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Eldorado Gold Reports Q2 2022 Financial and Operational Results; Updates Full-Year Consolidated Cost Guidance

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Eldorado Gold Corporation
Eldorado Gold Corporation

VANCOUVER, British Columbia, July 28, 2022 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) today reports the Company’s financial and operational results for the second quarter of 2022. For further information, please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis ("MD&A") filed on SEDAR at www.sedar.com under the Company’s profile.

Second Quarter 2022 Highlights

Operations

  • Gold production: 113,462 ounces, an increase of 22% from Q1 2022 production, driven by strong production and mine development at Lamaque.

  • Gold sales: 107,631 ounces at an average realized gold price per ounce sold1 of $1,849.

  • Production costs: $109.3 million.

  • Cash operating costs1: $789 per ounce sold. Costs were primarily driven by lower gold production and an increase in the price of certain commodities and consumables required for safe operations, however the price increases were partly offset by the weakening of local currencies in which costs are incurred, particularly the Turkish Lira and Euro.

  • All-in sustaining costs ("AISC")1: $1,270 per ounce sold, driven by higher cash operating costs per ounce sold and sustaining capital expenditures.

  • Total capital expenditures: $83.2 million, including $32.3 million of sustaining capital1, primarily focused on underground development and construction at Lamaque. Growth capital1 of $26.4 million focused on waste stripping at Kisladag and construction of the first phase of the North leach pad to support the mine life extension. $9.1 million of capital expenditures spent at Skouries include advancing site access, completing building enclosures, and geotechnical and drilling activities.

  • Skouries growth capital: As a bridge to the completion of a financing package, an additional $30 to $40 million of growth capital will be allocated to the project. Total growth capital at Skouries is now expected to be $60 to $80 million in 2022.

  • 2022 outlook: We expect production to be second-half weighted and maintain our 2022 production guidance of 460,000 to 490,000 ounces and are tracking toward the lower end of the range as a result of production challenges in Q1 2022. We are updating our 2022 guidance for consolidated cash operating costs1 to $700 to $750 per ounce sold, total cash costs1 to $790 to $840 per ounce sold and AISC1 to $1,180 to $1,280 per ounce sold.

Financial

  • Cash flow from operating activities before changes in working capital1: $48.3 million.

  • Cash, cash equivalents and term deposits: $370.0 million, as at June 30, 2022.

  • Earnings before interest, taxes, depreciation and amortization ("EBITDA"): $89.1 million.

  • Adjusted EBITDA1: $87.6 million.

  • Net loss: $22.7 million, or a loss of $0.12 per share.

  • Adjusted net earnings2: $13.8 million net earnings, or $0.08 earnings per share. Adjusted net earnings removed a $23.3 million loss on foreign exchange due to translation of deferred tax balances, and a $14.4 million loss on the non-cash revaluation of the derivative related to redemption options in our debt.

  • Free cash flow2: Negative $62.8 million, primarily due to lower gold production and sales, annual royalty payments and mine standby costs.

“We had a steady operational quarter, driven by solid production and higher grades at Lamaque and consistent operations at Efemcukuru," said George Burns, Eldorado's President and Chief Executive Officer. "Olympias saw meaningful improvements in the second quarter. At Kisladag, the team focused on increasing the tonnes placed on the pad, which sets up strong third quarter production. We remain confident in our ability to deliver consolidated production guidance of 460,000 to 490,000 ounces and expect to end the year in the lower end of the range," added Burns. "In addition, we revised our 2022 consolidated cost guidance to reflect lower than expected gold production in the first half of the year, continued inflationary pressures, and additional costs associated with the VAT import charge on Olympias gold concentrate shipments into China."

"Considerable progress was made at Skouries during the quarter, with activity focused on execution readiness and critical path activities in engineering, procurement and siteenabling works. We look forward to updating the market as we continue to work towards financing and Board approval for the restart of construction at Skouries," continued Burns.

"Additionally, during the quarter we published our 10th annual Sustainability Report. I'm proud of the global team for the progress we've made on our goals and initiatives. Specifically, we have exceeded gender parity on our Board, and demonstrated leadership in regard to local employment and procurement."

