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2007 Financial Results
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(all figures in United States dollars)
VANCOUVER, BC - Paul N. Wright, President and Chief Executive Officer
of Eldorado Gold Corporation ("Eldorado" the "Company" or "we") is
pleased to provide the Company's financial results for the year ended
December 31, 2007.
"2007 will be remembered as a year characterized by our great
satisfaction with the performance of our two new mines where we
increased our production by 107% and reduced our costs by 27% and a
year of successfully navigating the challenges of having a mine
temporarily closed under an injunction. With the March 6, 2008
re-opening of Kisladag and a successful year of operations at
Tanjianshan we look forward to continuing our growth strategy." said
Paul N. Wright, President and Chief Executive Officer.
Highlights
- Recorded record earnings of $0.10 per share compared to $0.01 per
share in 2006
- Sold 266,012 ounces of gold at a realized average price $674/oz (2006
-- 127,552 oz at $609/oz)
- Produced 281,135 ounces of gold at a cash operating cost of $236/oz
(2006 -- 135,653 oz at $324/oz)
- Held $46.0 million in unrestricted cash and short-term deposits at
year-end
- Began commercial production at Tanjianshan mine in China on February
1, 2007 becoming the first North American gold producer in China
- Completed Kisladag gold mine expansion affectively doubling
production capacity to 10 million tonnes of ore per year before
operations were halted by an injunction on August 18, 2007. Kisladag
resumed production March 6, 2008
- Completed a positive feasibility study on Efem�ukuru project and
advanced land acquisition into the final phase prior to a construction
decision
- Announced our decision to develop the Vila Nova Iron Ore deposit in
Brazil
- Began reclamation and mine closure activities at our S�o Bento mine
after 20 years of mining
- Expended $11.6 million in exploration drilling increasing our gold
resources by 33%
2007 Results
The consolidated net profit for 2007 was $35.4 million or $0.10 per
share compared with a net profit of $3.3 million or $0.01 per share for
2006; a net loss of $49.1 million or ($0.17) per share in 2005. Our
gain in 2007 is a result of higher gold prices, increased gold
production from our new mines and lower average production costs.
In 2007, we sold 266,012 ounces of gold for $179.3 million at an
average realized selling price of $674 per ounce. This compares with
2006 gold sales of 127,552 ounces of gold for $77.6 million at an
average realized selling price of $609 per ounce and with 2005 gold
sales of 66,804 ounces for $29.7 million at an average realized price
of $444 per ounce. Sales from Kisladag totaled 142,725 ounces of gold
at an average price of $660 per ounces while production cash costs
averaged $189 per ounce compared to 63,352 ounces at an average price
of $619 per ounce while production cash costs averaged $206 per ounce
in 2006. Sales from Tanjianshan totaled 112,646 ounces of gold at an
average price of $694 per ounces while production cash costs averaged
$288 per ounce. Sales from S�o Bento totaled 10,641 ounces of gold at
an average price of $649 compared to 64,200 ounces at an average price
of $598 in 2006.
Eldorado is in a strong financial position and at December 31, 2007 we
held $46.0 million in unrestricted cash and short-term deposits and
$74.0 million in a restricted account held against long term debt of
$65.1 million, bank indebtedness of $8.5 million in environmental and
electricity deposits with the Turkish authorities. We remain hedge
free.
In 2007 we produced 281,135 ounces of gold a 107 % increase over 2006
production of 135,653 ounces of gold and a 337% increase over 2005
production of 64,298 ounces of gold. The increased production was
attributable to increased production at Kisladag and the start of
production at Tanjianshan, offset by the end of production activities
at S�o Bento. In 2007 Tanjianshan produced 138,162 ounces of gold at an
average cash cost of $288 per ounce, 757,354 tonnes of ore were mined
at an average grade of 6.23 grams per tonne. In 2007 Kisladag produced
135,306 ounces of gold at a cash cost of $189 per ounce and 4,547,860
tonnes of ore were mined at an average grade of 1.33 grams per tonne.
In 2007 S�o Bento produced 7,667 ounces of gold at cash cost of $208
per ounce from the 20,069 tonnes of ore sent to the mill at an average
grade of 11.71 grams per tonne. Production ounces was up 107% from the
2006 production of 135,653 and average cash costs at $236 per ounce
were 27% lower than the 2006 cash cost of $324 per ounce.
2007 Resources and Reserves
Resources increased to 10.4 million ounces of measured and indicated
and 3.7 million ounces of inferred an increase of 33% from 2006. Proven
and Probable reserves increased to 7.7 million ounces an increase of 13
% from 2006. Proven and Probable iron ore reserves are 9.3 million
tonnes 61% Fe.
Corporate
The Eldorado Gold 2007 Annual General & Special Shareholders Meeting
will be held Thursday, May 1 at 3:00 PM at the Bentall 5 Conference
Center, Lobby Level, 550 Burrard Street, Vancouver, BC.
