Eldorado Gold Corporation · TSX:ELD
Eldorado Gold — Investor Presentation (June 2012)
46 slides from Eldorado Gold's investor presentation, June 2012
Slide 1: Delivering Sustainable Value
Delivering Sustainable Value Investor Presentation June 2012
Slide 2: Forward Looking Statement
Forward Looking Statement Certain of the statements made in this Presentation may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities law. Thes
Slide 3: Industry-leading growth profile
§ Industry-leading growth profile: § Commissioning of 6 new mines plus expansion of Kişladağ by 2016 § Growing reserves and resources (CAGR: ~ 34%) § On track to produce over 1.7 million ounces of gold by 2016 (+160% growth over 5 years) § Industry leading cash costs – lowest quartile costs and soli
Slide 4: Strategic focus on low-cost operator of high-quality assets
§ Eldorado’s strategic focus is on being a low-cost operator of high-quality assets § We seek to maximize the potential of our assets, balance sheet and people to deliver sustainable value for all our stakeholders Skilled High Quality, Management Long-Life Assets Strength of Assets Skilled Team Peop
Slide 5: Our Global Assets
Our Global Assets Internationally Diversified § Focus on highly prospective areas with well-established mining cultures: § The Mediterranean and Balkans (Turkey, Greece, Romania) § Asia (China) § South America (Brazil) Legend www.eldoradogold.com 5
Slide 6: Our Asset Base
Our Asset Base Robust, Well-Balanced Portfolio § Asset base well diversified across the mining lifecycle Stratoni (Greece) (2005) § Pipeline of assets drives Kişladağ (Turkey) (2006) organic growth Jinfeng (China) (2007) § Young, high-quality assets Tanjianshan (China) (2007) Production White Mounta
Slide 7: Summarized Financial Results Q1 2012
Summarized Financial Results Q1 2012 Q1 2011 % Increase Revenues (millions) $271.5 $219.2 24% Gold sold (ounces) 150,661 148,530 1.4% Average realized gold price ($/ounce) $1,707 $1,397 22% Cash operating costs ($/ounce sold) (1) $452 $410 10% Total cash cost ($/ounce sold) (1) $529 $462 15% Earning
Slide 8: Gold Reserves & Resources
Gold Reserves & Resources Gold reserves and resources – ounces per 1,000 shares 40 70.0 CAGR: ~34% Annual reserve per share growth rate: ~13% 35 60.0 30 50.0 25 (M oz) 40.0 20 30.0 15 20.0 10 10.0 5 0 0.0 2006 2007 2008 2009 2010 2011 Post 2006 2007 2008 2009 2010 2011 Post EGU EGU 2P M&I I Reserves
Slide 9: Exploration Spending
32,500 22,500 $220 30,000 20,000 $200 27,500 $180 25,000 European Goldfields 17,500 Average Cost of Exploration Spending ($mln) Average Cost of $160 Contained Ounces (000's) 22,500 Acquired Resource ~$220/oz Organic Resource Contained Ounces (000's) 15,000 Ounce: ~$11/oz 20,000 Ounce: ~$180/oz $140
Slide 10: Annual Gold Production and Expanding Margins
Annual Gold Production (x 1,000 oz) Expanding Margins ($/oz) 1,800 Total Cash Cost Cash Margins 900 Average annual growth rate: 77% 1,600 800 700 1,400 600 1,200 $1,183 1,000 $1,110 500 400 800 $800 $658 300 600 $587 $279 $411 200 400 $472 $517 100 200 $423 $330 $263 $289 $337 0 0 2006 2007 2008 200
Slide 11: Estimated Production 2012-2016
Estimated Production 2012-2016 2,000,000 2,000 § 1.5 million oz of Average annual growth rate: ~30% gold production 1,750,000 1,800 by 2015 1,600 1,500,000 1,400 § 1.7 million oz of Cash Costs (US$/oz) 1,250,000 Gold Production (Oz) 1,200 gold production in 2016 1,000,000 1,000 800 750,000 § Average
Slide 12: Gold Production by Country
Gold Production by Country Gold Production by Country (2012) Gold Production by Country (2016) 2012e 2016e Turkey China Greece Turkey China Greece Romania Brazil www.eldoradogold.com 12
Slide 13: Eldorado Revenue Distribution vs Peers
Eldorado Revenue Distribution (2012-2016) 4% 5% 5% 9% 15% 96% 95% 95% 91% 85% Other 2012 2013 2014 2015 2016 Gold Peer Group Revenue Distriubtion (2014) 1 8% 12% 12% 31% 23% 27% 35% 92% 88% 88% 69% 77% 73% 65% Yamana Agnico-Eagle IAMGOLD 2 New Gold Barrick Goldcorp Newmont Intermediate Producers Ave
Slide 14: Estimated Total Cash Costs 2012
Estimated Total Cash Costs 2012 § Eldorado is one of the $800 lowest-cost primary producers of gold $700 $600 § Lowest quartile of cash costs – 2011 $500 operating cash costs of $405/oz and total ($/oz) $400 cash costs of $472/oz $300 § 2012e operating $200 cash costs of $430- $450/oz $100 $0 Source
Slide 15: Revenue and operating costs 2012-2016
3,000 2,750 2,500 2,250 § Large margins from which to fund: 2,000 § Capital $1.8 Bln 1,750 US$ mln expenditure 1,500 § Future 1,250 opportunities § Dividend 1,000 750 500 250 0 2012 2013 2014 2015 2016 Revenue Operating Costs *Revenue estimate assumes analyst consensus metal prices www.eldoradogold.