Consolidated Financial and Operational Highlights

 

3 months ended June 30,

 

6 months ended June 30,

Continuing operations (5)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

Revenue

$

213.4

 

 

$

233.2

 

 

$

408.1

 

 

$

457.8

Gold produced (oz)

 

113,462

 

 

 

116,066

 

 

 

206,671

 

 

 

227,808

Gold sold (oz)

 

107,631

 

 

 

114,140

 

 

 

202,103

 

 

 

227,734

Average realized gold price ($/oz sold) (2)

$

1,849

 

 

$

1,840

 

 

$

1,868

 

 

$

1,786

Production costs

 

109.3

 

 

 

112.8

 

 

 

213.9

 

 

 

221.4

Cash operating costs ($/oz sold) (2,3)

 

789

 

 

 

645

 

 

 

810

 

 

 

643

Total cash costs ($/oz sold) (2,3)

 

879

 

 

 

746

 

 

 

908

 

 

 

716

All-in sustaining costs ($/oz sold) (2,3)

 

1,270

 

 

 

1,074

 

 

 

1,306

 

 

 

1,030

Net (loss) earnings for the period (1)

 

(22.7

)

 

 

31.0

 

 

 

(339.5

)

 

 

45.4

Net (loss) earnings per share – basic ($/share) (1)

 

(0.12

)

 

 

0.17

 

 

 

(1.85

)

 

 

0.25

Adjusted net earnings (loss) (1,2)

 

13.8

 

 

 

29.1

 

 

 

(5.1

)

 

 

54.3

Adjusted net earnings (loss) per share ($/share) (1,2)

 

0.08

 

 

 

0.16

 

 

 

(0.03

)

 

 

0.30

Net cash generated from operating activities (4)

 

26.9

 

 

 

49.0

 

 

 

62.2

 

 

 

148.1

Cash flow from operating activities before changes in working capital (2,4)

 

48.3

 

 

 

75.9

 

 

 

98.1

 

 

 

157.0

Free cash flow (2,4)

 

(62.8

)

 

 

(23.7

)

 

 

(89.6

)

 

 

9.7

Cash, cash equivalents and term deposits

$

370.0

 

 

$

410.7

 

 

$

370.0

 

 

$

410.7

(1) Attributable to shareholders of the Company.
(2) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's MD&A for explanations and discussion of these non-IFRS financial measures and ratios.
(3) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(4) 2021 amounts have been restated for a voluntary change in accounting policy to classify cash paid for interest on the statement of cash flows as a financing, rather than an operating activity.
(5) Amounts presented are from continuing operations only. The Brazil segment is presented as a discontinued operation in 2021. See Note 17 of our condensed consolidated interim financial statements for the three and six months ended June 30, 2022.

Total revenue was $213.4 million in Q2 2022, a decrease of 8% from $233.2 million in Q2 2021 and an increase of 10% from $194.7 million in Q1 2022. Total revenue was $408.1 million in the six months ended June 30, 2022, a decrease from $457.8 million in the six months ended June 30, 2021. The decreases in both three and six-month periods were due to lower sales volumes and were partially offset by higher average metal prices.

Production costs decreased to $109.3 million in Q2 2022 from $112.8 million in Q2 2021 and to $213.9 million in the six months ended June 30, 2022 from $221.4 million in the six months ended June 30, 2021. Decreases in both periods were primarily due to the suspension of operations at Stratoni at the end of 2021. Production costs at Stratoni totalled $13.7 million in Q2 2021 and $29.0 million in the six months ended June 30, 2021. These decreases were partly offset by increases in certain production costs in Q2 2022 as a result of supply concerns caused by financial and trade sanctions against Russia, and ongoing supply chain challenges due to COVID-19. Cost increases primarily impacted electricity at operations in Greece and Turkiye, and fuel and reagents at Kisladag.

Cash operating costs in Q2 2022 averaged $789 per ounce sold, an increase from $645 in Q2 2021, and cash operating costs per ounce sold averaged $810 in the six months ended June 30, 2022, an increase from $643 in the six months ended June 30, 2021. Increases in both three and six-month periods were primarily due to lower production, lower silver and base metal sales which reduce cash operating costs as by-product credits, and lower-grade ore mined and processed at Kisladag, resulting in fewer ounces produced and sold.

AISC per ounce sold averaged $1,270 in Q2 2022, an increase from $1,074 in Q2 2021, and AISC per ounce sold averaged $1,306 in the six months ended June 30, 2022, an increase from $1,030 in the six months ended June 30, 2021. Increases in both three and six-month periods primarily reflect the increases in cash operating costs per ounce sold, combined with higher sustaining capital expenditures.

