Eldorado Gold Corporation · TSX:ELD
Eldorado Gold — Merger or Acquisition (August 2009)
38 slides from Eldorado Gold's merger presentation, Aug 26, 2009
Slide 1: Eldorado Gold and Sino Gold Announce Business Combination
Eldorado Gold and Sino Gold Announce Business Combination Building the premier intermediate global gold producer High Growth, Low Cost, Pure Gold August 26, 2009 0
Slide 2: Forward Looking Statements
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. Such forward-looking statements or information incl
Slide 3: Building the Premier Intermediate Global Gold Producer
Building the a leading Premier intermediate Intermediate gold Global producer Gold Producer Creates the premier intermediate global gold producer with combined market capitalization of approximately C$6.4 billion Establishes Eldorado as the unequivocal leader among international gold producers i
Slide 4: Building the Premier Intermediate Global Gold Producer
Building the Premier Intermediate Global Gold Producer High Growth Eastern Dragon Project, China White Mountain Mine, China Pure Gold Efemçukuru, Turkey Perama Hill, Greece Low Cost Tanjianshan, China Vila Nova Iron Ore, Brazil Tocantinzinho, Brazil Jinfeng Mine, China World Class Kişladağ, Turkey S
Slide 5: Transaction Summary
Transaction Summary • Scheme of Arrangement Structure: • Share for share exchange • Unanimous recommendation from Sino Gold Board of Directors Exchange Ratio: • 0.550 Eldorado shares for each Sino Gold share • Transaction values Sino Gold at A$2.2 billion (C$2.0 billion) Consideration • A$7.24 per b
Slide 6: Proforma Capitalization
Proforma Capitalization Eldorado Gold Sino Gold Combined TSX/ASX Share Price – Closing C$11.96 A$5.97 C$11.96 TSX/ASX Share Price – 30 trading day VWAP C$11.11 A$5.48 - Basic Shares Outstanding (millions) 400 (1) 292 535 (2) Basic Market Capitalization (US$ millions) (3) $4,405 $1,459 $5,803 Cash (U
Slide 7: Benefits to Sino Gold Shareholders
Benefits to Sino Gold Shareholders 9 Implied 32.3% premium to Sino Gold 30 trading day VWAP (1) Attractive Premium 9 Implied offer price well above Sino Gold’s 52-week high 9 Diversification of production and cash flow across a portfolio of 4 producing mines and 6 development projects Expanded Footp
Slide 8: Benefits for Eldorado Shareholders
Benefits for Eldorado Shareholders 9 Solidifies Eldorado’s position as one of the gold industry’s leaders in quality production High Growth growth Pure Gold 9 Increases Eldorado’s gold leverage and enhances pure gold strategy 9 Unequivocal leadership position in China among international gold produc
Slide 9: Why China? – The World's Largest Gold Producer
Why China? – The World’s Largest Gold Producer China produced more than 9 million ounces in 2008, representing nearly 12% of world mine production and nearly double production a decade ago China remains underexplored, with historically low levels of foreign and domestic investment Strong domes
Slide 10: This combination builds a high growth, unhedged, low cost, pure gold producer
This combination builds a high growth, unhedged, low cost, pure gold producer with the world class scale to capitalize on its competitive advantages in China, the Aegean Region and South America to create long-term value for shareholders 9
Slide 11: New Eldorado
New Eldorado • A diversified, highly liquid, pure gold company with high quality, low cost mines Value Creation • Leading position among global intermediate gold producers across key metrics leading to compelling valuation re-rating potential • Unequivocal leadership position in China and the Aegean
Slide 12: Unique Leadership Position in Asia
Unique Leadership Position in Asia Opportunity for growth – Strategic Interests of Global Gold Producers Agnico-Eagle Polyus Kinross Barrick Polyus Newmont Kinross Agnico-Eagle Barrick AngloGold Ashanti Goldcorp Barrick Goldcorp Eldorado Kinross Newmont Agnico-Eagle Barrick Barrick Goldcorp Newcrest
Slide 13: Diversified Asset Portfolio Focused on Gold
