Eldorado Gold Announces Dividend Formula Enhancement
Eldorado Gold Corporation
("Eldorado", "the Company" or "We") is pleased to
announce an enhancement to the formula underlying its existing dividend policy.
The formula used to create the semi-annual dividend fund will continue to be
linked to the gold price and the number of ounces sold, and it will also
provide additional step-ups as the average realized gold price increases. The
dividend amount will be determined as fixed dollar amount per ounce of gold
sold, as follows:
|
Gold price (per oz., in US dollars)
|
|
Dividend (per oz., in CDN dollars)
|
|
Less than $1,549
|
|
$100
|
|
$1,550 - $1,649
|
|
$125
|
|
$1,650 - $1,749
|
|
$150
|
|
$1,750 - $1,849
|
|
$175
|
|
$1,850 - $1,999
|
|
$225
|
Under the Company's dividend policy, the declaration and payment of dividends
is subject to the Board's discretion and dependent upon, among other things,
legal restrictions regarding the payment of dividends by the Company. Any
dividend payment, if declared, is expected to be derived from a dividend fund
calculated on an amount, determined at the discretion of the Directors at the
time of any decision to pay a dividend, multiplied by the number of ounces of
gold sold by the Company in the preceding two quarters. The amount in the
dividend fund will be divided among all the issued common shares of the Company
to yield the dividend payable per share. Accordingly, the calculation of any
dividend , if declared, will also be subject to increases or decreases dependent
upon, among other things, the past, prevailing and projected gold prices.
"Eldorado enjoys some of the best margins in the gold business due to our
lowest quartile cost of production, and we expect to continue to do so,"
said Paul Wright, President and CEO of Eldorado. "We are pleased to have
adopted a policy of distributing a meaningful portion of these excellent
margins to our shareholders through what we believe to be an attractive and
sustainable dividend, while we aggressively continue to grow Eldorado as one of
the world's best gold producers".
Eldorado is a gold producing, exploration and development company actively
growing businesses in Brazil, China, Greece, and Turkey and surrounding
regions. We are one of the lowest cost pure gold producers. 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 THE BOARD OF DIRECTORS OF
ELDORADO GOLD CORPORATION
"Paul N. Wright"
Paul N. Wright
President and Chief Executive Officer