We reported net loss attributable to shareholders from continuing operations of $22.7 million ($0.12 loss per share) in Q2 2022 compared to net earnings of $31.0 million ($0.17 per share) in Q2 2021 and net loss of $339.5 million ($1.85 loss per share) in the six months ended June 30, 2022 compared to net earnings of $45.4 million ($0.25 per share) in the six months ended June 30, 2021. The net loss in the six months ended June 30, 2022 was primarily due to the impairment of the Certej project, a non-core gold asset, the write-down of decommissioned equipment at Kisladag, lower sales volumes, higher mine standby costs and higher income tax expense.

Adjusted net earnings were $13.8 million ($0.08 per share) in Q2 2022 compared to $29.1 million ($0.16 per share) in Q2 2021. Adjusted net earnings in Q2 2022 removed a $23.3 million loss on foreign exchange due to translation of deferred tax balances, a $14.4 million loss on the non-cash revaluation of the derivative related to redemption options in our debt and included a $1.2 million partial reversal of Stratoni equipment write-downs.

Quarterly Operations Update

 

3 months ended June 30,

6 months ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Consolidated

 

 

 

 

Ounces produced

 

113,462

 

 

116,066

 

 

206,671

 

 

227,808

Ounces sold

 

107,631

 

 

114,140

 

 

202,103

 

 

227,734

Production costs (1)

$

109.3

 

$

112.8

 

$

213.9

 

$

221.4

Cash operating costs ($/oz sold) (2,3)

$

789

 

$

645

 

$

810

 

$

643

All-in sustaining costs ($/oz sold) (2,3)

$

1,270

 

$

1,074

 

$

1,306

 

$

1,030

Sustaining capital expenditures (3)

$

32.3

 

$

24.2

 

$

56.8

 

$

44.7

Kisladag

 

 

 

 

Ounces produced

 

27,973

 

 

44,016

 

 

57,753

 

 

90,188

Ounces sold

 

26,881

 

 

44,049

 

 

56,659

 

 

91,555

Production costs

$

25.1

 

$

28.6

 

$

55.2

 

$

54.9

Cash operating costs ($/oz sold) (2,3)

$

798

 

$

529

 

$

831

 

$

510

All-in sustaining costs ($/oz sold) (2,3)

$

1,090

 

$

728

 

$

1,087

 

$

665

Sustaining capital expenditures (3)

$

4.3

 

$

3.7

 

$

6.8

 

$

6.5

Lamaque

 

 

 

 

Ounces produced

 

46,917

 

 

35,643

 

 

80,294

 

 

64,478

Ounces sold

 

45,655

 

 

34,677

 

 

79,780

 

 

63,755

Production costs

$

31.5

 

$

24.0

 

$

58.7

 

$

47.0

Cash operating costs ($/oz sold) (2,3)

$

657

 

$

658

 

$

703

 

$

704

All-in sustaining costs ($/oz sold) (2,3)

$

985

 

$

1,065

 

$

1,069

 

$

1,109

Sustaining capital expenditures (3)

$

13.5

 

$

11.0

 

$

26.5

 

$

20.3

Efemcukuru

 

 

 

 

Ounces produced

 

22,793

 

 

23,473

 

 

43,849

 

 

46,771

Ounces sold

 

23,428

 

 

23,006

 

 

44,810

 

 

47,136

Production costs

$

20.6

 

$

17.9

 

$

37.5

 

$

32.5

Cash operating costs ($/oz sold) (2,3)

$

706

 

$

525

 

$

678

 

$

525

All-in sustaining costs ($/oz sold) (2,3)

$

1,180

 

$

917

 

$

1,093

 

$

802

Sustaining capital expenditures (3)

$

5.9

 

$

3.8

 

$

9.4

 

$

6.3

Olympias

 

 

 

 

Ounces produced

 

15,779

 

 

12,934

 

 

24,775

 

 

26,371

Ounces sold

 

11,667

 

 

12,409

 

 

20,854

 

 

25,288

Production costs

$

32.1

 

$

28.5

 

$

62.4

 

$

57.9

Cash operating costs ($/oz sold) (2,3)

$

1,446

 

$

1,237

 

$

1,447

 

$

1,190

All-in sustaining costs ($/oz sold) (2,3)

