Eldorado Gold Announces Amended Normal Course Issuer Bid

Rhea-AI Summary

Eldorado Gold (EGO) has received TSX approval to amend its normal course issuer bid (NCIB), increasing the maximum repurchase from 350,000 to 10,245,474 shares (5% of outstanding shares). The NCIB runs from November 8, 2024, to July 31, 2025. As of April 30, 2025, EGO has bought back 224,000 shares at an average price of $22.60. Daily repurchases will be limited to 83,123 shares. Of the repurchased shares, up to 9,895,474 will be cancelled, while 350,000 will be held in trust for the company's RSU plan. The company cites strong balance sheet, Skouries Project progress, and high gold prices as reasons for the expanded buyback program.

Positive

• Significant increase in share buyback authorization from 350,000 to 10.2 million shares (5% of outstanding shares)
• Strong balance sheet and cash generation in high gold price environment
• Progress on Skouries Project indicates positive operational development
• Company plans to renew NCIB for another year after July 31, 2025

Negative

• Share price potentially undervalued according to management's assessment
• Large portion of cash will be allocated to buybacks instead of other investments

Insights

Financial Analyst

Eldorado Gold's 30x larger share buyback signals strong confidence in undervalued shares amid robust operations and high gold prices.

Eldorado Gold has made a significant enhancement to its share repurchase program, expanding it from a modest 350,000 shares to 10.24 million shares - approximately 5% of the company's outstanding shares. This nearly 30-fold increase represents a powerful statement from management that they believe the market isn't fully recognizing the company's long-term value.

The timing of this expansion is particularly telling. The company explicitly cites three key factors enabling this capital return initiative: balance sheet strength, progress on the Skouries Project, and robust cash generation in the current high gold price environment. This trifecta of positive fundamentals provides a solid foundation for the buyback strategy.

Execution details reveal further strategic thinking. Of the repurchased shares, 9.89 million will be cancelled - directly reducing the share count and potentially enhancing per-share metrics. Meanwhile, 350,000 shares will support the restricted share unit plan without requiring additional dilutive issuance. The company has already demonstrated commitment by repurchasing 224,000 shares at an average price of $22.60 under the initial program.

The automatic repurchase mechanism allowing for share acquisitions during blackout periods, combined with plans to renew the program after July 2025, demonstrates a longer-term commitment to capital returns. Daily purchases will be capped at 83,123 shares to manage market impact.

This decisive capital allocation choice - returning funds to shareholders rather than pursuing alternative uses - signals management's confidence in their operational trajectory while maintaining sufficient financial flexibility to advance core projects like Skouries.

VANCOUVER, British Columbia, May 01, 2025 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) announces that the Toronto Stock Exchange (the “TSX”) has accepted the notice filed by the Company to amend its normal course issuer bid (the “NCIB”) effective as of May 6, 2025.

The amendment increases the maximum number of common shares (the "Shares") of the Company that may be repurchased from the current 350,000 Shares to 10,245,474 Shares, representing approximately 5% of the total 204,909,496 Shares issued and outstanding as at, October 31, 2024.

Purchases under the NCIB began on November 8, 2024, and will end no later than July 31, 2025. Under its current NCIB, as of April 30, 2025, the Company has repurchased 224,000 Shares at an average price of $22.60 per Share. Subject to receipt of required approvals, the Company expects to renew its NCIB for a further one-year period upon the expiration of the NCIB on July 31, 2025.

The amendment to the NCIB is being made as the Company believes that the market price of the Shares may not, from time to time, fully reflect their long-term value. Accordingly, the repurchase of the Shares under the NCIB is in the best interests of the Company and an attractive and appropriate use of available funds given the strength of the balance sheet, progress on the Skouries Project and ongoing cash generation from the operations in a high gold price environment. Eldorado is committed to enhancing shareholder returns through such programs as the NCIB.

Purchases will be made at prevailing market prices at the time of acquisition through the facilities of the TSX and/or alternative Canadian trading systems. Daily repurchases on the TSX will not exceed 83,123 Shares, representing 25% of the average daily trading volume for the six months ended October 31, 2024 (being 332,492 Shares), other than block purchase exceptions. Up to 9,895,474 Shares repurchased under the NCIB will be cancelled, and up to 350,000 Shares repurchased under the NCIB will remain outstanding shares and be held in trust by Computershare Trust Company of Canada for the purposes of satisfying redemptions pursuant to the Company’s restricted share unit (“RSU”) plan (the “RSU Plan”) until such Shares are required to be transferred to designated participants under the terms of the RSU Plan.

Purchases will be made by the Company in accordance with the requirements of the TSX. In connection with the amended NCIB, the Company has entered into an amended automatic repurchase plan with its designated broker to allow for purchases of its Shares during certain pre-determined black-out periods, subject to certain parameters as to price and number of Shares. Outside of these pre-determined black-out periods, Shares will be repurchased in accordance with management’s discretion, subject to applicable law.

Although the Company has a present intention to acquire its Shares pursuant to the NCIB, the Company will not be obligated to make any purchases and purchases may be suspended by the Company at any time.

A copy of Eldorado’s amended notice filed with the TSX may be obtained, by any shareholder without charge, by contacting Eldorado’s Corporate Secretary.

About Eldorado Gold

Eldorado is a gold and base metals producer with mining, development and exploration operations in Türkiye, Canada and Greece. 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
Lynette Gould, VP, Investor Relations, Communications & External Affairs
647 271 2827 or 1 888 353 8166
lynette.gould@eldoradogold.com

Media
Chad Pederson, Director, Communications and Public Affairs
236 885 6251 or 1 888 353 8166
chad.pederson@eldoradogold.com        

Cautionary Note About Forward-Looking Statements and Information

Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including, without limitation, statements with respect to the repurchase of shares by the Company. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", “continue”, “projected”, :committed”, "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

We have made certain assumptions about the forward-looking statements and information, including assumptions about: general market conditions, including prevailing market prices of our common shares and other available investment and business opportunities. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this release.

Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others: our assumptions relating to general market conditions, including prevailing market prices of our common shares, and other available investment and business opportunities, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and "Risk factors in our business" in the Company's most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR+ and EDGAR under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.

The inclusion of forward-looking statements and information is designed to help you understand management’s current views of our near- and longer-term prospects, and it may not be appropriate for other purposes.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change.

FAQ

How many shares can Eldorado Gold (EGO) repurchase under the amended NCIB program?

Under the amended NCIB, Eldorado Gold can repurchase up to 10,245,474 shares, representing 5% of total outstanding shares, increased from the previous 350,000 shares limit.

What is the duration of Eldorado Gold's current NCIB program?

The current NCIB program runs from November 8, 2024, to July 31, 2025.

How many shares has EGO repurchased so far under the current NCIB?

As of April 30, 2025, Eldorado Gold has repurchased 224,000 shares at an average price of $22.60 per share.

What is the daily purchase limit for EGO's share buyback program?

The daily purchase limit on the TSX is 83,123 shares, representing 25% of the average daily trading volume, except for block purchase exceptions.

Why is Eldorado Gold increasing its share buyback program?

Eldorado Gold is increasing its buyback program due to strong balance sheet, progress on the Skouries Project, ongoing cash generation from operations in a high gold price environment, and belief that share price may not fully reflect long-term value.