Eldorado Gold Corporation · TSX:ELD
Eldorado Gold — Investor Presentation (April 2010)
43 slides from Eldorado Gold's investor presentation, April 2010
Slide 1: Eldorado Gold Corporation
Eldorado Gold Corporation April p 2010 www.eldoradogold.com 1
Slide 2: Forward-Looking Statements
Forward-Looking g Statements 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. T
Slide 3: Where we operate
Where we operate p Eldorado Gold is a Canadian gold producer with 4 operating mines, 2 mines under construction,, 1 late stage g development p p project j and an extensive exploration p p program g with 125,000 meters of drilling planned for 2010. We operate in China, Turkey, Brazil, Greece and surr
Slide 4: 2009 Financial and Operating Highlights
2009 Financial and Operating Highlights Earnings of $0.26 per share Cash flow of $0.38 per share Gold sales increased by 29% Strong year-end balance sheet with $315 M in cash Increased P+P reserves by approximately 95% to 15.1 M oz of gold Increased M+I resources to 21.3 M oz of gold P
Slide 5: Production, cost and resources overview
Lowest Q Quartile of Production Cost Forecast Annual Gold Production (in ounces) Expanding Margins (in $/oz) 1 200 1,200 $500 Perama Hill $1,200 $995 Eastern Dragon Gold Production (x1,000 oz) Cash Operatingg Cost ($/oz) 1,000 $400 $876 $1,000 Efemçukuru 800 $674 Margins $800 $300 $609 White Mountai
Slide 6: Superior Shareholder Performance
Superior p Shareholder Performance Return on Shareholders Equity Share Price Performance $9,000 400% ELD Increased Return on C$14.92 $ Share Capital: market 328% 345% Issued capitalization C$2.3 by C$8.2 (38% Market 300% $6,000 annualized) millions billion billion Capitalization in shares 200% Amex
Slide 7: Objectives
Objectives j 2010 Production of 550,000 - 600,000 oz of gold from 4 mines at a cash operating cost of $385 - $400/oz p Complete expansion p p plan at Kişladağ ş ğ Complete construction of Efemçukuru and Eastern Dragon mines Submit EIA for Perama Hill mine project Execute a $35 M exploratio
Slide 8: Kişladağ Mine, Turkey
Kişladağ ş ğ Mine,, Turkeyy Kişladağ is an open pit heap leach gold mine located in Uşak Province, Turkey that began commercial production in July 2006 In 2010, ore production is planned to be 10MT/year at a 1.03 g/t with a strip ratio of 1 21 1 1.21:1 P+P gold reserves increased by 23% to 6.8
Slide 9: Jinfeng Mine, China
Jinfeng g Mine,, China Jinfeng is an open pit and underground gold mine located in Guizhou Province, China that began commercial production in September 2007 Eldorado owns an 82% interest with local joint- venture t partner t G Guizhou i h Lannigou L i Gold G ld Mine Mi Limited holding the remai
Slide 10: Tanjianshan Mine, China
Tanjianshan j Mine,, China Tanjianshan (TJS) is an open pit, float-roast-CIL operation located in Qinghai Province, China that began commercial production in February 2007 TJS consists of two pits: QLT and JLG Partners in TJS are Q Qinghai g Number One Geological Brigade (5%) and the Dachaidan
Slide 11: White Mountain Mine, China
White Mountain Mine,, China White Mountain is an underground mine using a sub sub-level level and cut cut-and-fill and fill stoping mining method located in Jilin Province, China that commenced commercial production in January 2009 Eldorado Eld d owns a 95% interest i t t with ith jjoint- i t ve
Slide 12: Efemçukuru Project, Turkey
Efemçukuru ç Project, j , Turkeyy Efemçukuru is a high grade epithermal gold deposit ssuited deposit, ited for underground ndergro nd mechani mechanized ed mining, located in Izmir Province, Turkey Feasibility study was completed in 2007 with operatingg and capital estimates updated in October 2
Slide 13: Eastern Dragon Project, China
Eastern Dragon g Project, j , China Eastern Dragon is a high-grade, low- s lphidation epithermal sulphidation, epithermal, gold gold-silver sil er vein ein deposit located in Heilongjiang Province, China Eldorado has a 95% equity interest with a private joint venture partner holding 5% The Env
Slide 14: Perama Hill Project, Greece
Perama Hill Project, j , Greece Perama Hill is a shallow, high sulphidation, non-refractory non refractory oxide gold deposit with a low strip ratio Pre-Environmental Impact Assessment (PEIA) has been submitted in October 2009 Environmental Impact Assessment (EIA) to be submitted in the second