$

2,346

 

$

1,893

 

$

2,369

 

$

1,845

Sustaining capital expenditures (3)

$

8.5

 

$

5.7

 

$

14.1

 

$

11.5

(1) Includes production costs of Stratoni (base metals production) in 2021 (Q2 2021: $13.7 million, YTD 2021: $29.0 million). Operations at Stratoni were suspended at the end of 2021.
(2) Revenues from silver, lead and zinc sales are off-set against cash operating costs.
(3) These financial measures or ratios are non-IFRS financial measures or ratios. See the section 'Non-IFRS and Other Financial Measures and Ratios' in the Company's MD&A for explanations and discussion of these non-IFRS financial measures and ratios.

Kisladag

Kisladag produced 27,973 ounces of gold in Q2 2022, a decrease of 36% from 44,016 ounces in Q2 2021. The expected decrease in production was due to lower tonnes placed on the heap leach pad in the first quarter due to COVID-19 related absenteeism, severe weather and a government-mandated power outage. Average grade of 0.76 grams per tonne in Q2 2022 decreased slightly from 0.81 grams per tonne in Q2 2021 but increased from 0.61 grams per tonne in Q1 2022.

Ore tonnes placed on the heap leach pad in Q2 2022 increased 40% from Q1 2022 as production ramped up in the quarter following snowfall and prolonged freezing temperatures in Q1 2022 that impacted the ore conveyance and stacking system, reducing productivity. However, tonnes placed in the quarter were lower than in Q2 2021 due to continued optimization of the high-pressure grinding roll circuit ("HPGR") and debottlenecking of the belt agglomeration circuit. The HPGR is performing to plan with recovery rates as expected. Increased tonnes placed on the heap leach pad in Q2 2022 are expected to positively impact gold production in the second half of 2022.

Revenue decreased to $51.0 million in Q2 2022 from $80.7 million in Q2 2021, reflecting lower sales in the quarter and partly offset by an increase in the average realized gold price.

Production costs decreased to $25.1 million in Q2 2022 from $28.6 million in Q2 2021 primarily due to a reduction in consumables used in line with lower production and efficiencies from the HPGR circuit, and weakening of the Turkish Lira. These savings were partly offset by price increases in labour, reagents, electricity, and fuel. Lower production, combined with lower grade, resulted in an increase in cash operating costs per ounce sold to $798 in Q2 2022 from $529 in Q2 2021.

AISC per ounce sold increased to $1,090 in Q2 2022 from $728 in Q2 2021 primarily due to the increase in cash operating costs per ounce sold.

Sustaining capital expenditures of $4.3 million in Q2 2022 and $6.8 million in the six months ended June 30, 2022 primarily included equipment rebuilds and processing improvements.

Growth capital expenditures of $23.7 million in Q2 2022 and $43.7 million in the six months ended June 30, 2022 included waste stripping to support the mine life extension and construction of the first phase of the North heap leach pad.

In conjunction with the North heap leach pad, we are investing in additional higher-capacity mobile conveyors which are expected to enhance materials handling capabilities in the belt agglomeration circuit and increase throughput. Installation is expected to be complete in late 2022. We are also installing an agglomeration drum, expected to be commissioned in the first half of 2023, which is expected to improve the quality, consistency and permeability of the agglomeration process. With these investments, stacking is expected to continue on the existing heap leach pad until mid-2023, at which time stacking is expected to commence on the North heap leach pad.

Lamaque

Lamaque produced 46,917 ounces of gold in Q2 2022, an increase of 32% from 35,643 ounces in Q2 2021 due to strong throughput and higher grade. The expected increase in production from Q1 2022 also resulted from higher throughput combined with the development of higher-grade stopes following delays in the first quarter due to COVID-19 related absenteeism. Average grade increased to 6.63 grams per tonne in Q2 2022 from 5.98 grams per tonne in Q2 2021 and from 5.27 grams per tonne in Q1 2022.

Revenue increased to $85.0 million in Q2 2022 from $63.5 million in Q2 2021 due to higher production in the quarter, combined with a higher average realized gold price.

Production costs increased to $31.5 million in Q2 2022 from $24.0 million in Q2 2021, primarily due to higher production in the quarter. Cash operating costs per ounce sold remained consistent at $657 in Q2 2022 from $658 in Q2 2021, due to higher production and cost savings from a weaker Canadian dollar being partly offset by cost increases for consumables.