Diversified Asset Portfolio Focused on Gold A combined Eldorado and Sino Gold would have a clear path to producing in excess of 1 million ounces 1,400,000 Kişladağ Tanjianshan Efemçukuru 1,300,000 1,200,000 Jinfeng White Mountain Eastern Dragon 1,100,000 Perama Hill and Tocantinzinho 1,000,000 Au
Slide 14: Strong Pipeline Delivers Growth
Strong Pipeline Delivers Growth 2010 2013+ Perama Hill & Tocantinzinho 2011 Eastern Dragon 2010 Efemçukuru 2009 White Mountain 13
Slide 15: Increased Market Presence and Liquidity
Increased Market Presence and Liquidity Market Capitalization (US$ in billions) New Peer Group $9.0 $8.5 $8.1 Old Peer Group $7.0 $6.6 $5.8 $5.1 $4.8 $4.4 $4.3 $4.0 $2.3 $2.2 $1.9 $1.5 $1.4 $1.3 Buenaventura New Eldorado New Gold IAMGOLD Lihir Polyus Agnico-Eagle Randgold Eldorado Sino Gold Centerra
Slide 16: Industry Leading Intermediate Gold Producer
Industry Leading Intermediate Gold Producer Reserves (1) 80.6 79.6 49.9 23.8 18.1 17.7 12.7 12.6 11.9 11.6 10.8 7.6 7.6 5.8 5.3 5.1 4.4 IAMGOLD Buenaventura New Gold Polyus Lihir Gold Agnico-Eagle Eldorado Randgold Eldorado Centerra Zhaojin Sino Gold Red Back Gold Fields Harmony Yamana Hambro Peter
Slide 17: High Quality Low Cost Production
Peter Gold Fields $278 Hambro (US$ per ounce) 3,659 Source: Select broker research Zhaojin Harmony $282 1,577 Buenaventura Buenaventura (Gold Ounces in thousands) $311 1,363 2009E Production Eldorado 2009E Cash Costs Polyus $317 1,170 Agnico-Eagle Yamana $351 1,154 New Lihir $358 Eldorado 1,098 Yama
Slide 18: Industry Leading Production Growth
Industry Leading Production Growth 2009E-2012E Gold Production Growth 173% 83% 70% 65% 46% 32% 32% 30% 29% 26% 24% 22% 21% 8% 5% Buenaventura Yamana New Eldorado Zhaojin Agnico-Eagle Randgold New Gold Peter Hambro Centerra Polyus Red Back Lihir IAMGOLD Gold Fields Harmony New Eldorado will have the
Slide 19: Record of Creating Shareholder Value
Record of Creating Shareholder Value 350% Eldorado: 302% 300% Spot Gold Price: 121% S&P/TSX Global Gold Index: 72% 250% 200% 150% 100% 50% 0% -50% Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Rebased to US dollars where applicable 18
Slide 20: The Go-Forward Strategy for New Eldorado
The Go-Forward Strategy for New Eldorado Focused on gold Commodity Focus Diversified suite of large, high quality, low cost mines and development projects Build dominant businesses in geologically prospective, mining friendly Regional Focus countries ¾ China, the Aegean (Turkey, Greece), South
Slide 21: Strongly Positioned for Industry Leadership
Strongly Positioned for Industry Leadership High quality, low cost asset base focused in favorable geological and political locations Industry leading growth profile with outstanding project pipeline Unique and dominant leadership position in Asia Pure gold, unhedged Over 12 million ounces
Slide 22: New Eldorado is well positioned to deliver continued growth
New Eldorado is well positioned to deliver continued growth and shareholder value over the long-term 21
Slide 23: About Eldorado & Sino Gold
About Eldorado & Sino Gold 22
Slide 24: Eldorado and Sino Gold Assets
Kişladağ (Turkey) Beyinhar (China) 2008 Production: 190 koz 2P Reserves: 5,523 koz 2P Reserves: 558 koz M&I Resources: 7,862 koz M&I Resources: 1,053 koz Inferred Resources: 2,552 koz Inferred Resources: 182 koz Efemçukuru (Turkey) Eastern Dragon (China) 2P Reserves: 1,221 koz 2P Reserves: 527 koz M
Slide 25: Eldorado Profile
Eldorado Profile Headquartered Vancouver, British Columbia with 1,500 employees in 4 countries Listed TSX (ELD) & NYSE (EGO) ¾ Market cap US$4.4 billion ¾ Highly liquid with an average of 6.5 million shares (over US$55 mm) traded per day Research coverage by 23 leading equity analysts Produc
Slide 26: Eldorado Reserves and Resources
Eldorado Reserves and Resources Tonnes Grade Gold (mm) g/t (000 oz) Proven and Probable Reserves Kişladağ 161.6 1.06 5,523 Tanjianshan 6.8 3.76 817 Efemçukuru 3.8 10.04 1,221 Perama Hill - - - Total 172.2 1.37 7,561 Measured and Indicated Resources Kişladağ 279.9 0.88 7,862 Tanjianshan 9.9 3.17 1,01