Slide 15: Strategy
Strategy gy Long life, low cost assets Lowest quartile of production cost Strong balance sheet No hedge positions Regional exploration with excellent development projects for internal growth Explore, develop and operate to high standards www.eldoradogold.com 15
Slide 16: Thank you
Thank you y Eldorado Gold Corporation TSX: ELD NYSE: EGO ASX: EAU Shares Outstanding (as of December 31, 2009): 537.1 M Investor Relations: Nancy Woo (604) 601-6650 nancyw@eldoradogold.com www.eldoradogold.com 16
Slide 17: Appendix I: China Operations
Appendix pp I: China Operations p Eastern Dragon project Heilongjiang Province White Mountain mine Jilin Province Tanjianshan mine Qinghai Province Jinfeng mine Guizhou Province www.eldoradogold.com 17
Slide 18: China - Facts and Fallacies
China - Facts and Fallacies Fallacy Fact The refining and selling of gold is tightly There is a choice of refineries (including Metalor) and the producer controlled and the producer receives a discount is free to negotiate with the preferred refinery. Terms and to the spot price. conditions are simi
Slide 19: China - Facts and Fallacies
China - Facts and Fallacies Fallacy Fact Gold mining is in the “prohibited” category, and The Foreign Investment Catalogue places investment in the gold the size of deposit available to foreign companies sector in the “restricted” category. The restricted category simply is limited. means that there
Slide 20: The Big 4 Government Agencies
“The Big g 4” Government Agencies g National Development and Reform Commission (NDRC) The main agency that directs the “planned economy” Mainly responsible for the Foreign Investment Catalogue Approves the final Chinese Feasibility Study for gold mining operations Ministry of Land and Reso
Slide 21: Typical Flow Chart for Mine Permitting of a Sino-Foreign JV
Typical Flow Chart for Mine Permitting of a Sino-Foreign Sino Foreign JV Assume an existing Exploration License (EL) with drilled resources Set up JV and obtain Business License Approval by MOFCOM Transfer EL into the JV Approval by MOLAR Approval by NDRC and Chinese Feasibilityy Studyy and EIA En
Slide 22: History in China
Historyy in China 2003 Signed an agreement with the China National Gold Group Corporation (“CNGC”) for the exclusive right i h to review i their h i portfolio f li off operating i mines, i d development l projects j and d exploration l i projects j for a period of 5 months that was later expanded to
Slide 23: Appendix II: 2010 Exploration Overview
Appendix II: 2010 Exploration Overview 2010 exploration budget of $35.4 M Drill to discover: 125,000 metres drilling planned on >20 properties Blend of minesite, advanced stage, early stage, and generative exploration programs for f long-term l t organic i growth th Commitment to building st
Slide 24: Reserve Growth Strategy
Reserve Growth Strategy gy 1. Generative initiatives: Property identification and acquisition China Turkey Brazil New business opportunities 2. Early stage exploration projects: Target definition and testing China, Turkey, Nevada, Brazil Drilling planned on >16 projects in 2010 3. Re
Slide 25: China Exploration Budget
China Exploration p Budget g Generative Exploration: $1.0 M • Project generation and acquisition Eastern Dragon District: $2.4 M • Lode 5 stepo stepoutt drilling • EL53 new targets • Sanjianfeng JV Tanjianshan District: $3.8 M White Mountain District: $2.5 M • Resource drilling at • WM stepout drill
Slide 26: China Exploration Organization
China Exploration p Organization g (Vancouver) V.P. Exploration Peter Lewis Director of Geology gy and New Projects, China Yumin Qiu Exploration p Exploration Exploration Exploration Exploration Manager, Manager, Manager, Manager, Manager, Generative Jinfeng White Mountain Eastern Dragon Tanjianshan
Slide 27: Jinfeng District
Jinfeng g District Sediment-hosted, Sediment hosted Carlin style gold deposits Active multi-million ounce mines (Jinfeng, Zimudang, Shuiyindong, Yata) Potential for high grades Shuiyindong y g ~ 16 ggm/t / www.eldoradogold.com 27
Slide 28: Jinfeng Deposit Model
Jinfeng g Deposit p Model Fault Controlled Ore Stratabound Ore www.eldoradogold.com 28
Slide 29: Jinfeng District