AISC per ounce sold decreased to $985 in Q2 2022 from $1,065 in Q2 2021 primarily due to higher gold production in the quarter, partly offset by a modest increase in sustaining capital expenditure.

Sustaining capital expenditures of $13.5 million in Q2 2022 and $26.5 million in the six months ended June 30, 2022 primarily included underground development and construction. Growth capital expenditures of $0.9 million in Q2 2022 and $2.7 million in the six months ended June 30, 2022 was primarily construction of underground infrastructure.

Efemcukuru

Efemcukuru produced 22,793 payable ounces of gold in Q2 2022, a 3% decrease from 23,473 payable ounces in Q2 2021. The decrease was due to a planned decrease in grade to 5.96 grams per tonne in Q2 2022 from 6.60 grams per tonne in Q2 2021, and was partly offset by higher throughput in the quarter.

Revenue decreased to $41.4 million in Q2 2022 from $45.0 million in Q2 2021. The decrease was primarily due to a lower average realized gold price during Q2 2022 as a result of downward revaluations of provisional pricing in the quarter in line with movements in the gold price.

Production costs increased to $20.6 million in Q2 2022 from $17.9 million in Q2 2021 primarily due to increased tonnes processed, combined with cost increases in electricity, and consumables. The increase in production costs, combined with lower production in the quarter, resulted in an increase in cash operating costs per ounce sold to $706 in Q2 2022 from $525 in Q2 2021.

AISC per ounce sold increased to $1,180 in Q2 2022 from $917 in Q2 2021, primarily due to the increase in cash operating costs per ounce sold combined with higher sustaining capital expenditure.

Sustaining capital expenditures of $5.9 million in Q2 2022 and $9.4 million in the six months ended June 30, 2022 was primarily underground development and equipment rebuilds. Growth capital expenditures of $0.5 million in the six months ended June 30, 2022 included resource conversion drilling at Kokarpinar.

Olympias

Olympias produced 15,779 ounces of gold in Q2 2022, a 22% increase from 12,934 ounces in Q2 2021 and primarily reflected higher average gold grade, despite slightly lower processing volumes. Lead, silver and zinc production also increased in Q2 2022 as compared to Q2 2021 as a result of higher average grades. Transformation initiatives continued to show positive results as the mine continues to ramp up productivity.

Processing volumes increased in the latter part of Q2 2022 as a result of processing ore stockpiles following lower processing volumes in the first quarter due to COVID-19 related absenteeism and power outages related to heavy snowfall in the region in January 2022. Water treatment plant improvements continued in the quarter with minimal impact on throughput.

Revenue increased to $36.3 million in Q2 2022 from $34.1 million in Q2 2021 primarily as a result of higher gold prices in the quarter, despite lower sales volumes due to timing of concentrate shipments. Gold revenue was also impacted during the quarter by the 13% VAT import charge levied on customers importing Olympias gold concentrate into China. This import charge, effective since October 1, 2021, reduces revenue by a corresponding amount. China was the primary destination of Olympias gold concentrate in Q2 2022 as planned shipments to Russia were halted earlier in the year as a result of sanctions imposed on Russia due to the Russia-Ukraine war. Revenue from lead-silver concentrate sales increased in the quarter and revenue from zinc concentrate sales decreased in the quarter, in both cases due to timing of bulk shipments.

Production costs increased to $32.1 million in Q2 2022 from $28.5 million in Q2 2021 reflecting price increases in electricity, fuel, and other consumables. Cash operating costs per ounce sold increased to $1,446 in Q2 2022 from $1,237 in Q2 2021, primarily a result of lower throughput, certain production cost increases and the 13% VAT import charge which is included in cash operating costs. These increases were partly offset by higher gold grade and higher revenue from silver and base metal sales, which reduce cash operating costs as by-product credits. Electricity prices in the quarter remained above Q1 2021 levels but reduced from Q1 2022 due to subsidies that lowered the effective average price.

AISC per ounce sold increased to $2,346 in Q2 2022 from $1,893 in Q2 2021 primarily due to the increase in cash operating costs per ounce sold, combined with an increase in sustaining capital expenditure.

Sustaining capital expenditures of $8.5 million in Q2 2022 and $14.1 million in the six months ended June 30, 2022 primarily included underground development and expansion of tailings facilities. Growth capital expenditures of $1.7 million in Q2 2022 and $3.1 million in the six months ended June 30, 2022 was primarily underground development.

