to an
increase in tonnes of ore stacked and placed under leach at
Kisladag following the restart of full operations in 2019 and an
increase at Lamaque enabled by receipt of authorization in March
2020 to increase mine production.
For
further information on the Company’s operating results for
the year-end and fourth quarter of 2020, please see the
Company’s Management’s Discussion and Analysis filed on
SEDAR at www.sedar.com
under the Company’s profile.
Non-IFRS Measures
Certain non-IFRS measures are included in this report, including
average realized gold price per ounce sold, 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, adjusted net earnings/(loss) attributable to
shareholders, adjusted net earnings/(loss) per share attributable
to shareholders, working capital, cash flow from operations before
changes in non-cash working capital, earnings before interest,
taxes and depreciation and amortization ("EBITDA") and adjusted
earnings before interest, taxes and depreciation and amortization
("Adjusted EBITDA"), free cash flow and sustaining and growth
capital. Please see the December 31, 2020 MD&A for
explanations and discussion of these non-IFRS measures. The Company
believes that these measures, in addition to conventional measures
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 measures are intended to provide additional information
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These
measures do not have any standardized meaning prescribed under
IFRS, and therefore may not be comparable to other
issuers.
Cautionary Note about Forward-looking Statements and
Information
Certain of the statements made and information provided in this
report 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 report
include, but are not limited to, the duration, extent and other
implications of the coronavirus (COVID 19) and any restrictions and
suspensions with respect to the Company’s operations;
Eldorado Gold’s capital resources and business objectives;
ratification of the Agreement by the Greek Parliament; Eldorado
Gold’s guidance and outlook, including expected production,
cost guidance and recoveries of gold, including: increased heap
leach recoveries through increased leach time in conjunction with a
high-pressure grinding roll at Kisladag, increasing the throughput
at the Sigma mill; timing and cost of the construction of an
underground decline at the Triangle mine and the associated
benefits; expansion at Lamaque; and the success of a column
flotation system in improving concentrate grade and quality and
lowering transportation and concentrate treatment charges at
Efemçukuru; expected sales and revenue recognition of delayed
Efemçukuru concentrate; completion of the acquisition of QMX;
favourable economics for the Company’s heap leaching plan and
the ability to extend mine life at Eldorado’s projects;
completion of construction at Skouries; the potential sale of any
of our non-core assets; planned capital and exploration
expenditures; conversion of mineral resources to mineral reserves;
Eldorado Gold’s expectation as to its future financial and
operating performance, including expectations around generating
free cash flow; expected metallurgical recoveries and improved
concentrate grade and quality; gold price outlook and the global
concentrate market; redemption of senior secured notes;
Eldorado’s strategy, plans and goals, including its proposed
exploration, development, construction, permitting and operating
plans and priorities and related timelines and schedules; and
results of litigation and arbitration proceedings.
Forward-looking statements and forward-looking information by their
nature are based on assumptions and involve known and unknown
risks, market 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:
ratification and effectiveness of the Agreement, and the benefits
thereof, the ability to achieve the expected benefits of the
Agreement, the completion of advancement of technical work and
construction at Skouries, including securing financing, production
and cost guidance, and ability to move into production, and the
timing thereof, how the world-wide economic and social impact of
COVID-19 is managed and the duration and extent of the COVID-19
pandemic; timing and cost of construction and exploration; the
geopolitical, economic, permitting and legal climate that we
operate in; the future price of gold and other commodities; the
global concentrate market; exchange rates; anticipated costs,
expenses and working capital requirements; 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 report.
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 ratification of the Agreement, including the timing
thereof, the ability to achieve the expected benefits of the
Agreement, the ability to complete advancement of technical work
and construction at Skouries, including securing financing, and
meeting production and cost guidance, and ability to move into
production, and the timing thereof, ability to meet production and
cost guidance, global outbreaks of infectious diseases, including
COVID-19; timing and cost of construction, and the associated
benefits; recoveries of gold and other metals; geopolitical and
economic climate (global and local), risks related to mineral
tenure and permits; gold and other commodity price volatility;
information technology systems risks; continued softening of the
global concentrate market; risks regarding potential and pending
litigation and arbitration proceedings relating to our business,
properties and operations; expected impact on reserves and the
carrying value; the updating of the reserve and resource models and
life of mine plans; mining operational and development risk;
financing risks; foreign country operational risks; risks of
sovereign investment; regulatory risks and liabilities including
environmental regulatory restrictions and liability; discrepancies
between actual and estimated production; mineral reserves and
resources and metallurgical testing and recoveries; additional
funding requirements; currency fluctuations; community and
non-governmental organization actions; speculative nature of gold
exploration; dilution; share price volatility and the price of our
common shares; competition; loss of key employees; and defective
title to mineral claims or properties, as well as those risk
factors discussed in the sections titled “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 and other regulatory
filings filed on SEDAR and EDGAR under our Company name, which
discussion is incorporated by reference in this report, for a
fuller understanding of the risks and uncertainties that affect the
Company’s business and operations.
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.
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
Company’s 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.
Except as otherwise noted, scientific and technical information
contained in this report was reviewed and approved by Simon Hille,
FAusIMM and VP Technical Services for the Company, and a "qualified
person" under NI 43-101.
Item 6.
Reliance on 7.1(2) of National Instrument 51-102
Not
applicable.
Item 7.
Omitted Information
Not
applicable.
Item 8.
Executive Officer
Name of Executive Officer: Tim
Garvin
Executive Vice
President and General Counsel
Telephone number: (604) 601
6692
March
4, 2021