Slide 27: Kişladağ Mine, Uşak, Turkey
Kişladağ Mine, Uşak, Turkey RESOURCES (in ounces Au) Kişladağ is an open pit heap leach gold mine that began commercial production in July 2006 M&I 7,862,000 Inferred 2,552,000 Conversion to owner operated mining successfully completed in Q3 2008 RESERVES (in ounces Au) Ore production for 2009
Slide 28: Tanjianshan Mine, Qinghai, China
Tanjianshan Mine, Qinghai, China RESOURCES (in ounces Au) Tanjianshan is an open pit, float-roast-CIL operation that began commercial production in February 2007. M&I 1,012,000 It consists of 2 separate deposits: Qinlongtan (QLT) Inferred 398,000 and Jinlonggou (JLG) RESERVES (in ounces Au) Part
Slide 29: Efemçukuru, Izmir, Turkey
Efemçukuru, Izmir, Turkey RESOURCES (in ounces Au) Efemçukuru is a high grade epithermal gold deposit, well suited for underground mechanized mining M&I 1,541,000 Inferred 675,000 Feasibility study completed in 2007 based on a mine throughput of 406,000 tonnes per year RESERVES (in ounces Au)
Slide 30: Perama Hill, Thrace, Greece
Perama Hill, Thrace, Greece RESOURCES (in ounces Au) Perama Hill is a shallow, low sulphidation, non- refractory oxide gold deposit with a low strip ratio M&I 1,363,000 in northern Greece Inferred 552,000 Pre-Environmental Impact Assessment (PEIA) OWNERSHIP 100% and Technical Report to be submit
Slide 31: Tocantinzinho Project, Para State, Brazil
Tocantinzinho Project, Para State, Brazil Tocantinzinho Project property size is 430 km2 RESOURCES (in ounces Au) In the project, gold mineralization (non-refractory) occurs as stockwork veinlets within Proterozoic granite Indicated 1,053,000 20,000 m drill program for 2008/2009 designed to bo
Slide 32: Vila Nova Iron Ore, Amapá, Brazil
Vila Nova Iron Ore, Amapá, Brazil RESOURCES (in tonnes and % Fe) The Vila Nova iron ore project is an open pit mine located in the Amapa state, Brazil M&I 9,964,000 (61.6% Fe) The mine and plant were successfully Inferred 2,022,000 (61.2% Fe) commissioned during the first half of 2009 and were R
Slide 33: Exploration
Exploration Turkey Exploration, Pontide Volcanic Belt, AS Project, Biga Peninsula Tanjianshan Regional Exploration, Qinghai, China Nevada, U.S.A. Kişladağ Regional Exploration, Usak, Turkey, Sayacik Tocantinzinho, Para, Brazil 32
Slide 34: Sino Gold Reserves and Resources
Sino Gold Reserves and Resources Tonnes Grade Gold (mm) g/t (000 oz) Proven and Probable Reserves Jinfeng 19.3 5.20 3,232 White Mountain 6.6 3.70 790 Eastern Dragon 2.0 8.40 527 Beyinhar 27.8 0.62 558 Total 55.7 2.85 5,107 Measured and Indicated Resources Jinfeng 29.0 4.70 4,330 White Mountain 10.7
Slide 35: Jinfeng Mine, Guizhou, China
Jinfeng Mine, Guizhou, China RESOURCES (in ounces Au) Sino Gold’s flagship operation and China’s second largest gold mine M&I 4,330,000 Inferred 674,000 Open pit and underground mine utilising flotation- BIOX-CIL processing plant with current throughput RESERVES (in ounces Au) 30% above design P
Slide 36: White Mountain Mine, Jilin, China
White Mountain Mine, Jilin, China RESOURCES (in ounces Au) Underground mine with 650ktpa CIL plant: M&I 1,079,000 ¾ Sino Gold’s second operating mine Inferred 109,000 ¾ Forecast 4g/t ~ 80% Au recoveries RESERVES (in ounces Au) Commercial production achieved January 2009 on budget and ahead of sc
Slide 37: Eastern Dragon, Heilongjiang, China
Eastern Dragon, Heilongjiang, China RESOURCES (in ounces Au) Excellent potential to produce very low-cost gold and is being rapidly progressed towards becoming Sino M&I 581,000 Gold’s third mine Inferred 196,000 High-grade epithermal Au-Ag deposit RESERVES (in ounces Au) Proposed open pit & UG
Slide 38: Beyinhar, Inner Mongolia, China
Beyinhar, Inner Mongolia, China RESOURCES (in ounces Au) Sino Gold continues to assess the potential for Beyinhar to be developed into a robust open-pit, heap- M&I 1,053,000 leach gold operation with 1:1 strip ratio Inferred 182,000 Further work underway to confirm grades and RESERVES (in ounces