Eldorado is a gold producing and exploration company actively growing
businesses in Brazil, Turkey and China. With our international
expertise in mining, finance and project development, together with
highly skilled and dedicated staff, we believe that Eldorado is well
positioned to grow in value as we create and pursue new opportunities.
ON BEHALF OF
ELDORADO GOLD CORPORATION
"Paul N. Wright"
Paul N. Wright
President and Chief Executive Officer
Eldorado will host a conference call today to discuss the 2007
Financial Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may
participate in the conference call by dialing 416-641-6127 in Toronto
or 1-866-226-1799 toll free in North America and asking for the
Eldorado Conference Call with Chairperson: Paul Wright, President and
CEO of Eldorado Gold. The call will be available on Eldorado's website.
www.eldoradogold.com. A replay of the call will be available until
April 3, 2008 by dialing 416-695-5800 in Toronto or 1-800-408-3053 free
in North America and entering the Pass code: 3253164#.
The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable
Mineral Reserve" used in this release are Canadian mining terms as
defined in accordance with National Instrument 43-101 -- Standards of
Disclosure for Mineral Projects under the guidelines set out in the
Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM")
Standards on Mineral Resources and Mineral Reserves, adopted by the CIM
Council on August 20, 2000 as may be amended from time to time by the
CIM. These definitions differ from the definitions in the United States
Securities & Exchange Commission ("SEC") Guide 7. In the United States,
a mineral reserve is defined as a part of a mineral deposit which could
be economically and legally extracted or produced at the time the
mineral reserve determination is made.
The terms "Mineral Resource", "Measured Mineral Resource", "Indicated
Mineral Resource", "Inferred Mineral Resource" used in this release are
Canadian mining terms as defined in accordance with National
Instruction 43-101 -- Standards of Disclosure for Mineral Projects
under the guidelines set out in the CIM Standards. Mineral Resources
which are not Mineral Reserves do not have demonstrated economic
viability.
For a detailed discussion of resource and reserve estimates and related
matters see the Company's reports, including the Annual Information
Form and FORM 40-F dated March 29, 2007 and technical reports filed
under the Company's name at www.sedar.com.
Note to U.S. Investors. While the terms "mineral resource", "measured
mineral resource," "indicated mineral resource", and "inferred mineral
resource" are recognized and required by Canadian regulations, they are
not defined terms under standards in the United States and normally are
not permitted to be used in reports and registration statements filed
with the SEC. As such, information contained in this report concerning
descriptions of mineralization and resources under Canadian standards
may not be comparable to similar information made public by U.S
companies in SEC filings. With respect to "indicated mineral resource"
and "inferred mineral resource" there is a great amount of uncertainty
as to their existence and a great uncertainty as to their economic and
legal feasibility. It can not be assumed that all or any part of an
"indicated mineral resource" or "inferred mineral resource" will ever
be upgraded to a higher category. Investors are cautioned not to assume
that any part or all of mineral deposits in these categories will ever
be converted into reserves.
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 forward looking
statements or information within the meaning of the Securities Act
(Ontario) . Such forward looking statements or information include, but
are not limited to statements or information with respect to unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements or information
are subject to a variety of risks and uncertainties, which could cause
actual events, or results to differ from those reflected in the
forward-looking statements or information. Should one or more of these
risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward looking statements. Specific reference is made to
"Forward Looking Statements and Risk Factors" in the Company's Annual
Information Form and Form 40-F dated March 29, 2007. Forward-looking
statements herein include statements regarding the expectations and
beliefs of management. Such factors included, amongst others the
following: gold price volatility; impact of any hedging activities,
including margin limits and margin calls; discrepancies between actual
and estimated production, between actual and estimated reserves, and
between actual and estimated metallurgical recoveries; mining
operational risk; regulatory restrictions, including environmental
regulatory restrictions and liability; risks of sovereign investment;
speculative nature of gold exploration; dilution; competition; loss of
key employees; additional funding requirements; and defective title to
mineral claims or property, as well as those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information
Form and Form 40-F dated March 29, 2007. We do not expect to update
forward-looking statements 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.
Eldorado Gold Corporation's shares trade on the Toronto Stock Exchange
(TSX: ELD) and the American Stock Exchange (AMEX: EGO). The TSX has
neither approved nor disapproved the form or content of this release.
Contact:
Nancy E. Woo, Manager Investor Relations
Phone: 604.601.6650 or 1.888.353.8166
Fax: 604.687.4026
Email nancyw@eldoradogold.com
Request for information packages: laurelw@eldoradogold.com
Eldorado Gold Corporation
1188, 550 Burrard Street
Vancouver, BC V6C 2B5
Web site: www.eldoradogold.com
click here to view the complete News Release (pdf)
http://www.eldoradogold.com/i/pdf/08-06.pdf
Click here for Consolidated Financial Statements, Management's
Discussion and Analysis (pdf)
http://www.eldoradogold.com/i/pdf/08-06FS.pdf
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Copyright (c) 2008 ELDORADO GOLD CORP. (ELD) All rights reserved. For
more information visit our website at http://www.eldoradogold.com/ or
send mailto:info@eldoradogold.com
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