Eldorado Gold Business Model Canvas

Eldorado Gold relies on a diverse network of suppliers and contractors to fuel its mining operations. These partnerships are crucial for securing essential equipment, raw materials, energy, and specialized services, as well as for construction and ongoing operational support. In 2024, the company demonstrated a strong commitment to local economies by paying over $851 million to domestic suppliers, underscoring the importance of these relationships for both operational efficiency and supply chain stability.

Eldorado Gold's operational success is built on a foundation of strategic alliances with key partners. These include government bodies for licensing and regulatory compliance, local communities for social license, and a broad network of suppliers for essential materials and services. Financial institutions and investors are crucial for capital access, while technology and research partners drive innovation and safety improvements.

Eldorado Gold's mining operations are centered on the safe and efficient extraction and processing of ore. This crucial activity transforms raw materials into valuable gold and base metal concentrates or doré. The company utilizes sophisticated methods like crushing, grinding, leaching, and refining at its sites in Turkey, Canada, and Greece.

In 2024, Eldorado Gold demonstrated strong performance in its mining operations, reporting a significant 7% increase in gold production. This resulted in a total output of 520,293 ounces of gold, highlighting the effectiveness of their extraction and processing strategies.

Eldorado Gold's business model hinges on efficiently extracting and processing valuable minerals. This involves the entire lifecycle from discovering new deposits through advanced exploration techniques to developing and operating mines. The company focuses on producing gold and base metals, ensuring these commodities reach the market through strategic sales and marketing efforts.

Crucially, Eldorado Gold actively manages its environmental impact and associated risks. This includes implementing robust environmental stewardship programs and employing financial hedging strategies to buffer against market volatility, thereby safeguarding its financial health and operational continuity.

Eldorado Gold's success hinges on its highly skilled and dedicated workforce. This includes specialized professionals like geologists, mining engineers, and metallurgists, all crucial for efficient and safe resource extraction and processing.

The company's management team brings invaluable experience, guiding strategic decisions and operational execution. This expertise is vital for navigating the complexities of the global mining industry.

A strong focus on employee safety and well-being is a cornerstone of Eldorado Gold's operations. This commitment is reflected in tangible results, such as a significant 30% reduction in the total recordable injury frequency rate observed in 2024.

Eldorado Gold's key resources are its mineral reserves, mining infrastructure, skilled workforce, and access to capital. The company's proven and probable gold mineral reserves were 11.9 million ounces as of September 30, 2024. Its operational infrastructure includes mines and processing plants, with significant ongoing development at projects like Skouries. A skilled team of geologists, engineers, and management guides operations, supported by a strong financial position, including $857 million in cash and cash equivalents as of December 31, 2024.

Eldorado Gold champions responsible mining, integrating environmental stewardship, social responsibility, and strong governance (ESG) into its core operations. This commitment resonates with investors, partners, and communities who prioritize ethical business practices.

The company actively seeks to minimize its environmental footprint and foster positive relationships with local communities, as highlighted in its 2024 Sustainability Report. These efforts differentiate Eldorado Gold, showcasing a dedication to sustainable development alongside resource extraction.

Eldorado Gold delivers a consistent supply of gold and increasing amounts of copper and base metals to global markets, vital for industries and investors seeking stability. In 2024, the company produced over 520,000 ounces of gold, demonstrating its capability to meet this demand.

The company prioritizes shareholder value through efficient operations, cost control, production growth, and strategic development. This focus was evident in 2024 with a 31% revenue increase and positive free cash flow generation.

Eldorado Gold is committed to responsible mining, integrating Environmental, Social, and Governance (ESG) principles into its operations, appealing to ethically-minded stakeholders.

Local economic development is a core value, with 98% of its 2024 workforce coming from operating countries and 82% from local communities, alongside $4.4 million invested in community projects that year.

A diversified asset base across Turkey, Canada, and Greece, including the promising Skouries project, mitigates risk and offers significant future production growth, particularly with Skouries expected to boost output by 2026.

Eldorado Gold actively fosters robust relationships with governments and regulatory bodies in its operating jurisdictions. This proactive engagement is crucial for navigating complex legal landscapes and ensuring adherence to all environmental and operational standards. In 2024, the company continued its dialogue with national and local authorities to streamline permitting and maintain a stable operating environment.

These partnerships are fundamental to Eldorado Gold's business model, providing the necessary framework for legal compliance and facilitating the development of new projects. By treating governments as key stakeholders, the company aims to build trust and secure its social license to operate, which is vital for long-term success. The company's commitment to transparency in its dealings with these entities underpins its operational stability.

Eldorado Gold cultivates relationships with investors through transparent financial reporting and consistent communication, aiming to build trust and ensure informed decision-making among stakeholders. The company also prioritizes strong connections with local communities and Indigenous peoples, engaging in open dialogue and investing in community programs to foster shared advantages and enduring partnerships, as highlighted in their 2024 Sustainability Report.