Corporate Updates

In July 2022, we completed the acquisition of 32.5 million common shares of G Mining Ventures Corp. ("GMIN") for cash consideration of CDN $26.0 million ($20.0 million). Upon closing, we owned approximately 19.0% of GMIN common shares outstanding, continuing our interest in the Tocantinzinho gold project in Brazil. The second tranche of the GMIN private placement is expected to close in Q3 2022, after which our ownership is expected to decrease to approximately 17.7% of GMIN common shares outstanding.

Simon Hille has been promoted to the role of Senior Vice President, Technical Services effective May 2022. Simon joined Eldorado in November 2020 as Vice President, Technical Services. He is responsible for technical projects and fostering innovation throughout the Company. Simon has over 30 years of experience in gold and base metals specializing in leading high-performance, cross-functional technical and operational teams to maximize value from complex ore bodies. He has a BSc in Extractive Metallurgy from Curtin University’s Western Australian School of Mines and is a Fellow of Australasian Institute of Mining & Metallurgy (FAusIMM).

For further information on the Company's operating results for the second quarter of 2022, please see the Company’s MD&A filed on SEDAR at www.sedar.com under the Company’s profile.

Conference Call

A conference call to discuss the details of the Company’s Second Quarter 2022 Results will be held by senior management on Friday, July 29, 2022 at 11:30 AM ET (8:30 AM PT). The call will be webcast and can be accessed at Eldorado’s website: www.eldoradogold.com or via this link: https://services.choruscall.ca/links/eldoradogold2022q2.html.

Conference Call Details

 

Replay (available until Sept. 2, 2022)

Date:

July 29, 2022

 

Vancouver:

+1 604 638 9010

Time:

11:30 AM ET (8:30 AM PT)

 

Toll Free:

1 800 319 6413

Dial in:

+1 604 638 5340

 

Access code:

9051

Toll free:

1 800 319 4610

 

 

 

About Eldorado

Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada, Greece and Romania. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).

Contact

Investor Relations

Lisa Wilkinson, VP, Investor Relations
604.757.2237 or 1.888.353.8166
lisa.wilkinson@eldoradogold.com

Media

Louise McMahon, Director Communications & Public Affairs
604.757 5573 or 1.888.353.8166
louise.mcmahon@eldoradogold.com


Non-IFRS and Other Financial Measures and Ratios

Certain non-IFRS financial measures and ratios are included in this press release, including 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, sustaining and growth capital, average realized gold price per ounce sold, adjusted net earnings/(loss) attributable to shareholders, adjusted net earnings/(loss) per share attributable to shareholders, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), free cash flow, working capital and cash flow from operating activities before changes in working capital.

Please see the June 30, 2022 MD&A for explanations and discussion of these non-IFRS and other financial measures and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios 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 and other financial measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these and other financial measures and ratios have been incorporated by reference and can be found in the section 'Non-IFRS and Other Financial Measures and Ratios' in the June 30, 2022 MD&A available on SEDAR at www.sedar.com and on the Company's website under the 'Investors' section.

Reconciliation of Production Costs to Cash Operating Costs and Cash Operating Costs per ounce sold:

  

Q2 2022

Q2 2021

YTD 2022

YTD 2021

Production costs (1)

$

109.3

 

 

$

112.8

 

 

$

213.9

 

 

$

221.4

 

Stratoni production costs (2)

 

(0.1

)

 

 

(13.7

)

 

 

(0.1

)

 

 

(29.0

)

Production costs – excluding Stratoni

 

109.2

 

 

 

99.1

 

 

 

213.7

 

 

 

192.3

 

By-product credits (3)

 

(19.4

)

 

 

(13.9

)

 

 

(37.7

)

 

 

(29.2

)

Royalty expense and selling costs (4)

 

(4.9

)

 

 

(11.5

)

 

 

(12.4

)

 

 

(16.7

)

Cash operating costs

$

84.9

 

 

$

73.6

 

 

$

163.7

 

 

$

146.5

 

Gold ounces sold

 

107,631

 

 

 

114,140

 

 

 

202,103

 

 

 

227,734

 

Cash operating cost per ounce sold

$

789

 

 

$

645

 

 

$

810

 

 

$

643

 

(1) Includes inventory write-downs.
(2) Base metals production, presented for 2021. Operations at Stratoni were suspended at the end of 2021.
(3) Revenue from silver, lead and zinc sales.
(4) Included in production costs.

Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended June 30, 2022:

 

Direct operating costs

 

By-product credits

 

Refining and selling costs

 

Inventory change (1)

 

Cash operating costs

 

Gold oz sold

 

Cash operating cost/oz sold

Kisladag

$

26.1

 

$

(0.7

)

 

$

0.2

 

$

(4.1

)

 

$

21.5

 

26,881

 

$

798

Lamaque

 

29.3

 

 

(0.4

)

 

 

0.1

 

 

1.0

 

 

 

30.0

 

45,655

 

 

657

Efemcukuru

 

13.4

 

 

(0.8

)

 

 

3.5

 

 

0.5

 

 

 

16.5

 

23,428

 

 

706

Olympias

 

29.3

 

 

(17.5

)

 

 

7.3

 

 

(2.2

)

 

 

16.9

 

11,667

 

 

1,446

Total consolidated

$

98.1

 

$

(19.4

)

 

$

11.0

 

$

(4.8

)

 

$

84.9

 

107,631

 

$

789

(1) Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.

Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the six months ended June 30, 2022:

 

Direct operating costs

 

By-product credits

 

Refining and selling costs

 

Inventory change (1)

 

Cash operating costs

 

Gold oz sold

 

Cash operating cost/oz sold

Kisladag

$

47.4

 

$

(1.5

)

 

$

0.7

 

$

0.5

 

 

$

47.1

 

56,659

 

$

831

Lamaque

 

55.8

 

 

(0.7

)

 

 

0.1

 

 

0.9

 

 

 

56.1

 

79,780

 

 

703

Efemcukuru

 

25.9

 

 

(1.7

)

 

 

5.9

 

 

0.3

 

 

 

30.4

 

44,810

 

 

678

Olympias

 

55.2

 

 

(33.8

)

 

 

12.5

 

 

(3.9

)

 

 

30.2

 

20,854

 

 

1,447

Total consolidated

$

184.3

 

$

(37.7

)

 

$

19.3

 

$

(2.1

)

 

$

163.7

 

202,103

 

$

810

(1) Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.

Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the three months ended June 30, 2021:

 

Direct operating costs

 

By-product credits

 

Refining and selling costs

 

Inventory change (1)

 

Cash operating costs

 

Gold oz sold

 

Cash operating cost/oz sold

Kisladag

$

23.5

 

$

(0.8

)

 

$

0.2

 

$

0.5

 

 

$

23.3

 

44,049

 

$

529

Lamaque

 

23.8

 

 

(0.4

)

 

 

 

 

(0.6

)

 

 

22.8

 

34,677

 

 

658

Efemcukuru

 

11.6

 

 

(1.3

)

 

 

1.9

 

 

(0.1

)

 

 

12.1

 

23,006

 

 

525

Olympias

 

23.4

 

 

(11.4

)

 

 

4.1

 

 

(0.7

)

 

 

15.4

 

12,409

 

 

1,237

Total consolidated

$

82.3

 

$

(13.9

)

 

$

6.2

 

$

(1.0

)

 

$

73.6

 

114,140

 

$

645

(1) Inventory change adjustments result from timing differences between when inventory is produced and when it is sold.

Reconciliation of Cash Operating Costs and Cash Operating Cost per ounce sold, by asset, for the six months ended June 30, 2021:

 

Direct operating costs

 

By-product credits

 

Refining and selling costs

 

Inventory change (1)

 

Cash operating costs

 

Gold oz sold

 

Cash operating cost/oz sold

Kisladag

$

46.9

 

$

(1.6

)

 

$

0.3

 

$

1.1

 

 

$

46.7

 

91,555

 

$

510

Lamaque

 

47.0

 

 

(0.8

)

 

 

0.1

 

 

(1.4

)

 

 

44.9

 

63,755

 

 

704

Efemcukuru

 

23.8

 

 

(2.4

)

 

 

3.1

 

 

0.3

 

 

 

24.8

 

47,136

 

 

525

Olympias

 

46.1

 

 

(24.4

)

 

 

7.6

 

 

0.7

 

 

 

30.1

 

25,288

 

 

1,190

Total consolidated

$

163.8

 

$

(29.2

)

 

$