Slide 16: Estimated Capital Expenditure 2012-2016
Estimated Capital Expenditure 2012-2016 700 § US$ 1.95 billion being spent on development 600 and expansion projects over the next 5 years Capital Required (US$ mln) 500 § US$ 810 million being 400 spent in Greece 300 § US$ 270 million being spent in Romania 200 100 0 2012 2013 2014 2015 2016 Turkey
Slide 17: Estimated Capex/oz of Future Production
Estimated Capex/oz of Future Production 7,000 6,000 Capex $/oz / Annual Gold Production 5,000 4,000 3,000 2,000 1,000 0 Eldorado Agnico-Eagle Yamana IAMGOLD Newmont Goldcorp Kinross New Gold Barrick Source: TD Securities www.eldoradogold.com 17
Slide 18: Dividend as % of Earnings 2011
Dividend as % of Earnings 2011 30% 25% 20% (% of earnings) 15% 10% 5% 0% Yamana Barrick Eldorado Goldcorp Kinross www.eldoradogold.com 18
Slide 19: Political, Technical, Financial, Environment & Social
Political § Track record of working with local communities and all levels of government to take projects from exploration to production § In-country personnel skilled at permitting and managing relationships in own jurisdictions Technical § International teams with proven exploration, operating, dev
Slide 20: Foreign investment is key to Greek growth
§ Foreign investment is key to Greek growth § Broad government support for mining § Sovereignty of assets is solid § Increased job creation and investment in local infrastructure through advancement of new projects Stratoni Port www.eldoradogold.com 20
Slide 21: 2012 Objectives
2012 Objectives § Focus on quality growth at low cost: § Complete integration of European Goldfields assets § Increase gold production to approximately 730,000 - 775,000 oz at US$430 - $450/oz cash operating cost § Make construction decisions on Perama Hill, Tocantinzinho and Certej § Maintain produ
Slide 22: 2012 Catalysts
2012 Catalysts § Announce long-term corporate plan ü April § Receipt of PEIA - Perama Hill ü February § Complete construction refurbishment – Olympias § Commission plant for tailings treatments – Olympias § Drilling results - Piavitsa, Fisoka, Efemçukuru, White Mountain and regional programs § Comme
Slide 23: Background Information
Background Information www.eldoradogold.com 23
Slide 24: Five cornerstone mines
§ Five cornerstone mines: Kişladağ Efemçukuru Jinfeng Tanjianshan White Mountain www.eldoradogold.com 24
Slide 25: Kişladağ Mine, Turkey
Kişladağ Mine, Turkey Our Flagship Asset OVERVIEW Location Uşak Province, Western Turkey Deposit Gold porphyry Ownership 100% Type Open pit, heap leach gold mine Expected Life of Mine 15-20 years Overview Recovery 65% § Largest gold mine in Turkey § Discovered by Eldorado; commercial production bega
Slide 26: Efemçukuru Mine, Turkey
Efemçukuru Mine, Turkey OVERVIEW Location Izmir Province, Western Turkey Deposit High grade epithermal gold vein Ownership 100% Type Underground gold mine Expected Life of Mine 12 years Overview Recovery 87% § Discovered by Eldorado; commercial production began December 2011 PRODUCTION AND CASH COST
Slide 27: Jinfeng Mine, China
Jinfeng Mine, China OVERVIEW Location Guizhou Province, China Deposit Carlin type 82% Eldorado, 18% Guizhou Ownership Lannigou Gold Mine Ltd Type Open pit and underground gold mine Expected Life of Mine 13 years Overview Recovery 85% § Acquired by Eldorado from Sino Gold in 2009; commercial producti
Slide 28: Tanjianshan Mine, China
Tanjianshan Mine, China OVERVIEW Location Qinghai Province, China Deposit Orogenic 90% Eldorado Ownership 5% Qinghair No 1 Geological Brigade 5% Dachaidan Gold Mine Type Open pit gold mine, float-roast-CIL Expected Life of Mine 5 years Overview Recovery 81% § Acquired by Eldorado from Sino Gold in 2
Slide 29: White Mountain Mine, China
White Mountain Mine, China OVERVIEW Location Jilin Province, China Deposit Orogenic 95% Eldorado Ownership 5% Jilin Tonghua Institute of of Geology and Minerals Exploration & Development Type Underground gold mine, CIL plant Overview Expected Life of 9 years § Acquired by Eldorado from Sino Gold in
Slide 30: Other Producing Assets: Vila Nova Mine, Brazil
Other Producing Assets Vila Nova Mine, Brazil OVERVIEW Location Amapa State, Brazil Ownership 100% Eldorado Type Open pit iron ore mine Expected Life of Mine 9 years P+P Reserves* 8.9 M tonnes (60.9% Fe) Overview § Commercial production began in 2011 M+I Resources* 9.6 M tonnes (61.5% Fe) 2012 Objec
