Eldorado Gold Announces Renewal of Normal Course Issuer Bid

Rhea-AI Summary

Eldorado Gold Corporation (NYSE:EGO) has received approval from the Toronto Stock Exchange to renew its Normal Course Issuer Bid (NCIB). The company can purchase up to 10,159,967 common shares, representing 5% of outstanding shares, through TSX, NYSE, and alternative trading systems from August 6, 2025, to July 31, 2026.

Under the previous NCIB, Eldorado purchased 3,198,353 shares at an average price of C$27.68. Daily purchases will be limited to 101,895 shares on TSX. Of the repurchased shares, up to 9,679,967 will be cancelled, while 480,000 will be held in trust for the company's restricted share unit plan.

The company believes this share buyback program is an appropriate use of funds given its strong balance sheet, progress on the Skouries Project, and ongoing cash generation in a high gold price environment.

Positive

• Share buyback program of 10,159,967 shares (5% of outstanding shares) demonstrates confidence in company value
• Strong balance sheet and cash generation in high gold price environment
• Progress reported on strategic Skouries Project
• Previous NCIB successfully executed with 3,198,353 shares purchased

Negative

• Share repurchases may reduce company's available cash for operations and development
• Company not obligated to make purchases, program could be suspended at any time

Insights

Financial Analyst

Eldorado's renewed share buyback program signals financial strength and commitment to shareholder returns in a favorable gold price environment.

Eldorado Gold's renewal of its Normal Course Issuer Bid (NCIB) represents a strategic capital allocation decision that could benefit shareholders in multiple ways. The company plans to repurchase up to 5% of its outstanding common shares (approximately 10.16 million shares) over the next year, with most shares to be cancelled and some held for its restricted share unit plan.

This buyback program offers several insights into Eldorado's financial position. First, the company explicitly states it has a strong balance sheet and is experiencing ongoing cash generation from operations, supported by the current high gold price environment. This suggests robust operating cash flow that exceeds immediate capital needs.

Looking at their previous buyback activity, Eldorado purchased 3.2 million shares at a weighted average price of C$27.68 per share, demonstrating management's willingness to execute on these programs rather than merely announcing them. The company believes its shares may not fully reflect their long-term value, indicating management views the current share price as undervalued.

The timing of this renewal alongside progress on the Skouries Project is particularly noteworthy. Skouries represents a significant growth asset for Eldorado, and the company's confidence in simultaneously funding development while returning capital to shareholders suggests strong financial flexibility.

This buyback program should be viewed as part of Eldorado's broader capital allocation strategy, potentially enhancing shareholder value by reducing the number of outstanding shares, which could improve per-share metrics like earnings and potentially support the share price over time.

VANCOUVER, British Columbia, July 31, 2025 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation (“Eldorado” or “the Company”) announces that it has received approval from the Toronto Stock Exchange (the "TSX") of Eldorado’s notice of intention to renew its normal course issuer bid (the "NCIB").

Pursuant to the NCIB, Eldorado may purchase up to 10,159,967 common shares of Eldorado ("Common Shares"), which is 5% of the 203,199,350 issued and outstanding Common Shares as at July 30, 2025. Purchases will be made through the facilities of the TSX, the New York Stock Exchange (the “NYSE”) and alternative trading systems in Canada or the United States at prevailing market prices. The NCIB will commence on August 6, 2025 and will end on July 31, 2026.

Under Eldorado’s previous normal course issuer bid that commenced on November 8, 2024 and terminated on July 31, 2025, as amended effective May 6, 2025, under which Eldorado sought and received approval from the TSX to purchase up to 10,245,474 Common Shares, 3,198,353 Common Shares were purchased on the open market through the facilities of TSX and/or alternative Canadian trading systems at a volume weighted average purchase price of C$27.68 per Common Share.

Daily purchases on the TSX under the NCIB will be limited to 101,895 Common Shares, other than purchases made pursuant to the block purchase exception, which represents 25% of the average daily trading volume of 407,583 on the TSX for six months ending June 30, 2025. Purchases on the NYSE will be subject to daily limitations and other conditions regarding the manner, timing, price and volume of purchases in order to qualify for the safe harbor provided under applicable United States securities laws. The actual number of Common Shares which may be purchased under the NCIB and the timing of any such purchases will be determined by the management of the Company, subject to applicable laws and the rules of the TSX and NYSE.

Up to 9,679,967 Common Shares repurchased under the NCIB will be cancelled, and up to 480,000 Common Shares repurchased under the NCIB will remain outstanding and be held in trust by Computershare Trust Company of Canada for the purposes of satisfying redemptions pursuant to Eldorado’s restricted share unit plan (the “RSU Plan”) until such Common Shares are required to be transferred to designated participants under the terms of the RSU Plan.

The NCIB is being renewed as Eldorado believes the market price of the Common Shares may not, from time to time, fully reflect their long-term value. Accordingly, the repurchase of the Common 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.

In connection with the NCIB, Eldorado has entered into an automatic repurchase plan with its designated broker to facilitate the purchase of Common Shares during times when Eldorado would ordinarily not be permitted to purchase Common Shares due to regulatory restrictions or self-imposed black-out periods. Before entering a black-out period, the Company may, but is not required to, instruct the broker to make purchases under the NCIB based on parameters set by Eldorado in accordance with the automatic share purchase plan, applicable securities laws and the rules of the TSX and NYSE.

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

A copy of Eldorado’s 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. 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”, "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. In particular, such forward-looking statements include, but are not limited to, statements relating to Eldorado’s intention to commence the NCIB and the timing, methods and quantity of any purchases of Common Shares under the NCIB, the availability of cash for repurchases of Common Shares under the NCIB, compliance with applicable laws and regulations pertaining to the NCIB, Eldorado’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances.

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

What is the size of Eldorado Gold's (EGO) new share buyback program?

Eldorado Gold can purchase up to 10,159,967 common shares, representing 5% of its outstanding shares, under the new NCIB program approved by TSX.

When does Eldorado Gold's (EGO) new NCIB program start and end?

The new NCIB program runs from August 6, 2025 to July 31, 2026.

How many shares did Eldorado Gold (EGO) purchase under its previous NCIB?

Under the previous NCIB, Eldorado Gold purchased 3,198,353 common shares at a volume weighted average purchase price of C$27.68 per share.

What is the daily purchase limit for Eldorado Gold (EGO) shares on TSX?

Daily purchases on TSX are limited to 101,895 common shares, representing 25% of the average daily trading volume.

Why is Eldorado Gold (EGO) implementing this share buyback program?

Eldorado believes its share price may not fully reflect long-term value and considers the buyback an attractive use of funds given its strong balance sheet, progress on Skouries Project, and cash generation in a high gold price environment.