Jinfeng g District Jinfeng District Exploration 2010 Budget: $2.5 $ M Jinfengg JV 3 exploration licenses, 1 mining license Drill-testingg numerous structurallyy controlled, high grade targets (2.25m @ 19.24 gm/t in trenches) Jindu JV 3 exploration licenses (53 km2) Drill testing target
Slide 30: White Mountain District
White Mountain District www.eldoradogold.com 30
Slide 31: White Mountain District
White Mountain District White Mountain District Exploration 2010 Budget: $2.5M White Mountain Minesite Exploration Infill and stepout drilling: deposit remains open down-dip and along strike to northeast Dadongpo Exploration License (29 km2) Target definition: geophysical, geological progr
Slide 32: Eastern Dragon District
Eastern Dragon g District Eastern Dragon District E Exploration ploration 2010 Budget: $2.4 M 2 exploration licenses (~100 km2) Numerous high grade, epithermal Au+Ag veins with very little previous exploration Ore grades common in surface trenches 153.5g/t Au / 1340 g/t Ag 119.0g/t Au /743 g
Slide 33: Eastern Dragon Exploration
Eastern Dragon g Exploration p 26.8 gpt Au EL 53 N1-2s Eastern Dragon 15 0 gpt Au 15.0 selected trench and grab sample results 4.5 gpt Au jy 5.7 gpt Au Lode5 jy v? Si 5.1 gpt Au tf 9.6 gpt Au 7.7 gpt Au 0 1000m Mining License Lower Pleistocene Basalt N1-2s Tertiary sandy conglomerate 92.1 gpt Au ? j
Slide 34: Tanjianshan District
Tanjianshan j District Tanjianshan District Exploration 2010 Budget: $3.8M 323 zone resource definition drilling 323 Discovery Section: 15.5m QLT deeps resource definition drilling @15.8 g/t Au (QD-143) Target generation programs: Mapping RAB drilling programs www.eldoradogold.com 34
Slide 35: China Generative Exploration
China Generative Exploration p Distribution of gold deposits in China Bakyrchik Altay Shan Eastern Dragon Tianshan orogenic HLJ-Jilin low-S &pporphyry p y y Au epithermal & breccia Kumtor pipe/porphyry Au Muruntau White Mountain Tanjianshan Pulang orogenic & porphyry Au-Cu Jinfeng Golden Triangle Ca
Slide 36: Turkey Exploration Budget
Turkeyy Exploration p Budget g Generative Exploration: $1.7 M • Project j generation g and acquisition q Kişladağ: $4 M AS porphyry target: $0.9 M • Resource expansion • Geophysical surveys d illi g drilling • Drilling Efemçukuru: $1.5 M • Stepout, new vein targets drilling MH project: j t $2.0 $2 0
Slide 37: Kişladağ Resource Drilling
Kişladağ ş ğ Resource Drilling g Kişladağ Exploration 2010 Budget: $4.0 M Continuation of successful 2009 program of defining additional resources contiguous ti with ith presentt reserve 2009 resource growth: 32% increase in Measured and Indicated ounces www.eldoradogold.com 37
Slide 38: Efemçukuru Exploration
Efemçukuru ç Exploration p NW stepout Efemçukuru Exploration 2010 target Budget: $1.5 M Kestane Beleni northwest NOS stepout MOS Kokarpinar vein Preliminary drill test 2009: 3.7m @ 11.1 gm/t Au SOS N th ore shoot North h t iinfill fill d drilling illi www.eldoradogold.com 38
Slide 39: Advanced Stage Porphyry Targets
Advanced Stage g Porphyry p y y Targets g 2010 Exploration Budget: $1.8 M AS: mapping, geophysics target definition + drilling Sayaçik: drilling geophysical/geological targets defined in 2009 exploration program AS Au-Cu Porphyry Sayaçik www.eldoradogold.com 39
Slide 40: Early-stage Exploration Programs
Early-stage y g Exploration p Programs g 2010 Exploration Budget: $2.7 M MH IOCG prospect Detailed mapping Drilling of four targets defined by 2009 geophysical / geochemical / geological programs Konya-Sizma Phyllite-hosted y Au anomalyy Drill testing two target areas K Konya-Sizma Si
Slide 41: Brazil Exploration
Brazil Exploration p 2010 Exploration p Budget: g $4.1 M Tocantinzinho Six month program to test target areas outside of main deposit 4000 di 4000m diamond dddrilling illi ttargeting ti geochemical, h i l geophysical h i l anomalies li Reconnaissance mapping, sampling of artisanal workings
Slide 42: Nevada Exploration Budget
Nevada Exploration p Budget g Nevada Exploration p 2010 Budget: g $3.5 M Early stage stage, Carlin-style Carlin style gold targets Richmond Option agreements Mtn. Buffalo Cathedral Canyon. Well Green Monster www.eldoradogold.com 42
Slide 43: Nevada Exploration
Nevada Exploration p Drill-testing 4 grassroots projects through option agreements AuEx Ventures properties Buffalo Canyon Green Monster Bronco Creek properties Richmond Mountain Cathedral Well Buffalo Canyon Cathedral Well www.eldoradogold.com 43