Slide 31: Other Producing Assets: Stratoni, Greece
Other Producing Assets Stratoni, Greece OVERVIEW Location Chalkidiki Peninsula, Northern Greece Deposit Replacement mixed sulphide Ownership 95% Eldorado Type Underground drift and fill Expected Life of 5 years Mine Overview § Acquired from European Goldfields in February 2012 1.8 Mt @ 8.5% Zn, 6.3%
Slide 32: Eastern Dragon Project, China
Our Development Assets Eastern Dragon Project, China OVERVIEW Location Heilongjiang Province, China Deposit High-grade, epithermal, gold-silver vein 95% Eldorado Ownership 5% County (Daxinglanling Yihua Development Company Ltd) Open pit and underground gold mine, Type CIL plant under construction Ex
Slide 33: Tocantinzinho Project, Brazil
Our Development Assets Tocantinzinho Project (TZ), Brazil OVERVIEW Location Tapajos district, Para State, central Brazil Shallow, intrusion-hosted, non-refractory Deposit gold deposit Ownership 100% Eldorado Type Open pit gold mine Expected Life of 11 years 2012 Objectives Mine § Feasibility Study (
Slide 34: Perama Hill Project, Greece
Our Development Assets Perama Hill Project, Greece OVERVIEW Location Eastern Thrace, northern Greece Epithermal gold-silver vein Deposit deposit Ownership 100% Eldorado Type Open pit gold mine Expected Life of Mine 8 years 90% (Gold) Expected Recovery 60% (Silver) 2012 Objectives Initial Capital Exp
Slide 35: Olympias, Greece
Our Development Assets Olympias, Greece OVERVIEW Location Chalkidiki Peninsula, Northern Greece Deposit Polymetallic gold, silver, lead and zinc Ownership 95% Eldorado Underground mine Type (previously mined using underground drift and fill) 2012 Objectives Capital Expenditures § EIS approved by Min
Slide 36: Skouries, Greece
Our Development Assets Skouries, Greece OVERVIEW Location Chalkidiki Peninsula, Northern Greece Deposit Gold-copper porphyry Ownership 95% Eldorado Type Open pit and underground 2012 Objectives § Environmental Impact Study (EIS) approved by Ministry of Strip Ratio 0.75 : 1 Environment, Energy and Cl
Slide 37: Certej, Romania
Our Development Assets Certej, Romania OVERVIEW “Golden Quadrilateral” area of the Location Apuseni Mountains, Western Romania Deposit Epithermal gold-silver deposit Ownership 80% Eldorado Open pit Type (Previously mined via shallow open pit) 2012 Objectives § Brownfield site with excellent infrastr
Slide 38: Where we Explore
Where we Explore § 2012 Exploration budget: $81 million www.eldoradogold.com 38
Slide 39: Efemçukuru Exploration Programs
Efemçukuru Exploration Programs Kestani Beleni Vein 2011 surface exploration program at Efemcukuru included over 9,500 metres drilling, focusing on two main areas: the northwest along-strike extension of the Kestani Beleni vein, and the parallel Kokarpinar vein, located 400 to 500 metres to the east
Slide 40: Jinfeng 2011 & 2012 Exploration Targets
Jinfeng 2011 & 2012 Exploration Targets Jinfeng Open Pit - Plan View Rongban- F7 www.eldoradogold.com 40
Slide 41: Chalkidiki Mining District
Chalkidiki Mining District www.eldoradogold.com 41
Slide 42: Piavitsa Cross Section
Piavitsa Cross Section www.eldoradogold.com 42
Slide 43: Certej Exploration Program
Certej Exploration Program www.eldoradogold.com 43
Slide 44: Eldorado's Gold Reserves & Resources
Eldorado’s Gold Reserves & Resources Proven & Probable Measured & Indicated Inferred Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (x1000) (Au g/t) (x1000) (x1000) (Au g/t) (x1000) (x1000) (Au g/t) (x1000) Kisladag 459,870 0.71 10,516 579,860 0.65 12,055 380,760 0.40 4,921 Efemcukuru 5
Slide 45: Analyst Consensus Metal Prices
Analyst Consensus Metal Prices Consensus Metal Price Forecasts (April 2012) Metal Unit 2012 2013 2014 2015 2016 2017 Long-term Gold US$/oz 1,772 1,816 1,595 1,476 1,346 1,292 1,250 Silver US$/oz 35.30 33.13 28.21 25.88 25.62 21.75 21.75 Copper US$/lb 3.83 4.01 3.66 3.38 2.84 2.63 2.59 Lead US$/t 2,2
Slide 46: Thank You
Thank You TSX: ELD NYSE: EGO ASX: EAU Total shares outstanding (as of March 31, 2012): 711.3 M Investor Relations: Nancy Woo (604) 601-6650 ⋅ nancyw@eldoradogold.com www.eldoradogold.com 46