Eldorado Gold actively participates in investor conferences and roadshows, offering direct engagement with a broad investor base, including institutional investors and analysts. These platforms are crucial for management to articulate the company's strategic direction, recent performance, and address investor queries. For instance, in 2024, Eldorado Gold presented at key industry events, highlighting its progress in projects like the Lamaque mine in Quebec, which reported an average gold recovery of 93.6% in Q1 2024.

Eldorado Gold utilizes its corporate website and investor portal as primary channels for direct communication, disseminating financial reports, sustainability updates, and investor presentations to a global audience. This ensures transparency and accessibility for all stakeholders, from individual investors to financial professionals. For example, the 2024 Sustainability Report, detailing their ESG commitments, is readily available on their site.

Global newswire services are employed to broadcast critical updates, including financial results and operational milestones, ensuring broad market awareness. Investor conferences and roadshows provide direct engagement opportunities, allowing management to articulate strategy and performance. In 2024, Eldorado Gold highlighted progress at its Lamaque mine, which achieved a 93.6% gold recovery rate in Q1 2024.

Community engagement is managed through local offices and liaison officers, fostering dialogue and addressing local concerns to maintain social license. The Greek subsidiary's Social Responsibility Performance Report, detailing a €29.5 million local economic contribution in 2023, exemplifies this commitment to transparency and local impact.

Governments in Turkey, Canada, and Greece are vital stakeholders for Eldorado Gold, acting as beneficiaries of taxes and royalties. For instance, in 2023, Eldorado Gold contributed approximately $149 million in taxes and royalties across its operating jurisdictions, reflecting the significant economic impact on these nations.

These governmental bodies are also responsible for issuing and supervising crucial mining licenses, environmental permits, and ensuring Eldorado Gold adheres to all operational compliance standards. The company operates within robust regulatory frameworks designed to manage environmental impact and community relations.

Eldorado Gold's customer segments are diverse, encompassing those who directly purchase their metal output, those who invest in the company's future, and those who are impacted by its operations. This multifaceted approach is key to their business model.

Metal refiners and industrial buyers form the bedrock of Eldorado Gold's revenue, directly acquiring the gold and base metals produced. In 2023, the company sold 490,160 ounces of gold, primarily to these entities, highlighting their critical role in the company's financial performance.

Institutional and individual investors are another vital segment, seeking capital appreciation and dividends. Eldorado Gold's listing on both the TSX and NYSE ensures broad accessibility for these investors who closely track financial health and governance.

Local communities and governments are also key stakeholders, influencing operational viability through social license and regulatory frameworks. In 2023, Eldorado Gold contributed approximately $149 million in taxes and royalties, underscoring its economic impact on host nations like Turkey, Canada, and Greece.

Eldorado Gold faces significant environmental compliance and reclamation costs, which are essential for responsible mining operations. These expenses cover adhering to stringent environmental regulations, implementing sustainable practices throughout the mining lifecycle, and meticulously managing tailings facilities to prevent environmental damage.

The company also allocates substantial resources to rehabilitating mined-out areas, ensuring land is restored to a safe and environmentally sound condition. For instance, in 2023, Eldorado Gold reported approximately $14 million in reclamation and closure costs, reflecting their ongoing commitment to environmental stewardship and long-term sustainability.

Eldorado Gold's cost structure is dominated by exploration, development, and operational expenditures. In 2024, capital expenditures for the Skouries project alone were $342.0 million, demonstrating the significant investment in future growth. Operational costs, covering labor, power, and materials, reached $564.2 million in 2024 due to increased production and labor expenses.

Environmental compliance and reclamation are also key cost components, with reclamation and closure costs reported at approximately $14 million in 2023. General and Administrative (G&A) expenses, including salaries, office costs, and legal fees, are essential for corporate functions and compliance, with 2024 G&A reflecting ongoing investments in governance and oversight.

Eldorado Gold's financial reporting often reflects the value of co-produced metals, such as silver, lead, or zinc, as byproduct credits. These credits act to reduce the per-ounce cost of gold production, rather than being recognized as direct revenue streams. This accounting practice significantly impacts the calculation of All-In Sustaining Costs (AISC).

For instance, in 2023, Eldorado Gold reported that byproduct credits at its Kisladag mine contributed to a lower net cash cost per ounce of gold. While specific figures vary by operation and metal prices, these credits are a crucial element in understanding the company's cost structure and the true profitability of its gold mining operations.

Eldorado Gold's primary revenue stream originates from the sale of gold produced at its mining operations. In 2024, the company sold 517,926 ounces of gold, a key driver of its financial performance.

Beyond gold, the company also generates revenue from byproducts like copper, silver, lead, and zinc, which are recovered during the gold extraction process. The upcoming Skouries project is expected to significantly bolster copper revenue.

While byproduct credits, such as those contributing to lower net cash costs at Kisladag in 2023, are crucial for cost management, they are accounted for as cost reductions rather than direct revenue. Financial instruments like zero-cost collars are used to manage price volatility and protect cash flows, though gains from these are secondary to mining operations.

Other income includes interest earned on cash holdings and gains from asset sales, such as the $155 million received in January 2025 from divesting a G Mining Ventures holding.